PRESIDENT SIGNS TAX RECONCILIATION ACT

After months of back and forth negotiations, a House-Senate conference committee released H.R. 4297, the Tax Increase Prevention and Reconciliation Act of 2005 (Tax Reconciliation Act). The House promptly approved the bill on May 10, 2006, by a vote of 244 to 185 and the Senate followed the next day by a vote of 54 to 44. President Bush signed the bill into law at a White House ceremony on May 17.

The Tax Reconciliation act impacts a broad cross-section of taxpayers. The new law extends the controversial dividend and capital gains tax rate cuts for two more years beyond 2008, gives taxpayers some immediate relief from the alternative minimum tax (AMT), extends small business expensing thresholds, and allows high-income taxpayers a Roth conversion opportunity. Moreover, it makes over 20 other significant changes.

For a summary of key provisions and how senators voted, go to: http://www.vote-smart.org/issue_keyvote_detail.php?vote_id=3823

Source: CCH Tax Briefing, May 17, 2006

Available Now!

CONTRACTS: WHAT EVERY DEALER SHOULD KNOW

The “Risk Management Best Practices Contract Program” is designed to help dealers address the growing problem of customers and primarily builders unfairly shifting risk through contract language that requires dealers to assume the majority of the liability regardless of actual fault.

This educational program will provide dealers with easy to understand risk management information to help reduce risk by identifying common language, clauses, and risk transfer practices to be aware of when writing or signing contracts with customers.

The program contains the following six primary risk management principles to consider when making commercial transactions with customers.

·         Know the Legal Risks of Doing Business and How You Can Protect Yourself

·         Know Your Customer and the Likely Users of Your Product

·         Design Forms and Adopt Procedures for Signing and Administering Contracts that Minimize Risk

·         Minimizing Risk by Purchasing Insurance

·         Assess Your Risks and Protect Your Rights

·         Keep Asking Yourself – How Do I Know I’m Covered by Insurance?

The cost of purchase is $89 plus shipping for the manual hardcopy and $99 plus shipping for the CD-ROM.

Order both the Manual and CD together for the special rate of $139 plus shipping.

Call 800-634-8645 to order today.

“How to Handle an OSHA Inspection”

Thursday, June 22, 2006 1:00pm EDST

Learn the answers to these questions and more:

SECOND ANNUAL SAFETY AWARDS

NLBMDA invites all dealers to apply for the second annual national safety awards. Two types of awards recognize dealers for their safety records and achievements during the past year. Please contact MLA to obtain applications.

The National Achievement in Safety Award will be given to all dealer applicants that meet a high standard of safety based on specific criteria. Winners will receive a recognition certificate, acknowledgement in national industry publications and customized press releases to announce their achievements to local media.

The National Industry Leader in Safety Award will be presented to two dealers at the annual Industry Summit: One with fewer than 50 employees and one with more than 50 employees. Winners will be selected by an awards committee based on specific safety criteria and how well the company demonstrates their outstanding leadership and commitment to safety by “going above and beyond” basic safety practices. Winners will also be profiled in ProSales magazine and receive customized press releases for use with local media.

Eligibility for both awards is on a per location basis to allow individual lumberyards to be recognized for their excellence in safety. The deadline for applications is June 30, 2006. 

LUMBER NEWS – QUICK GLIMPSES

Source: NACM E-news Weekly Update, June 6, 2006

Idea from Seminar… In my recent seminar on “Turning Around Turnover,” we were discussing the question of bringing back or re-hiring someone who left because the grass was greener (so they thought) somewhere else. I stated that I would bring someone back once. I believe they should be allowed to make that decision (or mistake) to leave just once. Someone stated that when good people leave, after they do an exit survey, they always get an email address from them. They send informal emails or newsletters to them, just to see how they are doing and to keep them abreast of what is new and about new positions in the company. This CEO claimed that as a result, her company has an almost 50 percent return rate of people who decide to come back. She also agreed that her company allows them to come back just once. If they leave again, they are not allowed to re-apply.

Source: Bob Losyk, MEd., M.B.A., C.S.P. is a Certified Speaking Professional, master trainer, author, and President & CEO of Innovative Training Solutions, a Greensboro, NC consulting firm.  For more information on Bob’s keynotes, seminars, best practices facilitation, panel discussion leader, and products, please visit his websites at www.boblosyk.com

Retailing Trends… As Hispanics continue to become an economic force in the United States, retailers like the Home Depot are finding ways to make them feel welcome. The Atlanta-based home improvement retailer is making a push to reach out to this segment of shoppers. They’ve recently joined forces with Telemundo to create the first Spanish home improvement TV show, called “Mi Primer Hogar” (My First Home). In-store how-to clinics will be taught in Spanish and English and more than 800 stores will have bi-lingual signs…. The Home Depot estimates that the purchasing power of the Hispanic population in the United States will reach $1 trillion by 2008. That is 9.6 percent of the gross domestic product. The company estimates Hispanics spent $27 billion on home improvement last year.

Source: HCI Business Report, Home Center Institute, June 8, 2006

Softwood Deal Hits “Snag”; Could be Delayed… Ottawa missed a self-imposed deadline on Sunday evening to finalize text for the softwood lumber deal that would be “mutually agreeable” with the United States. Although the reasons for the delay have not yet been made public, government officials in Canada have twice postponed conference calls with their U.S. counterparts.

There is speculation that the two sides are once more deadlocked on key issues, including treatment of the B.C. government’s market-based timber pricing reforms and concerns from Quebec and Ontario over the agreement’s quota provisions.

Source: LBM Daily, June 13, 2006

Affidavit of Exempt Status Bill Passed… [Oklahoma] House Bill 2905 was signed into law late last week by Governor Henry and contained a provision that the ‘lobbying’ team on behalf of the
Mid-America Lumbermens Association worked hard (on behalf of the members) to make sure it was in the bill.

A June 13^th Journal Record article explains that in HB2905 (the Insurance Commissioner’s legislation) a problem for independent contractors and workers compensation was corrected.  MLA worked with the Oklahoma Lumbermen’s Association lobbyist to work with key legislators on this provision.  MLA Lobbyist Pat Hall worked with Insurance Commissioner Kim Holland and her staff on many of the details. HB2905 is good legislation for independent contractors and small business in Oklahoma.

Source: Pat Hall, MLA Oklahoma Lobbyist, June 13, 2006

Is the Softwood Lumber Deal a House of Cards, Ready to Collapse?… On the heels of Monday’s announcement that Ottawa’s written deal was delayed, more problems have appeared.

Ontario is threatening to pull support for the agreement unless two “deal breakers” are resolved to the province’s satisfaction: a possible contradiction in how the U.S. will handle NAFTA in the future, and concern that this agreement sets a bad future precedent. Although Ottawa does not need the support of Ontario, it would cast a bad light on the agreement should Ottawa go forward without it.

There is also concern that the new deal would squeeze smaller independent logging operations out.

Source: LBM Daily, June 14, 2006

Price Keeps More Workers Out of Plans… The rising cost of medical care continues to prevent workers from enrolling in employer-subsidized insurance. The Robert Wood Johnson Foundation report shows that, among workers who were eligible for employer-sponsored coverage, three million fewer enrolled in it in 2003 than in 1998. Premium increases accounted for much of that drop. Individual premiums increased 42 percent over that five-year period. The average employee’s share of the premium cost remained unchanged at 18 percent from 1998 to 2003. Employers paid the remaining 82 percent.

Source: Employee Benefit News, June 15, 2006

Employment Verification in Immigration Bills… The Senate approved its version of immigration reforms (S.2611), which would require all employers to use a new electronic verification system – 18 months after Congress appropriates the funds to implement it – to confirm employment eligibility for new hires. The bill calls for employers that hire unauthorized individuals to be subject to civil penalties for violations, increasing fines (up to $20,000) and prison terms (up to three years) for repeat violations. The bill must be reconciled with the House version (H.R. 4437); due to the significant differences in the bills and strong disagreements among individual lawmakers, the prospects for enactment of comprehensive immigration reforms appear doubtful this year.

Source: Milliman Monthly Benefit News and Developments, June 2006

U.S. Commerce Department Surprises Canadian Observers by Raising Duties Despite Troubled Negotiations… The U.S. Commerce Department raised punitive duties on Canadian softwood lumber almost four percentage points, to 14.7 percent from 10.8 percent.

Whether the move will have a spurring or dampening effect on the negotiations has yet to be seen. The Commerce Department agreed to continue collecting duties at the lower rate until December, but signaled its determination at that time to go forward with increase.

“Although the United States and Canada have agreed to a term sheet containing a framework for resolving the softwood lumber dispute, the department must continue to meet its statutory deadlines until a final agreement is signed,” the Department announced in its release.

Source: LBM Daily, June 15, 2006

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