Vol. 9, No. 2 – January 18, 2010

This popular program is set for Tuesday-Wednesday, March 9-10, in Sedalia, Mo. MLA is offering this program in partnership with State Fair Community College, and the class will be taught by industry veteran Steve Bloess. More information, hotel discounts and a registration form will be sent this week.

Area Meetings

MLA is planning a series of meetings to update you on critical industry issues and legal concerns everyone should know. An attorney from the law offices of Seigfreid, Bingham, Levy, Selzer & Gee will be on hand to present important information for dealers – customer credit issues, wage and hour, succession planning, and more – and to answer your questions.

We’re taking our “show on the road” and will be in these cities on the dates shown. (More information and a registration form will be sent soon.) Meetings will begin at 10:30 a.m., will include lunch, and will be over at 2:00 p.m.

March 23 – Garden City

March 24 – Hays

March 25 – Kansas City

March 30 – Wichita

March 31 – Oklahoma City

April 1 – Joplin

April 6 – Jonesboro

April 7 – Hot Springs

April 20 – Moberly

April 21 – St. Louis

April 22 – Jefferson City

We hope to see everyone at an area meeting this spring!

REGISTER NOW FOR THE NLBMDA SPRING MEETING & LEGISLATIVE CONFERENCE

March 15-17, 2010

Washington Marriott

Washington, DC

Click here for online registration

This is a critical time for the LBM industry in Washington. All dealers need to make their voices heard on the key issues impacting the industry. Join your colleagues for NLBMDA’s Spring Meeting and Legislative Conference taking place on March 15-17, 2010, in Washington, D.C. This year’s conference will be bigger and better than ever before. In addition to association committee and board meetings and Washington Briefing Breakfast with a Congressional keynote speaker, the conference will also feature a special session with political analyst Charlie Cook, editor of the Cook Political Report and NBC News analyst. Charlie will discuss the latest political trends and outlook for the mid-term elections.

There will also be concurrent sessions on some of the current federal issues impacting the LBM industry. Further, the conference will be taking place jointly with the North American Building Material Distribution Association (NBMDA) and the Window and Door Manufacturers Association (WDMA), providing a wealth of business networking opportunities.

The Monday Welcome Reception will once again feature the popular Silent Auction to benefit the NLBMDA Legislative Action Fund, which supports the industry’s government relations efforts in Washington. If you would like to donate an item for the auction, click here to download a contribution form.

The early-bird registration rate ends on February 12, so don’t delay!

Click here to download a complete conference brochure.

NLBMDA Releases 2010 Policy Outline

The National Lumber and Building Material Dealers Association today released its 2010 National Policy Agenda, outlining key policies critical to restoring our nation’s housing sector and its supply chain. As retailers of building materials, NLBMDA’s member companies have sustained significant sales declines and job losses across the country over the past several years.

NLBMDA will also continue to advance pro-business policies that will strengthen small businesses and protect the many multi-generational family-owned businesses in the industry. The association’s agenda includes statements on housing, legal reform, workforce policy, tax policy, product supply, transportation and energy.

Source: NLBMDA, January 15, 2010

Note from Craig Webb, ProSales Editor

Please take special note of http://www.prosalesmagazine.com/industry-news.asp?sectionID=0&articleID=1171075. It's a tale of how Shell Lumber in Miami is helping the Haitian relief effort by doing something that it’s particularly suited to accomplish: Providing the pallets and shrink wrap needed to containerize all the various small aid packages that south Floridians are contributing to the cause.

I’m bringing this story to your attention because we believe LBM people across the country who have been seeing the horrifying images from Haiti will want to do something about it. Giving money definitely will help – and kudos to my company for matching any donations made during this time to Habitat for Humanity – but some folks might regard that as sterile, or not enough. At the same time, I’m guessing that church and civic groups nationwide are putting together aid packages. Those packages need to be put into shape for shipping and airlifting, and the local lumberyard might be the place to do it.

If you are doing anything to help the earthquake victims in Haiti, please pass details along to MLA so that we can expand on this story.

SAVE THE DATE

March 9-10 - MLA Materials Takeoff Training, Sedalia, Mo.

March 15-17 – NLBMDA Legislative Conference, Washington, D.C.

Call the MLA Office – 800-747-6529 – for additional information or email: mail@themla.com

LUMBER NEWS – QUICK GLIMPSES

COBRA Premium Subsidy Extended… On December 21, 2009, President Obama signed legislation passed by congress that extends the COBRA premium subsidy program. Click here to see the highlights that employers need to know.

Source: Federated Insurance, January 14, 2010

Kansas Program… Kansas State Treasurer Dennis McKinney is working with the State Energy Office on a program to upgrade the energy efficiency of houses and small businesses. The Efficiency Kansas Program makes money available for low interest loans through Kansas banks and credit unions. Details on Efficiency Kansas can be found at http://www.efficiencykansas.com/.

Source: Dennis McKinney, January 4, 2010

MHDC Offers $1,250 Tax Credit… The Missouri Housing Development Commission is allocating $15 million towards the HOPE program. Qualified Missouri families that purchase a home in 2010 are eligible for a HOPE incentive equaling the amount of the 2009 real estate tax bill associated with the property they purchased, up to a maximum of $1,250. Additionally, homebuyers who are approved for the real estate property tax HOPE incentive may also be eligible to receive an additional amount if they bought a qualified, newly constructed, energy-efficient home or bought an existing home and remodeled or purchased items such as Energy Star^® appliances to make the home more energy efficient. The maximum combined total of the HOPE property tax incentive and the HOPE energy-efficiency incentive is $1,750. Click here to go to the special web site.

NLBMDA Fights Senate Health Bill Forcing Coverage at Small Firms… Builder groups including the National Lumber and Building Material Dealers Association (NLBMDA) are urging members to protest a little-noticed amendment to the Senate’s health care bill that requires construction industry employers with as few as five employees to provide health insurance to their workers starting in 2014. “It’s clear the uproar over the disparate treatment of the construction industry vs. the rest of the small business community has touched a nerve with many legislators,” NLBMDA President Michael O’Brien told ProSales yesterday. Read more.

Source: ProSales Online, January 6, 2010

CertainTeed Settles Shingle Suit… CertainTeed Corp. has reached a preliminary agreement to settle a class-action lawsuit filed against it by homeowners who alleged a type of organic asphalt shingle manufactured by the company failed prematurely and didn’t perform as well as they should. More.

Source: ProSales Online, January 6, 2010

Logging Picks Up Its Pace on Vancouver Island… Logging of private lands on southwest Vancouver Island has taken on a swift, new pace. Some observers are correlating the increased logging with improvements in the market, while others speculate the increase is because exports of raw lumber from former tree-farm-license land will soon be allowed again.

Source: LBM Daily, January 11, 2010

How Obama’s Home Star Program Could Green Up American Homes… Energy efficient housing. It’s not the fun part of greentech. It’s not some astounding new and innovative technology. It’s not going to win any Da Vinci awards for creativity. But the Obama administration is betting its new Home Star “Cash for Caulkers” program that it’s the one with the greenest bang for the buck. They’ll pay you up to half the cost to retrofit that gas-guzzling house of yours for up to $4,000 and in the process put a quarter of a million unemployed construction workers back to work lowering your energy costs and carbon footprint. The $23 billion dollar program should retrofit at least 6 million houses, and put a dent in the 17 percent unemployment rate in the construction industry. More.

Source: NLBMDA Green Update, January 11, 2010

Keeping Up the Drumbeat on EFCA… Given all the speculation about possible Employee Free Choice Act (EFCA) movement, the most important thing for CDW members to do is to continue voicing our collective opposition to EFCA, and the alternatives that have been proposed. This constant drumbeat on the issue is crucial because of the real possibility that an alternative version of EFCA could try to be moved rapidly, and that we will likely have very little notice prior to action on this legislation.

There have also been rumors that an EFCA alternative, such as ambush elections, could be attached to other major bills like the “jobs bill,” which is next on the majority’s agenda.

All of this necessitates our continued vigilance on this important issue, as well as our need to remain active in order to defeat it.

Attached are Coalition for a Democratic Workplace’s (CDW’s) talking points on some of the possible alternatives to card-check and mandatory binding arbitration.

Source: Coalition for a Democratic Workplace, January 11, 2010

Missouri Legislative Update

By Dale Amick, Missouri Legislative Director

A new state budget that may demand a $750-million cut in state government spending and economic development initiatives to spur new jobs are the highlighted issues of the 2010 Missouri legislative session under way in Jefferson City.

Writing a new state budget remains the top legislative priority. Gov. Jay Nixon has cut over $600-million from the current state budget and is expected to cut another $200-million soon. The governor will deliver his budget recommendations to the legislature January 20. Look for all state programs and services to lose up to 20 percent of their funding in the new budget.

No new state construction initiatives are expected this year. However, a proposal for a major state building bond issue may be debated.

Meanwhile, efforts continue to raise the slumping home building industry in Missouri. The governor and state treasurer have announced the Home Ownership Enhancement Program, a $15-million initiative designed to jump start the state’s housing construction industry. The program would pay up to $1,250 in first-year property tax to qualified, new homebuyers under the first-come, first-serve initiative.

Changes in state lien law may be proposed this year. Always controversial, lien changes to satisfy alleged problems echoed by title insurance companies and St. Louis home builders, among others, could be at the forefront of discussion in the legislature. More on this later.

Changes in the tax code also may receive considerable debate this year in the legislature. The so-called "flat tax" passed the House last year. It is back again this year. Support in the Senate is lukewarm. The tax proposal would replace the state income tax with a sales tax estimated to be about 5.11 percent. Many services would be taxed, along with tangible goods.

State tax credits, especially those aimed at historic renovation and neighborhood redevelopment will come under attack again this year in the legislature. The state issues about 540 million dollars in tax credits annually.

Keep the Stars Shining

Star employees are those with the right qualifications to do the job and the personal qualities to help fulfill your vision for your business. Keeping your “star” employees satisfied and motivated is important. Competitive salaries and a solid benefit package are essential, but the typical benefits may not be enough.

A Private Bonus Plan may offer a solution

A Private Bonus Plan is a written agreement whereby an employer agrees to pay selected valuable employees previously agreed upon bonuses at specified times. Employers may have the option to fund the plan with life insurance when needed.

Employees agree to meet certain criteria and must forfeit their rights to future bonuses if employment is terminated for any reason, or if they can no longer perform their duties. The agreement is neither an employment contract nor a retirement plan and, if properly written, is not subject to nondiscrimination requirements and ERISA laws.

A Private Bonus Plan can help retain highly skilled employees and key leaders or promising young employees who may not be as attracted by retirement benefits early in their careers. It also can provide a reward to help reduce turnover and encourage long-term commitment from your most valued employees.

When life insurance is used, the employer “owns” the policy and the cash value build-up is tax-deferred. A tax deduction is taken when the bonus is paid. Contact your Federated Insurance marketing representative to help you explore this option to keep your best and brightest stars.

This article provided courtesy of Federated Mutual Insurance Company, your association’s recommended insurer.

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