MEMORANDUM II. LEGISLATIVE A. NOMINATIONS

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1 MEMORANDUM To: From: Re: ABA Board of Directors Suzanne Rohde, ABA Vice President for Government Affairs and Policy September 2017 Government Affairs and Policy Board Report Date: September 5, 2017 I. OVERVIEW The following report provides an update on Government Affairs and Policy Division (GAP) activities since the last board report, dated April 12, It is organized around Legislative, Executive and Operations activities undertaken by GAP during this time period, on behalf of the American Bus Association. II. LEGISLATIVE A. NOMINATIONS Congress and the Administration continue to make progress on nominations to fill presidentially appointed positions for executive branch agencies. As of mid-july, all cabinet-level positions were confirmed; however, on July 28 th, the President named Secretary of Homeland Security General John Kelly as his new Chief of Staff, once again creating a vacancy at the Department of Homeland Security. An updated list of appointments and confirmations is attached. Just a brief note regarding nominations at the USDOT. Prior to August recess, the Senate did a mass push of voting out nominations, and confirmed Robert Sumwalt to be a member and chairman of the National Transportation Safety Board, Mark Buzby to be administrator of Maritime Administration, and David Pekoske to be TSA administrator. However, several DOT nominees were held up, including Steven Bradbury to be DOT general counsel, Ron Batory to be FRA administrator, Derek Kan to be undersecretary of Transportation for Policy and Adam Sullivan to be assistant secretary for governmental affairs. Although these nominations were ready for a vote, a hold was placed on them due to regional politics concerning funding for a large transportation project in New York known as the Gateway Program. The votes to confirm these nominations may occur this fall, when the Senate is back in session. B. LEGISLATION 1. Appropriations a. FY 2017 In May, after passing a week long Continuing Resolution (CR) to extend the April 29 deadline established by the previous CR to allow more time for negotiations, both chambers of Congress passed a $1.1 trillion omnibus appropriations package funding the federal government through September 30, 2017, the end of the fiscal year. The legislation was signed into law on May 5th,

2 averting a government shutdown. Through aggressive lobbying efforts by GAP, the omnibus package did include funding for the Intercity Bus Security Grant Program; however, Congress reduced it to $2 million from the Senate s original mark of $3 million. Candidly, GAP s advocacy to continue funding for the program faces strong resistance, both in the House and Senate. As to distribution of the $2 million in FY 2017 funding, due to the delay in passing an omnibus measure, the Transportation Security Administration (TSA)/Federal Emergency Management Administration (FEMA) managed an expedited application process that closed on June 22. The announcement of grant awards was made on September 1, The overall number of award recipients was considerably down this year, with only 18 companies receiving awards (compared with 90, in 2016). Also noteworthy, the omnibus legislation did not include language restricting the Federal Motor Carrier Safety Administration (FMCSA) from moving forward on its Safety Fitness Determination rule; however, the agency had formally withdrawn the rule in March, prior to enactment of the omnibus. Also, the legislation did not include language to establish federal preemption over hours of service, to render current the California meal & rest break law preempted. This is a controversial issue with the challenge being led by the American Trucking Association with ABA s support. However, ABA supported language concerning the FMCSA lease & interchange rule did survive, as it was included in both the House and Senate appropriations bill reports. b. FY 2018 While the FY 2017 omnibus negotiations were underway, Congressional appropriations committees also attempted to move forward with the FY 2018 funding process, under regular order. However, with a new presidential administration, details of a formal budget request from the Administration were delayed until May 23. Then, once the request was submitted, many in Congress found it to be unrealistic in terms of funding priorities and proposed cuts. Also challenging the effort for regular order was the wrangling over passing a budget resolution, legislation Congress uses to set the levels for discretionary spending for the 12 appropriations bills. Nonetheless, House appropriations committees held hearings and marked up all 12 appropriations bills by mid-july, cramming what usually is about a 7-8-month process into about 3-weeks. After discussing the possibility of packaging all 12 bills into an omnibus measure to pass before August recess, which faltered due to Republican interest moving it with only Republican support, the House settled for passing a small national defense mini-bus package of 4 of bills (Legislative Branch, Energy-Water, Defense and Military Construction) before leaving for recess on July 28. The Senate was not as aggressive, completing the committee process for only 6 bills before August recess, even though it remained in session an additional two weeks into the month. For September, the House plans to move the remaining 8 bills in a larger mini-bus package, prior to the end of the fiscal year. However, the Senate is considerably behind in moving appropriations bills and there is significant resistance to the House-version of many of the bills, due to a number of controversial provisions including cuts to discretionary programs and increases to defense spending. It is unlikely a funding package for FY 2018 will pass prior to September 30, and members are discussing the likelihood of a CR, although its term is unclear at this point. Most expect that the CR will fund the government through the end of the calendar year, so while we may not be worried about a government shutdown at the end of September, there could be one at the end of December. Further, now in the wake of Hurricane Harvey, emergency relief funding will likely play a

3 significant role in FY 2018 funding decisions. In short, September will be a challenging month in the federal legislature. During the summer, as part of the FY 2018 appropriations process, GAP aggressively engaged in support of two key ABA objectives: stopping the Federal Motor Carrier Safety Administration (FMCSA) lease and interchange rule (L&I rule); and funding for the IBSGP. In terms of the L&I rule, GAP was again successful in working with both House and Senate appropriators to obtain inclusion of language in the transportation appropriations bill reports. However, efforts to obtain continued funding for the IBSGP were not as successful. The House appropriations committee declined to include funding for the program in its homeland security appropriations measure (this is one of the 8 remaining bills expected to be brought to the floor in September). Congressman Dent (PA) conducted outreach on our behalf to the committee, and raised the issue at the mark-up for the bill. As well, several ABA members and representatives joined GAP in conducting direct outreach to specific House members, including the chairman of the House appropriations committee Congressman Frelinghuysen (R-NJ). We also elicited support from the U.S. Travel Association, as part of our broader effort to work with organization on travel related issues. Since the House mark-up, GAP has concentrated its efforts on the Senate side, continuing outreach to key offices, working with the Transportation Security Administration on data to support the funding request, and coordinating with various ABA members on Senator outreach. We were successful in facilitating the re-introduction of legislation in the House to reauthorize the IBSGP, by Congressman Lipinski (D-IL) and Congresswoman Comstock (R-VA). We also gained support for funding the program, including interest in legislation to reauthorize it, from Senator Shaheen (D-NH), a member of the Senate homeland security appropriations subcommittee. This support is in addition to support we received from senators Blunt, Hoeven, and Baldwin, all members of the Senate appropriations committee. In late July, GAP also learned of a letter sent to the homeland security appropriations leadership from Senator Durbin, a ranking member in Senate leadership, along with a contingent of over 30 Democrat Senators, urging robust funding of the transportation grant programs, including the IBSGP. Aside from the appropriators, GAP also engaged in efforts to work with Senator Johnson s (R-WI) office, both directly and through ABA members, due to his role as chairman of the Senate Homeland Security Committee and based on his prior criticism of the program with Senator Flake (R-AZ). Because of the Johnson/Flake previous identification of the IBSGP as wasteful, we continue to face an uphill battle to obtain funding. The GAP team, with assistance from ABA members and member representatives, remain in close touch with the offices of senators Blunt, Hoeven, Baldwin and Manchin, and plan to continue seeking support for the program in the Senate, as we head toward final funding negotiations this fall and building long term support for the program. We are currently targeting other members of the Senate Appropriations Committee, including senators Boozeman (R-AL), Collins (R-ME), Shelby (R- AL), Murkowski (R-AK). However, as we stay engaged in the entire appropriations process, we are hearing from staff of significant pressure to find ways to reduce spending and cut programs. Also noteworthy, the FY 2018 financial services appropriations bill passed by the House contains language prohibiting the Internal Revenue Services (IRS) from finalizing and implementing the estate and gift tax valuation discounts changes, opposed by ABA. Working with the Family Business Coalition, GAP has remained vigilant in opposing this rulemaking. Finally, federal funding for Brand USA, which GAP included in its appropriations advocacy efforts, was retained in the FY 2018 appropriations despite the Administration s proposal to redirect the funding to border security.

4 2. Tax Although tax reform continues to be identified as a high priority for the Trump Administration and the Republican Congress, the past several months demonstrated, like other Republican priorities, Republicans are not united on this issue. Initially, tax reform was relegated to second place in terms of priorities, while Republicans attempted to keep campaign promises to repeal/replace the Affordable Care Act. However, by August, although the House did eventually pass legislation, it became clear the Republican controlled Congress and Administration have not found a way to keep this promise. This outcome makes success on tax reform even more urgent for Republicans, as they need a victory going into the 2018 mid-term elections. Thus, to avoid the pitfalls of the ACA repeal/replace effort the Administration and Republican Congressional leadership are working more closely together, and they may scale back on the level of ambition. Further complicating things, Republicans had hoped to use the money saved by passing Obamacare repeal and replace to help pay for tax reform, but now they do not have those savings. Over the course of the summer, while the ACA repeal/replace effort floundered, the Administration and Republican leadership spoke of turning attention to tax reform, and to some degree this occurred but without producing an agreed upon product. The House tax writing committee began holding hearings on tax reform in the spring; while the Senate tax writers held their first hearing on July 18. Yet, the real work on the issue is being done through the Gang of Six, a group comprising House Speaker Ryan (R-WI), House Ways and Means Committee Chair Brady (R-TX), Senate Majority Leader McConnell (R-KY), Senate Finance Committee Chair Hatch (R-UT), Treasury Secretary Mnuchin, National Economic Council Director Cohn. On July 27, the Gang of Six issued a joint statement outlining their tax reform principles, which clearly rejected the controversial border adjustment tax or BAT idea but provided few other details. The intent of the group was then to use August as a period of touting tax reform in events around the country, and then release some form of a framework in September. However, with the onset of Hurricane Harvey, in addition to a number of other must pass pieces of legislation (e.g. increasing the debt limit, appropriations bills, reauthorization of the Federal Aviation Administration, and now emergency funding from Hurricane Harvey), Congress will be hard pressed to make progress on tax reform before the end of the year. Further, as Republicans are determined to pursue tax reform without bipartisan support, they need a budget resolution to use the reconciliation process to overcome opposition from Democrats. A budget resolution, generally, is statement of party principles but it can also serve as a critical tool to overcome the Senate filibuster and move controversial legislation, sidestepping the minority party, through a process referred to as reconciliation. The House Budget Committee did finally pass an FY 2018 budget resolution out of committee just before the August recess, but it faces an uphill battle in terms of passing both the House and Senate because it calls for drastic cuts to domestic spending. With these various challenges to overcome, and now with funding pressure from Hurricane Harvey, the timing and process for tax reform is difficult to predict at this point. A more detailed summary of the state of play, prepared by ABA s consultant Capitol Tax Partners (CTP), is attached. As activity on general tax reform proceeds, GAP will continue to monitor and engage in the process as appropriate, with the assistance of CTP, to protect ABA interests, such as the fuel tax

5 refund, and advance additional ABA interests. At the beginning of the summer, Senate Finance Committee Chairman Hatch (R-UT) asked industry groups and other stakeholders for tax reform recommendations in an effort toward ensuring that lawmakers and the White House meet their objective of overhauling the tax code to boost the economy. To support the Chairman in his effort, ABA submitted comments outlining our goals for tax reform on July 13. In further supporting the advancement of ABA interests, on August 8, GAP issued a survey with questions developed by CTP, seeking ABA member input to assist GAP in articulating ABA s tax policy position. Additionally, as members of several coalitions advancing specific tax related positions in-line with ABA interests, such as estate/gift tax repeal, and we have routinely participated in educational forums and advocacy campaigns in support of the coalition position. 3. Security In addition to our advocacy for funding the IBSGP, GAP also worked to advance legislation from Congressman Lipinski (D-IL) and Congresswoman Comstock (R-VA) reauthorizing the IBSGP, the SAFER TRANSIT Act. After finally reintroducing the bill, in June, at the request of Lipinski s and Comstock s office, we conducted several meetings to assist them in seeking support to add the bill as an amendment to the Homeland Security Reauthorization bill (H.R. 2825) that was to be brought to the House floor for a vote. They requested our assistance as neither member sits on the House Homeland Security Committee. However, at last minute, the bill was added to the House suspension calendar, a fast track method of approving bills that prohibits amendments, thus passed without an opportunity to seek the amendment. At this point is unclear whether the Senate will take up the bill. Thus, with Congressman Lipinski s office, we continue to seek legislative vehicles and find additional sponsors for the bill. Working directly with ABA members and respective representatives, GAP also made some progress on the Senate side. We, joined by other representatives from ABA members, met with Senator Johnson s (R-WI) office, in an effort to gauge the Senator s current position with regard to the program. We also assisted an ABA member in an effort to obtain a local meeting with the Senator, although this has yet to occur. Progress was also made with Senator Shaheen s (D-NH) office. GAP supported an ABA member meeting with the Senator in July, where she not only committed to supporting continued funding for IBSGP, but also expressed interest in crafting legislation to reauthorize the program. GAP will be following up and supporting her staff in this effort. 4. Aviation Reauthorization Over the course of the summer, both the House T&I committee and the Senate Commerce committee proceeded with hearings and eventually both committees marked up legislation at the end of June to reauthorize the Federal Aviation Administration, which is due to expire on September 30, However, akin to last year, the T&I bill (H.R. 2997), due to the controversy surrounding Chairman Shuster s (R-PA) interest in establishing the air traffic control functions as an independent entity, does not yet have sufficient support to bring to the House floor for a vote. While the Commerce committee under Chairman Thune s (R-SD) leadership moved a less controversial bill (S. 1405) with broader support, but it, too, now faces some opposition. Senator Schumer (D-NY) has on the bill over a provision concerning pilot licensing. At this point, with a number of must pass (and also controversial) pieces of legislation awaiting action by Congress

6 and a dwindling legislative calendar, we could see another extension to the FAA program authorization. Neither the House or Senate FAA reauthorization bills addressed ABA s objective concerning airport access. The GAP team did make progress on this initiative, though, through the summer. Working with a coalition comprised of the near airport parking industry and the limousine/taxi/paratransit industry, enabling GAP to present a stronger front on this issue. Prior to the markup of in both the House and Senate committees, the coalition met with several Congressional offices to promote an outline legislative changes affecting the airport grants. However, it was a difficult proposal in terms of garnering support, as it was adamantly opposed by both the FAA and airport lobbyists. Following markup of the bills in June, GAP met with Senator Thune s staff and drafted up a more reasonable amendment, establishing a working group with stakeholder representation to address surface issues at airports. GAP then worked with the coalition to garner support, and met with the Commerce staff to discuss ways to move forward. The intent would be to offer the amendment when the Senate bills comes to the floor for a vote, possibly in September. In preparation, the coalition is now seeking Senators to champion the amendment and build support. Although the amendment presents a very reasoned approach, airports have already notified GAP of their strong opposition. Again, emphasizing the challenges involved in addressing a surface related issue within the aviation context. However, the prospect of another delay in passing an FAA reauthorization bill, provides more time for the coalition to seek champions for the amendment in the Senate and work with the House, although there still remains the possibility the Senate may vote the Thune bill in September. If Congress is forced to pass a clean FAA extension, it will likely only be through the end of the calendar year, so GAP will continue its outreach effort on this matter through the fall and winter. 5. Infrastructure The new Administration also came into office with the goal of producing a significant infrastructure package (a trillion-dollar plan, mentioned during the election campaign), to address the laments of a nation of crumbling infrastructure. Yet, like other policy goals, actual progress on the infrastructure front has been elusive at best. Infrastructure investment was a missing element from the Administration s budget proposal, aside from recommending killing funding for Amtrak, transit new starts and the TIGER program. In June, the Administration publicized an infrastructure investment week filled with events, one of which ABA attended at the USDOT entitled Rails and Roads Regulatory Relief, where the President gave a rallying speech on the importance of cutting through red tape to build projects. However, other than several administrative notices seeking suggestions/or proposing experimental procedures to expedite infrastructure investment (i.e. cut down on red tape), along with much publicized meetings between the Administration and stakeholders, there appears to little progress on the development of a plan. Secretary Chao has alluded to a plan, but it will most likely resemble the same principles-type document produced for the budget earlier this year and tax reform. The only clear position from the Administration regarding infrastructure, to date, is the interest in public-private partnerships and tolling, with the idea of seeking greater private and local investment rather than relying on federal resources. However, if the Administration and Congress can succeed in addressing the most pressing issues of the debt ceiling and FY 2018 funding, along with successfully passing tax reform, there is a possibility for progress to be made on infrastructure,

7 especially considering the strong desire for some legislative wins prior to the 2018 mid-term elections. 6. Data Access Recently, ABA was asked to join a new coalition concerning access to data from highly automated vehicles or HAVs. As a forerunner to fully automated or autonomous vehicles, various interests have asked legislators to weigh-in on the issue of data and its ownership. Original equipment manufacturers or OEMs of vehicles are making the case they should own/control the access to data generated by highly automated vehicles for security and safety purposes; however, there are privacy concerns and vehicle owner interests to take into consideration. This is not an entirely new issue, as the aviation industry has grappled with this same issue, in addition to safety investigators. It poses a number of concerns, and there are a variety of interests at stake. Currently, only data from an event data recorder in a vehicle is regulated, and federal law states that the owner of the vehicle owns/controls the data. However, the National Highway Traffic Safety Administration (NHTSA) has an interest in guarding against cybersecurity or hacking incidents with HAVs, and on this basis along with safety reasons for maintaining a vehicle, OEMs have suggested they should own/control the data. On July 27, the House Energy and Commerce Committee marked up a bill (H.R the Safely Ensuring Lives Future Development and Research in Vehicle Evolution or SELF DRIVE Act) that, among other things, touches on the data access and cybersecurity but did not entirely resolve it. The bill was bipartisan and passed the Energy and Commerce Committee The full House will take up the bill the week of September 4 under suspension of the rules, so it is likely to pass with a large bipartisan majority. The coalition is working on language to put forward in the Senate, as the Senate Commerce Committee continues to work on similar legislation. 7. Miscellaneous In addition to the various legislative topics outlined above, GAP also engaged in advocacy activities and tracking of other pieces/provisions of legislation such as Congresswoman Meng s (D-NY) bill (H.R. 2715) on baggage fees, Senator Thune s (R-SD) bill (S. 763) on surface and maritime security, Congressman Babin s (R-TX) bill (3282) seeking a delay in mandate for electronic logging devices and related provisions in the FY 2018 transportation appropriations bill, and Congressman Perry s (R-PA) bill bus bill (H.R. 2120).. The GAP team also lent assistance to state and regional associations and ABA members with regard to activities by the New York City Council, and the New York/New Jersey Port Authority, and the Chicago City Council. II. EXECUTIVE A. EXECUTIVE ACTIONS 1. Executive Orders - Generally As noted in the GAP monthly reports, President Trump has made generous use of Executive Orders (EOs) since his inauguration on January 20, Executive orders are directives from the president used to govern the actions of Executive branch agencies. As they receive no review or

8 approval from Congress and can only be challenged in court for exceeding current law, such orders are limited to directing executive branch activities. Nonetheless, presidents throughout history have often used EOs to implement their policy goals, and at times to sidestep an unfriendly Congress. To date, President Trump has issued 45 EOs, and GAP has tracked these directives to identify matters of particular interest to ABA and take action when appropriate. Specifically, GAP has focused on the EOs related to regulatory reform, executive branch reorganization and travel related restrictions, and took note of EOs concerning buy American and hire American, an advisory council on infrastructure and promoting rural prosperity. 2. Regulatory Reform With regard to regulatory reform, the President has signed 3 EOs (13771, and 13789) in addition to the regulatory freeze memorandum following his inauguration, providing a basis for regulatory reform. Collectively, these documents have led to regulatory reviews by executive branch agencies and in some cases withdrawals of pending rulemakings, the establishment of regulatory task forces to ensure implementation of the 2-for-1 regulatory directive and other reforms, and ongoing activities to provide regulatory relief. As part of the monthly GAP report, GAP has started to include updates on executive branch regulatory reform task force activities. This is not turning out to be a uniform activity across the government, but we are seeing evidence of efforts for agencies to better manage rulemaking activity and scale back. For example, the Internal Revenue Service (IRS) solicited comment on a list of pending regulatory actions it was reconsidering which included the pending rulemaking concerning valuation discounts for estate and gift tax purposes, a rulemaking ABA strongly opposed. GAP, on behalf of ABA, submitted comments in line with its coalition partners, submitted comments in support of the IRS withdrawing this proposal. 3. Reorganization of the Executive Branch In terms of executive branch reorganization, EO 13781, in May, Office of Management and Budget Director Mick Mulvaney, solicited ideas from the public on how to make the executive branch more effective and efficient. On behalf of ABA, GAP submitted 2 ideas: 1) the need to advocate for greater involvement by private industry in supporting public transportation needs, citing the need for broader access to FTA grants and expanding the Essential Air Service program to enable motorcoach operators to serve rural needs; and 2) the need for FMCSA to consider 3 rd party resources to support their inspection activities. Following the submission of these documents, GAP had an opportunity to meet with OMB officials and discuss the ideas in June. 4. Travel Restrictions The President issued several EOs relating to international travel to the U.S. (E.O , and 13802). These actions let to a negative impact on international travel to the U.S. and attendant negative media coverage, effecting ABA members. In response, GAP took the lead on drafting a letter to President Donald Trump and Commerce Secretary Wilbur Ross regarding the unintended consequences of the travel bans, and coordinated with the U.S. Travel Association (USTA). We also worked with the Student & Youth Travel Association (SYTA) to draft and send a letter to the President and Secretary of Commerce Ross expressing concern, in the wake of Toronto, CA,

9 announcing its plans to curb student travel to the U.S. Then, following the issuance of EO 13802, repealing the target goals for processing VISAs, we joined with USTA again in sending a letter in opposition in July. B. REGULATIONS As previously noted and mentioned in the monthly GAP reports, agencies/departments are continuing their internal regulatory review of rulemaking proposals that were pending at the time of the administration change. In terms of rulemakings GAP tracked, only the rulemaking proposals issued by TSA in December 2016 appear to be exempt from the executive review directive. The following provides an update on rulemaking actions monitored by GAP that have updates, along with new administrative initiatives. In addition to the actions identified below, there remain a number of other administrative actions GAP continues to track, however there are no updates to provide at this time. 1. Fixing America s Surface Transportation Act (FAST Act) Provisions a. Tolling/HOV The Federal Highway Administration (FHWA) finally published an initial draft of guidance on how to implement the FAST Act regarding equitable treatment of over-the-road-buses in terms of tolling and high-occupancy-vehicle (HOV) status. GAP filed comments, and assisted other ABA members with filing comments on the guidance by the May 30, 2017, deadline. Although this publication was a good initial step, we are awaiting publication of the final guidance. b. FMCSA s CSA Program The FAST Act directed FMCSA to commission the National Academies of Science (NAS) to conduct a study of the efficacy of the Compliance, Safety, Accountability program (CSA) and the Safety Measurement System (SMS), the analytical tool used by the program. The NAS completed its study and issued its final report on June 27. The report stated that although the current analytical tools were justified, the system could be improved. Now, as the FAST Act requires, FMCSA is developing a corrective action plan to address the NAS recommendations, for submittal to the USDOT Inspector General. As part of their process, FMCSA is holding a public meeting for stakeholder input, and ABA is participating in this even scheduled for September 8. c. Planning The FAST Act also amended federal planning statutes within both the federal highway and transit programs, to require state and local transportation planning processes to account for intercity bus facilities and the economic and environmental benefits of intercity bus systems, and include intercity bus operators in the planning process. In December 2016, after a controversial rulemaking process, FHWA jointly with the Federal Transit Administration (FHWA/FTA) published a final rule incorporating the FAST changes into the planning process, but also finalized significant changes to the organization of Metropolitan Planning Organizations or MPOs. GAP filed comments in this proceeding opposing the MPO reorganization changes. However, as the rule was so controversial, Congress repealed it under the authority of the Congressional Review Act, and the repeal was signed into law on May 12, Lease and Interchange

10 GAP s efforts to force FMCSA to modify or repeal this final rule, continue; the compliance date for the final rule is now January In June FMCSA published a brief notice again expressing its intent to revise the rule and outlining ideas for revision. However, the document did not include any proposed regulatory text. After learning from FMCSA staff the Agency planned to move directly to a new final rule, without providing the industry an opportunity to view proposed revised text, GAP led an industry-wide campaign to force the agency to publish a formal NPRM, through comment submissions by the July 31 deadline. In this effort, GAP also successfully enlisted the assistance of both House and Senate appropriators to force the agency to clarify its actions. Currently, we are waiting the next actions from FMCSA in response to our request and comments. 3. Electronic Logging Devices (ELDs) FMCSA published its final rule on electronic logging devices on December 16, The first compliance date under the rule is December 17, 2017, when all operators will be required to begin using ELDs. As the compliance data approaches, a number of interests have sought a delay and in some cases repeal of the mandate. Specifically, the Owners-Operators of Independent Drivers Association lost their appeal to the Supreme Court in June to overturn the mandate, leaving the Legislature as the final hope for recourse. Meanwhile, over the summer, FMCSA undertook various initiatives to assist operators with coming into compliance. In June, they initiated a national campaign to assist CMV operators and drivers, with events around held around the country. They also published a list of ELD FAQs, and routinely update the list of registered vendors (and those who have lost their registration). As well, at GAP s invitation, FMCSA presented an in depth Q&A session at the summer BISC meeting in June, to specifically assist bus operators. As of today, due to the hold up with the FY 2018 appropriations process, the December 17, 2017 date remains the compliance date. 4. Entry Level Driver Training The only update to this rulemaking, which was finalized on December 8, 2016, was that the effective date was delayed several times to May 22, 2017, as a result of the USDOT regulatory review undertaken at the start of this administration. The compliance date remains February 7, Obstructive Sleep Apnea On March 10, FMCSA, jointly with the Federal Railroad Administration, published an advance notice of proposed rulemaking (ANPRM) seeking data on the prevalence of moderate-to-sever obstructive sleep apnea (OSA). As a result of the regulatory review undertaken by USDOT, this rulemaking was withdrawn on August 8, Crash Preventability Program On July 12, 2016, FMCSA initially published a notice proposing a demonstration program to determine the efficacy of a program to conduct preventability determinations on certain types of crashes. GAP filed comments, based in industry input, opposing this initiative as it was drawn to narrow there is concern on how FMCSA may use crash data in the future in calculating SMS

11 scores. Nonetheless, on August 1, 2017, FMCSA initiated the demonstration program by permitting operators to submit information to challenge the determinations of preventability of crashes under certain criteria. The demonstration program is currently set to run for 2 years. 7. Military Licensing and State CDL Reciprocity On June 12, 2017, FMCSA issued an NPRM to allow waiver by State Driver License Agencies of the CDL knowledge test for qualified veterans and active duty personnel. Together with FMCSA s action in 2012 to waive the CDL skills test, this waiver is intended to simplify processing and reduce costs for States and for qualified individuals, and facilitate transition of military to civilian service. GAP filed comments in support of this rule, with the caveat that requirements for CDL endorsements should not be waived and that driver records should reflect whether the CDL was obtained via waivers. 8. Commercial Learner's Permit Validity On June 12, 2017, FMCSA issued an NPRM to allow States to issue a CDL learner s permit with an expiration date of up to one year, replacing the current six-month limitation. The proposal could lead to flexibility, a reduction in paperwork and cost-savings. The GAP filed comments in support of the proposal, but raised concern that this action should not take the impetus off states to resolve their resource issues in terms of providing sufficient CDL testing opportunities. 9. Speed Limiters A joint NPRM from FMCSA and NHTSA concerning speed limiters was published on September 7, GAP filed comments by deadline of December 7, 2016, taking a neutral position on this rulemaking however noting several technical concerns, and advocated for voluntary adoption. Recent reports indicate this rulemaking will be withdrawn by DOT, pursuant to the executive branch regulatory review. 10. CDL Qualifications for Drivers with Diabetes Mellitus In May 2015, FMCSA issued an NPRM to permit drivers with stable, well-controlled insulintreated diabetes mellitus (ITDM) to be qualified to operate commercial motor vehicles in interstate commerce. Based on industry input, GAP filed comments in opposition to this proposal. Nonetheless, the Agency appears to be moving forward with a proposal to attempt to mainstream drivers with ITDM. Per a notice published on July 27, 2017, FMCSA is seeking to change its previously proposed written notification from the treating clinician (TC) with a form to be completed by the TC and provided to the certified medical examiner, in anticipation of finalizing the May 2015 rule proposal. This form would be required for CMV ITDM drivers who wish to obtain a CDL. GAP will hold an open conference call to gather industry input to prepare comments for filing by the October 6, 2017, deadline. 11. New SMS Violations On August 8, FMCSA announced on its website it was adding 12 violations to the CSA SMS to provide large truck and bus companies a more complete picture of their safety performance. The

12 update aligns with recent changes to FMCSA s roadside inspection collection software and builds on efforts to continuously improve the consistency of data in the Agency s systems. GAP included notice of FMCSA s announcement and changes in ABA publications. 12. FMCSA Rulemaking Procedures On August 7, 2017, FMCSA proposed to amend its rulemaking procedures by revising the process for preparing and adopting rules, petitions, and creating a new process to go directly to final rules. Also, the Agency is looking to add new definitions, and makes general administrative corrections throughout its rulemaking procedures. These proposed actions are mandated by the Fixing America s Surface Transportation (FAST) Act. GAP will hold an open conference call to gather industry input to prepare comments for filing by the October 6, 2017, deadline. 13. IRS Valuation Discounts On August 4, the Treasury Department/IRS issued an NPRM proposing to expand the regulations governing the valuation of interests in corporations and partnerships for estate, gift and generationskipping transfer tax purposes. Citing the overwhelming amount of comments received on the proposal (GAP prepared and filed comments in opposition), the Obama Administration could not finalize the rule by January 20, when the new administration came into office. Working with the Family Business Coalition, in addition to the language included in the FY 2018 appropriations financial services bill, referenced above, GAP submitted comments in support of the IRS s July interim report citing its intent to withdraw this rule. The IRS report was developed in response to the regulatory reform efforts directed by EO DOL Overtime Rule On May 23, 2016, the Department of Labor (DOL) published a final rule updating exemption requirements from overtime pay, in effect expanding the eligibility of employees (more than double the former pool) required to be paid overtime. The rule was to go into effect last December, but in advance of the date a federal judge in Texas enjoined the rule nationwide. After several requests for postponement by DOJ in the spring, the court finally issued a ruling on August 31 invalidating the rule. Nevertheless, per statements by Secretary Acosta during his nomination hearing, DOL is proceeding to initiate a new rulemaking to raise the thresholds. Toward this goal, DOL published a request for information concerning the proper level. The comment deadline September 25, and GAP intends to hold an open conference call to discuss input. III. OPERATIONS A. COUNCILS AND OTHER ASSOCIATION MEETINGS 1. Bus Industry Safety Council (BISC) and BISC West The GAP team managed and conducted another successful BISC summer meeting on June 13-14, 2017, in Linthicum, MD. In preparation for the event GAP executed planning activities, including monthly calls with executive leadership and the individual standing committees; solicitation and

13 coordination of sponsors; development, publication and distribution of promotional materials; preparation of meeting materials; management of awards; lining up speakers; and running the event. There were 165 attendees at the summer meeting, who attended 18 safety sessions covering a range of topics. Additionally, GAP obtained two new sponsors, and had 9 exhibitors in attendance. The GAP staff also hosted Saucon Technologies for a users group meeting at BISC. Following the summer meeting, GAP staff again began managing multiple monthly meeting calls with the BISC executive committee and standing committees, in preparation for the BISC Winter meeting to be held on January 28-29, 2018, in conjunction with the ABA Annual Meeting and Marketplace, in Charlotte, NC. GAP also conducted a survey following the 2017 meeting to assist in planning future meetings. The summer meeting dates for BISC in 2018 were also secured, the summer meeting will again be held in Linthicum, MD, on June a. BISC West The GAP staff also prepared to hold the second BISC West meeting, in conjunction with the California Bus Association meeting on October 17, 2017, in Alpine, CA. GAP lined up speakers, and developed and distributed promotional materials for the event. Registration for the event opened in June. 2. Bus Industry Maintenance and Repair Council (BusMARC) The GAP team also managed and conducted another successful BusMARC summer meeting, in conjunction with the BISC summer meeting in Linthicum, MD, on June 14-15, The meeting was held in partnership with Trailways, as a new initiative. Leading up to the meeting, similar to BISC, GAP staff engaged in a variety of preparatory activities. The summer meeting hosted 65 attendees and managed an offsite visit to 3 locations: Gunther Charters, Prevost and Maryland Scale House. Following the meeting, GAP conducted a survey to assist in planning future meetings, and began preparation for the Winter meeting, to be held on January 29-30, 2018, in Charlotte in conjunction with the ABA Annual Meeting and Marketplace. The summer meeting dates for 2018 were also secured, the summer meeting will be held jointly with BISC in Linthicum, MD, on June The GAP staff also began exploring opportunities for hold BusMARC meeting independently in 2019, by issuing a request for proposals. 3. State/Regional Activities The GAP staff continued supporting state and regional associations by conducting educational outreach activities, coordinating on both federal and local advocacy activities. GAP attended 4 state/regional association meetings, providing Washington updates. GAP also conducted its quarterly association call on July 12, Also, as part of a broader advocacy initiative in support of revising the FMCSA L&I rule, GAP coordinated with state/regional associations to conduct outreach to Congress and file comments, including holding a conference call, drafting up templates and providing guidance, for a comprehensive industry approach. As well, GAP supported several state/regional associations and members with local issues, including CBA s ongoing issues with California airports, the Port Authority of New York and New Jersey s terminal redevelopment initiative along with the Bus Association of New York and the Greater New Jersey Motorcoach Association, the City of Chicago s new party bus ordinance, and nationwide support for emergency response efforts in the wake of Hurricane Harvey.

14 4. Coalitions The GAP team also engaged in building and maintaining coalitions in support of ABA objectives. Through advocacy initiatives on various tour and travel initiatives, GAP strengthened its alliance with USTA and improved coordination between the two most recognized tour and travel associations in Washington, D.C. As well, GAP invested effort in strengthening its alliance with the American Trucking Association, with its new leadership. GAP also conducted a number of activities with its partners in the Family Business Coalition and Business Coalition for Fair Competition. GAP also joined and strengthened a coalition comprised of the Near Airport Parking Trade Industry and the Taxi, Limousine and Paratransit Association, created to advocate on behalf of surface transportation interests for airport access. We also joined the Prior Approval Reform Coalition, to fight for reform of the Federal Election Commission s requirement for trade associations to obtain prior reauthorization for PAC solicitations. Finally, GAO recently joined the Data Access Coalition to advocate for protections on access to vehicle data. B. MISCELLANEOUS In addition to GAP activities reported above, the GAP team also conducted and/or participated in number of other meetings and activities in support of ABA goals and interests. Although not possible to capture all the activities GAP engages in on a day-to-day basis in support of ABA, the following provides a brief overview of some of the more notable activities. 1. Policy/Advocacy In addition to the various activities already mentioned, GAP staff continued to engaged in a number of outreach activities both to Congress and the new administration. Since the last board meeting, GAP held over 50 meetings on Capitol Hill pursuing ABA policy objectives. We met with members of the House and Senate, as well as members/staff from the Transportation & Infrastructure Committee, Senate Commerce Committee, and both the House and Senate Appropriations Committees. We also engaged with members of the tax writing committees through BusPAC events and comment submissions. In addition to Congressional meetings, GAP also held several meetings/calls with the new FMCSA Chief Counsel and engaged with other FMCSA, DOT and OMB personnel, developing relationships within the new Administration. Over the course of the summer, GAP also successfully conducted outreach to the National Park Service (NPS), to establish and enhance ABA s relationship with NPS, in the interest of tour and travel. In June, on behalf of ABA, I became a board member of Operation Life Saver, to maintain an ABA presence with other surface transportation modes on the rail safety organization. As well, in June, GAP worked with coalition partners to support Infrastructure Week, in conjunction with the Administration s infrastructure investment interest. With travel and tourism coalition partners, GAP also worked on responding to the Administration s EOs concerning the travel ban and visa program. GAP also attended various policy forums and coalition meetings, in support of ABA policy objectives. In July, GAP prepared and staffed the joint ABA-UMA policy meeting. In August, GAP supported Congresswoman Wagner s (R-MO) human trafficking event, along with Greyhound, to highlight the industry efforts and concerns with this issue. As well, on an on-going basis, GAP provided support to ABA members concerning federal, state and local issues, as

15 needed. The GAP team also attended over 25 fundraising and meet/greet events with members of Congress. 2. Operations Since the last ABA Board report, GAP staff remained very active in executing ABA government advocacy and policy operations. With a full complement of staff, ABA s GAP operation was operating at full capacity. Beginning in May and over the course of the summer, GAP supported ABA s strategic planning efforts, including participation in the strategic planning meeting in June. GAP has also supported the ABA initiative to develop and implement a new member database system. The GAP staff monitored federal agency activities, coordinated and solicited industry participation in security exercises, engaged in local planning activities with the D.C. metropolitan governments, assisted with the development and execution of various campaigns for seatbelt usage, promoted ABA s new on-line entry-level driver training courses, and engaged with and participated in events with the Commercial Vehicle Safety Alliance. As well, the GAP team continued to draft and issue GAP monthly briefs, a detailed version for ABA Board distribution and a summarized version for general ABA distribution. GAP was also responsible for drafting and issuing various member alerts, to keep ABA members apprised of emerging issues and concerns. GAP also scheduled and conducted 4 open conference calls for related to regulatory actions, to gather input for development of comments. GAP staff also developed and presented a webinar on drivers and social media, and coordinated with the International Road Transport Union with the development of a P endorsement standard concerning bus fires. These activities occurred in addition to GAP providing day-to-day assistance to ABA members on such matters as BOC-3 filings, ADA questions. C. BUSPAC Currently, the BusPAC account balance stands at $217,974; with the return of Congress in September, this number will decrease as GAP is scheduled to participate in a number of BusPAC related events. Overall, despite of 2017 being an off-election year, BusPAC continues to receive numerous campaign event invitations. Year-to-date, GAP staff have attended 26 BusPAC supported events, in addition to several other non-buspac related, meet & greet Congressional events, continuing to broaden interest and support in the motorcoach, tour and travel industry. As well, in light of the high rate of staff turnover, GAP relies on these events to retain strong contacts with Congressional offices. This year s fundraising goal remains at $100,000, and the fund contributions so far in 2017 are currently at $59,000 higher than last year at this time, but still well below are targeted goal. As well, the fund continues to receive staff contributions. Given that 2017 is not an election year coupled with a change in BusPAC staff, fundraising activities got off to a slow start earlier in the year. Following the first quarter, though, BusPAC solicitation and fundraising activities picked up with strong support from ABA s new Communications Legislative and Communications Associate/PAC Administrator, Brad Tucker, and aggressive engagement by BusPAC Chairman Peter Picknelly. Key events were the spring board meeting and fly-in, in addition to ongoing outreach to BusPAC s solicitable class. As well, the reformatted BusPAC board outreach initiative to increase participation, known as the BusPAC Ambassador campaign is slowly taking shape. As