Thursday, January 27, 2011

Posts for January 28, 2011

COMMITTEE ACTIVITES LATE YESTERDAY:
SB-35 Construction Licensees Related Amendments – this bill solves a misclassification of employees problem that has shown up in the construction industry but could move to other areas of business and industry. It make illegal a growing tendency for some LLC companies to classify “employees” as “owners” to avoid workers compensation insurance, unemployment insurance, FICA and a host of other costs of doing business. This avoidance of costs has made some innovating companies, some with as many as 1,500 “owners” so much more competitive they take work from the legitimate companies. UMA supports this effort to stop this practice from spreading to other areas. The bill passed out of the Senate committee unanimously yesterday afternoon and is headed to the full Senate for their consideration.
SJR-5 – JOINT RULES RESOLUTION ON FISCAL NOTE PROCESS
This joint resolution, passed out of committee unanimously this week, requires that any new program, agency or appropriation be accompanied by a “performance note” in addition to the traditional fiscal note. This is another effort from Senator Wayne Niederhauser to inject more transparency into State government. In preparation of the performance notes, questions will be answered by the affected agencies that will reveal the purpose for the new program, agency or appropriation that will set goals for focused on an outcome-based approach. Following passage of a bill containing a performance note, an annual report will be made to the Executive Appropriations Committee for their review. If performance is not consistent with what the original note identified, the EAC can stipulate improved performance to the agency that puts them on notice that failure to comply with the note will trigger its repeal.
UMA supports this resolution as a way to add transparency to state government and force a more efficient use of tax revenues.


Quick Manufacturing News
PwC survey shows modest hiring plans Click to continue

Today in Manufacturing
Employees saw their wages and benefits rise slightly faster in 2010 than 2009, but the gain was still the second-lowest increase in nearly three decades ... continue

CAREER-FOCUSED DEGREES RESULT IN HIGHER INCOME
Utah Taxpayers Association
Florida employment data has revealed that recent community college graduates with associate of arts degrees earn $31,836 on average. While graduates of even the shortest non-degree certificate programs in technical and science fields earn $37,356 on average. This dramatic earning gap continues to increase when comparing college graduates with bachelor of arts vs. bachelor of science degrees.

OSHA TEMPORARILY WITHDRAWS MSD PROPOSAL
For the second week in a row, the Occupational Safety and Health Administration (OSHA) pulled back on a proposed rule that would have a dramatic impact on manufacturers – a sign the Agency is listening to manufacturers’ concerns. On January 25, OSHA announced it will temporarily withdraw its proposed additional reporting column for work-related musculoskeletal disorders (MSDs) on employer injury and illness logs. This rulemaking was seen as a way to reignite ergonomics regulation and would require employers to make medical determinations regarding the nature of potential MSDs.
In a statement to the media, NAM Vice President for Human Resources Policy Joe Trauger commended the OSHA decision and encouraged the Agency to continue to curb unnecessary regulations that hold back job growth. “This is another positive sign that the Agency is listening to the concerns of employers about the economic impact of costly and burdensome requirements,” he said. Manufacturers are committed to protecting their employees, but this ill-defined proposal would be cumbersome for small manufacturers and other small businesses that would be forced to devote extensive time and resources to implementing the new recordkeeping requirements.

COURT DECISION FORCES EPA TO FINALIZE BOILER MACT RULES.
NAM Capital Briefing
Manufacturers are concerned by a U.S. District Court ruling last week that grants the Environmental Protection Agency (EPA) a one-month extension to issue its final rule on boiler “Maximum Achievable Control Technology” (the Boiler MACT rule). The EPA had requested a 15-month extension to re-propose the rule to consider new information about the achievability of the regulations. The deadline is now February 21, 2011, which gives the EPA a very small window to issue the final rule. If implemented, the Boiler MACT rule will have a harmful impact on manufacturers of all sizes and will significantly hurt job creation.
A study by the Council of Industrial Boiler Owners (CIBO) found that the EPA’s proposed rules to restrict emission limits on industrial and commercial boilers and process heaters could put 300,000 jobs at risk. The NAM continues to advocate for an achievable standard through its outreach with the EPA and lawmakers on Capitol Hill. The court order is available here, and the opinion is available here.
NAM SUPPORTS REPEAL OF 1099 REPORTING REQUIREMENTS.
NAM Capital Briefing
President Obama signaled in his State of the Union Address that he would support a repeal of the new IRS reporting requirement in last year’s health care reform law. Manufacturers are pleased by this admission from the President and have been steadfast in our response to this onerous rule. The costly and burdensome requirement represents a significant compliance problem for businesses of all sizes, and manufacturers have repeatedly raised this issue with lawmakers. Under current law, beginning in 2012, all businesses will have to file a 1099 form with the IRS for all purchases of property and services that cost over $600. Previously, businesses only reported purchases of services from non-corporate businesses. Business owners will now have to file two forms – one with the vendor and one with the IRS – for almost every business-to-business transaction. While supporters of the new reporting requirement say it will prevent vendors from underreporting their income to the IRS, in reality the provision will impose onerous costs and unnecessary new requirements on businesses. To comply with this new law, businesses also will be required to obtain a Taxpayer Identification Number (TIN) from each vendor to avoid withholding taxes. Businesses providing services or selling property also could face withholding taxes on payments made to them if there is a problem with the TIN. There is widespread, bipartisan opposition to this provision in both the House and the Senate. Rep. Dan Lungren (R-CA) has introduced a bill to repeal the provision that could be on the House floor as early as March. In the Senate, two bills have been introduced: the Small Business Paperwork Elimination Act of 2011, introduced by Sen. Johanns (R-NE), fully repeals the new paperwork mandate and is paid for with unobligated stimulus funds. So far, there are 52 cosponsors, including 40 Republicans and 12 Democrats. The second bill, the Small Business Paperwork Mandate Elimination Act of 2011, was introduced by Sens. Baucus (D-MT) and Reid (D-NV). The language is the same as the Lungren bill in the House.

FORMER SMM CHAIR TESTIFIES BEFORE CONGRESS; HIGHLIGHTS MANUFACTURING STRATEGY
NAM Capital Briefing
On January 26, Dyke Messinger, president and CEO of Power Curbers, Inc. and immediate past chair of the NAM Small and Medium Manufacturers Group, testified before the House Committee on Education and the Workforce on the “State of the American Workforce: Impediments to Job Creation.” Messinger outlined the need for a U.S. manufacturing strategy and a regulatory environment that promotes economic growth. To read the full testimony, click here.

NAM BOARD MEMBER TELLS CONGRESSIONAL COMMITTEE FREE TRADE AGREEMENTS ARE CRITICAL TO JOB CREATION
NAM Capital Briefing
On January 25, Roy Paulson, president of Paulson Manufacturing Corporation and member of the NAM Board of Directors, testified on behalf of the NAM at a House Ways and Means Committee hearing, “Three Pending Free Trade Agreements and U.S. Jobs.” Paulson told the Committee that the NAM strongly supports passing the free trade agreements (FTAs) with Colombia, Korea and Panama as quickly as possible, and he encouraged Committee members to work with the Administration to speed up the process. Paulson used his own company as an example of a small manufacturer who exports to over 80 countries, and he testified that he will increase his exports to all three FTA partners once the agreements take effect and tariffs on his products are reduced. Committee’s Chairman Dave Camp (R-MI) noted in his opening statement that the United States has been at a standstill on trade for a number of years, while our competitors have moved forward on negotiating and signing new agreements. The NAM notes that the European Union, Korea, Canada and other industrial nations gain additional preferential access to fast-growing markets every year through trade agreements, but the United States does not – and this could have a significant impact on our manufacturing sector in the future.


Quick Manufacturing News
Tax would adversely impact innovation, patient care and economy, Medical Device Manufacturers Association says. Click to continue

Today in Manufacturing
U.S. factories saw a disappointing drop in demand for their products in December, reflecting weakness in demand for commercial and military aircraft ... continue

Today in Manufacturing
The number of people applying for unemployment benefits rose sharply last week, but the figures were largely distorted by rare snowstorms that swept through the Southeast ... continue

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