Page 22 - ATR 2 2015 web

TeaM effoRTs
Most House members were sup-
portive of the ATA’s position, and it
passed the committee easily on a voice
vote. Newton credited Neal for explain-
it’s a Basic legal priNciple that the BurdeN of ing the bill to the committee and then
avoidiNg proBlems falls most heavily oN the speaking for it on the House floor,
eNtity most efficieNtly aBle to do so. with where it passed, 76-4. By the time it

No “skiN iN the game,” shippers have little reached that point, the ATA was confi-
dent the bill was going to pass.
iNceNtive to Behave safely. Newton also expressed appre-
ciation to Woods and to Sen. Jeremy
Hutchinson (R-Benton), who carried
the bill in 2013 and explained its pur-
pose on the Senate floor this year.
ers’ compensation insurance through Insurance and Commerce Committee Newton testified in the House
their carriers without jeopardizing their from Georgia-Pacific and Americans for Insurance and Commerce Committee.
independent status. The anti-indemni- Prosperity, a group that advocates for Present at both the House and the
fication bill was introduced and even smaller government that is funded by Senate committee meetings, and ready
made it out of committee, but then it the same brothers, David and Charles to testify if needed, were three truck-
was amended and sent back and never Koch, who own Georgia-Pacific. ing executives: Butch Rice, president
advanced from there. Their argument was that govern- and CEO of Stallion Transportation
ment should not be involved in regu- Group; Al Heringer, vice president of
dRafTing The bill lating these private contracts, which Star Transportation; and Stephen Selig,
With those two victories in the carriers did not have to sign. Newton Maverick president and COO. Rice,
bag, the ATA board in its January 2014 said carriers did have to sign them – if whose company has about 75 trucks,
meeting decided to make an anti- they wanted to stay in business. said it was noteworthy that different-
indemnification bill its sole legislative “Everyone who ships fluid hazmat sized carriers working in different
priority and spent a year working on has that policy, so if you own a fleet of trucking segments were represented at
the issue. It applied for and received tank trucks, it’s not an option to walk the meetings.
a $10,000 grant from the American away from the business,” she said. “You Rice said motor carriers are perfect-
Trucking Associations, which has helped can’t choose not to do business with ly willing to take responsibility when
pass similar laws in many states since this guy because this (other) guy doesn’t they are at fault. The previous climate
making the issue a priority in 2008. have that clause in the contract. They left them with little choice but to sign
The money was used to offset legal all have it. contracts that put them at risk because
expenses and hire additional lobbyists. “The (trucking) industry is so frag- they needed the business.
ATA President Shannon Newton and mented that there are many people who “It’s absurd that there even has to
other members of ATA’s leadership met sign it without knowing what they’re be a law that says you can’t do that,
with House Republican leaders, House signing, or they’re willing to take the you know what I mean?” he said. “It’s
Democratic leaders, and with both risk that it would cost them the entire just amazing that we have to even go
major party candidates for governor, business if something were to happen. through the legislative process to have
Asa Hutchinson and Mike Ross. Because if you own three trucks, you a law that states that, hey, if something
“People are surprised that you don’t have a legal team. Your insurance happens on your property and one of
could do that by contract anyway,” agent isn’t reviewing your contracts.” your employees caused it, you’re liable. I
she said. “They’re like, ‘What do you The ATA argued that the practice of mean, that is elementary.”
mean, you could contractually obligate indemnification not only harms motor Newton said that having those exec-
someone to underwrite your own neg- carriers but also lessens public safety. utives at the meeting was an important
ligence?’ Your initial reaction is, ‘Well, It’s a basic legal principle that the bur- show of support. Trucking firms state-
that’s just fair law. If it’s your fault, it’s den of avoiding problems falls most wide who contacted their legislators also
your fault. It’s my fault, it’s my fault.” heavily on the entity most efficiently were a big help in passing the bill.
The law sailed through the Senate able to do so. With no “skin in the “The representatives who have
Insurance and Commerce Committee game,” shippers have little incentive to trucking in their district and those who
and passed the full body, 24-5, but behave safely.
it did face opposition in the House 

22 aRkansas TRuCking RepoRT | issue 2 2015