1. Community Webinar www.insurancecommunitycenter.com Map21 Statutory Exemptions to the Federal Motor Carrier Safety Regulations The class will begin at the top of the hour. There is no sound at this time. This class is being recorded. The recording can be found in the Community at Webinars Archive You can ask questions at anytime, type them into the chat box. Check your chat box for links to upcoming classes. This class is not approved for CE credit. Some things you should know: 1

2.  All of you are currently on mute  Un-mute your own system  Telephone Option  Select Telephone on your screen  Dial in the PIN number so that your number becomes active  Microphone and/or Speaker Option  You can use this option if you have a headset that you use with your computer Audio 2

3.  You will receive information from the monitor via the ‘Chat’ window.  Please locate window in the control panel  Q & A is welcomed during the presentation and at the end of the presentation  You will find the question box on your control panel  Write your question in that box and send it to the presenter/organizer  The presenter will take those  questions in the order submitted 3

4.  If the presenter looses internet connection STAY ON THE LINE  The administrators will communicate with you

5. Insurance forms and endorsements vary based on insurance company; changes in edition dates; regulations; court decisions; and state jurisdiction. The instructional materials provided by The Insurance Community Center and its authors is intended as a general guideline and any interpretations provided by The Community,author(s) or instructors does not modify or revise insurance policy language. Lecture and materials are created by Transportation Risk Specialists. Information which is copyrighted and proprietary to other sources such as Insurance Services Office, Inc. (“ISO Material”) Federal Motor Carrier Safety Administration may be included in this publication. Specific information for the MP-21 can be found on the U. S. Department of Transportation website and specific information relating to the new law can be found at http://www.fmcsa.dot.gov/about/other/faq/faqs.aspx?faqtype=28&faqtypesub=1102 http://www.fmcsa.dot.gov/about/other/faq/faqs.aspx?faqtype=28&faqtypesub=1102 www.insuranceacommunitycenter.com www.transportationriskspecialists.com 5

6. M Thomas Ruke, JR.,CIC, CPIA, CWIS Insurance Business Consultants, Inc. P O Box 2030 Ft Myers, FL 33902 trs@ibci.net 6

7. 1. Definition of Commercial Motor Vehicle 2. Requirements of the UCR/URS 3. New Hours-of-Service Regulations 4. MAP-21 a) Agricultural Exemptions b) Other Provisions 5. Conclusion 7

8.  I am a long-time student, educator and agent involved in providing information, services and insurance to motor carriers  My father was a trucker and I love trucking!  I also have history with agricultural accounts – My father’s business was hauling produce  Today we are going to look at how the government regulations affect agricultural businesses 8

9.  The Federal Motor Carrier Safety Administration (FMCSA) requires businesses who use autos (CMV’s) to register, provide proof of financial responsibility and meet operating standards (safety) 9

10.  CMV definition  A vehicle 10,001 GVW or larger – Any unit with 6 wheels  Interstate commerce  Users – For-hire and private (yes, agricultural businesses)  Cross state lines for business purposes 10

11.  Obtain a federal DOT number  www.fmcsa.dot.gov www.fmcsa.dot.gov  Pay a fee through the UCR program  www.UCRfilings.com  Abide by federal safety rules and regulations  Meet financial responsibility requirements 11

12.  Understand their information is available to all on the federal website – Who they are, what they haul, how many vehicles they own and the results of their road-side inspections  www.safersys.org www.safersys.org 12

13.  The need for and payment of UCR fees’ enforcement is increasing  Proposed completion of UCR (SAFETEA-LU) accomplish the following:  MC Number  Required for for-hire carriers hauling processed goods in interstate commerce  Will now go away 13

14.  Anyone who must meet the MCA80 financial responsibility requirements must now have a filing  These are risks who have to have a MCS90 attached to their policies  Who must meet requirements?  For-hire motor carriers hauling processed goods or raw (farm commodities) in interstate commerce  All for-hire or private carriers hauling anything hazardous anywhere 14

15.  Except and When:  Units are less than 10,000 GVW  2-wheel units – Not required  3-wheel units – Must comply  If operating in interstate (cross state lines) commerce any quantity of hazardous materials  If only operating intrastate (never leave the state) - Bulk 15

16.  Agricultural businesses who sometimes act as a for-hire motor carrier will have a filing when UCR becomes effective  Hauling their neighbor’s goods or hauling someone else’s goods back after delivering their own  Hauling hazardous goods across state lines  Taking a farm tractor for service or hauling one bag of fertilizer on a 6-wheel unit or truck – Must comply  If never cross state lines, then bulk  1,000 pounds solid  3,500 gallons liquid 16

17.  Commercial Drivers License (CDL)  Required for  Any driver of a vehicle 26,001 GVW or larger, units with more than 15 seats, units hauling hazardous materials for any purpose  Driver must be “qualified”  Includes drug testing 17

18. ProvisionFinal Rule – Compliance Date of July 1, 2013 Limitations on minimum “34- hour restart” (1)Must include two periods from 1 a.m. to 5 a.m., home terminal time (2)May only be used once per week, 168 hours, measured from the beginning of the previous restart Rest breaks May drive only if 8 hours or less have passed since end of driver’s last off-duty or sleeper berth period of at least 30 minutes. (49 CFR 3975 mandatory “in attendance” time for hazardous materials may be included in break if no other duties performed) ProvisionFinal Rule – Compliance Date February 27, 2012 On-duty time Does not include any time resting in a parked vehicle (also applies to passenger carrying drivers). In a moving property-carrying CMV, does not include up to 2 hours in passenger seat immediately before or after 8 consecutive hours in sleeper berth. Penalties Driving (or allowing a driver to drive) more than 3 hours beyond the driving time limit may be considered an “egregious” violation and subject to the maximum civil penalties. Also applies to passenger-carrying drivers. 18

19.  Applies to all users of CMV’s (except some agricultural businesses)  If operating beyond 100 miles from home base, driver must have records with them (logs)  Concerns  11/14 hours  30-minute break after first 8 hours  After 60 hours – 6 days or 70 hours – 7 days, a 34 hour break (must include two 1:00 a.m.-5:00 a.m. time frames) 19

20.  A Highway Funding Bill that has a provision that is important to agricultural transportation  These rules were published in the Federal Register – Vol. 78 #50, Thursday, March 14, 2013  Titled Transportation of Agricultural Commodities 20

21. Covered farm vehicle — (1) Means a straight truck or articulated vehicle— (i) Registered in a State with a license plate or other designation issued by the State of registration that allows law enforcement officials to identify it as a farm vehicle; (ii) Operated by the owner or operator of a farm or ranch, or an employee or family member of a an owner or operator of a farm or ranch; (iii) Used to transport agricultural commodities, livestock, machinery or supplies to or from a farm or ranch; and 21

22. (iv) Not used in for-hire motor carrier operations; however, for-hire motor carrier operations do not include the operation of a vehicle meeting the requirements of paragraphs (1)(i) through (iii) of this definition by a tenant pursuant to a crop share farm lease agreement to transport the landlord’s portion of the crops under that agreement. 22

23. (2) Meeting the requirements of paragraphs (1)(i) through (iv) of this definition: (i) With a gross vehicle weight or gross vehicle weight rating, whichever is greater, of 26,001 pounds or less may utilize the exemptions in § 390.39 anywhere in the United States; or (ii) With a gross vehicle weight or gross vehicle weight rating, whichever is greater, of more than 26,001 pounds may utilize the exemptions in § 390.39 anywhere in the State of registration or across State lines within 150 air miles of the farm or ranch with respect to which the vehicle is being operated. 23

24.  Farm vehicle driver means a person who drives only a commercial motor vehicle that is— (a) Controlled and operated by a farmer as a private motor carrier of property; (b) Being used to transport either— (1) Agricultural products, or (2) Farm machinery, farm supplies, or both, to or from a farm; (c) Not being used in the operation of a for-hire motor carrier; (d) Not carrying hazardous materials of a type or quantity that requires the commercial motor vehicle to be placarded in accordance with §177.823 of this subtitle; and §177.823 (e) Being used within 150 air-miles of the farmer's farm. 24

25.  Farm supplies for agricultural purposes means products directly related to the growing or harvesting of agricultural commodities during the planting and harvesting seasons within each State, as determined by the State, and livestock feed at any time of the year. 25

26. a) This part applies to every person and to all employers of such persons who operate a commercial motor vehicle in commerce in any State, and is subject to: (1) The commercial driver's license requirements of part 383 of this subchapter;part 383 (2) The Licencia Federal de Conductor (Mexico) requirements; or (3) The commercial drivers license requirements of the Canadian National Safety Code. 26

27. b) An employer who employs himself/herself as a driver must comply with both the requirements in this part that apply to employers and the requirements in this part that apply to drivers. An employer who employs only himself/herself as a driver shall implement a random alcohol and controlled substances testing program of two or more covered employees in the random testing selection pool. 27

28. (c) The exceptions contained in §390.3(f) of this subchapter do not apply to this part. The employers and drivers identified in § 390.3(f) of this subchapter must comply with the requirements of this part, unless otherwise specifically provided in paragraph (d) of this section.§390.3(f) 28

29. (d) Exceptions. This part shall not apply to employers and their drivers: (1) Required to comply with the alcohol and/or controlled substances testing requirements of part 655 of this title (Federal Transit Administration alcohol and controlled substances testing regulations); or (2) Who a State must waive from the requirements of part 383 of this subchapter. These individuals include active duty military personnel; members of the reserves; and members of the national guard on active duty, including personnel on full-time national guard duty, personnel on part-time national guard training and national guard military technicians (civilians who are required to wear military uniforms), and active duty U.S. Coast Guard personnel; orpart 383 29

30. (3) Who a State has, at its discretion, exempted from the requirements of part 383 of this subchapter. These individuals may be: Code of Federal Regulations 171part 383 (i) Operators of a farm vehicle which is: (A) Controlled and operated by a farmer; (B) Used to transport either agricultural products, farm machinery, farm supplies, or both to or from a farm; (C) Not used in the operations of a common or contract motor carrier; and (D) Used within 241 kilometers (150 miles) of the farmer's farm. (ii) Firefighters or other persons who operate commercial motor vehicles which are necessary for the preservation of life or property or the execution of emergency governmental functions, are equipped with audible and visual signals, and are not subject to normal traffic regulation. (4) Who operate ‘‘covered farm vehicles,’’ as defined in 49 CFR 390.5. 30

31.  The “Moving Ahead for Progress in the 21 st Century Act” (MAP-21) includes statutory exemptions to the Federal Motor Carrier Safety Regulations (FMCSR’s) that apply to agricultural transportation  The MAP-21 provisions do not preempt State laws, with the exception of the “covered farm vehicle” driver exemption from the drug and alcohol testing rules. However, under the Motor Carrier Safety Assistance Program (MCSAP), States receiving MCSAP grants (currently all States) are required to adopt compatible rules for interstate and intrastate operation of commercial motor vehicle (CMV’s). These changes must be made within 3 years of the effective date of this rule 31

32.  MAP-21 exempts drivers of “covered farm vehicles” from the drug and alcohol testing regulations [49 CFR 382.103(d)(4)] preempts inconsistent State laws or regulations, effective immediately. States may no longer require drug or alcohol tests of CDL holders who operate such vehicles, but may continue to enforce State laws prohibiting operations while impaired by drugs or alcohol. However, CDL holders remain subject to drug and alcohol testing when they drive CMV’s that do not qualify as “covered farm vehicles” 32

33.  Who may take advantage of MAP-21 exemptions?  Some of these revisions apply to any motor carrier transporting agricultural commodities and farm supplies to and from farms within limited distances. Other provisions also may apply to farmers (and their family, employees, etc.) operating “covered farm vehicles” while transporting agricultural commodities, livestock, machinery or supplies to or from a farm or ranch. There are several important limitations or eligibility and use of this exemption for the operation of a “covered farm vehicle” 33

34.  MAP-21 summarized  The current hours-of-service (HOS) exception in §395.1(k) covers any motor carrier transporting agricultural commodities or farm supplies to an eligible destination. The MAP-21 revision expands the current 100 air-mile radius to 150 air-miles (176.2 statute miles), and makes transportation from wholesalers to retailers eligible for the exception 34

35.  MAP-21 provides a new and broad exemption from many of the Federal Motor Carrier Safety Regulations for operations of “covered farm vehicles” (CFV’s). The new definition of a CFV to be found in §390.5 includes a variety of conditions and limitations involving the size of the vehicle, hauling distance from the farm or ranch, and cargo being transported. Perhaps most important, CFV operators must be farmers or ranchers, their families, and employees 35

36.  What revisions have been made to §395.1(k), the hours-of- service exception available for agriculture-related transportation?  The current hours-of-service (HOS) exception in §395.1(k) covers any motor carrier transporting agricultural commodities or farm supplies to an eligible destination. The MAP-21 revision expands the current 100 air-mile radius to 150 air-miles (176.2 statute miles), and makes transportation from wholesalers to retailers eligible for the exception. Eligible transportation includes: 36

37.  Farm supplies for agricultural purposes transported from a wholesale or retail distribution point to a farm or other location where the supplies are intended to be used. Exception is limited to a 150-air mile (176.2 statute miles) radius (formerly 100 air-miles) from the wholesale or retail distribution point  Farm supplies for agricultural purposes transported from a wholesale distribution point to a retail distribution point within a 150 air-mile radius of the wholesale distribution point  Agricultural commodities transported from the source of the commodities to a location within a 150 air-mile radius of the source 37

38.  What is a “covered farm vehicle” (CFV)?  As defined in §390.5, a “covered farm vehicle” (CFV):  Travels in the State in which the vehicle is registered or in another State,  Is operated by an owner or operator of a farm or ranch, or by a family member or employee of the owner or operator,  Transports agricultural commodities, livestock, machinery or supplies to or from a farm or ranch  Has a license plate or some other means specified by the State that identifies it as a farm vehicle, 38

39.  Is not used in for-hire motor carrier operations (but for-hire operations do not include use of a vehicle owned and operated by a tenant farmer to transport the landlord’s portion of the crops under a crop-share agreement),  [From §390.39] Is not transporting hazardous materials that require placarding and Either  Has a GVW or GVWR (which is greater) of 26,001 or less, in which case the CFV exemptions in §390.39 apply anywhere in the United States, or  Has GVW or GVWR (whichever is greater) or more than 26,001 pounds and travels within the State where it is registered or, if traveling out of the State where it is registered, stays within a 150 air miles of the owner or operator’s farm or ranch 39

40.  What section of the Federal Motor Carrier Safety Regulations (FMCSR’s) do not apply to a “covered farm vehicle” (CFV) and its operator?  A “covered farm vehicle” (CFV) and its operator are exempt from the following:  Part 382 (Controlled Substances and Alcohol Use and Testing)  Part 383 (Commercial Driver’s License Standards; Requirements and Penalties)  Part 391 (Subpart E – Physical Qualifications and Examinations)  Part 395 (Horus of Service of Drivers)  Part 396 (Inspection, Repair, and Maintenance) 40

41.  Be careful when “addressing” agricultural businesses because some have “larger” units that the business uses for other than qualifying as a “covered farm vehicle” 41

42.  More than agricultural?  Carrying forward the move from  ICC which focused on commerce  To  FMCSA where focus is safety  All users of CMV’s 10,001 GVW or larger in interstate commerce  Not just for-hire  Not just 18-wheelers 42

43. 1. Description – MAP-21, known as the Moving Ahead for Progress in the 21st Century act (P.L. 112-141), was signed into law by president Obama on July 6, 2012. this legislation will go into full effect through September 20, 2014, and will bring a wave of changes to the transportation industry. Want to read the law in its entirety? The 599-page document can be found on the House of Representatives website, as can a 91-page “summary.” For the need-to-knows, read on for a summary of the 20 most significant regulations and components of MAP-21 that will be implemented over the next few years by the Federal Motor Carrier Safety Administration (FMCSA) and the U.S. Department of Transportation (USDOT) 43

44. 2. Electronic Logging Devices – The law requires the USDOT to establish regulations mandating electronic logging devices (Electronic On-Board Recorders) for motor carriers currently required to complete paper logs. The regulations must be in place within 1 year and carriers will then have two years to adopt/install the devices 44

45. 3. 34-Hour Restart Study – The law requires the USDOT to complete a field study by March 31, 2013 of the efficacy of the changes to the hours of service 34-hour restart provision, scheduled to become effective on July 1, 2013. The language does not prohibit the agency from putting the restart into effect based on, or pending the results of the study 45

46. 4. Drug and Alcohol Clearinghouse – MAP-21 requires the USDOT to establish a clearinghouse to capture drivers’ positive drug/alcohol test results and records of refusals to test within two years. Motor carriers will be required to query the clearinghouse when screening new driver applicants and then on an annual basis. Third-party service agents will be permitted to conduct these inquiries on behalf of motor carriers 46

47. 5. Employer Notification Systems – Within one year, the FMCSA must establish standards for state systems that automatically notify motor carriers of drivers’ moving violations and other driver (MVR) record changes (i.e., suspensions). Motor carriers may use these systems to meet the current annual motor vehicle record review requirements. Within 2 years, the FMCSA must develop recommendations and a plan for implementing a national system to perform these functions 47

48. 6. New Entrant Testing and Audits – The DOT must require motor carriers entering the industry (new entrants) to complete a proficiency test on the safety regulations and to complete a DOT safety review within 12 months. The current review deadline is 18 months 7. Transportation of Exempt Agricultural Commodities and Farm Supplies – MAP-21 clarifies movement of farm supplies under the agriculture exemption to the hours of service rule from a terminal or distribution point to the retail site or farm. The language also increases air mileage from 100 to 150 and eliminates “in the state” from the language, making it an interstate issue 48

49.  Insurance agents and companies who provide insurance to users of CMV’s must stay current  The Motor Carrier Insurance Education Foundation was formed to provide current information by accessing  Transportationriskspecialist.com  Training  Webinars  Technical papers  Annual conference  Or call (239) 997-4084 (Tommy or Beth)  Or e-mail trs@ibci.net 49

50. Upcoming University/Paid CE Classes FREE to University Members $50.00/charge for non university members 7/9Proposals and Submissions 7/11Equipment Breakdown 7/18OCIP/CCIP 50 Upcoming Community ClassesFREE to University Members $25.00/charge for non university members 7/16New Commercial Property Forms Join the University TODAY. www.insurancecommunitycenter.comwww.insurancecommunitycenter.com Click Join University at the top of the bar