Spotlight on Member Services: Regulatory Compliance Assistance

One of the many benefits of CSA membership is access to counseling and guidance regarding safety and compliance practices. It is important to pay attention to safety and employment regulations in the workplace, and we are happy to provide on-site assistance in the following areas:
-Environmental regulations
-Occupational hazards and safety
-Minimum wage and salary requirements
-Equal opportunity employment
-Labor regulations and laws
-Department of Transportation regulations by state
-Taxes – sales, fuel, highway use, etc.
-Georgia energy code compliance, both residential and commercial

Please contact Larry Marler (larrymarler@gocsa.com) or Kevin Rodgers (kevinrodgers@gocsa.com) if you have questions on any of these topics or to schedule a safety and compliance appointment.

Are We There Yet?

By: Jim Moody, President

Academic types call economics “the dismal science.” Over the past couple of years, the rest of us have gained insight into why this is the case. There have been many, many writings by learned folks discussing how the current economic crisis is the end of our prosperity, our financial system, our country as we know it, capitalism, the world – you fill in the blank. Yet here we are, in the 17th month of this Great Recession, and the world has not ended.

There have been severe effects, and I don’t want to discount the pain that so many people have felt. But even with relatively high unemployment, reduced consumer spending, tight credit, endless foreclosures, overbuilt retail, and a stock market that is worth half what it used to be, there is still a lot of good out there. The vast majority of us still have jobs. We don’t see soup lines around the block. Bargains abound for consumers. We still live in exorbitant prosperity compared with much of the world and compared to our previous generations.

We’ve been so overwhelmed with negative economic reports that we seem to have forgotten these things. We also seem to have overlooked some pretty strong indicators that the days of doom and gloom are numbered.

Maybe we have hit bottom, and it just hasn’t been widely acknowledged yet. We are seeing some very positive signs on the housing front. Prices continue to fall while interest rates hold low, so inventory is drawing down. Homebuilders see glimmers of hope. Stocks, which tend to be a precursor of the economy as a whole, rebounded nicely in March and April. Inventories are down below unsustainable levels, indicating that manufacturing and purchasing must go up soon.
You may be wondering why economics is the dismal science. It stems back to the Victorian era when a leading mind of the day forecast the end of the human race because food production couldn’t keep up with population growth. Fortunately, he was wrong. Just like those with “the end is near” signs around their necks today.

Sure, we’ve all taken financial hits in the recession. But the best days for capitalism, for our country, and for lumber dealers lie ahead.

We all know that good times hide a lot of business sins. You’ve had nearly two years for those sins to be exposed in your business. I hope you’ve made the effort to clean things up while you’ve had the opportunity. If you have, you’ll be poised to take advantage of the better days that really are just around the corner.

Stay Up to Date on Regulations

Use these links to stay up to date on regulatory changes that affect your business.

Red Flags Rule
The Federal Trade Commission has developed rules intended to address identity theft. Financial institutions and creditors will be required to implement programs to detect, prevent and mitigate instances of identity theft. The programs must be in place by May 1, 2009 and must provide for the identification, detection and response to patterns, practices, or specific activities - known as "red flags" - that could indicate identity theft.

New Georgia Lien Laws
Busch & Reed Law provides a detailed explanation of the new Georgia Lien Laws that took effect on March 31, 2009. There is a new sample claim of lien form that you can customize for your own available. To obtain that via email, email lisagolden@gocsa.com .

COBRA
The recent stimulus legislation contained some important changes to COBRA health care coverage originally passed in 1986. COBRA provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates by paying their employer the premium plus some administrative costs. Group health plans for employers with 20 or more employees on more than 50 percent of its typical business days in the previous calendar year are subject to COBRA, although some states have COBRA-like requirements too with different thresholds. The new law includes an enhancement - a temporary 65 percent subsidy for COBRA premium payments for nine months. (Read the full article)

Weatherization Grants
The Department of Energy recently announced it will invest nearly $8 billion in state and local weatherization and energy efficiency efforts as part of the recent stimulus legislation (The American Recovery and Reinvestment Act). The funds will be divided between the Weatherization Assistance Program, which will receive nearly $5 billion, and the State Energy Program, which will receive up to $3 billion. DOE says this will help families save hundreds of dollars every year on their energy bills, while creating approximately 87,000 jobs. To jump-start the job creation and weatherization work, DOE is releasing $780 million in the next few days, and will release more as the states demonstrate that they are using the funding effectively.

Make Your Voice Heard

CSA is seeking members who are interested in serving on short-term task forces to help us create new programs and services. We want to increase the value of CSA membership and the best person to tell us what we should be doing and what we can be doing better is YOU.

If you are interested in serving on our newly-formed Education Task Force, please contact Lisa Golden at 678-213-2164 or lisagolden@gocsa.com. Meetings will be short and sweet, lasting one hour or less and will be held via conference call so there's no travel involved. The purpose of the Task Force is to help CSA develop the most relevent seminar and educational information we can. Task Force members will provide ideas and guidance to CSA staff and its work should be complete by mid-July 2009.

Help us expand our ability to serve you. Call or write today!

In Memory of Frank K. Harbin, Jr.

FRANK KEESE HARBIN JR., 86, former CSA President and owner of Harbin Lumber Company, Inc. passed away Thursday, April 19, 2009. His life was honored in a ceremony held at the Lavonia First Baptist Church this past Sunday.

Mr. Harbin’s lumber career started at a very young age and spanned more than three decades. During the Depression the Harbin Lumber Company, Inc. which was founded by Frank’s father and uncle, took the bold step of building a new lumber yard in Royston, and it was during this time that Frank Harbin, Jr. began his training in the lumber business as a young boy. After school, one of his first jobs was to pick up the nails that were dropped by the carpenters that were constructing the new building in Royston. Later, after his service in the Canadian Air Force and the U.S. Army Air Corps during World War II, Frank Harbin, Jr. began working full time in the lumber business in 1945. He retired in 1982 after 37 years as president of Harbin Lumber Company and turned the business over to his son Barron Harbin.

During those years, Mr. Harbin was an active member of CSA and held many leadership roles, including the office of President. Frank was much appreciated for his sense of humor and for his strong leadership qualities. He’ll be missed. On behalf of the CSA staff and members, we offer condolences to Mr. Harbin’s family.

Putting the Green in Green

By Jim Moody, CAE
President, Construction Suppliers Association

Until recently, I’ve thought about “green building” when I couldn’t fall asleep. Worked better than Sominex. The subject has been a non-starter with dealers I’ve talked to. The most common comment I got when I broached the subject was “I’ve never had a customer come in and ask for anything green.”

I suspect we’ve all regarded “green” as something for the tree-hugging leftists out West, but we always knew that it would creep eastward. Just not today. But, in the past three or four months, I’ve noticed an uptick in the questions I’ve gotten about green building. It’s prompted me to do some research and even to attend a green building forum held (appropriately) on St. Patrick’s Day.

I walked in thinking I was somewhat ignorant on the subject. What I learned was that pretty much everyone is ignorant on the subject because there just isn’t much “there” there. For instance, there is no real, accepted definition for green building. Ask a thousand people, and you’ll get a thousand answers. Ultimately, just like beauty is in the eye of the beholder, green building will be whatever your customer thinks it is – once he decides that green is indeed what he wants.

And that time may be sooner than we think. I was surprised to learn that Atlanta was sixth in market demand for green products, behind only California, New York, Colorado, the Pacific Northwest and Austin. It was my impression that there was no market demand in Atlanta for any products, much less green ones. But, there must be some demand, or Atlanta wouldn’t have been on the list (unless it was accidentally mixed with the list of most foreclosures).

The Greater Atlanta Home Builders developed a program to push green housing called EarthCraft Homes. The developer in my neighborhood changed builders about a year ago, and the new builder put up big signs touting EarthCraft. Perhaps that’s a big driver for green in the Atlanta area. Of course, not one of those lots has sold, but that’s another sad story for another day.

So let’s assume demand is knocking on our doorsteps. All that certification/chain of custody stuff is so confusing. What should we do?

The first thing I would suggest you do is focus your green thoughts on products other than lumber. In LEED certification, which is the standard for now, certified lumber gets a builder as much credit as putting in a bike rack (and yes, I mean that literally). In other words, it’s just not worth the trouble or expense. I’m hearing that customers may ask you to include certified lumber in your bid and then it quickly gets value-engineered out.

If you want to provide certified lumber, you have to get a chain-of-custody certificate. This can cost several thousand dollars. If you’ve already got one, good for you. Let’s hope the business is there for you to see a return on that investment. If you don’t have a chain-of-custody certificate today, it might be something that can wait for better times and a bigger market demand.

So if you aren’t focusing on the lumber, what should you think about? Anything that is sustainable, toxin-free, waste-reducing (yes, trusses are inherently green), energy-saving, water-saving, etc. You already sell many products that are considered green, and many of those are higher-end products. The key is for you to market them effectively to drive demand for these. You’ll be helping the environment, but it can also improve your bottom line.

It seems to me that at least for now, we need to view green as an opportunity to upsell rather than as a list of onerous rules and regulations that are difficult to understand. I grant that you may not have had any customers ask for green when they walked in the door. But you also probably have not had customers walk in and ask for your most expensive line of products, yet you have certainly upsold many customers by touting the benefits of your higher-end products. I submit to you that “green” is just one more way to convince customers to go beyond the basic product lines. Treat green as the friend, not foe.

There are a couple of resources that can be helpful as you consider how heavily you want to market green products. CSA is a partner in the Certified Green Dealer program, developed by LBM Journal. The focus of this program is educating your sales people on green products so that they can honestly and effectively communicate the benefits of green to your customers. Visit http://www.certifiedgreendealer.com/ for more information.

Also, BlueLinx has launched a sustainability program and portfolio of “ecoproducts” called PureBlue. This is not a paid commercial, and there are probably similar programs from other providers, but this is the one I’m most familiar with. You can find more information here. They also have a presentation called “Making Sense of Green” that is interesting and enlightening. You can request a copy from Shiloh.kelly@bluelinxco.com.

So here’s the bottom line: Green is coming, whether we want it or not. You can choose to ignore it and find yourself behind the times, or you can embrace it. When you embrace it, you may find that it’s not as complex or difficult to implement as you first thought. It may simply be an additional way to market your products, and it very well could help you push customers to higher-end and higher-margin items.

From NLBMDA: New COBRA Requirements Take Effect

From the National Lumber and Building Materials Dealer Association

The recent stimulus legislation contained some important changes to COBRA health care coverage originally passed in 1986. COBRA provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates by paying their employer the premium plus some administrative costs. Group health plans for employers with 20 or more employees on more than 50 percent of its typical business days in the previous calendar year are subject to COBRA, although some states have COBRA-like requirements too with different thresholds. The new law includes an enhancement - a temporary 65 percent subsidy for COBRA premium payments for nine months.

It has a quirky delivery method for the subsidy. The employee would pay the employer the lowered 35 percent of premium. Employers would take a credit against their payroll taxes for the amount of the subsidy. No additional federal money changes hands (unless the total subsidies exceed the employer's payroll taxes) between the former employee, employer, and the government. There are also new notice requirements that must be given to eligible employees who qualify under the new provisions. The Department of Labor has established a website with employer guidance, FAQs and sample notices.

From NLBMDA: OSHA Notifies Employers with High Injury Rates to Take Action

From the National Lumber and Building Materials Dealer Association

The Occupational Safety and Health Administration has notified more than 13,500 employers, including many LBM dealers nationwide, that their injury and illness rates are considerably higher than the national average. A letter sent this month to those employers explained that the notification was "a proactive step to encourage employers to take action now to reduce these rates and improve safety and health conditions in their workplaces."OSHA identified businesses with the nation's highest rates of workplace injuries and illnesses through employer-reported data from a 2008 survey of 80,000 worksites (this survey collected injury and illness data for calendar year 2007).

Workplaces receiving notifications had rates more than twice the national average among all U.S. workplaces for injuries resulting in days away from work, restricted work activity, or job transfer.Employers receiving the letters were also provided copies of their injury and illness data, along with a list of the most frequently cited OSHA standards. The letter offered assistance in helping to reduce these numbers by suggesting, among other things, the use of free OSHA safety and health consultation services provided through the states, state workers' compensation agencies, insurance carriers, or outside safety and health consultants.

NLBMDA News - Legislative Affairs

From the National Lumber and Building Materials Dealer Association

Legislative Affairs

Recess Is Over
Members of Congress return to Washington today with a daunting agenda planned between now and the summer breaks. Both the House and the Senate passed FY2010 budget resolutions before the break, which must now be reconciled into a final version. NLBMDA is hopeful that the final resolution will contain the Senate-passed allowance for the estate tax ($5 million exemption and 35 percent rate) but such relief would still have to overcome a likely Senate filibuster with at least 60 votes in support. Both Chambers will be taking up climate legislation with a goal of final passage by the August recess. Card check proponents were active over the spring break but still face a challenge in reaching the 60 votes they need to move forward. NLBMDA and the business community must remain vigilant in informing legislators of the dangers of this legislation, or any so-called compromises, that effectively strip workers of their right to a secret ballot election to determine union representation.

TAKE ACTION: Tell your Representative and Senators to reject card check legislation that would further jeopardize jobs and our economic recovery. Visit Build the Vote and follow the prompts to quickly send an e-mail message today.

Bill Targeting Chinese Drywall Introduced
Senators Ben Nelson (D-FL) and Mary Landrieu (D-LA) have taken further steps to address the Chinese drywall investigations currently underway in Florida and other states. Together with Rep. Robert Wexler (D-FL), they have introduced the "Drywall Safety Act" (S. 793/H.R. 1977) to require the Consumer Product Safety Commission (CPSC) to study drywall imported from China in 2004 through 2007 and call for a ban on the import of Chinese drywall and "related materials." Dealers with questions or concerns should contact Colleen Levine at colleen@dealer.org.

Softwood Lumber Tariffs Increased
In response to an arbitration panel's finding that Canada failed to correctly adjust quotas from four provinces in the first half of 2007, as required under the Softwood Lumber Agreement, the US Trade Representative's (USTR) office last week announced an additional 10 percent tariff would be imposed on softwood lumber exports from Ontario, Quebec, Manitoba, and Saskatchewan. USTR is accepting comments on the appropriateness of this action; comments are due May 11. Please contact Colleen Levine at colleen@dealer.org if you have any feedback NLBMDA should consider in drafting comments.

Senate Committee Drafting Health Care Bill
Senate Finance Committee Chair Max Baucus (D-MT) and Health, Labor and Pensions Committee Chair Ted Kennedy (D-MA) recently outlined their plans for advancing major health care overhaul legislation this spring. The two committees are currently working to draft separate bills which will later be combined before a Senate floor vote. Committee markups of the draft bills are targeted for early summer.

News You Can Use

The good news....

Home Builder Confidence Posts Largest Gain in Five Years
Builder confidence in the market for newly built, single-family homes rose five points in April to the highest level since October 2008, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. This gain was the largest one-month increase recorded since May of 2003, and brings the HMI out of single-digit territory for the first time in six months - to 14. Every component of the HMI reflected the boost, with the biggest gain recorded for sales expectations in the next six months. Read more...

First-Time Home Buyer Survey Reveals Increasing Demand Despite Concerns About the Economy
Century 21 Real Estate LLC, the franchisor of the world's largest residential real estate sales organization today announced the results of its recently commissioned first-time home buyer survey. The survey found that m ore than three-quarters (78 percent) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy. Out of the 1,000 prospective U.S. first-time home buyers surveyed in early March for the CENTURY 21 First-Time Home Buyer Survey, 68 percent think now is a better time to buy than six months ago. Read more.....



The bad news....

Significant Downturn Seen for Home Remodeling in 2009, According to Harvard's Joint Center for Housing Studies
Reductions in the amount spent on high-end home improvement projects continue to hinder remodeling activity according to Harvard's Joint Center for Housing Studies. For 2009, the Leading Indicator of Remodeling Activity (LIRA) points to homeowner improvement spending declining around 12%. Read more...

The odd request for news...

Roto-Rooter Seeks Submissions for Upcoming Book
Plumbing and drain cleaning service provider Roto-Rooter is looking for the strangest, wackiest, scariest and just downright oddest plumbing stories for their new bathroom reader. The book, designed to be a quirky, vignette style quick read will include commentary from Ghost Hunters stars Jason Hawes and Grant Wilson - real life Roto-Rooter plumbers - along with some practical plumbing advice and utterly useless trivial knowledge that will impress your friends. Read more, if you dare....

Have You Been Infected?

The network security world has been abuzz for the past few weeks about a worm that has been around for several years called Conficker. Detecting this worm has been very difficult. Right now, a test has been made available by the Conficker Working Group that will let you know whether a computer has been infected.

To run the test, click this link. On it, you should see six images. If any computer can't display all six of the pictures, that computer might be infected.

Take the Webinar on New Business Opportunities

Register now for this webinar!

New Business Opportunities…..Increase Your Market Share with Jon Davis, Davis Consulting
Thursday, April 23, 2009 at 3:00p.m. (EST)
$139.00 per logged on computer

Areas of discussion will include:
Emerging Long Term Marketing Trends
New Business Opportunities – Increasing Your Market Share
 Vendor Market Development Funds (MDF)
 Aggressive Marketing Plan funded with MDF
 Increase your market share with Home Builders – Existing & New Customers
 Diversification – Strategic Initiatives for other targeted Customer Classes
 Commercial
 Multi-Family
 Remodelers
 Government/Institutional & Manufacturers
 Package Homes and Garages – direct sale to consumers
 Acquisitions

This webinar provides you the opportunity to learn from one of the leaders in the industry without having to leave your business. No travel, no time away from the office. The price is just $139 per logged on computer. To get the most bang for your buck, gather all your managers around one computer and use a speaker phone.

The webinar is being hosted by Turnkey Programming. Prior to the webinar, you’ll be contacted by them with the webinar phone number and password, as well as instructions for logging onto the website to view the webinar live.

Click the picture to enlarge and print to use for registration. Please fax completed registration forms to 770-752-9726. Thank you.

Red Flags Rule: How to Use the How To Guide

If you click on the picture, it will take you to a PDF of the How-to Guide for Business. Once there, you will find the most helpful how to information beginning on page 14 of the Guide.


HOW TO COMPLY: A FOUR STEP PROCESS

Step One: Identify relevant red fl ags. Identify the red fl ags of identity theft you’re likely to come across in your business.

Step Two: Detect red fl ags. Set up procedures to detect those red fl ags in your day-to-day operations.

Step Three: Prevent and mitigate identity theft. If you spot the red fl ags you’ve identifi ed, respond appropri- ately to prevent and mitigate the harm done.

Step Four: Update your Program. The risks of identity theft can change rapidly, so it’s important to keep your Program current and educate your staff .

Get the free guide here. (Remember - the really helpful info starts on page 14!)

Overview of Red Flags Rule

This is an excerpt from the Fighting Fraud with the Red Flags Rule How-to Guide for Business

The Red Flags Rule sets out how certain businesses and organizations must develop, implement, and administer their Identity Theft Prevention Programs.

Your program must include four basic elements, which help you to address the threat of identity theft.

#1 - Policies and Procedures for Identifying Red Flags
Your program must include reasonable policies and procedures to identify the "red flags" of identity theft you may run across in the day-to-day operation of your business.

Red flags are suspicious patterns or practices, or specifi c activities, that indicate the possibility of identity theft.

For example, if a customer has to provide some form of identifi cation to open an account with your company, an ID that looks like it might be fake would be a "red fl ag" for your business.

#2 - Detection of Red Flags
Your program must be designed to detect the red fl ags you’ve identified.

For example, if you’ve identified fake IDs as a red flag, you must have procedures in place to detect possible fake, forged, or altered identifi cation.

#3 - How Will You Deal with Red Flags?
Your program must spell out appropriate actions you’ll take when you detect red flags.

#4 - How Will You Re-Evaluate Your Program and Modify It, As Needed?
Identity theft is an ever-changing threat so you must address how you will re-evaluate your program periodically to reflect new risks from this crime.

Just getting something down on paper won’t reduce the risk of identity theft. That’s why the Red Flags Rule sets out requirements on how to incorporate your Program into the daily operations of your business.

Your board of directors (or a committee of the board) has to approve your first written program. If you don’t have a board, approval is up to an appropriate senior-level employee.

Your program must state who’s responsible for implementing and administering it effectively.

Because your employees have a role to play in preventing and detecting identity theft, your Program also must include appropriate staff training.

If you outsource or subcontract parts of your operations that would be covered by the Rule, your Program also must address how you’ll monitor your contractors’ compliance.

The Red Flags Rule gives you the flexibility to design a program appropriate for your company – its size and potential risks of identity theft.

While some businesses and organizations may need a comprehensive program that addresses a high risk of identity theft in a complex organization, others with a low risk of identity theft could have a more streamlined program.

Red Flags Rule In Effect May 1, 2009

The Red Flags Rule requires many businesses and organizations to implement a written Identity Theft Prevention Program designed to detect the warning signs – or "red flags" – of identity theft in their day-to-day operations. Are you covered by the Red Flags Rule? Read Fighting Fraud with the Red Flags Rule: A How-To Guide for Business to:

*Find out if the rule applies to your business or organization;
*Get practical tips on spotting the red flags of identity theft, taking steps to prevent the crime, and mitigating the damage it inflicts; and
*Learn how to put in place your written Identity Theft Prevention Program.

By identifying red flags in advance, you'll be better equipped to spot suspicious patterns when they arise and take steps to prevent a red flag from escalating into a costly episode of identity theft. Take advantage of other resources on this site to educate your employees and colleagues about complying with the Red Flags Rule.

To learn more, visit this website put together by the Federal Trade Commission.

The full guide is here as a PDF file.

This article by The “Red Flags” Rule: Are You Complying with New Requirements for Fighting Identity Theft? by Tiffany George and Pavneet Singh is an easy to read explanation of who must comply and how they must do it.

The Scope of the Lumber & Building Material Industry

Pre-Order Your Copy Now

The Scope of the LBM Industry Report explains why building material dealers operate the way they do and how they have evolved in response to the marketplace, noting valuable benchmarking data for all members of the building industry, especially in today's tumultuous economy.

The Scope of the LBM Industry Report will feature important qualitative data focused on fundamental practices, including:

*How dealer businesses are structured
*How dealers go to market
*What kinds of customers dealers serve
*What products and services dealers offer
*Purchasing practices and inventory management
*How dealers use technology

Prepared by Greg Brooks of The Building Supply Channel, the report also details important quantitative data on the state of the industry, including: Size of the industry; Number of companies; Geographical concentration; Number of employees; Payroll expenditures; Taxes paid; Sales by customer type; Dealer/retailer sales by product category; End use by end-user category; Employee productivity; Product line market share by dealer type; Inventory productivity; and Manufacturing capabilities. To pre-order your copy, download an order form here.

From NLBMDA Legislative Affairs Federal

Congressional Spring Break Action Alert! Both the House and Senate passed their fiscal year 2010 budget resolutions last week before adjourning for the spring Congressional recess (April 6-17). When they return April 20, energy legislation and tax issues are expected to dominate the agenda. Now is the time to attend a town hall meeting or other local events with your elected officials to seek their support for the building supply industry. Contact their district office (phone numbers can be found at http://www.buildthevote.org/ and then select “Your Elected Officials” tab) to inquire about public appearances or to schedule a face-to-face meeting. Share your personal story of how the housing crisis is impacting jobs at your company, and ask your legislators to take the following actions:
1. More help is needed for Housing Recovery. An enhanced, $15,000 tax credit for all home purchases is needed to reduce existing inventory, stabilize home prices and get buyers back into the market.
2. Oppose the “Employee Free Choice Act” and any so-called “compromise” measures that would strip workers of their right to private ballots when determining union representation and insert government arbitrators into contract negotiations.

If you can’t meet with your legislators in person, visit http://www.buildthevote.org/ to quickly send a message to them on these critical issues. Contact Colleen Levine at colleen@dealer.org for assistance or to report on a successful meeting.

Estate Tax Reform Included in Budget Resolution. Senators Blanche Lincoln (D-AR) and Jon Kyl (R-AZ) led a bipartisan effort to successfully adopt an amendment to the FY2010 budget resolution during floor debate last week to create a deficit-neutral reserve fund to allow the estate tax exemption to be increased to $5 million, indexed to inflation, and the maximum tax rate reduced to 35%. This is a more significant reduction than the Administration’s plans to maintain the estate tax at 2009 levels ($3.5 million exemption and 45% rate) and was supported by NLBMDA and other members of the Family Business Estate Tax Coalition (FBETC). The amendment passed by a vote of 51-48, with all Republicans and 10 Democrats voting in support (Democrats: Lincoln, Pryor (AR), Ben Nelson (NE), Landrieu (LA), Baucus (MT), Murray (WA), Bill Nelson (FL), Cantwell (WA), Bayh (IN) and Tester (MT).) Separate legislation will still be needed to adopt these changes, and revenue raising measures, (“pay-fors”) must be identified to cover the cost of the larger exemption and rate cut, guaranteeing a heated debate ahead in the Congressional tax committees.

Net Operating Loss (NOL) Expansion Bill Introduced in the Senate. Last week, Senators Olympia Snowe (R-ME) and Max Baucus (D-MT) introduced legislation to expand the net operating loss five-year carryback to companies of all sizes, not just those under the arbitrary $15 million revenue cap that was contained in the American Recovery and Reinvestment Act (ARRA) earlier this year. The “Net Operating Loss Carry Back Act” (S. 823) was introduced with six additional cosponsors from the Senate Finance Committee (Hatch (R-UT), Stabenow (D-MI), Ensign (R-NV), Lincoln (D-AR), Cantwell (D-WA), Nelson (D-FL)). NLBMDA continues to work with a large coalition of retailers, manufacturers and other industry groups to seek meaningful NOL relief to protect jobs in the building supply industry.

Senators Seek Ban on Chinese Drywall. Senators Bill Nelson (D-FL) and Mary Landrieu (D-LA) have introduced a resolution (S. Res. 91) responding to the Chinese drywall investigations currently taking place in Florida and other states. In addition to calling on the Consumer Product Safety Commission (CPSC) to identify potential health hazards for the product in question, the resolution seeks to prohibit further importation of any drywall and “associated building products” from China, order a recall of “hazardous Chinese drywall,” and seek to ensure that Chinese manufacturers and their US subsidiaries or distributors bear the costs of replacing hazardous drywall in homes. The resolution further calls for tax incentives to assist homeowners in recouping their costs for drywall replacement.

Maximum Truck Weight Increase Proposed. The “Safe and Efficient Transportation Act” (H.R. 1799) was introduced March 30 by Reps. Mike Michaud (D-ME) and Jean Schmidt (R-OH) to allow states to authorize travel on interstate highways of vehicles up to 97,000 lbs. gross vehicle weight on six axles. It would raise the overweight vehicle tax cap to $800 per year, with funds going to a new Safe and Efficient Vehicle Trust fund to be allocated to states for bridge and infrastructure repairs. NLBMDA is a member of the Coalition for Transportation Productivity seeking such an increase, with corresponding safety measures, to improve efficiency in building material transport.

Lacey Act Declaration Enforcement Delayed to May 1. The Customs Department is now accepting electronic submission of Lacey Act imported wood product declarations as of April 1, but enforcement of the declaration requirement has been delayed until May 1. Dealers who directly import any foreign wood products should visit this website to make sure you are in compliance with the new requirements.

NLBMDA ALERT: Department of Energy Releases Details on $8 Billion in Stimulus Weatherization Grants

An Alert from NLBMDA

DOE recently announced it will invest nearly $8 billion in state and local weatherization and energy efficiency efforts as part of the recent stimulus legislation (The American Recovery and Reinvestment Act). The funds will be divided between the Weatherization Assistance Program, which will receive nearly $5 billion, and the State Energy Program, which will receive up to $3 billion. DOE says this will help families save hundreds of dollars every year on their energy bills, while creating approximately 87,000 jobs. To jump-start the job creation and weatherization work, DOE is releasing $780 million in the next few days, and will release more as the states demonstrate that they are using the funding effectively.

The State Energy Program funding will be used to provide rebates to consumers for home energy audits or other energy-saving improvements; to develop renewable energy and alternative fuel projects; to promote Energy Star products; to upgrade the energy efficiency of state and local government buildings; and other innovative state efforts to help families save money on their energy bills. The weatherization funding will improve the energy efficiency of the homes of low-income families by adding more insulation, sealing leaks, or modernizing heating and air conditioning equipment, at a cost of up to $6,500 per home. The energy efficiency upgrades will be available for families making up to 200% of the federal poverty level. For a family of four, this translates to about $44,000 per year in the lower 48 states, $55,140 per year in Alaska, and $50,720 per year in Hawaii. See the Weatherization Assistance Program Web site and the State Energy Program Web site.

It is important to note that all assistance is disbursed through the states and local governments. This is not a direct grant program from the federal government to consumers. The best guidance for consumers that want to apply for weatherization assistance can be found on this site.