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NATM headquarters receives frequent questions from trailer dealers and end-users about state troopers and local law enforcement officers pulling over towed trailers the drivers thought did not require a commercial driver's license (CDL). Is this a result of overly-aggressive law enforcement at work? Or a lack of awareness regarding CDL laws? Perhaps a combination of both?
What appears to be behind these inquiries is the vagueness of the CDL laws and the general confusion and disagreement this vagueness naturally generates. So, let’s try to clear up some of this confusion. Congress has charged the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) with responsibility for implementing the federal CDL laws through federal regulations and has directed the states to issue CDLs in conformity with these regulations. The FMCSA’s CDL regulations appear in the Code of Federal Regulations, 49 C.F.R. Part 383. The FMCSA requires drivers to have a CDL – either a Class A, a Class B, or Class C (for transporting passengers or hazardous materials) – in order to operate defined types of commercial motor vehicles (CMVs) in interstate, intrastate, or foreign commerce. To clarify its regulations, the FMCSA publishes a graphic illustrating the various vehicle configurations constituting the groups of CMVs requiring a Class A or Class B CDL. That graphic can be found to the left. State and local law enforcement often refer to it for guidance. The FMCSA requires drivers to have a CDL to operate a motor vehicle if that vehicle meets the FMCSA definition of a “commercial motor vehicle” and is used in “commerce.” The FMCSA defines both terms in this two-part requirement in 49 C.F.R. § 383.5. The great misunderstanding out there, within the trailer industry and probably within the law enforcement community, about the CDL requirements springs from those two definitions, particularly the word “commerce.” The FMCSA defines a “commercial motor vehicle” as a motor vehicle, or a combination of motor vehicles, in certain GVWR-based configurations, when used in “commerce” to transport “property or passengers.” The physical configuration component of the CMV definition is very mechanical, very objective. When dealing with a tow vehicle-trailer combination, you look at the gross combination weight rating (GCWR) of the tow vehicle if the tow-vehicle manufacturer has assigned it a GCWR and displays it on its certification label. With respect to the familiar combination, a tow vehicle (whether truck, automobile, or tractor) towing a trailer, the driver needs a CDL if the tow-vehicle manufacturer’s assigned GCWR exceeds 26,000 lbs. (as shown on its cert label) and the trailer’s gross vehicle weight rating (GVWR) exceeds 10,000 lbs. If there is no assigned GCWR, the FMCSA regulations require the driver to have a CDL only if the sum of the GVWRs of the tow vehicle and the trailer together exceeds 26,000 lbs. and the trailer’s GVWR exceeds 10,000 lbs. In either scenario that satisfies the definition of “commercial motor vehicle,” the driver will need a Class A CDL, assuming the trailer’s use also satisfies the second component of the CDL requirement, “used in commerce,” as discussed below. With respect to a single vehicle, the FMCSA requires the driver to have a Class B CDL to operate that truck, bus, van, or automobile in commerce if that vehicle has a GVWR of more than 26,000 lbs. It is required even if that vehicle is a power unit (truck, automobile, or van) and is towing a trailer with a GVWR of 10,000 lbs. or less. If the trailer’s GVWR exceeds 10,0000 lbs., a Class A CDL is needed if its use also satisfies the second prong of the CDL requirement. The second prong of the CDL requirement, and of the CMV definition, is much more troubling, much more subjective, and the primary source of the confusion. To qualify as a CMV requiring a CDL, that vehicle, even in a qualifying GCWR/GVWR configuration, must be used in “commerce.” “Commerce” has its own separate definition in § 385.3 of the FMCSA’s regulations. The FMCSA defines it broadly as any trade, traffic, or transportation between points in one state and points in another state or any trade, traffic, or transportation that “affects” trade, traffic, or transportation in the U.S. between points in one state and points in another. Not exactly an enlightening definition, to say the least. How this “use” assessment turns out often varies depending upon who is doing the assessing. And that is often the law enforcement officer on the scene. As a starting point, the proper inquiry, then, is whether this questionable CMV is transporting property (across state lines) for some commercial purpose, as opposed to for the personal use of the owner, driver, or some other person. What the trailer owner considers his or her own “personal use” may in fact, upon close examination, turn out to be for a “commercial purpose” when viewed through the critical eyes of the state or local law enforcement officer. Let’s examine several tricky examples: The trailer owner is towing his own horses to a horse show or his livestock to the state fair where monetary prizes are awarded. That familiar scenario is likely to be categorized as a commercial undertaking or commercial purpose from the vantage point of the diligent state trooper who pulls over the driver looking for that CDL. Suppose instead those horses belong to a stable whose owner charges the public by the hour to ride them. Another commercial purpose according to a strict interpretation of the term. It does not matter that no business name or logo is displayed on the side of the truck or trailer towing these horses. Now suppose it is a college student behind the wheel of Dad’s 16,000 lbs. GVWR truck towing his family’s lawn mower around the neighborhood in Dad’s utility trailer to earn a few bucks mowing lawns to off-set that college tuition. He is likely to need a Class A CDL if that trailer’s GVWR exceeds 10,000 lbs. Remember, this is in intrastate commerce – see below for discussion of further complication. Complicating the question of whether a CDL is necessary are a hodge-podge of state CDL laws, many of which are at variance with the federal law that FMCSA has issued. States are not prohibited from enacting their own state CDL laws, applying them to non-interstate movements (i.e. the trailer does not cross the state line), if those state laws are stricter than the federal law. In theory, the state law of State A might require its residents to have a different class of CDL, perhaps designated as a “Class D,” to tow a 26,000-lbs. GVWR trailer when used for personal use. In the third “tricky example” above, even if the student does not need a CDL under federal law to haul his lawn mower (because the trailer’s GVWR is less than 10,000 lbs.), he may need one anyway because the state law of the state where he resides requires one even to pull a light-duty trailer. State A must, however, honor the out-of-state driver’s license issued by State B to its residents: for example, if State B does not require a CDL for its residents to operate a vehicle for personal use, then State A may not require a State B resident to have a CDL while operating a vehicle for personal use in State A even if State A requires its own residents to have a “Class D” CDL for this purpose. The CDL complaints that NATM fields typically revolve around the smaller, medium-duty trailers (between 10,000 lbs. and 26,000 lbs. GVWR) and the debate over personal use vs. commercial use. In sum, assuming commercial use, when the GVWR of the truck exceeds 26,000 lbs., a CDL is required, regardless of the GVWR of the trailer, and when the GVWR of the truck is less than 26,000 lbs., a CDL is required only if (1) that truck’s GVWR and the trailer’s GVWR, added together, exceed 26,000 lbs. and (2) the trailer’s GVWR exceeds 10,000 lbs. Dealers should be prepared to provide that objective guidance about what tow vehicle-trailer configurations may need a CDL when asked by their customers, but they would be well advised to stay away from declaring, when asked, that the customer’s intended end-use of the trailer meets or does not meet the FMCSA definition of “used in commerce.” This precaution is especially warranted if the trailer’s intended use, as described by the owner, falls within the murky, gray area of personal vs. commercial use or the dealer is unsure about the niceties of the state CDL laws that might apply. It is also important for the dealer to keep in mind that a trailer’s use might be “personal” on one or more trips but “in commerce” on others. Better that the driver have that CDL and not need it than not to have one when stopped and forced try to explain to the officer that this “trip” is really only a “one-off,” a rare exception to his usual personal use.
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The National Association of Trailer Manufacturers (NATM), known as the resource for safety and compliance for the light- and medium-duty trailer industry, has published the 2020 edition of the Guidelines. This massive document takes the guesswork out of meeting federal requirements governing the manufacturing of trailers under 26,000 lbs. GVWR and is a benefit of NATM membership.
Building trailers to meet the federal regulations outlined in the NATM Guidelines is not optional. It is required by law and enforced by law enforcement every day on the nation’s roadways. But it can be very time-intensive for trailer manufacturers to research the numerous federal rules, regulations, standards, and accepted industry practices that govern trailer construction. NATM addresses this by compiling the Guidelines for Recommended Manufacturing Practices for Light- and Medium-Duty Trailers. The document consists of over 400 pages of laws, regulations, rules, standards, and industry best practices. This information is gathered from resources such as the U.S. Department of Transportation, the Society of Automotive Engineers, Inc., the American Association of Motor Vehicle Administrators, the Recreational Vehicle Industry Association, the Traffic Safety Administration, the Maintenance Council, and the National Electrical Manufacturers Association amongst others. The Guidelines is updated annually by industry experts that stay abreast of changing regulations and who vet the addition of recommendations and best practices. Members report substantial time savings by utilizing the Guidelines, particularly on the topics of lighting and reflectors, VIN and data plates, gross vehicle weight ratings, and state brake requirements. While the Guidelines focus on U.S. regulations, many may have an interest in Canadian compliance. For more information, visit Transport Canada’s website at www.TV.GC.ca/en/transport-canada.html. In recent years, the National Highway Traffic Safety Administration (NHTSA) has increased its enforcement activity concerning the compliance of motor vehicle manufacturers, including trailer manufacturers. NHTSA has placed particular concern on meeting tire recordkeeping requirements, which includes both manufacturer records as well as the provision of TIN cards to dealers, distributors, and purchasers. This is only one of the many requirements outlined in NATM’s Guidelines. NATM assists its trailer manufacturing members in avoiding costly fines and decreasing liability related to trailer compliance through the NATM Compliance Verification Program (CVP). The NATM CVP is an unbiased, third-party audit of the trailer manufacturing process and uses the Guidelines as the backbone for the program. The CVP provides biennial on-site consultations to trailer manufacturers and technical assistance throughout the entire process to ensure companies are manufacturing trailers consistent with Federal Motor Vehicle Safety Standards and other industry best practices. Once a trailer manufacturer has successfully passed the Compliance Verification Program, the company is able to purchase NATM Decals and market their company’s dedication to fulfilling their safety requirements by participating in an unbiased, third-party audit of their trailers. While participation in the NATM Compliance Verification Program is an additional, voluntary cost for manufacturers, there are economic benefits of participation. “The first-year sales saw a 20 percent boost and blew past the forecast over three years for the sales improvements for revenue targets for the existing trailer product. We will continue to use up the [NATM] labels we have in stock, and then order more,” said Pete Dixon, Engineer at Karcher North America, Inc., regarding the benefit of being a member of the National Association of Trailer Manufacturers. For more information about how the National Association of Trailer Manufacturers can assist your trailer manufacturing company, visit www.NATM.com, email NATMHQ@natm.com, or call (785) 272-4433. Your 2021 NATM membership renewal notice was mailed to the attention of your accounts payable department in November. For international members, invoices were emailed. You have the option to renew your membership online at www.NATM.com. Log into the Members Only section to view and pay the invoice. Should you decide to pay online, please advise accounts payable to disregard the notice. Your membership login credentials are below. Pay Membership Dues Online Instantly:
Troubleshooting Online Payments: No Invoice When Logging In? Thank you for attempting to renew your membership with NATM online! Did you try logging into the Member’s Only portal to pay, only to find that there are no open invoices attached to your account? Are you seeing your main contact’s first and last name instead of only your company’s name? Then unfortunately your computer is remembering the wrong credentials! When logging in, you should only see your company’s name. To ensure that your computer accepts the new credentials sent to main contacts in late November, please try the following:
Correct: When using the correct credentials, your business name will be seen.
INCORRECT: If you are seeing an individual’s name, then your computer is remembering old credentials. Please use a different browser or clear your computer’s cookies.
Membership dues must be paid no later than January 31, 2021. If dues are not received by Jan. 31, the member company will be considered delinquent and all membership benefits will be terminated until paid per the NATM Bylaws.
Thank you for your continued support of the Association. Please don’t hesitate to contact Meghan Ryan, NATM Assistant Director, at Meghan.Ryan@natm.com if you have any questions or concerns.  Join NATM’s leadership, staff, and your fellow members for the 2021 Annual Membership Meeting from the comfort of your own desk! On February 18, 2021 at 1 pm central, NATM members are invited to attend a virtual meeting to learn about what their Association has accomplished in the last year, its plans for 2021, give feedback on programming, and vote on Bylaws amendments.
Members will hear from NATM’s board president, members of the staff, government affairs representatives from K&L Gates, as well as our affinity program partners throughout the meeting. With an agenda to be circulated in January, members can expect to learn about upcoming changes to the compliance program, advocacy efforts in 2020 and areas of focus in 2021, newly released member benefits as well as upcoming programming in the works as part of the NATM Strategic Plan. The Association will also be polling attendees about potential programming and benefits changes. NATM wants to hear from the industry to guide the work it undertakes – let your voice be heard and register today! The NATM Board will also be recommending changes to Bylaws, including adding a new membership type, that attendees will vote on during the meeting. There will also be time throughout the meeting to answer members questions, making it easier than ever to interact with your Association. Please join us February 18, 2021 at 1 pm central, register now! Once registered, please add @gotowebinar.com to your whitelist or address book to ensure you receive the login credentials for the meeting. *The NATM membership meeting is only open to Association members per the NATM Bylaws. Registrations from non-members will be denied.   On November 9th, NATM launched its first annual giving campaign – NATM Feeds America – an opportunity for the industry and NATM to join together in giving back to charitable organizations. For 2020, NATM chose to support Feeding America, an organization that works nationwide to provide meals to those in need. With 98.7% of all funding going directly into programming, Feeding America is able to turn each dollar donated into 10 meals.
With more than 54 million Americans expected to face food insecurity this year as a result of the pandemic and wildfires, feeding our neighbors is more important than perhaps it has ever been. As a new wave of COVID-19 continues to debilitate the country and with schools choosing to go remote this winter, it is estimated 18 million children will face food insecurity – many of whom rely on school for meals. When NATM launched this campaign in early November, the Association set the goal of raising $5,000 from members and promised to match that first $5,000 dollar for dollar. In less than 36 hours, the trailer industry showed up and exceeded that goal. The fundraising bar was then raised to $8,000 and just 10 days after launching the campaign, the industry again exceeded the goal. We’re asking for your help to raise $11,000 and create 100,000 meals for those in need. NATM will contribute the promised $5,000 creating an additional 50,000 meals. Help NATM Feed America today! To thank our members for giving back, the company that collectively contributes the most will be covered in NATM’s marketing of the campaign, both in print and online via various industry publications, and receive a free full-page ad in Tracks. And, for every $100 donated, you get one entry into a drawing for a free full Convention registration – the more you give the more entries you get! The 2021 membership renewals are hitting inboxes, which is the perfect time for the Association to reflect on how membership dues are critical in supporting the actions, services, and educational programming that NATM provides for its members and the light- and medium-duty trailer industry. NATM is constantly evaluating costs and benefits to ensure your annual membership investment is being met with valuable returns.
In 2020, membership dues allowed NATM to:
NATM’s commitment is to its members and ultimately to trailer safety. Supporting NATM members’ ability to grow and prosper, while also contributing to the safety of the nation’s roadways, is what drives the Association’s work. Your support of this mission and your feedback along the way is vital to NATM’s success. NATM looks forward to continuing this important work in the coming year! 2021 NATM Membership Dues Your 2021 NATM membership renewal notice was mailed to the attention of your accounts payable department in November. For international members, invoices were emailed. For 2021, Membership Dues are remaining the same:
You have the option to renew your membership online at www.NATM.com. Log into the Members Only section to view and pay the invoice. Should you decide to pay online, please advise accounts payable to disregard the notice. Your membership login credentials are below. Pay Membership Dues Online Instantly:
Membership dues must be paid no later than January 31, 2021. If dues are not received by Jan. 31, the member company will be considered delinquent and all membership benefits will be terminated until paid per the NATM Bylaws. Thank you for your continued support of the Association. Please don’t hesitate to contact Meghan Ryan, NATM Assistant Director, at Meghan.Ryan@natm.com if you have any questions or concerns. An excerpt from “You’re the Problem (and the Solution)” by Bob Clements and Sara Hey Have you ever had a small rock in your shoe? I enjoy running and have spent much of my adult life running as a form of exercise and stress relief. It’s a lot easier to run out your aggression than to punch someone in the face and go to jail, but again, I digress. I get that, to many people, this makes me weird, but I’m okay with it.
There have been times I have put on my running shoes and immediately noticed a small rock inside. Did I put the rock there on purpose? No. But that doesn’t change the fact that the rock is still there. Regardless of how the rock found its way into my shoe, all I could think about at that moment, is that silly little rock. It doesn’t matter what the weather is like or how hard my run is, this one tiny, annoying, little rock, that I did not put in my shoe, takes all of my attention. So, what’s the solution? I have to stop what I’m doing, take off my shoe, and remove the rock. Does it take time to stop, take off my shoe, and get the rock out? Yes. Is it an inconvenience? Yes. However, within a moment, something interesting happens. The time, pain, and inconvenience caused by the rock are quickly a distant memory, and I’m experiencing utter relief and able to move forward with my run. Successful dealers understand that often the changes they need to make don’t require a complete overhaul of their dealership or even a department. Most of the time the changes that need to be made are little things that have a big impact. You don’t always understand how significant the impact is or how much something was weighing on you until you remove the issue. The moment you make the change, things start to become easier, and the issue, like the rock in your shoe, becomes a distant memory. A small change in your service department that will alleviate pain may include having your technicians clocking in and out of work orders. Sure, it could be an inconvenience to implement this but, after you do, the ability to understand where time is going and what you can do to change the profitability of the department will change the department as a whole. A small change in your parts department might be the decision to burn down inventory about three months before your slow season, giving you the cash you need to survive a slower time of the year. It’s not often that your employees will take parts, as payment, in place of a paycheck when business slows down, and the extra cash can make a big difference to you. Yes, you and your employees will have to learn a new skill, and it will take time; however, the small amount of pain and inconvenience you experience will be paid back with increased cash flow during a historically slow time. In whole goods, this small change could be having your salespeople track their follow-up on quotes or bids and the results they were having. As we work with dealerships, we require salespeople to make a minimum of five follow-ups on any quote or bid they have given. Why? Because studies have said that most salespeople make only one follow-up call yet on average it takes five for the average quote or bid to be accepted. Yes, it’s a change from how you have done things in the past, but the effects of the change will create more consistent cash flow into your dealership throughout the year. No one puts a rock in their shoe on purpose. My guess is that you and your team are already doing a lot of things right or you wouldn’t still be in business. What will separate you from where you are and where you want to be is identifying where the rock slipped in and what you can do to get the rock out. Before you know it, the rock will be a distant memory for you and your team. Dealers should educate their customers on the importance of understanding a trailer’s gross vehicle weight rating (GVWR) and tow vehicle towing capacity. All too often, customers are not familiar with what trailer GVWR or cargo capacity means. Nor are they familiar with what this will require from their tow vehicle in terms of its towing capacity. This lack of information can lead to dissatisfaction if customers fail to complete necessary research before the purchase of the trailer, or if the trailer dealer personnel fails to ask the correct questions to ensure their customer is selecting a trailer that meets their needs and legal requirements.
First, the tow vehicle must be analyzed. What is the model of the customer’s pickup truck, SUV, minivan, or car? All vehicles capable of towing have owner’s manuals with maximum rated towing capacities. What often gets overlooked is "maximum" in this context, which truly means maximum. For example, if a customer has a tow vehicle with a towing maximum capacity of 7,000 lbs., they may not want a 7,000 lbs. GVWR trailer. The customer needs to take into serious consideration the fact that they will be at maximum capacity. Even without accidentally overloading the trailer, the tow vehicle will be working at its maximum capacity and not handle as well. As a result, they could find that their tow vehicle does not have enough power to merge with traffic on interstate on-ramps, to pass other vehicles, or to climb long hills and mountains. Trailer customers end up dissatisfied if they have purchased too much trailer for their tow vehicle. Unfortunately, simply purchasing a larger tow vehicle with a larger towing capacity is not an affordable solution to this problem and preventative measures by the dealer are the best route to customer satisfaction. Dealers should ask the customer what their intended tow vehicle will be and if they are committed to that tow vehicle for the next few months, the next few years, or just the next few minutes. The customer could be vehicle shopping at the same time they are trailer shopping or may be willing to upgrade in the near future. From there, the trailer dealer can assist the customer in choosing a trailer that their current tow vehicle can handle. Or, in the event that the customer is in the market for a new tow vehicle, dealers can advise customers to purchase a certain category of tow vehicle that meets or exceeds a certain towing capacity threshold. It is a crucial conversation to have at the point of sale as many customers think their tow vehicle will perform adequately towing a certain model of trailer, only to find out too late that they should have either purchased a smaller trailer or upgraded their tow vehicle to handle the larger trailer model. After the tow vehicle conversation, the topic can turn more specifically to the trailer. Dealers should make sure customers understand that the combination of the shipping weight of the trailer plus the trailer's cargo capacity should never exceed the trailer’s GVWR listed on its VIN. The shipping weight information can be found on the manufacturer’s certificate of origin (MCO), while the cargo capacity is often listed on the trailer’s tire placard. For example, if a trailer’s GVWR is 7,000 lbs., the customer's tow vehicle should have a towing capacity that is 7,000 lbs. or preferably more. It is also crucial that the customer not overload the trailer. If the trailer itself weighs 2,700 lbs., the customer should never put more than 4,300 lbs. of cargo in it, because 2,700 lbs. plus 4,300 lbs. equals 7,000 lbs. GVWR, which the trailer should never exceed. Another critical dealer/customer conversation is what cargo the customer intends to tow. If the customer plans to haul a rock crawler SUV and camping gear that adds up to 5,500 lbs. in the example above, they cannot safely do that with the same trailer. The calculation for this example is the combination of the trailer weight of 2,700 lbs. plus the cargo of 5,500 lbs., which equals 8,200 lbs. This means the trailers’ GVWR would need to be 8,200. But, because the GVWR of this trailer is 7,000 lbs., this customer has overloaded their trailer by 1,200 lbs. If the customer tells the dealer in this example that they intend to haul an estimated 5,500 lbs. of cargo, the dealer needs to explain to the customer that they should purchase a larger trailer with a higher cargo capacity. If the customer says their tow vehicle cannot haul a larger trailer, then the trailer dealer needs to explain to the customer they need both a larger tow vehicle with a higher towing capacity and a larger trailer with a higher cargo capacity. If this is not possible, the customer needs to find a way to haul significantly less cargo. The customer might be disappointed upon learning this, but later they will be appreciative of the dealer’s honesty, which leads to long term customer loyalty. The NATM Guidelines contain a section on trailer GVWRs. For more information, contact NATM’s Technical Director Terry Jones. Reports from Washington regarding another round of stimulus have American riding a rollercoaster in recent weeks. Just a few weeks ago, it seemed stimulus talks had been stalled, only to be potentially reinvigorated the next day, and again stalled last week only to be reinvigorated by the end of the week.
House Speaker Pelosi and Treasury Secretary Mnuchin have been meeting regularly, with reports late last week noting the parties were working quickly toward an agreement. Central discussion has been funding for testing and tracing needed to safely reopen schools and the economy. According to Bloomberg, three remaining sticking points include aid for state and local government, school funding, and liability shields for employers. However, by Monday morning, optimism again waned as Speaker Pelosi and Secretary Mnuchin continue to reconcile differences. While just a few weeks ago President Trump announced moving another stimulus package to the backburner, instead forging ahead with the nomination of a new justice to the Supreme Court, the President has since reversed course and pushed for Congress to reach a deal on a stimulus package. On Fox News last week the President noted he wanted a bill “even bigger than the Democrats” though he went on to note that not all Republicans were in agreement with him. Importantly, according to the Washington Post, Federal Reserve Chair Jerome H. Powell warned "more economic stimulus was needed to sustain the recovery. Politico further reported the Chairman Powell said, "too little fiscal support for the economy would lead to a weak recovery, creating unnecessary hardship for households and businesses." Bloomberg reported that Federal Reserve Bank President Neel Kashkari said the economic recovery had "flattened out and was in "vital need" of economic stimulus. Meanwhile, the stock market seems to be riding the same ups and downs as optimism for another round of stimulus before the election. On Monday morning, CNN reported stocked tumbled alongside hopes for a new stimulus package before the election. It’s time to begin the process of selecting 2021 NATM Committees. NATM Committees are responsible for guiding the work of the Association to ensure NATM continues to meet member needs and stays on the forefront of industry trends. Committee members are invaluable to the success of the Association.
Sign up before November 18th to help guide NATM in 2021! With 9 committees across a number of content areas, there is sure to be a committee that matches interests and the amount of time a member can invest. NATM understands there are many demands on member time. Our team of talented staff work to ensure committee member time commitment is as minimal as possible. Still, in order to be an Association by and for its members and best serve the industry, we need the help of industry members just like you. In 2021 the 9 committees are:
If you are interested in learning more about NATM committees or signing up, click here! We look forward to working with our members on making 2021 another great year! |
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