Vol. 6, No. 10 – May 7, 2007

 

 

JUST IN CASE YOU’VE BEEN NAPPING…

 

When the Fair and Accurate Transaction Act passed in 2003, we passed along this information. And, each time one of our states enacted similar legislation, you were informed. But, since we continue to see receipts with full credit card numbers printed on them, let’s review one more time. We received this information courtesy of NLBMDA, which they received from legal counsel, George Burns.

 

"No person that accepts credit cards or debit cards for the transaction of business shall print more than the last four digits of the card number or the expiration date upon any receipt provided to the cardholder at the point of sale or transaction."

 

"We are representing a client in a class action lawsuit alleging that a chain of restaurants failed to comply with this requirement. While it appears that the factual basis for the claim in our case may be simply wrong, since starting the suit I have paid attention to the format of receipts that I receive and have noticed that some credit/debit sales receipts are not properly formatted. The errors appear more likely to occur in stores that have purchased the point of sale hardware and software for processing cards and have not updated it.  Those who obtain the service through a contract service provider are more likely to be in compliance.

 

"FACTA permits citizen suits. Willful violations of the law are subject to a $100-1000 civil penalty for each transaction plus attorney’s fees and punitive damages. Apparently, all the major credit card companies may have sent routine notices to their customers, so there may be no defense to 'willfulness' on the grounds that the retailer 'did not know of the law.'"

 

One further point of clarification:

 

There are apparently class action suits going on all around the country on this issue. As we drill deeper into this it appears that the plaintiffs claim that the customer's credit/debit card receipt may only contain the last four digits and may NOT contain the expiration date. 

 

It appears that large retailers are aware of this law but small companies are not.

The consequences for violation are very serious.

 

NACM LIENS AND BONDS SEMINARS

 

NACM has scheduled three dates for a special half-day program to bring you the latest information on Mechanics' Liens and Construction Bonds. Click on the date below to access a registration form.

 

OKC - Monday, May 21st,

Tulsa - Tuesday, May 22nd,

Springdale, AR - Wednesday, May 23rd.

 

Come to Oklahoma City if you want Oklahoma, Kansas (just added!) and Texas lien and bond information.

Come to Tulsa if you want Oklahoma, Texas, and Louisiana,

Come to Arkansas if you want to learn about Arkansas, Missouri.

 

MLA members can register at NACM member rates of $100 per person. “We will cover as much as we can possibly pack into four hours at each session.”

 

 

SAVE THE DATE

 

Sunflower Shoot-out – June 8 – Wichita, Kan.

Designated Risk Manager Seminar – August 15 – Wichita

Designated Risk Manager Seminar – August 16 – St. Louis

 

If you need additional information about any of these programs, please call MLA at 800-747-6529 or visit our web site at www.themla.com

 

 

 

LUMBER NEWS – QUICK GLIMPSES

 

March Employment Numbers… The housing market decline and the associated home-lending market troubles continue to loom over the broader U.S. economy. The effect of the housing market decline is still largely unknown, but the recent release of new employment data shows some strength remains in the broader labor market.

 

The economy created a net of 180,000 new jobs in March 2007, up from a revised 113,000 new jobs in February, according to the new Bureau of Labor Statistics data. Yet manufacturing employment continues to decline with a drop of 16,000 jobs in these sectors. Non-residential construction and service providing sectors did see gains over the past month, but there was no increase in residential construction.

 

The March numbers show a welcome increase, but job market growth still continued on a mediocre upward trend. Monthly job growth averaged 152,000 during the first quarter of 2007, which shows a decrease from the average of 189,000 new jobs per month in 2006 and 212,000 new jobs per month in 2005.

 

Source: NACM E-News Weekly Update, April 24, 2007, quoting John Irons. John S. Irons is the director of tax and budget policy at the Center for American Progress

 

Colorado Governor Signs Bill Protecting Homeowner’s Right to Sue… A homeowner's right to sue over construction defects will be protected under a bill that became law Friday.

 

The law, which takes effect immediately, was a response to the fallout from a law passed in 2003 which steered owners and builders into arbitration first and capped the amount of damages owners could win in court.

Critics said homeowners were being asked at that time to waive their right to sue when signing contracts will major builders in the state. The Colorado Association of Home Builders argued that such waivers kept the cost of housing down by keeping disputes out of court.

 

Source: Builder Business On-Line Update, April 24, 2007 – quoting NBC9 News

 

New Homes Sales Pick up in March… Sales of new single-family homes increased a slight 2.6 percent in March to a seasonally adjusted annual rate of 858,000 units, following sharp declines in both January and February, according to figures released by the U.S. Commerce Department today. The March sales pace was 23.5 percent below a year earlier.

 

“The increase in home sales for March was quite disappointing, considering the weather-related weakness recorded earlier this year,” said David Seiders, chief economist for the National Association of Home Builders (NAHB). “Weather conditions were fundamentally good in March but we gained back only a small fraction of the January-February loss.”

 

Source: National Association of Home Builders, April 25, 2007

 

Mortgage Applications Show Positive Movement… After more than a month of falling numbers, U.S. mortgage applications reversed the trend and rose in number last week. Whether this small turn-around will be matched by a similar rise in home sales is uncertain.

 

Source: LBM Daily, April 26, 2007

 

ISFA Co-Sponsor Count Grows to 30… National Lumber and Building Material Dealers Association (NLBMDA) members have now recruited 30 co-sponsors to their key legislative initiative: H.R. 989, the Innocent Sellers Fairness Act (ISFA). That’s up from 24 House members last Wednesday, April 17, when NLBMDA concluded its Legislative Conference with visits to nearly 200 congressional offices. ISFA has yet to be introduced in the Senate.

 

Source: ProSales Business Update, April 26, 2007

                                                                           

Passage of FHA Reform Bill Would Help Homeowners and Homebuyers… The National Association of Realtors has supported FHA modernization legislation in HR 1852, the Expanding American Homeownership Act of 2007, which would increase loan limits, eliminate the statutory three percent minimum cash down payment, and allow FHA flexibility to provide risk-based pricing. NAR also supports the continued availability of FHA loss mitigation programs.

 

Source: National Association of Realtors, May 3, 2007

Wildfires in Georgia Hurt Timber Interests… The Georgia Forestry Commission estimates that wildfires spread over approximately 90,000 acres of timberland will eventually cost owners $30 million in lost revenue. Officials hope to salvage 15% of the fire-ravaged timber. Among the forestland owners hurt by the fires is Florida-based Rayonier.

 

Source: LBM Daily, May 4, 2007

 

Postal Rates Increase on May 14… First class rates will be 41 cents for the first ounce, but the additional ounce rate decreases. Handling and rates for dimensional packages are also changing. Postage will no longer be based solely on weight. The postage will be based on size, weight and thickness. You can now get the “Forever” stamp. It costs 41 cents – the new rate effective May 14 – but will continue to be good when the next postal increase goes into effect.

 

 

 

 

PARTICIPATE IN THE COST OF DOING BUSINESS SURVEY

 

You run a profitable business, but there is always room to grow. See firsthand how you stack up against your competition and learn how to grow your business by participating in the LBMI/NLBMDA Cost of Doing Business Survey.

 

The CODB will focus on the critical profit variables: Return on investments, gross margin, expense control, personnel productivity, A/R collection, and inventory management. An additional focus this year will be on earnings before tax return on assets (EBT ROA). Each participant will receive critical profit and loss numbers and balance sheet on an easy-to-follow profit model. The newest feature of the survey and report this year is the enterprise productivity ratio (EPR).Using the EPR you can get a clear understanding of how much an increase in assets affects measured employee productivity.

 

This essential tool allows you to factor asset changes into the productivity of your business.

Participate in the survey and receive your individualized report and industry analysis for only $150.

 

To participate in the CODB survey online, email Jim Enter at jenter@aol.com to obtain your username and password or call 843-651-1529 and go to www.nationalcodb.com and sign on.

 

If you are interested in purchasing the 2006 CODB Report, visit www.dealer.org or call 800-634-8645 today.

 

 

Who Knows What Nature Has In Store?

Hope for the best, but prepare for the worst

 

Nature can strike a swift blow sometimes, especially this time of year. We can’t prevent occurrences of floods, storms, earthquakes and other natural disasters – but we can take steps to manage them to minimize losses. Even the best insurance program possible may not be enough to alleviate the inconvenience and inherent problems following a major loss. However, businesses that prepare for disasters may recover more quickly and see less damage to the bottom line.

 

How can you better protect your operation?

 

§         Ask your local fire, police and emergency management department for information to help train employees on emergency actions to be taken for various types of natural disasters.

§         Incorporate this information into a written emergency action plan for your business.

§         Appoint leaders within your company to be responsible for implementing action plans.

§         Train employees on the appropriate actions to take by conducting drills and testing equipment.

§         Hold on-site sessions with local authorities.

 

Other ideas that may help protect your employees and property:

 

§         Establish emergency communication and evacuation plans for employees.

§         Establish facility shutdown and security procedures.

§         Establish procedures to move records and inventory. Keep back-up records in a separate location.

§         Work with a structural engineer to improve the strength of buildings.

§         Establish safe shelter areas that can be accessed quickly, particularly for tornadoes and earthquakes.

§         Determine effectiveness of audible warning systems for tornadoes.

§         Determine if your facility is in a flood plain.

§         Monitor weather reports for watches and warnings.

 

Federated Insurance can provide quality insurance protection and risk management assistance for your business. With some forethought and help from your insurer, you will be better prepared to weather the storm. 

 

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

MLA is proud to endorse….

 

 

 

THOUGHT FOR THE DAY