ADVOCATING, EDUCATING, AND PROMOTING THE TRUCKING INDUSTRY ISSUE 1 | 2024 OREGON TRUCK DISPATCH 10. Get Involved! Join an OTA Committee or Council! 26. OTA Training Update for 2024 INSIDE THIS ISSUE:
A publication of the Oregon Trucking Association, Inc. 4005 SE Naef Rd., Portland, OR 97267 503.513.0005 • 888.293.0005 Fax: 503.513.0008 • www.ortrucking.org Jana Jarvis President/CEO jana@ortrucking.org Christine Logue Vice President of Operations christine@ortrucking.org Gregg Dal Ponte Director of Regulatory Compliance gregg@ortrucking.org Adam Williamson Director of Training & Development adam@ortrucking.org Ligia Visan Director of Accounting accounting@ortrucking.org Christa Wendland Communications Consultant wendland@ortrucking.org Jennifer Sitton Communications Consultant jennifer@ortrucking.org Mark Gibson Government Relations Policy Advisor mark@ortrucking.org For information about OTA events and to register online, visit www.ortrucking.org. Published for OTA by LLM Publications PO Box 7137, Bend OR 97708 503.445.2220 • www.llmpubs.com President Stephen Bloss Design Hope Sudol Advertising Sales Ronnie Jacko For information about advertising in the Oregon Truck Dispatch, please contact Ronnie Jacko at 503.445.2234 or ronnie@llmpubs.com. Thank you, advertisers! Your support makes this publication possible. Please support them and tell them you saw them in the OTA Dispatch. 2 OTA Chair’s Message 3 OTA New Members 4 OTA President’s Message 5 Event Calendar Issue 1 2024 CONTENTS Stay Connected With Us @OTAOregon Oregon Trucking Association @ORTrucking @ORTrucking.org Events 8 OTA Office Building Gets a Refresh! 8 OTA Launches New Member Connection and Resource Center! Featured 6 Mobility and Trucking 1 0 Get Involved! Join an OTA Committee or Council! 12 Oregon Workers’ Compensation Updates 1 8 OTA, Oregon Trucking Businesses Sue State of Oregon Over Unconstitutional Overpayment of Weight Mile Taxes 2 0 OTA Carrier Member 2 4 11-Time Oregon Truck Driving Champion Chris Outen Encourages Drivers to Sign up for Oregon TDC Safety 26 OTA Training Update for 2024
Oregon Trucking Association, Inc. Oregon Truck Dispatch 2 Evan Oneto OTA Chair OTA COMMITTEES: WHERE THE RUBBER MEETS THE ROAD DURING MY TENURE on the Board of Directors at OTA, a consistent question we have asked ourselves is, “How can we recruit more members to join, and how can we get our current members more involved with the association?” A couple of the common refrains we hear when trying to recruit new members or recruiting existing members to get more involved is some version of, “I’m not sure OTA is focused on my issues,” and “I don’t have time to go to all of those board meetings and discuss all of those political issues you guys talk about.” I get excited when I hear a trucker say something to this effect. Because I know it is only a function of their lack of knowledge about OTA, and therefore an opportunity to educate them about all that OTA is doing for them and the many different ways they can get involved. To those existing members who claim to not have the time or interest to be involved at the Board level, I always reply, “That’s okay, there’s no need to join the Board at this time, just get involved in some of the committees that interest you.” That’s where I started as a member, and that’s where I saw the real value of OTA at work. Similarly, to the prospective member who may have received an email from us or saw a copy of the Dispatch and has concluded we don’t cover their issues— it’s always fun for me to explain our committees to them, and invariably there is always one or several that deal with what is concerning them most. That is why as Chair, I have made promotion of our committees a priority. For the busy, hardworking Oregon trucker, I understand why they may not have the time or interest in attending all of our annual board meetings to discuss the issues that matter to them. That is a significant time commitment, especially if you only care to discuss one or two things on a lengthy agenda. But our committees are designed to take those big agendas and break them down into relevant subject matter areas, for members to directly engage on the issues that matter to them. And since COVID, our committees have regularized the use of online meetings to meet and conduct business throughout most of the year—so there is no longer the challenge of having to travel and miss work to attend. We have committees for just about every type of trucking employee or trucking-related business to be involved in. There is the Highway Policy Committee, that primarily focuses on over-dimension loads and the attending routes, fees, and regulations required for this type of trucking. However, this committee has even delved into issues dealing with regulatory overreach and local planning issues that could even affect a company like mine, that merely runs standard LTL trucks. Are you frustrated with the continual challenge of recruiting new drivers or technicians? Well, come participate in our Workforce Committee where OTA is pioneering partnerships with regional workforce boards and WorkSource Oregon to help recruit and train people for trucking industry careers. In fact, this committee has served as a model for other states and associations nationwide. If you’re a safety supervisor focused on training, we have the Safety Management Council that covers just about every subject imaginable, from driver safety and training to liability management and regulatory requirements. The Council is also responsible for organizing our Spring Safety Conference and our annual Truck Driving Championship. If you’re in charge of maintenance and thinking, I’m not even involved in driving, dispatch, or management— OTA does not concern me—think again. We have the Technology & Maintenance Council. The Council is charged with developing recommended engineering and maintenance practices that are voluntarily adopted by fleets, OEMs, and component suppliers. Their annual events include the SuperTech Skills Competition and Maintenance & Education Fair. Maybe you’re in Sales and Marketing and think to yourself, this is all for Operations people. Wrong again. Come get involved in our Image
www.ortrucking.org 3 Issue 1 | 2024 EXECUTIVE COMMITTEE Chair & ATA State VP Evan Oneto (FedEx) Vice Chair Erik Zander (Omega Morgan) Secretary/Treasurer Bart Sherman (Sherman Bros. Trucking) ATA State VP Nick Card (Blackwell Consolidation) Past Chair Andy Owens (A&M Transport) ISI Rep Diane DeAutremont (Lile Int. Co.) Chair Appointee Ron Riddle (Leavitt’s Freight Service) DIRECTORS-AT-LARGE Greg Galbraith (Market Express) Heather Hayes (Tradewinds Trans.) David Hopkins (TP Trucking) Charles Ireland (Ireland Trucking) Jeff Lorenzini (Old Dominion Freight Lines) Regional Representatives Central Oregon Ron Cholin (Stinger Transport) Eastern Oregon Roni Shaw (Bowman Trucking) Metro Region Tim Love (Carson Oil Co.) Southern Oregon Ryan Hutchens (F.V. Martin Trucking) Willamette Valley Dale Latimer (Ram Trucking) COUNCIL REPRESENTATIVES Safety Management Council (SMC) Jennifer King (WHA Insurance) Technology & Maintenance Council (TMC) Nicole Hawks-Morse (Kool PAK) Standing Committee Representatives Allied Trevin Fountain (Cummins) Government Affairs John Barnes (TEC Equipment) Highway Policy Kirk Watkins (Walmart) Image Michael Card (Combined Transport) Membership Nick Card (Combined Transport) Oregon TruckPAC Erik Zander (Omega Morgan) OTA in Action Mark Gibson (Siskiyou Transportation) Workforce Billy Dover (Tyree Oil) COMMITTEES Allied Government Affairs Highway Policy Image Membership Oregon TruckPAC OTA in Action Workforce To learn more about the committees or councils listed above, contact OTA at membership@ortrucking.org or 503.513.0005. 2023/2024 BOARD OF DIRECTORS OTA Welcomes the Following New Members! All members are listed in our online directory via the member portal. Compass Equipment Finance Hambre Equipment Harbor Wholesale RTC Wapinitia Land & Livestock Committee and put the skills you use to promote your company to work to promote our entire industry. Do it by raising your own company’s profile. We need examples our association can point to for the great work our members are doing all across Oregon every day. We need your ideas and enthusiasm. Perhaps you don’t work for a trucking company. Maybe you work for a company that sells products or services to trucking companies. We need you too. Come participate in our Allied Committee and give our association feedback on issues important to your industry and how they impact trucking and help us prospect for and engage with carrier and allied members alike. Our industry’s success is dependent upon each other. Come be part of the solution. Suppose you’re more politically oriented like me and want to get in the weeds on policy? Come join me on the Government Affairs Committee, where we dive into all legislation that affects our industry—from tax and labor policy to transportation infrastructure and environmental policy, we cover it all. Or maybe that bores you or overwhelms you and you just want to focus on your region of Oregon. Perfect. We have a committee for that too. Come join our OTA in Action Committee where you will learn how to cultivate relationships with your local lawmakers and learn how to educate them on issues important to your business and be ready to engage them on critical legislation when called upon by the association. Or maybe you’ve just had enough and want to make some electoral changes. Great, we could use your help there too. Come join Oregon TruckPAC and help make our industry’s voice louder in the arena of Oregon elections. As you can see, whatever your position or your company or your personal strengths or preferences, we have a committee and a role for you to participate in here at OTA. We need your voice and your ideas. I believe once you do get involved, you will see the importance of one committee in particular: our membership committee. Because you will see the importance of participating in the fight to protect our industry and you will want to make sure every other Oregon carrier is a member of OTA too. Of all the carriers registered in Oregon, OTA only calls a fraction of them members. If we are to successfully defend and promote our industry into the future, we must all be a part of that effort—no matter how big or small— there is a part each of us can play. So, I challenge you to get involved in one of our committees. If you do, you just might change your mind about that Board membership one day, like I did. See you down the road, Evan
4 Oregon Trucking Association, Inc. Oregon Truck Dispatch FROM THE PRESIDENT Jana Jarvis OTA President/CEO MOST OF YOU reading this column will be aware that the Oregon Trucking Association, along with three of our current members, have sued the state of Oregon over the unjust rate of taxation applied to the heavy vehicle industry. You may wonder why we found this lawsuit necessary—or maybe why we waited so long to file it. You undoubtedly wonder how this got so far off track…and perhaps why the association didn’t address this earlier. And all of those would be legitimate concerns without a clear understanding of how trucking taxes are applied in Oregon. For decades, Oregon has clung to an antiquated system of taxation that every other state left years ago. The weight-mile tax requires an accounting of miles driven in this state with a multiplier of the weight and axle configuration of the truck. The historical rationale for this system of taxation is that it is the fairest system…but it is cumbersome and expensive for both the carrier and the agency collecting the taxes. And recently it has proven to be unfair as well. With the transportation package passed in the 2017 legislative session, these escalating rates were established in statute over an eight-year period without the calculus for how ODOT would be spending those funds. During that time, more and more of ODOT’s revenue has gone to projects that are attributable to light vehicles (cars) and not freight projects that would benefit the trucking industry. Every two years, the state evaluates if the revenue that ODOT is collecting is fairly apportioned to “cars and trucks” and for years this calculation fell into a spread that was within one or two percent and determined to be equitable. However, the past three reports over the past six years have shown growing signs of inequity. The most recent report released toward the end of the long session last year showed that heavy vehicles were overpaying in excess of 32.4 percent and light vehicles were underpaying some 12 percent. The legislature has a constitutional obligation to fix this…but they have not done so. Leadership indicates that they will fix it when they pass a new transportation package next year—but by then the industry will have overpaid in excess of a half billion dollars. Only the legislature can correct this. And while they indicate they understand this inequity, there is no current plan or will to fix it. For that reason, OTA’s Board of Directors determined last fall that the association would need to sue the state asking that this problem be addressed as well as asking for damages. That lawsuit was filed last month, and you saw my letter informing you of this action. And hopefully, you understood that your association was out there protecting your interests! There are certainly lots of reasons to be an OTA member. If you have ever received an unsatisfactory safety rating, you may have reached out to us to help provide training and audits to correct that. Maybe you decided to come to one of our events and learned from the sessions and the attendees a new strategy that helped you grow your business. Perhaps you have benefited from one of our many programs—such as our Workers’ Compensation program through SAIF or our drug testing program for your employees that saved you money and made membership a profitable investment. Whatever helped you decide to become an OTA member is what you can promote to those that are not a part of the OTA family. And with the biggest battle on our hands in years, there is no time like the present to help us grow the organization! In the coming months, we will need our collective effort to fix this issue of unfairness in our taxation. There are hundreds of trucking companies that benefit from the advocacy that OTA provides, but we don’t have them to help us show up at the Capitol or answer our Calls to Action. We don’t have them to help us establish relationships with our policymakers, or write letters, or show up at district events to meet with representatives and senators. We need a bigger trucking army—and we need your help to make that happen! Over the coming months, there will be several opportunities for you to get involved in OTA’s advocacy efforts. While our weight-mile tax issue is huge, it isn’t the only issue that OTA is involved in on your behalf. We are in the Capitol every day advocating on your behalf, but we are also THE VALUE OF MEMBERSHIP
5 www.ortrucking.org Issue 1 | 2024 ADVOCATING, EDUCATING, AND PROMOTING THE TRUCKING INDUSTRY EVENTS UPCOMING EVENTS engaged in other litigation to protect your interests. Most recently we joined the lawsuit that challenged the Department of Environmental Quality (DEQ) over their rules with the Climate Protection Program that was enacted through executive order in the last administration. We prevailed in that ruling—and now DEQ will begin their process again and we will be there providing input on your behalf. The Land Conservation and Development Department (LCDD) also drafted rules around this environmental executive order that we have challenged along with other associations, and we are waiting for a ruling on that. They want to assert control over the size and placement of roads—imagine two agencies with conflicting power to define this! The battles are getting bigger….and harder. We need your support and your help. Contribute to our Legal Fund. There is a button on the front page of our website that allows you to do that easily! Contribute to TruckPAC and ask your employees to consider making a taxdeductible contribution as well. Reach out to those trucking businesses that you interact with through your community involvement or your business needs and ask them to become an OTA member and to get involved. We have lots of opportunities if you want to volunteer to help OTA as well. Just give us a call! Hopefully the economy will start turning around this year, and the trucking industry can pull out of the economic slump we have been in over the past eighteen months. I know that you have been focused on your business during these hard times, but there is no time like the present to build for a better future. Let us know how we can help you. And help us grow the strength of this association by bringing in new members. We are waiting to hear from you!
6 Oregon Trucking Association, Inc. Oregon Truck Dispatch Mark Gibson, Chair OTA in Action Committee/ President, Siskiyou Transportation TRUCKING, BIKES, PEDESTRIANS, road diets, active transportation, traffic calming, 11foot lanes…there are so many things happening in Oregon today in terms of mobility that it is hard to begin to grasp the challenges freight faces. Oregon, like most, if not all of the world, relies heavily on the delivery of goods by truck. You have all heard that nearly everything spends at least part of its life being carried by truck. The phrase “Trucking Moves Oregon’s Economy” is so very true. Unfortunately, many segments of society tend to forget, or at least try to overlook that very fact. Trucking is critical to food distribution, the healthcare industry, manufacturing, retail, the workforce in general, emergency services, electricity production and distribution, as well as all other forms of energy production and distribution. Trucking is also critical to the electric vehicle industry, including trucks. How many Class 8 electric truck tractors have you seen traveling down Interstate 5 on a lowboy being pulled by a diesel truck? Trucking in Oregon is seeing increased competition for road space. One of the most frustrating aspects of this is the fact that trucking and cars pay for road construction and maintenance, yet much of what we lose is reallocated to other segments of society that pay very, very little, if any, of Oregon’s highway system, and certainly none of Oregon’s highway freight system. You will likely see a lot more media on this in the coming months due to the fact that truckers in Oregon will have overpaid the state of Oregon by $500 million by the end of 2025, prompting a lawsuit by the OTA and several OTA members. The Oregon Trucking Association holds many seats on various transportation-related committees and working groups throughout the state. Unfortunately, there simply aren’t enough of us at the OTA to go around, and countless transportation projects move forward with no input from trucking. (We need more involvement from members wherever and whenever we can get it!) Here are some of the issues we are dealing with daily that all have an effect on the movement of freight today and will many years into the future. ` Lane width reductions and road diets. There is a large push to decrease lane widths from 12 feet to 11 feet. This is being pushed from several perspectives; the fact that most roads in urban areas have limited or no space for expansion and therefore the addition of bike lanes, sidewalks, beautification projects, etc. oftentimes take all or part of a vehicular travel lane. The other discussion point is that narrow lanes provide a “traffic calming” effect. One of the working groups OTA is a part of is working to change Oregon traffic rules that would allow vehicles to utilize the buffer strip, if needed, between bike lanes and travel lanes. Unfortunately, we are still constantly forced to compromise by giving up ground to other interests. ` Roundabouts. Another area of great excitement for traffic planners is the addition of roundabouts. At any moment in time, there are dozens of proposed roundabouts throughout the state. Fortunately, OTA, in partnership with MOBILITY AND TRUCKING… A CHANGING LANDSCAPE Member involvement, no matter how much, is critical to helping watch out for, evaluate, and respond to these ever-increasing challenges.
7 www.ortrucking.org Issue 1 | 2024 ODOT and Oregon State University, has nearly completed a study on the effects and challenges of roundabouts on trucks. ` Truck parking. OTA provided letters of support to ODOT to help secure a federal grant that will help with the issue of truck parking. The grant funding will go toward a new joint Regional Truck Parking Information Management System that will deploy real-time truck parking information system at 54 truck parking areas along I-5 through Oregon, Washington, and California. It won’t have a huge impact, considering the breadth of the problem, but will certainly help. ` Temporary highway restrictions. We all know construction and maintenance of Oregon highways is vital to the freight industry. We are fortunate in Oregon that the OTA has a seat at the table through our involvement in various ODOT committees, allowing us to provide input on how these restrictions can affect freight as well as suggestions to better manage those restrictions. With an increasing population and a growing economy, the demand for goods transportation has surged, putting a strain on the state’s highways and bridges. Aging infrastructure, coupled with the need for modernization and expansion, poses a significant challenge to the efficient movement of freight. This, coupled with competition with other non-freight interests, is increasing the challenges the trucking industry faces. Finally, as always, I must stress the importance of being involved. Member involvement, no matter how much, is critical to helping watch out for, evaluate, and respond to these ever-increasing challenges.
8 Oregon Trucking Association, Inc. Oregon Truck Dispatch EVENTS OTA Office Building Gets a Refresh! IF YOU’VE BEEN to the Oregon Trucking Association’s office recently, you may have noticed a few upgrades to the building that has housed the OTA since 1997. We are very excited to have a new sign out near the road with our new logo welcoming visitors to the office, as well as much-needed new siding and paint on the exterior of the building. In addition to the new siding, new, energy efficient lighting and security cameras will improve safety and security around the building. We also replaced the decades-old furnace/air conditioning unit in July 2023. If you’re stopping by for a training, a meeting, or to ask our team for help with your business, we hope you’ll appreciate the small upgrades and feel even more at home at the new and improved OTA office! OTA Launches New Member Connection and Resource Center! THE OTA TEAM is excited to announce the official launch of our new Member Connection and Resource Center database! You may have noticed the switch from the old system in early January. This new platform offers a new and expanded list of tools for OTA members to access information, manage billing, see upcoming events, and check directory listings. The new system features a more user-friendly interface, making it easier for members to navigate. Members will need to create a new login and password for the new system. If you haven’t already, please go to members.ortrucking.org/ MIC/login to create your new login and access all of the new features included in the new system!
9 www.ortrucking.org Issue 1 | 2024 Lenee Gower, wife of longtime OTA board member Lanny Gower, died at her home on February 9, 2024 after battling pancreatic cancer. Lenee spent her last few weeks surrounded by family and friends, who ensured she was comfortable and peaceful. Lenee was an advocate for pancreatic cancer research and participated in the PANCAN Purple Stride 5K walking event, which will be held this year on Saturday, April 27, 2024 in Portland for those wishing to participate in Lenee’s memory. A memorial service was held on March 9, 2024 to commemorate her life. Those wishing to honor Lenee are encouraged to donate to pancreatic cancer research. In Remembrance Lenee Gower
10 Oregon Trucking Association, Inc. Oregon Truck Dispatch Get Involved! Join an OTA Committee or Council! OTA’S COMMITTEES AND councils play an important role in supporting the interests and needs of our members and our industry. They help make critical decisions impacting trucking and often represent the industry or OTA in various settings. Committee and council members interact with other members, formulate outreach, and actively advise the OTA executive committee and staff. Joining an OTA council or committee is a great opportunity to get more involved with the organization and learn from your fellow industry members about how you can better support all aspects of trucking in Oregon. Don’t have the time to dedicate to joining the OTA board? Join an OTA committee and make your voice heard! Committees Government Affairs The Government Affairs Committee is responsible for reviewing legislative and regulatory actions at the state and local level that have the potential to impact Oregon’s trucking industry. Members provide the Board of Directors with recommendations on proposed actions during legislative sessions and beyond. Highway Policy The Highway Policy Committee is responsible for reviewing Oregon’s overdimensional practices, routes, and fees as they relate to hauling High, Wide, and Heavy loads across the state, and providing the Board of Directors with recommendations on changes in practices for these types of loads. Image The Image Committee acts as the stewards of the Oregon trucking industry’s image on behalf of OTA. Committee members communicate to the Association on issues that affect image and assist in developing programs the influence both internal (carriers & drivers) and external (general public, agency employees, elected officials, media). Goals include increasing public awareness on the essentiality of the trucking industry, favorably influence regulations, and legislation and show trucking as a viable career path with diverse offerings. Membership The Membership Committee prioritizes issues related to the recruitment of new members and engagement of existing members. It provides the Board of Directors with proposals on way to work together to execute membership-related projects. They help determine messaging and outreach and are tasked, when needed, to engage other members on various initiatives. Oregon TruckPAC Members of the TruckPAC Committee assist with both determining methods to gather contributions for the Oregon TruckPAC fund and identifying campaigns, initiatives, candidates, and other areas where it is possible for OTA to influence the outcome of legislation, regulations, and rules. Contributions to the TruckPAC ensure that the issues important to trucking companies operating in Oregon
11 www.ortrucking.org Issue 1 | 2024 are actively represented in the state and beyond. OTA in Action The OTA in Action committee guides the grassroots programs with the goal to inspire members to be active participants in the fight to educate and influence the outcome of new regulatory policies and other efforts that impact how trucking operates in Oregon. With the increased number of forums where policies are developed, OTA in Action committee members also represent OTA by sitting on committees and advisory boards. They further engage with members who wish to become part of OTA’s Key Contact Program which creates ambassadors to build relationships with legislators and other decision-makers. Workforce The Workforce Committee is responsible for promoting and prioritizing issues that improve retention of existing CDLDrivers/Diesel Technicians while attracting and recruiting new personnel resources to the CDL & Diesel Technician vocations from underemployed, unemployed, and youth demographic groups. Committee members will foster partnerships within the Workforce Development Board & Worksource Oregon organizations to achieve committee goals. The committee will provide the Board of Directors with proposals and work together to execute membership-related projects. Allied The Allied Committee gathers the thoughts and insights from the broad range of suppliers, service providers and others who create, produce and present products and services that support our members. This committee looks for methods to expand outreach to members, find areas to assist and inform and identify opportunities to promote the association. Councils Safety Management Council (SMC) The Safety Management Council (SMC) is the only national organization dedicated to advancing safe policies, practices, and technology; and effective risk management and accident/injury prevention in the trucking industry. SMC also addresses trucking’s unique human resource challenges, health and wellness issues, as well as recruitment and retention strategies. SMC plays an important role in furthering OTA’s commitment to the safety and wellbeing of its members. Council members assist in the production of the Spring Safety Conference and the Truck Driving Championships, as well as organize educational webinars and meeting on relevant safety-oriented topics. Technology & Maintenance Council The purpose of the Technology & Maintenance Council is to improve transport equipment, its maintenance and maintenance management. The Council develops Recommended Engineering and Maintenance Practices that are voluntarily adopted by fleets, OEMs, and component suppliers. The Council also conducts industry surveys and promotes the voluntary cooperation among designers and manufacturers of transport equipment and those who specify, purchase, and manage such equipment. A vital part of OTA, the Technology & Maintenance Council (TMC) presents informative workshops, roundtables and other events, both online and inperson around the state. Other annual TMC highlights include the SuperTech Skills Competition and Maintenance & Education Fair. Ready to learn more? OTA members who are interested in getting involved in any of OTA’s committees or councils, contact us at info@ortrucking. org or 503.513.0005. We can answer your questions and connect you with members currently serving. Ready to learn more? OTA members who are interested in getting involved in any of OTA’s committees or councils, contact us at info@ortrucking.org or 503.513.0005.
12 Oregon Trucking Association, Inc. Oregon Truck Dispatch Oregon Workers’ Compensation Updates AS WE USHER in 2024, many businesses are in the process of strategic planning and finalizing budgets for the new year. As businesses work through this planning period, it is important to keep in mind that several changes in workers’ compensation rates and claim systems may impact these processes. Adjustments from the National Council on Compensation Insurance, changes to Oregon’s Pure Rates, and legislative changes will all play a role in Oregon’s new workers’ compensation rates for 2024. NCCI Experience Modification Factor Adjustments The National Council on Compensation Insurance (NCCI) recently concluded an extensive, multi-year evaluation of the Experience Rating Modifier (ERM), the number that insurance companies use to determine your rates based on your company’s historical cost of injuries and future risk chances. The revised experience rating modifiers, which are broadly recognized as being more dependable and more precise, took effect on November 1, 2023. For Oregon policyholders, these changes have specific implications. The traditional formula for calculating the experience modification rate involves a primary and excess split point, to weight both frequency and shock losses with the national threshold set at $18,500 for frequency. Recognizing the considerable variation in claims costs among states due to factors such as state level medical costs, wages, and legislation, the NCCI is transitioning to state-specific thresholds. The split point for Oregon has been set at $9,500 for 2024. Additionally, the NCCI is moving from a national maximum state accident limit to a state-specific limit. The 2024 maximum limit for Oregon is $97,500, in contrast to the previous national cap of $213,500. How will these changes impact you? The split point plays a crucial role in the calculation and weighting of frequency. Preliminary reviews indicate that employers with fewer claims than expected (or low frequency) may experience a reduction in their modifier by an additional point or two. Conversely, those with a higher number of claims or high frequency might see a corresponding increase in their modifier. According to NCCI, the proposed adjustments are expected to lead to an increased number of mods falling within the rating range of 0.90 to 1.00. Oregon Pure Rates Pure Rates represent the anticipated cost per $100 of payroll required to cover claims within a specific class code. Insurance carriers use these rates to determine the premiums charged to policyholders. The pure rate is multiplied by an expense load factor, which accounts for risk, profit, and overhead. NCCI calculates pure premiums, while the Oregon Department of Consumer and Business Services (DCBS) approves both Expense Loading Factors and Pure Rates. This regulatory oversight ensures fairness and transparency in the determination of insurance premiums. For 2024, the Oregon DCBS approved the NCCI pure rate filing with a noteworthy 6.7 percent decrease in the average pure premium rate. It is crucial to note that By Jennifer King, WHA Insurance
13 www.ortrucking.org Issue 1 | 2024 this percentage decrease is an average, and individual class codes will experience varying increases or decreases. Below are the pure rate changes from 2023 to 2024 for common trucking principal class codes: 7219 Truck—Haul -8.68% 7225 Automobile Towing -3.60% 7230 Trucking— Parcel/Package -1.12% 7231 Mail Delivery -6.79% 7232 Trucking— Mail/Parcel/Package -8.28% 7360 Freight Handling -5.21% 7382 Bus Co-All Emp -1.68% 7403 Aviation—Airport/ Heliport -0.59% 8293 Furniture Moving -8.94% 9310 Log Truck Driver -8.32% 9403 Garbage/Ash/ Refuse Collection -3.66% Legislative Changes Impacting Claims In addition to NCCI changes, understanding the changes from Oregon’s recent legislative session is crucial for businesses as they navigate the workers’ compensation regulations. The following bills have been signed into law and will impact workers’ compensation claims. Senate Bill 418 (2023) introduces significant changes to the regulations governing paid time off for individuals seeking medical services related to a workers’ compensable disabling injury. One key modification involves the removal of the previous requirement that a worker must be absent from work for a minimum four-hour period to qualify for claim related medical services and to be eligible for temporary disability benefits, also known as time loss. House Bill 3412 (2022) extends the timeframe within which a Physician Assistant (PA) can serve as an attending physician for an injured worker. Under the revised legislation, a PA is now authorized to act as the attending physician for a period of 180 days, starting from the date of the first visit on the initial claim. Additionally, the PA is granted the ability to approve temporary disability benefits for the injured worker during the same 180-day period. House Bill 4138 (2022) brings significant changes to regulations by introducing amendments that extend the timeframe within which an authorized provider can retroactively authorize temporary disability benefits from 14 to 45 days. Additionally, the bill As businesses work through this planning period, it is important to keep in mind that several changes in workers’ compensation rates and claim systems may impact these processes. includes a requirement for insurers to provide written notice to the worker before terminating temporary disability benefits as well as a seven days’ notice upon receiving information that the worker has reached medically stationary status. Also, within HB 4138, the maximum allowable recovery from permanent partial disability compensation is capped at 50 percent of the total compensation awarded to the worker within a two-year time limit. These regulatory and legislative changes reflect a broader initiative aimed at improving the workers’ compensation system in Oregon. As businesses navigate the complexities.
14 Oregon Trucking Association, Inc. Oregon Truck Dispatch ATRI research shows the success of their efforts. Members of State Trucking Associations are involved in fewer crashes and receive fewer violations at roadside inspections than their industry peers. Crashes per 100 Million Miles by STA Membership Status: SAFETY MATTERS TRUCKING DRIVES THE ECONOMY COMMITMENT TO SHARING THE ROAD The Share the Road program sends a team of professional truck drivers to communities around the country to teach car drivers about truck blind spots, stopping distances and how to merge safely around large trucks. COMPETITIVE WAGES Primarily small, locally owned businesses, these companies are served by a wide range of supporting businesses. TRANSPORTING THE ESSENTIALS SAFETY FIRST Improved driver training Investment in advanced safety technologies Active participation in industry safety initiatives CURRENT MEMBERS 95.10 NEVER MEMBERS 146.33 FORMER MEMBERS 121.21 CAREERS 105,170Trucking industry jobs in Oregon 1 in 16 jobs in the state SMALL BUSINESS EMPHASIS 25,360Trucking companies located in Oregon CONTINUALLY IMPROVING 2021 U.S. fatal crash rate: Oregon: 1.58 / USA: 1.57 per 100 million Vehicle Miles Traveled (VMT) Between 1975 and 2021, the U.S. large truck fatal crash rate has dropped 65.7% Oregon Trucking Association members put safety first through: Total trucking industry wages paid in Oregon in 2022 exceeded $5.8 billion, with an average annual trucking industry salary of $55,533. Heavy and tractor-trailer truck drivers held 22,690 jobs in Oregon in 2022. The national average annual salary of an over-the-road truck driver is $69,387. of manufactured tonnage transported by trucks in Oregon. 122,780 tons per day of communities in the state depend exclusively on trucks to move their goods. ortrucking.org ORTrucking @OTAOregon OregonTrucking Association @ortrucking Updated January 2024 with most recent data available Oregon TRUCKING FAST FACTS 76.9% 90.9%
15 www.ortrucking.org Issue 1 | 2024 DELIVERING A CLEANER TOMORROW THE INDUSTRY INDIVIDUAL COMPANIES As of January 2024, a typical five-axle tractor-semitrailer combination paid highway user fees and taxes of … $10,556 PARTNERSHIPS Through the U.S. Environmental Protection Agency’s (EPA) SmartWay Transport Partnership, the trucking industry is working with government and businesses to quantify greenhouse gas emissions and take steps to reduce them. FUEL CONSUMPTION The trucking industry continues to improve energy and environmental efficiency even while increasing the number of miles driven. In 2021: FEDERAL STATE ROADWAY USE Combination trucks accounted for just 17% of the total highway transportation fuel consumed. Combination trucks consumed nearly 113 billion fewer gallons of fuel than passenger vehicles in the U.S. TRUCKING PAYS THE FREIGHT The following data sources were utilized for the Fast Facts: United States Bureau of Labor Statistics (2022); Federal Motor Carrier Safety Administration: Analysis & Information (2023); American Trucking Associations Driver Compensation Study (2022); Commodity Flow Survey Public Use Microdataset (2017); American Transportation Research Institute: Membership Counts - Associations with Safety (2023); Federal Motor Carrier Safety Administration: Large Truck and Bus Crash Facts (2021); Federal Highway Administration: Highway Statistics Series (2021); Energy Information Administration: Fuel Taxes (2024); International Fuel Tax Association: Fuel Tax Rates (Q1 2024); International Registration Plan, Inc.: Jurisdiction Data (2024); American Transportation Research Institute: Cost of Congestion to the Trucking Industry (2023); Diesel Technology Forum Clean Diesel Powers in Your State (2022); Environmental Protection Agency Fast Facts on Transportation Greenhouse Gas Emissions (2021); Highway Cost Allocation Study (2019 - 2021 Biennium); ODOT State Transportation Revenue Forecast (2022). Miles driven on public roads: These taxes were over and above the typical taxes paid by businesses in Oregon. 79,417 Miles of public roads in Oregon Trucks: 5.0 billion All Motorists: 36.8 billion EMISSIONS 55% of Oregon commercial trucks are now powered by the newest-generation, near-zero emissions diesel technology. Medium- and heavy-duty trucks contribute just 23% of all transportation-related greenhouse gas (GHG) emissions in the U.S. and represent only 7% of total U.S. GHG emissions. The industry paid 34% of all taxes owed by Oregon motorists … … despite trucks representing only 14% of vehicle miles traveled in the state. $26,938 $720 million in federal and state roadway taxes The trucking industry in Oregon paid approximately Traffic congestion in Oregon cost the trucking industry $1.0 billion in 2021. Oregon TRUCKING FAST FACTS ortrucking.org ORTrucking @OTAOregon OregonTrucking Association @ortrucking Updated January 2024 with most recent data available
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18 Oregon Trucking Association, Inc. Oregon Truck Dispatch OTA, Oregon Trucking Businesses Sue State of Oregon Over Unconstitutional Overpayment of Weight Mile Taxes IN JANUARY, THE Oregon Trucking Association (OTA), along with three Oregon trucking companies, filed a lawsuit against the state of Oregon following many years of trucks paying far more than their fair share of highway taxes. OTA member companies Combined Transport, A&M Transport, and Sherman Bros. Trucking joined the lawsuit which was filed against Gov. Tina Kotek, Senate President Rob Wagner, and House Speaker Dan Rayfield in their official capacities and against the state of Oregon and the Oregon Department of Transportation (ODOT). “For far too long, Oregon trucking companies, the vast majority of which are small, family-owned businesses, have paid far more than their fair share of transportation taxes,” said Jana Jarvis, OTA President & CEO. “By 2025, the trucking industry is expected to have overpaid by half a billion dollars. Trucking companies in Oregon simply cannot sustain paying the highest transportation taxes of any state in the country any longer.” Oregon’s constitution requires that the tax rate paid by trucks “is fair and proportionate to the costs incurred for the highway system because of each class of vehicle,” yet for years, trucking has paid more than a third of all taxes owed by Oregon motorists, despite trucks representing only 15 percent of vehicle miles traveled in the state. The lawsuit highlights the findings of the Oregon Department of Administrative Services’ bi-annual Highway Cost Allocation Study, which determines whether or not light vehicles (less than 10,000 pounds) and heavy vehicles (more than 10,000 pounds) are paying their fair share. The study has shown that for the last three consecutive two-year budget cycles, truckers have paid more than their fair share. The most recent Highway Cost Allocation Study showed that heavy vehicles were overpaying by more than 32 percent. “The extra burden on heavy vehicles is significant, immediate, and ongoing,” the lawsuit says. “ODOT has estimated that for the 2023–2025 HCAS, heavy vehicles will overpay by approximately $193 million per year. This amounts to an overpayment of more than $528,000 every single day.” The three trucking companies named in the lawsuit have collectively overpaid their weight-mile taxes by $925,000 since January 2022. The lawsuit is requesting that the court rule the overpayment of truck taxes in violation of the Oregon Constitution and that the state conduct an immediate review and adjustment of revenue sources, and have the state pay back the $925,000 to the three plaintiff companies. “Oregonians deserve safe roads, and our members are more than willing to pay their fair share—as required by Oregon’s constitution—as long as ODOT keeps up its side of the agreement,” said Jarvis. “But, to date, major road improvements have not been completed, road maintenance has been delayed, and our roads are less safe for passenger vehicles and trucks. Meanwhile, trucking companies—most of which own fewer than five trucks—are forced to pass astronomical tax rates on to consumers, who end up paying more for household goods.” When trucking taxes continue to increase, small, family-owned trucking businesses are forced to increase their prices, which forces stores and those selling goods to increase their prices, meaning consumers pay more. Alongside the lawsuit, the OTA and its advocacy team in Salem are continuing to engage with legislators about potential fixes to the overpayment issue. With ODOT claiming they lack sufficient funds—even with the astronomical overpayment by trucks—the solution to this issue will be complicated. If you’re interested in learning more about the lawsuit or getting involved, please reach out to the OTA at info@ortrucking.org. By Jennifer Sitton
19 www.ortrucking.org Issue 1 | 2024 Oregon TruckPAC The Oregon TruckPAC is OTAs' "war chest," supporting our work to help elect candidates who understand and support the issues of the trucking industry and to help ensure trucking companies operating in Oregon are actively represented in the state and beyond. OTA Legal Fund The OTA Legal Fund allows the association to fully represent the interests of our members and Oregon's trucking industry. Every dollar donated to the Legal Fund will support our efforts to fight back against the gross, unconstitutional overpayment of weight mile taxes by trucks. Help OTA Advocate for You! Donate to TruckPAC and the OTA Legal Fund Today! OTA’s advocacy team is fighting for our industry in Salem and through our lawsuit against the state of Oregon, but we need your help! Consider making a tax deductible donation to the OTA Legal Fund or to TruckPAC to support our work. DONATE TODAY Contact OTA at 503-5130005 or info@ortrucking.org
20 Oregon Trucking Association, Inc. Oregon Truck Dispatch OTA Carrier Member GROWING UP IN rural Washington County, Erik Zander always envisioned himself becoming a rancher or a farmer, but he jokes that he realized pretty quickly that if you don’t have land or equipment, that’s a tough path to take. Instead, after college, he found himself working for a fuel and lubricants distributor, primarily selling to large fleets and construction companies. Omega Morgan was one of the companies he worked closely with and soon realized his real passion was in the machinery moving and rigging work they do. “For me, every day is something new and different (at Omega Morgan), whether it’s a new commodity we’re hauling or a new building we’re helping with the install of equipment,” said Erik. “It’s constantly changing, and for me, that allows me to not get stagnant or bored with what I’m doing. It’s different every day. You have a set of tools you’re trying to apply when coming up with a solution, but people are reaching out to us because they have a problem they can’t solve, which is exciting to me.” Erik’s first role at Omega Morgan was in sales and estimating, specifically heavy haul trucking moving a lot of yellow iron and blue iron lifts, an easy transition since he had been selling fuel and lubricants to many of the same companies for years. Since then, he’s done a little bit of everything at the company from helping them transition away from general heavy haul into more specialized heavy haul, to starting a renewables division to offload and reload wind components in railyards, to starting a truck brokerage and a crane division. For the last few years, Erik has served as Omega Morgan’s COO, handing the company’s overall operations. “One of the biggest surprises I found when I started in the trucking industry is there’s a tremendous amount of regulation that can be tough to wrap your head around,” said Erik. “Certain states allow for certain axle weights, you need certain permits on certain routes, some require police escorts…they don’t do it all the same and there are so many variables that exist out there.” I hope more people will get involved to see just how much is being done for our industry on a daily basis. Omega Morgan’s Erik Zander Erik attended every OTA event in 2023, bringing many of his colleagues from other departments with him By Jennifer Sitton | OTA Communications Consultant
21 www.ortrucking.org Issue 1 | 2024 One of the tools Erik used to learn more about the industry when he first joined Omega Morgan—and in the many years since—was membership in the Oregon Trucking Association (OTA). “I think I just wanted to be around people who had been in the industry to learn,” said Erik. “I was new to the industry and trade associations are typically target rich environments for people who care and often are willing to share that knowledge with you.” Erik says that for him the OTA was a great place to network and meet people, particularly given the diversity in membership, with some members having a single truck and others having upwards of 500 trucks, but everyone faces similar challenges. “One example was a couple years ago when everyone was getting into telematics and cameras for trucks, in my case, we had to make this decision to buy a couple hundred cameras and sign up for a multi-year contract,” said Erik. “Wouldn’t it be nice if you could talk to someone who actually uses them and get their opinion and hear their experience? The OTA allowed me to do that.” Erik said much of the value he has seen in OTA is in attending events, particularly when there’s time to interact with the other members and get to know them and leverage their knowledge to help each other’s businesses—knowledge they’re often more than willing to share. “That’s what I did—show up and meet people, whether that be through committees or from attending events,” said Erik. “It’s a long-term play, but at least for me in helping our business, I think it’s been very much worth it, and
22 Oregon Trucking Association, Inc. Oregon Truck Dispatch my hope is that I’ve been able to help some of the other members as well.” Erik, who has been actively involved with the OTA for nearly a decade, committed at the beginning of 2023 to attend every single OTA event throughout the year. He made an effort to bring folks from Omega Morgan’s team when he could, and it was a good experience for his colleagues in different departments as well. “I took our fleet manager to the Maintenance Fair at the Oregon Truck Museum and our safety team came to the Spring Safety Conference in Salem,” said Erik. “From there we were able to get them involved in some of the other trainings, as well as offering some good quality networking with peers in the industry.” Erik says he believes that one of OTA’s biggest benefits is that so many of the association’s events and training opportunities are geared toward not just business owners, like many associations are, but also toward industry members who work in safety and maintenance or as drivers. When asked, Erik admits his favorite event is the Southern Oregon Industry Mixer and notes that he is “continually in awe of the amount of representation we have in Southern Oregon.” He always enjoys the speakers at the event and appreciates how well attended it is. In addition to events, Erik believes that the value of OTA depends on who you are and what you’re trying to get out of your membership. “OTA really caters to all types of carriers,” said Erik. “From a small carrier perspective, the ability to come in and learn from larger carriers and hear their stories and leverage their resources is great. Some of the programs that the association offers in terms of trainings or audits or needing help with navigating trucking in Oregon are invaluable to both small carriers and large carriers.” OTA Carrier Member, cont.
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