Gulf Coast PHCC News. 2nd Annual Service Truck Competition Wednesday, April 22,2015. April 2015

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1 Gulf Coast PHCC News April Board of Directors President, Stephen Jones Raven Mechanical Vice President, Josh Hollub Modern Plumbing Secretary, Doug Turner Doug Turner Plumbing Treasurer, Phillip Johnson Air-Care Southeast Directors Eddie Hollub Modern Plumbing Todd Iocco Epic Services Karen Havens Pickett Plumbing Sean Giuliani Wedgeworth Plumbing George Johnson Katy Plumbers Associate Representatives: Jim McStravock Pepco Sales Glenn Fuller Texas Plumbing Supply Inside this issue: State Focus 2 2nd Annual Service Truck Competition Wednesday, April 22,2015 We are hosting our 2nd Annual Service Truck Competition and it s just a few days away. We have some great trucks entered this year and we have lined up some great sponsors who will be presenting their new equipment and trucks/vans at the event. Come and see what they have to offer to better your business! Education 3 Legislative Update 4 Texas Round-up 10 Upcoming Events 15 A special thanks goes out to our Gold Sponsor for this event MacHaik Chrysler, Jeep, Dodge Commercial. There are still a few spots left...it s not to late to register for the dinner or to enter a truck or van in the competition. Visit today to register!

2 Gulf Coast PHCC News State Focus State happenings shared locally By Alicia Dover, CAE Executive Director April 2015 Texas Construction Association ACTION NEEDED ON CIP LEGISLATION! CONSOLIDATED INDSURANCE PROGRAM (CIP) BILL TO BE HEARD IN SENATE COMMITTEE S.B The Senate Business & Commerce Committee will conduct a public hearing on S.B on Thursday, April 9. S.B will require disclosure of coverage provided under a Consolidated Insurance Program when bids are solicited for a project and prior to entering into a construction contract. The bill also requires that a contractor be given a copy of the insurance policy upon enrollment in the CIP. Look at the list of committee members below and if your senator is on the committee he needs to hear from you about your support for S.B First, please attend the hearing and sign-in to show support of this bill. There will be oral testimony taken on the bill. You may testify for the bill. Even if you do not want to speak, you being present and registering in support of the bill is vitally important. Limited parking is available in the Visitor Parking Garage, located at 12th & San Jacinto on the east side of the Capitol. Let Mike White know if you plan to attend the hearing, mwhite@texcon.org or ext The hearing will begin at 9am, or upon adjournment of the Senate. It will be held in the Senate Chamber in the Capitol. Second, look at the list of senators at the bottom of this message. If your senator is on the committee, it is very important that you contact your senator regardless if you are coming to the hearing. Please scan and a letter today to your senator on the committee expressing your support for S.B For maximum impact and effectiveness, you should send your letter by overnight delivery. Use your company letterhead. In addition, please your letter to mwhite@texcon.org. If you are unable to send a letter (due to travel, etc.), please call your senator on the committee at their Capitol office and ask them to support S.B If you would like to view the text of S.B and TCA s issue brief, go to BELOW ARE SOME POINTS TO CONSIDER: 1.Ask your senator to support S.B Contractors should know before they bid on a construction project whether or not the project will be covered by a Consolidated Insurance Program and what coverage will be provided under the CIP. 3. Prior to entering into a construction contract, contractors should be provided with enough information about the CIP coverage to allow them to make a meaningful comparison of the coverage provided by the CIP with the contractor s own insurance. 4. A contractor should be given a copy of the policy upon enrollment in the CIP. 5. If you and your company have been adversely affected by not being provided information regarding CIP coverage on a project, talk about that in your letter. Address your Letter as follows and send it to your senator on the committee: The Honorable Texas Senate, Room 1400 N. Congress Avenue Austin, TX RE: Support of S.B by Creighton

3 April 2015 Education Opportunities for 2015 Education is one of the great PHCC traditions. There are many opportunities to gain your continuing education hours and other classes you need to be successful in the industry. Classes are held around the state. You can register on-line and see a full listing of available educational opportunities at Year Round classes are generously discounted for members and their employees

4 Texas Legislative News April 3, 2015 In the early morning hours of April 1, after 17 hours of debate on over 300 proposed amendments, the Texas House of Representatives passed its version of the state budget by a vote of on second reading. Later in the day, the House finally passed the $210 billion budget for the upcoming biennium. House Appropriations Committee Chairman Rep. John Otto (R-Dayton) indicated that the budget as passed would allow lawmakers to make good their promises to cut sales and business taxes. Status of TCA High Priority Legislation Retainage Trust Fund HB 1966 by Representative Jim Keffer (R- Eastland) is set for a hearing in the House Business & Industry Committee next Tuesday, April 7. Texas law requires non-public property owners to withhold 10% of the value of the work that is performed by a contractor and subcontractor under a construction contract until completion of the work. This 10% amount is called retainage. In situations where a lender is providing construction financing, typically the lender only funds a loan amount for 90% of the value of the work each month and does not fund the remaining 10% until the project is finished. If the lender forecloses on the project, the 10% not funded by the lender each month does not get paid to the construction team. For more information, please visit: Consolidated Insurance Programs HB 1206 by Representative Dan Huberty (R-Humble) remains in the House Insurance Committee waiting to be voted out of the committee. Once voted out of committee it will go to the House Calendars Committee where it will await being placed on the Calendar for consideration by the full House. In addition, SB 1081 by Senator Brandon Creighton (R-Conroe), the companion bill to HB 1206, is in the Senate Business & Commerce Committee where it is awaiting a hearing. Consolidated insurance programs (CIPs) are insurance programs in which a principal, usually an owner or general contractor, provides insurance coverages that are bundled into one insurance program for a single construction project or multiple construction projects. They are also known as WRAPS, OCIPS, CCIPS, and ROCIPS.The program typically provides coverage for each entity on the project, from the general contractor to the subcontractors and their employees, for general liability and workers compensation. For more information, please visit: Lender Notice HB 1208 by Representative Cecil Bell (R-Magnolia) is in the House Business Industry Committee awaiting a hearing. Currently, a lender is not under any obligation or duty to inform a general contractor and subcontractor that the bank will no longer fund a construction loan. Thus, the construction team continues to work on a project not knowing whether compensation will be paid for labor and materials furnished after the suspension or cessation of disbursements for the project. In many cases where construction continues after the lender has determined that it will suspend or cease disbursing funds, the lender gets a completed project and the contractors and subcontractors are left holding the bag. For more information, please visit Worker Classification HB 434 by Representative Senfronia Thompson (D-Houston) is also in the House Business & Industry Committee awaiting a hearing. An employer is required by law to classify its workers on construction projects as employees or independent contractors. It is becoming increasingly prevalent that companies are not classifying properly. By not classifying properly, a company does not pay its fair share of taxes. Employers who misclassify their workers have a competitive advantage in bidding for jobs and divert work from employers who do pay taxes, overtime and workers compensation premiums for their workers. Because the penalties for not classifying properly are limited to payment of back taxes owed, plus nominal interest and tiny penalty, the consequences for violating the law are not strong enough to deter employers from not classifying properly. For more information, please visit: Selected Other Construction-Related Legislation Being Followed HB 689 by Rep. Armando Walle (D-Houston) is set for a hearing in the House Business & Industry Committee on Tuesday, April 7. Its companion bill, SB 155 by Sen. Jose Rodriguez (D-El Paso) is in the Senate Business & Commerce Committee awaiting a hearing. This legislation would establish mandatory workers compensation coverage for all building and construction contractors. HB 889 by Rep. Tony Dale (R-Cedar Park) is in the House State Affairs Committee awaiting ahearing. SB 401 Sen. Charles Schwertner (R-Georgetown), the companion bill to HB 889, is in the Senate Business & Commerce Committee awaiting a hearing. This legislation would require any contractor or subcontractor providing goods or services to a state agency to register with and participate in the E-verify program to verify employee information during the term of the contract with the agency.

5 THANKS TO OUR SERVICE TRUCK COMPETITION SPONSORS! Gold sponsor: Mac Haik Commercial Silver sponsors: Milwaukee tool Blackmon mooring Mercedes - sugar land Spartan tools Bronze sponsors: Pepco sales Esr

6 Gulf Coast PHCC News We love when members submit news articles and stories from around the state. This can be special news about your business or sharing interesting articles you have found. Please submit your Member News to Jennifer Wilkins CHARLES CRITTENDEN (CHARLIE) MAC HAIK DODGE CHRYSLER JEEP RAM COMMERCIAL FLEET BUSINESS LINK SALES MANAGER CELL# OFF# FAX# commercial.htm

7 April 2015

8 Because of you Casino Night was a Great SUCCESS! PLATINUM SPONSOR KOHLER GOLD SPONSORS American Standard/PMI Federated Insurance MacHaik Dodge Morrison Supply Katy Plumbing Texas Plumbing Supply SILVER SPONSORS Uponor NORMAC Champion Restoration Modern Plumbing Pickett Plumbing Blackmon Mooring Oatey Services Milwaukee Tools Moore Supply (League City) Champion Marketing Alliance Manufacturing Reps Raven Mechanical BRONZE SPONSORS Doug Turner Plumbing CWR New Age Casting VIEGA Emergency Services Restoration Westway Sales Morrison Supply (Stafford)

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15 April 2015 Upcoming Events There are many upcoming exciting PHCC Events for our members. We have local events as well as events put on by the PHCC-TX state office. Be sure to check the websites for a full listing of events. You can also visit our other local chapters: Our monthly member lunches are usually held the 2nd Wednesday of each month (with the exception of one or two events). We host the lunch meetings at Saltgrass Steakhouse located at : 1803 Shepherd Dr. Houston, TX You can pre-register and pay for your lunch on our website events April 22nd - SERVICE TRUCK COMPETITION & Dinner, Brady s Landing May - Member LUNCH, Saltgrass Steakhouse - SPEAKER TBA June NO LOCAL MEETING, SUMMER BREAK June 11 June 12 TEXAS ROUND UP CONVENTION, Galveston July TBA MEMBERS we want your NEWS! Send us your events, industry news articles or company announcements. We will include them in the next upcoming issue of our newsletter. Please submissions to jwikins@gulfcoastphcc.org by the 5th of each month.

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