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Association Member News

TLPA Members Win Major Victories in Transportation Legislation

The long-awaited transportation reauthorization legislation passed the House of Representatives on July 28 by a vote of 412 to 8, and the Senate on July 29 by a vote of 91 to 4. President Bush signed the new legislation into law on August 10.

TLPA members won 12 victories with this legislation. The bill that passed is called the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), which is a combination of the Senate and House titles of their respective bills. The media tends to refer to this legislation as the highway bill or the highways and transit bill. The legislation actually covers not only the building and maintenance of highway and public transit systems, but also covers highway safety, motor carrier safety, transportation research, transportation planning, hazardous materials transportation, transportation discretionary spending, rail transportation, transportation excise taxes and miscellaneous issues.

Legislative Victories
TLPA's goal when we evaluated this legislation was to win back private operator rights in the federal public transportation program, which had been lost in prior years, and to reverse the erosion of private operator rights by having new pro-private operator rights enacted into law. We also sought to improve the general legal position of private transportation operators in all programs and we sought to have Congress repeal the gas guzzler tax on limousines. The twelve victories achieved are summarized below. More detailed explanations of many of these provisions have been issue to TLPA members via TLPA's Legislative Alert bulletin and in TLPA's Dispatch newsletter, as well as in TLPA's Taxicab, Limousine and Paratransit newsletters.
  1. The successful repeal of Section 5305(e)(3).
    Section 5305(e)(3), which was inserted into the 1991 transportation reauthorization legislation, discriminated against private transportation operators in the federal planning process and in effect served to push private operators away from the local transit-planning table. This 14-year injustice is now over.

  2. The successful exemption of the Section 5333(b) labor protection provisions from two new FTA programs.
    Section 5333(b), commonly referred to as Section 13(c) labor protections, will not apply to two new programs created in this bill — New Freedom and the Transit in the Parks. These are the first Federal Transit Administration (FTA) programs in the history of the federal agency to be exempt from these onerous labor provisions. The absence of the anti-competitive labor requirements should enhance TLPA members' ability to provide contract services in these new programs.

  3. The successful codification of the Department of Labor decision that found that a change in contractors would not produce 13(c) labor obligations.
    Private operators are particularly affected by this provision, which clarifies that when a private company wins a transit/paratransit contract, it will have the right to hire its own workers and negotiate its own labor contracts. When a contract changes hands, the new contractor should not be required to hire workers that do not meet the company's standards, nor should it be forced to assume the labor contract that another company negotiated, and the new legislation affirms this position.

  4. The successful codification in law of the Special Warranty now applied by administrative practice in the Section 5311 program for the other-than-urbanized-areas.
    Private operators who participate in the FTA's rural program have benefited from the labor warranty program that expedites Section 13(c) certification of grant applications. The warranty provides a ready-made set of labor protection standards that can be applied without delaying the grant approval process. Under the terms of the warranty, financial and administrative responsibility rests with the public body that is the recipient of the federal funds.

  5. The successful automatic certification of like-kind equipment or facilities purchases and grant amendments without referral to the transit labor union.
    Provisions that simplify and expedite the Section 13(c) certification process are good for transit riders, transit agencies and private operators. This provision speeds up the delivery of funding for like-kind purchases and/or modifications to existing grants that do not materially change the grant.

  6. The successful adoption of the New Freedom program.
    The New Freedom program is designed for new public transportation services and alternatives beyond those required by the Americans with Disabilities Act. The U.S. DOT is charged with responsibility for the New Freedom program funding. If properly implemented, we believe that the private taxicab and paratransit industries will be key providers of contract service in this new program.

  7. The successful adoption of a more inclusive and collaborative planning process.
    Private operators and other private-sector interests have a great deal to contribute to transportation planning for both short-term and long-term investments. The revised planning language in this bill inserts private enterprise participation in metropolitan and statewide planning. Our members have benefited from the more collaborative planning process used in the Jobs Access and Reverse Commuter program, so we believe the more collaborative planning process will also be beneficial for TLPA members in the full FTA program.

  8. The successful adoption of a required negotiated rulemaking on charter services.
    The negotiated rulemaking is to address the need to streamline and adopt more flexible enforcement options for the charter service rules and to consider whether public transit agencies can provide community-based services directly to local governments and private non-profit agencies. TLPA has been expanding its efforts in this area as some of our members have been severely affected by transit agencies providing charter services in violation of FTA regulations.

  9. The successful adoption of the Transit in the Parks pilot program.
    The purpose of this pilot program is to promote the development of transportations systems within the National Park System to improve visitor mobility and enjoyment (including visitors with disabilities), reduce pollution and congestion, and enhance resource protection through the use of public transportation. For this pilot program, public transportation is defined as general or special transportation to the public by a conveyance that is publicly or privately owned. This should be a new contracting opportunity for TLPA members.

  10. The successful adoption of intermodal terminal project funding.
    The bill sets aside funding for intermodal terminal (building) projects. The funding for intermodal terminals is intended to enable passengers to enter and exit various transportation modes (intercity bus, intercity rail, transit bus, transit rail, charter and tour bus, airport shuttles and taxicabs) in one location, increasing efficiency, transportation options and reducing costs.

  11. The adoption of a partial Gas Guzzler Tax exemption for limousines.
    A full exemption was not achieved, but a partial Gas Guzzler Tax exemption did pass for automobile limousines (vehicle designed to transport more than 10 passengers and many trucks and sport utility vehicles are already exempt). As was noted in the more detailed cover story of the August issue of TLPA's Limousine newsletter, the legislative provision that passed may not help all limousine manufacturers/coach builders, but it should help some. The key to qualifying for the exemption is for the unloaded (no passengers or driver) automobile limousine to weigh more than 6,000 pounds.

  12. Liability Protection for taxicab, limousine and paratransit lessors.
    As TLPA's Legislative Alert issued to all members on August 22 announced, there is now a federal provision that protects vehicle owners against liability under state or federal law for damages caused by others who are driving a rented or leased vehicle. The limitations of this new law were outlined in the Legislative Alert.

Financial Developments
Funding in SAFETEA-LU provides $286.4 billion in spending for highways, transit, safety and their various programs for fiscal year 2004 through fiscal year 2009. Since the 2004 funds of $42.3 billion have already been spent, that leaves approximately $193.2 billion for Highways, $45.3 billion for Transit, and $5.4 billion for Safety programs for 2005 through 2009. That means there will be a very significant increase (an average of $6 billion per year) in federal funding for transportation programs. The federal public transportation funding level will be $7.6 billion in 2005 and will rise to over $10 billion per year by 2009.

Background
For five years TLPA has been laying the groundwork for this series of victories. Most other groups have been working this legislation for the past two-and-a-half years. We did spend a long time, but the effort was worth it as the trend of anti-private operator policy decisions was ended with this legislation.

We started working toward reauthorization five years ago when two Texans, President George Bush and TLPA President Ellis Houston, were both elected. Ellis spent much of his year in office working to have the administration agree to repeal the anti-private sector transportation planning provision Section 5305(e)(3) and for the adoption of a form of the New Freedom Initiative in which the taxicab and private paratransit industry could participate. Ellis had great success on both issues.

Four years ago, President Rob Searcy walked the halls of the House of Representatives side of Congress, reinforcing the two priorities that Ellis had planted with the administration. Rob added two new issues of consolidating the planning process used for the special needs programs (JARC, 5310 and New Freedom) at FTA and reinstating the private enterprise participation guidance that was rescinded during the Clinton Administration.

Three years ago, President Gene Hauck reinforced our message in the House, and expanded our lobbying efforts to include the Senate. Gene also added two new issues to our reauthorization agenda; that of transit labor reform and adding a voting seat for private operators at each Metropolitan Planning Organization. Gene was attending a fundraiser for the House Transportation Chairman in Alaska when the Senate called for and held a hearing on private sector issues. While Gene covered the Alaskan event, he asked TLPA Director Margie Wilcox to step in and testify for TLPA before Senate. The hearing went very well, and the Senate began to champion many of TLPA's recommendations. It was at this point that the transit labor unions stepped up their efforts to oppose TLPA's pro-private operator agenda.

Last year, President Judy Swystun formed the Coalition of Private Transportation Associations to jointly promote pro-private operator provisions in the transportation legislation. Judy also lobbied both the House and Senate to enact our issues. As part of a broader coalition, TLPA agreed to add two issues to our agenda (protections for private charter operators and funding for intermodal transportation facilities) and we refined our other issues into more generic terms such as our push for New Freedom funding being transformed into making private operators eligible subrecipients of FTA funds. The House and Senate passed competing versions of transportation reauthorization, but neither bill became law.

This year, President Jamie Campolongo refined our message to the 12 items noted above as well as two other issues that did not pass this time. To promote our agenda, Jamie called for TLPA's first Congressional Fly-in where TLPA members, and members from the other coalition associations, met for two days of lobbying in Washington, D.C. During the March 15-16 event, we met with Republicans and Democrats, and we explained why our issues are important to all private operators and are for the good of the transit-riding public. The House and Senate again passed competing version of transportation reauthorization and those bills, which were negotiated into the joint bill that passed Congress on July 29 and was signed into law by President Bush on August 10.

Heroes Who Made It Happen
All TLPA members were critical to this victory. The people named below all went above and beyond the call of normal duty. These individuals were the key to achieving the tremendous victories in SAFETEA-LU.

The Congressional heroes in this effort are Senator Richard Shelby (R-AL) and his transportation staff person Sherry Little Lloyd; Senator Wayne Allard (R-CO) and his transportation staff person Tewana Wilkerson; and Representative John Duncan (R-TN) and his transportation staff person Don Walker. Many others are likely to take credit, but these are the Congressional leaders that got the job done. They did not waiver when many others in Congress succumbed to organized labor's assault against the pro-private sector provisions. We owe them our respect, our gratitude and our support.

TLPA heroes in this effort include President Jamie Campolongo, Pittsburgh, PA; Immediate Past President Judy Swystun, Norfolk, VA; Past President Gene Hauck, Boise, ID; Past President Rob Searcy, Orlando, FL; Past President Ellis Houston, Birmingham, AL; Past President Mark Joseph, Baltimore, MD; Past President Murray Rosenberg, Atlantic City, NJ; Past President Larry Slagle, Anaheim, CA; Past President Joe Chernow, Houston, TX; Past President Neal Nichols, Arlington, VA; Vice President Brian Hunt, Pomona, CA; Director Victor Dizzengoff, New York City, NY; Director Dwight Kines, Baltimore, MD; Director Daniel Leonas, Lewiston, ME; Director Robbie Werth, Alexandria, VA; Director Margie Wilcox, Mobile, Al; Jim Bryant, Manassas, VA; Dick Leshley, Coos Bay, OR; Craig Mackin, Louisville, KY; Jamie Marlowe, Huntington, WV; Robert McBride, Denver, CO; Paul Rosenberg, Atlantic City, NJ; Dale Victor, St. Cloud, MN; Brad Whittle, Denver, CO; and Keith Wyckoff, Baton Rouge, LA.

More Information
TLPA will present two sessions at its 87th Annual Convention & Trade Show in Boston, this November 9-12. Be certain to attend the convention to see how you and your company can benefit from these new changes to the federal law.


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