Posts for March 17, 2010

"PRIVATE EMPLOYER VERIFICATION ACT"

March 17, 2010 – Employers Council

This significant act – Senate Bill 251, 1st Substitute (http://le.utah.gov/~2010/htmdoc/sbillhtm/SB0251S01.htm) – passed on the final day of the 2010 Utah Legislature. If signed by the Governor, it will be effective July 1, 2010. Key provisions include:

• Private employers with 15 or more employees (as of July 1, 2010) may not hire any new "employee" (defined broadly as any individual "hired to perform services in Utah," and required to be given a Form W-2, 1099, etc.) unless a status verification system (e.g., E-Verify) is used to verify the individual's federal legal working status.

• This requirement does not apply to:
• a foreign national with an H-2A or H-2B visa to work for the employer; or
• public employers (already required by Utah law to use a status verification system).

• Good faith compliance with the Act gives the employer immunity from civil liability under Utah law for unlawful hiring of an unauthorized alien, or for refusal to hire.

• Private employers who voluntarily register with the Utah Department of Commerce, certifying compliance with the Act, will be placed by the department on a list of such registrants on a public Website.

WHOLESALE PRICES DROP IN FEBRUARY

March 17, 2010 – Today in Manufacturing.net
Prices at the wholesale level dropped 0.6 percent in February, the largest amount in seven months, as a big drop in energy prices offset higher food costs... continue

RIO TINTO: CHINA'S DEMAND FOR COMMODITIES WILL RISE

March 17, 2010 – Today in Manufacturing.net
Global miner predicts China's demand for iron ore, copper, coal and aluminum will rise dramatically during next 15 years before India takes lead in demand... continue

I-9: AGENT MUST FINISH PROCESS

March 17, 2010 – Employers Council

Page 36 of the Handbook for Employers, Instructions for Completing Form I-9 [Form M-274 (Rev. 04/03/09) N] www.uscis.gov/files/nativedocuments/m-274_3apr09.pdf has the following guidance:

"41. Q. As an employer, do I have to fill out all the Forms I-9 myself?

A. No. You may designate someone to fill out Forms I-9 for you, such as a personnel officer,
foreman, agent or anyone else acting in your interest, such as a notary public. Please note that if someone else fills out Form I-9 on your behalf, they must carry out full Form I-9 responsibilities. For example, it is not acceptable for a notary public to view employment authorization and identity documents, but leave Section 2 for you to complete. The person who views an employee’s employment authorization documents should also complete and sign Section 2 on your behalf.

However, you are still liable for any violations of the employer sanctions laws."

AON Consulting Health Care Reform Weekly Briefing

The material in this Weekly Briefing is designed to present the prior week's highlights related to issues surrounding health care reform. Neither the content nor the manner in which it is presented is done so in a way to reflect the thoughts or opinions of Aon Consulting or its employees.

Today's Date: March 17, 2010

Last Week in Washington

President Obama went on the road last week to generate public support for passage of his health care plan. Republicans continued their almost uniform opposition to any health reform bill. House Democratic leaders continued to work on getting the needed votes to pass the President’s bill while working with the Senate leadership to coordinate the intricate legislative process to pass health reform using the budget reconciliation process.

White House Update

President Obama traveled to Philadelphia and St. Louis last week to rally public support for health care reform, telling supporters that health insurers will continue raising premiums by double digit rates unless reform is enacted. The President also had several meetings with key House Democrats who are undecided in order to obtain support for passage of health care reform. The President urged Democrats to ignore speculation that voting for health reform legislation will cause them to lose their seats, emphasizing that his health care proposal incorporates the best ideas of Democrats and Republicans. Republicans, however, remain unconvinced, saying his plan would increase taxes, cut Medicare, and cause employers to cut jobs.

A key administration tactic to generate public support for health reform has been to criticize health insurance companies for raising premiums in the individual market, and claiming this will continue without health reform legislation because of lack of competition in the insurance industry. Health and Human Services Secretary Kathleen Sebelius sent a letter on March 8 to the CEOs of the major health insurance companies calling for increased transparency by asking them to post information on their websites about premium increases.

Congressional Update

House Democrats continued to finalize the provisions of a reconciliation package that would "correct" the Senate-passed health reform bill while they awaited a cost estimate from the Congressional Budget Office (CBO). As of Sunday, House Democratic leaders did not have the votes to pass health care reform. As of last Thursday, it became clear that anti-abortion Democrats, led by Rep. Bart Stupak (D- MI), would not support the Senate bill because it has less restrictive language on abortion than the House bill. However, House Speaker Nancy Pelosi, (D-Calif.)and other Democratic leaders have expressed confidence that they will ultimately have the votes to pass health reform legislation as early as this week. In an effort to give the House the time and flexibility to garner the needed votes for passage, the White House announced that the President would delay his trip to Asia for three days to March 21, thereby extending the White House imposed deadline for passage of health reform.

Pelosi, in a two-step strategy, first plans to ask the House of Representatives to pass the Senate-passed bill and then pass a "corrections" bill that would incorporate changes from the President and House Democrats. The Senate would then follow with a vote for the "corrections" bill using the budget reconciliation process. Senate Democratic leaders have assured the Speaker and skeptical House members that when the bill comes to the Senate, they will have the 51 votes needed to pass the bill.

What to look for this week:

President Obama traveled to Ohio Monday for another campaign-style event to sell his health reform plan to the public. CBO is expected to release its savings estimate of the House "corrections" bill any day now. The House is expected to vote on the Senate bill late in the week, and President Obama hopes to sign health reform legislation into law before he leaves for his trip to Asia on Sunday, March 21.

FED KEEPS RATES AT RECORD LOWS

March 17, 2010 – Late Wire from Manufacturing.net
Federal Reserve on Tuesday repeated its pledge to hold interest rates at record lows to foster the economic recovery and ease high unemployment ... continue

BIOFUEL FOR PLANES MAY TAKE OFF WITHIN 10 YEARS

March 17, 2010 – Today in Manufacturing.net
Aviation experts say recent test flights have proved the viability of plant-based fuels for jet aircraft and that they may largely power airline traffic within a decade... continue

POTENTIAL SHORTAGE OF RARE EARTHS COULD IMPACT U.S. RENEWABLES, COMMUNICATIONS AND DEFENSE INDUSTRIES, CONGRESSIONAL PANEL TOLD

March 17, 2010 – Western Business Roundtable
One U.S. Company is on the Verge of Restoring and Expanding Domestic Production of These “Green Metals” and of Critical Rare Earth Magnets

Washington, D.C. (March 17) – A U.S. House of Representatives Investigations and Oversight Subcommittee heard testimony yesterday that the U.S. faces a potentially serious shortage of rare earth metals, without which next-generation wind turbines, hybrid vehicles, cell phones and national defense technologies don’t work.

The U.S. House Science and Technology Subcommitee on Investigations and Oversight heard from several experts about the rare earths situation, including Mark Smith, CEO of Molycorp Minerals, LLC, a member of the Western Business Roundtable. Molycorp is the only active producer of rare earths in the Western Hemisphere and is working to re-start production at its Mountain Pass, Calif., facility.

Smith told the Subcommittee that production of rare earths and the metals and magnets that derive from them is overwhelmingly dominated by China.

“At present, China produces 97 percent of the world’s rare earth supply, almost 100 percent of the associated metal production, and 80 percent of the rare earth magnets,” he said. “Complicating this picture even further, China’s national consumption of rare earth resources is growing at an intense pace, consistent with their meteoric GDP growth, and it is leaving the rest of the world with less of these critical materials just as the clean energy economy is beginning to gain momentum.”

Smith presented the Subcommittee with data showing that Chinese demand for its own rare earths will soon match, if not eclipse, its own internal supply, and with global demand growing at a parallel pace, there is a significant production gap – around 60,000 tons – that must be filled in a very short timeframe.

Forecasts now predict a critical shortage for the rest of the world outside of China could occur by 2012. Furthermore, China has recently said that it intends to be the world’s largest producer of wind energy and electric vehicles and has committed $150 billion and $29 billion to these two respective clean technology sectors.

Rare earths are indispensable in a wide variety of clean energy technologies, Smith explained.

Rare earth metals are used in the advanced nickel-metal hydride (NiMH) batteries that are found in most current model hybrids; powerful rare earth magnets enable next generation wind turbines, electric vehicle motors, and hybrid vehicle motors and generators; and rare earth phosphors are what illuminate compact fluorescent light bulbs.

On the defense side, missile guidance systems, military electronics, communications and surveillance equipment all require rare earths, he told the panel.

“None of these technologies will work without rare earths, and yet each of these technologies is tied closely to some of the nation’s highest national priorities -- our energy and national security,” he said.

Smith told the Subcommittee that while the U.S. still possesses the technical expertise, “we have lost the necessary infrastructure to manufacture the rare earth metals and magnets that fuel next-generation technologies.” He urged them to direct the U.S. Department of Energy to allow rare earth metal and magnet production to be eligible for loan guarantees, saying that this would help speed the restoration of a domestic production and manufacturing capacity in the U.S.