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May 2010
Washington D.C. Legislative Conference
As some of you may know, some of our staff recently went down to Washington D.C for the SMACNA Legislative Conference. Numerous key-note speakers were present, speaking on a variety of topics, ranging from Green and Sustainable Buildings: The Public and Private Market, Health Care Reform, Temporary Pension Funding Relief, Helmets to Hardhats, Multiemployer Plans, and OSHA requirements. The later part of the days were spent on Capitol Hill meeting with Senators John Kerry and Scott Brown's top legislative staff to discuss, move and influence important issues that deal with the Sheet Metal Industry. One of the days, staff met with Congressman Stephen Lynch to press some ongoing bills the industry could use a sponsor on. Important issues discussed with the Senator's aides and the Congressman were about tightening the laws to stop willful misclassification of employees as independent contractors, Enacting the Energy Efficiency, Building, Home and Industrial STAR Programs, the 3% Withholding Repeal Law for Contractors, Bid Listings, Multiemployer Pension Issues ongoing and the Helmets to Hardhats Program that we are so proudly involved with. It was a very interesting and informative legislative conference. Please call the office at 781-849-3220 if anyone has any questions or would like to hear more about it.
HIRE Act
President Obama has recently signed into effect the "Hiring Incentives to Restore Employment Act of 2010" (HIRE Act), a jobs bill that provides small businesses with incentives to spur hiring and help put Americans back to work. This is just one "Jobs" bill amongst many to come. The HIRE Act will:
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Provide tax cuts for businesses that hire someone who has been out of work for at least 2 months; (60 days).
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Help businesses to invest in their future by permitting them to write off investments in equipment this year.
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Encourage job creation by expanding investments in schools and clean energy projects.
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Maintain investments in roads and bridges.
Brief Overview of Health Care Reform
As you know, the President recently signed the "Patient Protection and Affordable Care Act" and a related Reconciliation Bill. Together, these laws form the basis of national health care reform. Key elements include: an individual coverage mandate; employer free-rider penalties; the establishment of state Health Insurance Exchanges to offer health coverage (2014); an excise tax on "high cost" health plans; tax reporting changes; Medicare tax increases; a $2,500 (indexed) limit on contributions to health FSAs (2013); a 35% small business tax credit to provide health insurance (2010); and other issues. Specifically, by 2014 individuals must have "minimum essential" health coverage or pay a penalty. Effective the same year, if an employer of 50 or more full-time employees does not offer minimum essential coverage and one employee receives a federal subsidy to buy coverage through an Exchange, the employer will pay a monthly "free rider" penalty of $2,000 times 1/12th its number of full-time employees.
Even employers that offer minimum coverage will be fined for each full-time employee who opts out of the employer's plan and receives a subsidy to buy Exchange coverage. The monthly fine for each such employee will be 1/12 times $3,000. In 2018, a 40% excise tax will be assessed on health plans valued at $10,200/individual; $27,500/family (indexed by the CPI-U; certain exceptions apply). The cost of dental and vision coverage is excluded. Multiemployer plans will be treated as family coverage. By 2012, employers must disclose health coverage costs annually on Form W-2 (reflecting coverage in 2011). In 2013, the Medicare Part A hospital insurance (HI) tax on wages increases 0.9% from 1.45% to 2.35% for high income individuals (single $200,000/couple $250,000). In addition, these individuals will pay a new 3.8% tax on net investment income (i.e., interest, dividends, royalties, rents, etc., but not retirement plan distributions). These are just a few of the myriad issues to be addressed when considering national health care reform. For more detailed information on health care reform go to The Segal Company.
PLA Executive Order
Federal agencies are encouraged to consider the use of a project labor agreement on a case-by-case basis on large scale construction projects where the total cost to the government is $25 million or more, under a final rule published in the April 13 Federal Register. It will be effective 30 days after the publication in the Federal Register. The rule allows a federal agency to specify in the solicitation the terms and conditions of the PLA and require the successful bidder to become party to the PLA. This could include an entire PLA, as the Department suggested, or just some specific terms. Federal agencies are given two additional options. The first alternative, allows an agency to require a PLA from only the apparent successful bidder, prior to contract award. The second alternative, allows an agency to keep abreast of upcoming federal projects in the area and work with the contracting agencies as soon as possible to educate the agency on benefits a PLA would bring to the project.
Apprenticeship Contest
Congratulations to you all. Local 17 JATC are National Champions for the second year in a row. Local 17, JATC member, Mike Collins from Bryant Sheet Metal, competed against 90 other apprentices from across the U.S.A and Canada in the HVAC portion of the International contest and came out on top with 1st place. All 4 apprentices from Local 17 JATC represented us well. This year's contest was well attended by both labor and management which made our apprentices even more confident knowing that SMACNA and the Union was 100% behind them. Once again, our rigorous training has paid off and proven success.
Sheet Metal Board of Examiners
Executive Director's Information
At our last general membership meeting, the Executive Director of the Sheet Metal Board of Examiners addressed the contractor members and welcomed all inquiries regarding the new Sheet Metal Licensing Law. Here is his contact information:
Peter B. Kelly
Associate Executive Director
Board of Sheet Metal
617-727-3022
Email Peter
Board of Examiners online
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