ASSEMBLY, No. 2206
STATE OF NEW JERSEY
INTRODUCED JUNE 27, 1996
By Assemblyman SULIGA
An Act prohibiting motor carriers from compensating conveyors of hazardous materials by means of certain incentives and amending and supplementing P.L.1983, c.401.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) The Legislature finds and declares:
a. The safe and responsible transport of hazardous materials on New Jersey's congested roadways is of paramount concern to the citizens of this State;
b. The Legislature has acted to regulate the transportation of hazardous materials in this State pursuant to P.L.1983, c.401 (C.39:5B-25 et seq.) and subsequent enactments;
c. Increasingly, companies responsible for the transport of hazardous materials across this State are decreasing the regular hourly salaries of their drivers and instead are offering drivers compensation for shortening delivery times, or time-based "pay-for-performance" incentives;
d. Preliminary research by the National Transportation Safety Board and the Federal Highway Administration suggests that truckers paid on a "pay-for-performance" basis have more accidents than those drivers who are paid by the hour.
e. Recently there has been an alarming increase in roadway accidents in this State involving tanker trucks carrying hazardous materials.
f. Therefore, in an effort to decrease the risk of roadway disasters and to preserve the health, safety and welfare of the people and environment of this State, this Legislature finds and declares that "pay-for-performance" methods of compensation that require conveyors of hazardous materials in an unsafe manner are per se illegal, and violate New Jersey's strong public policy of enforcing the safe transport of hazardous materials.
2. Section 1 of P.L.1983, c.401 (C.39:5B-25) is amended to read as follows:
1. As used in this act:
a. "Department" means the Department of Transportation;
b. Hazardous material" means a substance or material determined by the Secretary of the United States Department of Transportation to be capable of posing an unreasonable risk to health, safety, and property when transported in commerce and so designated pursuant to the provisions of the "Hazardous Materials Transportation Act of 1994," [Pub.L. 93-633 (49 U.S.C. §1801 et seq.)]Pub.L.103-272 (49 U.S.C. §5101 et seq.).
c. "Motor carrier" means a motor carrier, motor private carrier, and freight forwarder as those terms are defined in the "Hazardous Materials Transportation Act of 1994," Pub.L.103-272 (49 U.S.C. §5101 et seq.) and regulations promulgated thereunder.
d. "Conveyor of hazardous material" means any individual, partnership, association, corporation, or employee, agent or representative thereof that directly affects hazardous material transportation safety, as determined by the regulations of the United States Secretary of Transportation and the New Jersey Department of Transportation. A "conveyor of hazardous material" includes an owner-operator of a motor vehicle transporting hazardous material in commerce, and includes an individual employed by a motor carrier who, during the course of employment (1) loads, unloads, or handles hazardous material; (2) manufactures, reconditions, or tests containers, drums, and packagings represented as qualified for use in transporting hazardous material; (3) prepares hazardous material for transportation; (4) is responsible for the safety of transporting hazardous material; or (5) operates a vehicle used to transport hazardous material.
e. "Pay-for-performance incentive" means any program, scheme or method that compensates or otherwise provides benefits to conveyors of hazardous materials the object of which is to minimize the time taken for performance of their duties in the transport or handling of hazardous materials, and the operation of which causes conveyors of hazardous materials to perform their duties in an unsafe manner.
(cf. P.L.1983, c.401, s.1)
3. Section 2 of P.L.1983, c.401 (C.39:5B-26) is amended to read as follows:
2. The department, in consultation with the Department of Environmental Protection, the Department of Labor, the Department of Commerce and Economic Development, the [Divisions] Division of [Motor Vehicles and] State Police of the Department of Law and Public Safety, the Division of Motor Vehicles, within the department and other appropriate State departments and agencies shall adopt, within 12 months of the effective date of this act and pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations concerning the transportation of hazardous material, which shall, to the maximum extent practicable, conform to the requirements established by [49 CFR Parts 100-199] regulations adopted by the United States Department of Transportation pursuant to the provisions of the "Hazardous Materials Transportation Act of 1994," [Pub.L. 93-633 (49 U.S.C. §1801 et seq.)]Pub.L.103-272 (49 U.S.C. §5101 et seq.).
(cf. P.L.1983, c.401, s.2)
4. (New section) a. No motor carrier shall schedule a run, nor permit nor require the operation of any motor vehicle transporting hazardous material between two or more points in a period of time which would necessitate the vehicle being operated in an unsafe manner, or at speeds greater than those prescribed by the jurisdictions in or through which the vehicle is being operated.
b. No motor carrier shall enter into any contract with a conveyor of hazardous material that includes a pay-for-performance incentive, the achievement of which incentive requires the conveyor to perform his duties in an unsafe manner, or operate his vehicle at speeds greater than those prescribed by the jurisdictions in or through which the vehicle is being operated.
5. A person who violates the provisions of this 1996 amendatory and supplementary act shall be subject to the penalties and injunctive relief as provided in section 5 of P.L.1983, c.401 (C.39:5-29).
6. This act shall take effect immediately.
STATEMENT
In an effort to decrease the risk of serious roadway accidents involving trucks carrying hazardous materials in this State, this bill prohibits motor carriers that transport hazardous materials from including "pay for performance" incentives in contracts with haulers and handlers. As defined in the act, a pay for performance incentive is any program, scheme or method that compensates or otherwise provides benefits to conveyors of hazardous materials based on minimizing the time taken for performance of their duties in the transport or handling of hazardous materials. Additionally, the bill explicitly bans the operation of any motor vehicle transporting hazardous material that would require the driver of the vehicle to speed or otherwise operate the vehicle in an unsafe manner. This requirement, which is already contained in both the State and federal Department of Transportation regulations, has been included for greater emphasis.
Pay for performance incentives in contracts between motor carriers and their haulers can lead to the unsafe transport and handling of hazardous materials by rewarding employees for disregarding speed limits and other traffic laws. There is evidence that "pay for performance" incentives encourage employees to take unnecessary driving risks, thereby increasing the frequency of accidents involving dangerous, flammable and environmentally harmful substances. Recently there have been several serious accidents involving oil tanker trucks on the roadways of this State. As a result, the health and welfare of many New Jerseyans were put directly at risk, and thousands of gallons of petroleum product were discharged into the environment.
Time-based performance incentives are creating concern on a national level as well. The National Transportation Safety Board recently issued a report that suggests a link between methods of compensation that encourage drivers to drive for long hours or at greater speeds with fatigue-related accidents.
Prohibits motor carriers from compensating conveyors of hazardous materials on a time-based "pay for performance" basis.