Maryland Same Day Messenger Courier Association

 

Dedicated to Preserving Industry Choice in Classification of Workers and Strengthening the Safety and Efficacy of Maryland Delivery Companies

 

 

A CALL TO ARMS: Meeting November 18th, Maryland Same Day Courier Association Please come to our end of year, annual recap and planning meeting for the Maryland Same Day Courier Assn on Nov 18th, to be held @ Washington Express at 12240 Indian Creek Court in Beltsville.

We realize that everyone in our business has lots of daily issues to deal with on a weekday afternoon in November, but this meeting of our newly formed association is critical to our individual and collective future and perhaps to our very survival as an industry. With your help and with the help of our lobbyist, Bruce Bereano, we were able to get the local courier industry in Maryland carved out of legislation later passed this year . The bill was similar to laws already enacted in both Massachusetts and California. These laws require all courier companies to treat their drivers as employees and they are currently wreaking havoc on our industry in those two states. They have forced many courier firms to shut down with others required to convert to employee drivers.

Our success in beating back the Department of Labor and Licensing's bill last session on this issue doesn't mean that the battle is over yet. Not only do we need to make sure that this attack on our operating business model, using IC couriers, does not rear its head again, but we still have another big issue to deal with in regard to the Maryland Code of Regulations. COMAR defines messengers as those "primarily engaged in the hand delivery of individually addressed mail, messages, or documents, either in paper or magnetic media format.". This definition in the COMAR has been used to harass us and, in this past year, has seen a number of Maryland courier firms visited by state DLLR auditors who, after going through their books and records, levied and assessed taxes and penalties based on a profile analysis of the firm's deliveries, determining which of these deliveries involved printed matter vs actual physical items. DLLR used the outdated COMAR definition of what a "messenger" is to levy taxes and penalties on all deliveries by a courier firm that didn't involve paper or printed matter.

Please plan on joining us @ 3:30pm in Beltsville at our offices on November 18th. This might be the most important meeting that you attend this year.

Meeting Agenda:

A recap of this past Maryland legislative session with a forecast and strategy discussion for the next session with our lobbyist, Bruce Bereano, and the President of the Maryland Same Day Courier Association, Frank Callahan of Falcon Express

What is going on in other states impacting the courier industry, including a summary of pending legislation and its possible impact. This discussion to be led by John Benko, MCAA Board Member and Chairman of MCAA's State Action committee.

An overview of pending Federal legislation intended to limit the use of independent contractors in ours and other industries as well as Congressional efforts to eliminate the Section 530 Safe Harbor provision that traditionally shielded us from states deciding to arbitrarily audit and penalize individual courier companies while ignoring others. John Ferraro, our MCAA Congressional Affairs Director will lead this discussion and he will tell us what the MCAA is doing to fight these Federal Govt efforts to re-make the traditional courier IC business model. We will also talk about what happens if this legislation passes and what the affect will be on how we operate and what we can do to prepare for it.

Please come and participate. Let's keep Maryland a safe place to operate a local courier business. If you have not already RSVPed to Mark Gross, please do so today. markgross@qmsdc.com

Gil Carpel Washington Express

April 9th Update – The full Senate passed the bill as amended by the House.  It awaits the Governor’s signature.  There is no reference to Package Delivery in the final bill.

 

April 2nd Update – The Senate Finance Committee is taking up SB0909 again this afternoon.

 

March 26th Update – The House of Delegates passed HB 819 with our amendments by a vote of 101-34. 

 

March 25th Update – From Bruce Bereano’s office - “House Bill 819 was voted out of House Economic Matters Committee 19-4 favorably with amendments including our amendments to come out of the bill completely.  Bill now goes to House floor for consideration and vote.”

 

It is the feeling of Mr. Bereano and that of your executive committee that since the chances of this bill becoming law are extremely high, and because we hope to work with DOLR and the House and Senate in the future, we should take a position supporting the resulting bill (assuming it remains as is) once it emerges from House/Senate Conference.   One of our biggest goals is to expand the antiquated definition of what a messenger is so that DOLR cannot go into a company that delivers critical parts, architectural drawings, or does medical work and say that “you’re not a messenger service, so you have no exemption to use ICs.” Currently, a messenger service is defined narrowly as a company that delivers paperwork.

March 23rd Update – MSDMCA Treasurer Gil Carpel and and VP Mark Gross sat in on a Senate Finance Committee.  At no time during the hearing did Package Delivery come up.  We feel that the committee has no desire to reinsert any Package Delivery language into SB. 919

March 12th Update from MSDMCA President Frank Callahan on DLLR Amendments to Remove Package Delivery from HB 819

February 26th Update from MSDMCA President Frank Callahan on Todays' Efforts in Annapolis

Update as of February 25th, 2009 The Senate Finance Committee has scheduled hearings on the two bills which are identical to H 819 and H 1070 for Thursday afternoon, March 12th in Annapolis.  The bill numbers are SB 909 and SB 912.  Info can be found at:

http://mlis.state.md.us/2009rs/billfile/SB0909.htm

and

http://mlis.state.md.us/2009rs/billfile/SB0912.htm

To see the members of the Senate Finance Committee, click:

Maryland Senate Finance Committee

 

Update as of February 19th, 2009 A third bill has been introduced in the House of Delegates. Unlike the other two bills, it does not have a companion bill in the State Senate:

http://mlis.state.md.us/2009rs/billfile/hb0649.htm

To see the text of the bill, scroll down the page and click on "First Reading"

To see the members of the House Committee on Economic Matters, click:

Maryland House of Delegates Committee on Economic Matters

Update February 16th, 2008 - The following bill (H.B. 1070) was introduced in the House of Delegates and has been referred to the Committee on Economic Matters, which is chaired by Derrick Davis:

http://mlis.state.md.us/2009rs/bills/hb/hb1070f.pdf

 

 

Update: February 11, 2009

 

Currently, the Maryland House and Senate are debating identical administration-introduced bills that would provide severe penalties to businesses that “knowingly” misclassify their workers as Independent Contractors in situations where the Maryland Department of Labor determines that the drivers should have been classified as employee drivers.  The draft legislation has already been changed to exempt all Maryland Motor Truck Association members, but provisions singling out Package Delivery Companies remain in the Governor’s bills.

House Bill 819 was introduced and read into the record on Wednesday, February 11th and can be found at:

 

 http://mlis.state.md.us/2009rs/billfile/hb0819.html

Since the vast majority of Maryland courier/messenger/delivery companies rely extensively on their ability to utilize owner/operators, we feel that this legislation can pose a tremendous threat to our industry and could have the unintended result of forcing many Maryland based companies to move their operations out of state to avoid the onerous provisions of this legislation. 

The Maryland Department of Labor has already taken action against courier companies that were using leaseback arrangements to utilize independent contractors for straight-truck deliveries.

Since the Maryland legislative session will end in mid-April, it is essential that all Maryland based courier companies with (or without) independent contractors join the MSDMCA immediately to stay informed about our efforts in Annapolis to get this bill fixed so that it doesn’t destroy Maryland jobs and Maryland-based companies.

To get involved, please send an email to Mark Gross with your name, the name of your company, your address, phone number, and email address.

Initial officers of the association are:

President - Frank Callahan - Falcon Express

Vice President - Mark Gross - Quick Messenger Service

Secretary - Denise Buchman - Maryland Messenger

Treasurer - Gil Carpel - Washington Express

 Please do your part by joining the MSDMCA

2009 Dues:

 

1-19 Contractors:                                              $500

 

20-39 Contractors:                                         $1000

 

40+  Contractors:                                            $2000

 

Regional or National Carriers:            $3000

 

Affiliate Members:                                         $500

 

Please make your check payable to:

 

Maryland Same Day Messenger Courier Association

 

c/o Washington Express

attn: Gil Carpel

12240 Indian Creek Ct

Beltsville, MD 20705-1242