MLA LINE

Vol. 4, No. 12 – June 6, 2005

FEDERATED AND MLA ANNOUNCE 2% DIVIDEND

 Mid-America Lumbermens Association and Federated Mutual Insurance Company are pleased to announce a two percent dividend totaling $35,028. These funds will be returned proportionately to eligible participants of the association’s property and liability safety group dividend plan. Federated’s marketing representatives will deliver these dividend checks to eligible policyholders within the next few weeks.

 Dividends are earned through the individual efforts of insured business owners who practice safety and risk management in their operations resulting in an improved loss experience. Profitable growth in the group for the year 2004 is a direct result of implementing risk management practices using resources available from Federated and other sources.

The Association safety dividend plan is one of the many benefits available because of our Association’s relationship with Federated. The MLA and Federated continue to work together to offer a wide range of risk management services and support. In addition, Federated provides:

·         A distribution system of highly trained local marketers.

·         Client Service Standards.

·         Fast, fair claims service by highly trained adjusters, appraisers and rehabilitation specialists.

·         Financial Protection Services including business continuation, life insurance, disability income, estate planning, individual retirement planning.

·         Specialized risk management resources.

 Congratulations to each member whose risk management efforts helped earn this dividend. If you would like more information about Federated’s products and services, please contact your local marketing representative or MLA at 800-747-6529.

 NLBMDA MOVES

 The NLBMDA office will be moving June 3^rd through 8^th.  During this time their Internet connection may not be available and responses will be delayed. If you are in need of an immediate response, please call 202-547-2230 or 800-634-8645.    

 Their new address is: 900 2nd St, NE, Suite 305,Washington, DC 20002.

 Email addresses, phone and fax numbers will all remain the same. 

 TRAINING WITHOUT TRAVEL

 NLBMDA is offering another in their series of popular teleconference training seminars on OSHA issues. Plan to participate in the June 9 program on “Personal Protective Equipment Requirements.” Learn the answers to these questions and more:

 ·         What are your responsibilities under the PPE standard? Is a hard-hat required in a lumberyard?

·         What area is OSHA most likely to cite for PPE violations?

·         If your employees constantly lose safety glasses do you have to keep giving them a new pair?

·         How do you get your employees to wear PPE? Is there a defense if an employee won’t wear the PPE?

·         What is a Hazard Analysis and is it required?

·         If you can prove an employee was given PPE can OSHA still cite a company?

 No travel or time away from the office is necessary. Just dial into the teleconference from your own place of business. You’ll receive a one-hour briefing and then participate in 30-45 minutes of Q&A. The call is scheduled for 1 p.m. EDST. 

Cost is $95 for members; $179 for nonmembers. For a registration form, contact MLA at 800-747-6529.

 Narrow Wall Bracing CAD Details Available 

(TACOMA) APA - The Engineered Wood Association released several new computer-aided design (CAD) details of the Narrow Wall Bracing Method, a cost effective bracing solution rapidly gaining favor among code officials, builders and designers for its ability to meet code required wall bracing using site-built techniques and materials. Design details of APA's Narrow Wall Bracing Method are located at www.apacad.org .

 APA's method is permissible under International Residential Code guidelines (R602.10.5) for homes wrapped with plywood and/or OSB exterior walls. The CAD details can be downloaded in .DWF, .DXF, or .DWG formats.  The free details include options for bracing narrow walls on continuous foundations, over crawl space and basements foundations and on second and third floors. The latest drawings join APA's library of more than 100 wall, floor, roof, moisture control and special construction system details.

For years, building officials and contractors have sought bracing solutions for highly vulnerable narrow walls next to large windows and doors. Research has shown that many catastrophic failures begin when these narrow walls succumb to high winds. The challenge facing the industry is to provide a safe level of lateral resistance in homes featuring design trends such as 'window walls’, narrow garage return walls, sunrooms and more.

 For more information on various narrow wall bracing construction methods and technical data visit APA's web site http://www.apawood.org/bracing.

 For more information contact APA at 253-565-6600. Founded in 1933, APA – The Engineered Wood Association (formerly American Plywood Association) is a nonprofit trade association whose domestic and international members produce a variety of engineered wood products. APA's primary functions are quality inspection and testing, applied research and product promotion.

 TREASURY AND IRS ANNOUNCE NEW RULES ON TAX TREATMENT OF DONATIONS OF AUTOMOBILES TO CHARITY 

Washington, DC -- Today the Treasury Department and IRS released guidance on charitable deductions for donated vehicles. The American Jobs Creation Act (AJCA) generally limits the deduction for vehicles to the actual sales price of the vehicle when sold by the charity, and requires donors to get a timely acknowledgment from the charity in order to claim the deduction.

The AJCA does provide some limited exceptions under which a donor may claim a fair market value deduction. Under the AJCA, if the charity makes a significant intervening use of a vehicle – such as regular use to deliver meals on wheels – the donor may deduct the full fair market value. The guidance issued today explains what a significant intervening use may include. For example, driving a vehicle a total of 10,000 miles over a one-year period to deliver meals is a significant intervening use.

 The AJCA also allows a donor to claim a fair market value deduction if the charity makes a material improvement to the vehicle. Under the guidance, a material improvement means major repairs that significantly increase the value of a vehicle, and not mere painting or cleaning.

 The guidance announced today also provides an additional exception to the sale price limit that was not included in the AJCA. Today's guidance permits a donor to claim a deduction for the fair market value of a donated vehicle if the charity gives or sells the vehicle at a significantly below-market price to a needy individual, as long as the transfer furthers the charitable purpose of helping a poor person in need of a means of transportation.

 The guidance also explains how to determine fair market value if one of these three exceptions applies. Generally, vehicle pricing guidelines and publications differentiate between trade-in, private-party, and dealer retail prices. The guidance provides that the fair market value for vehicle donation purposes will be no higher than the private-party price.

The AJCA requires a donor to substantiate a deduction with an acknowledgement from the charity that the deduction either reflects the sale price or that one of the three exceptions applies. The AJCA imposes a penalty on the charity for failure to provide a proper acknowledgement. The guidance also explains the requirements for the content and the due dates for acknowledgements.

 The Treasury Department and IRS request comments on the guidance and suggestions for future guidance. The comment period will be open for the next 90 days. A copy of the guidance may be found at: http://www.treas.gov/press/releases/reports/not155419041.pdf. Related Documents: Notice 2005-44. 

 Source: U.S. Treasury Dept., June 3, 2005

 While WPN has for several years orchestrated major Earth Day events, this year’s program was designed so that industry partners could leverage our national efforts to host their own satellite events and attract local media attention. The objective: to communicate key wood and forest messaging by breaking the Guinness World Record for the most trees planted in an hour. 

Of the 18 events held nationwide, six were hosted by industry partners – who used the opportunity to spread the word about their positive work in their communities. Local events generated multiple print, television and radio placements, while national highlights included CNN Headline News, CNN Radio, CBC Radio and The Weather Channel. UPI, COX and AP Newswires, which reach newspapers across the country, also fed stories and photos, and the event generated 21 national online placements including Yahoo and MSNBC. 

In total, this year’s Earth Day efforts reached an incredible 50 million people – doubling WPN’s record for most media coverage generated by a single event.

 Source: WPN Update, published by Wood Promotion Network May 25, 2005.

 LUMBER NEWS – QUICK GLIMPSES

 NAFTA Renews Judgment Against US Softwood Lumber Tariffs… NAFTA’s Dispute Settlement Panel has once again announced that the U.S. Department of Commerce's (DOC) policy regarding duties on Canadian softwood lumber imports runs afoul of the law. NAFTA recommends changes to the policy that are welcomed by the Canadian government.

 Jim Peterson, Minister of International Trade for Canada, agreed with NAFTA's assessment, stating: “We are pleased with the NAFTA Panel’s decision, which found that the U.S. subsidy duties contravene U.S. law.”

 Source: LBM Daily, May 24, 2005 

Out of Service (OOS) Criteria Handbook Available… The Commercial Vehicle Safety Alliance (CVSA) has updated the North American Standard Out of Service (OOS) Criteria handbook for commercial vehicles. The updates, which include Hours of Service and Load Securement, are in the new handbook that is available on their website. NLBMDA is able to obtain a discount for bulk purchases through our membership with CVSA. If you are interested in purchasing this new handbook, please contact T.J. Cantwell at tj@dealer.org or 800-634-8645. Dealers operating private truck fleets should have one of these handbooks.

 Source: NLBMDA Risk Management Newsletter, May 2005 

Weyerhaeuser Contemplates Buying Home-Builders… Weyerhaeuser Co. is looking at the possibility of acquiring more home-buying business through acquisitions. Last year, the company earned record profits from the sale of residential property; the home building unit boasted a 56 percent operating profit.

 Although the company has plenty of room to grow, there is concern that expanding now would be a bigger risk, given the probability of interest rates rising. Said Mark Wilde, analyst for Deutsche Bank Securities, “You kind of wonder about adding too much.”

 Source: LBM Daily, May 25, 2005

 New Hope for Asbestos Deal… One May 24, 14 moderate Senators (seven democrats and seven republicans) came to an agreement on a battle over procedures to allow the Democratic minority to block President Bush’s judicial nominees. The agreement will allow work to progress on the proposed asbestos victims’ compensation fund. Senate Judiciary Chairman Arlen Specter said he would seek to capitalize on the good feelings being generated by the judges’ compromise to get the asbestos legislation voted out of the Senate Judiciary Committee during the week of May 27. The bill would take asbestos injury claims out of the courts and pay them from a $140 billion fund financed by asbestos defendant companies and their insurers. 

Source: NRLA Wired, published by the Northeastern Retail Lumber Association, June 2005.

 Real Estate Pace Is Up… According to the National Association of Home Builders, new home sales set a record pace in April 2005. Total units sold were 0.2 percent higher than the revised pace estimate from March 2005, and 13.3 percent higher than the April 2004 pace. Buyer demand is not expected to diminish in the near future. 

Source: LBM Daily, May 26, 2005 

 Under the Canada-U.S. Softwood Lumber Agreement, Canada was allowed to ship certain amounts of lumber to the U.S. without duties, and in exchange, the U.S. agreed not to impose any sort of trade action on Canada, including protective duties. But when that agreement expired in 2001, the United States quickly imposed extra duties on Canadian imports, such as softwood lumber.

 Source: LBM Daily, June 2, 2005 

                                        MLA is proud to endorse….