NEWSLETTER Spring 2014

REPRESENTING SUBCONTRACTORS AND SUPPLIERS BRIAN CHESTER TO LEAD TCA

Brian Chester, Vice Chairman of the Texas Other changes on the TCA board…. Construction Association’s board of direc- tors, was elected chairman at the January Before stepping down, Hewitt welcomed meeting of the board of directors. Chester Roger Fisher II, President of Qualtex, Inc. is Executive Vice President of United Me- as the new representative chanical in . He represents the North for the Painting & Decorating Contractors Texas Chapter of the American Subcon- of America. Carolyn Barten of Schnurr, tractors Association on the TCA Board. Inc. was the former representative. In addition to Chester, the new offi cers of Chester succeeds Todd Hewitt who served TCA are: Ken Boen of Boen Plumbing in as TCA chair in 2012 and 2013. Hewitt Waco. Boen will serve as Vice-Chairman. represents the Central Texas Subcontrac- He represents the Plumbing-Heating-Cool- tors Association on the TCA board. He has ing Contractors of Texas.  e new Secretary been a board member since CTSA became Todd Hewitt (R) receiving is Victor Longo of National Terrazzo, Tile, a Member Association of TCA. Hewitt is Chairman Service award upon and Marble in Houston. Longo represents President of Texas Fi h Wall Roo ng Sys- the Southwest Terrazzo Association. Jerry tems. retirement from TCA Chairman Brian Chester (L). Bratton of Bratton Steel in Dallas. Bratton will serve as Treasurer. He represents the Texas Structural Steel Institute. Election Results 2014 Primaries In This Issue Nine incumbents in the Texas Legislature Democratic side, David Alameel will face lost their re-election bids in the March pri- Kesha Rogers in a runoff . mary election.  ey were Sen. John Caro- Governor: Republican Attorney General na, Reps. George Lavender, Lance Good- and Democrat Sen. Wendy Message from the President...... 2 en, Ralph Sheffi eld, Diane Patrick, Linda Davis both easily won their primary races Harper-Brown, Bennett Ratliff , Naomi and will square off against one another in Eff ective Dates of New Laws...... 3 Gonzalez, and Lon Burnam.  ree others, the general election, as expected. Lt Gov. , Sen. Bob Deuell A Stroll Down Memory Lane...... 4 Lt. Governor: In a surprise, Sen. Dan Pat- and Rep. Stefani Carter, were forced into a 2015 Construction Issues...... 6 runoff . rick, a Tea Party favorite, led all comers in the GOP primary. He will face sitting Lt. Safety...... 7  e runoff is scheduled for May 27th, 2014. Gov. David Dewhurst in a runoff .  e win- ner will square off against Democrat Sen. ASA-NT PAC Event...... 8 Here is a rundown of the primary election Leticia Van de Putte in November. results for statewide races: TCA Career Center Advantage...... 8 Attorney General: Ken Paxton and Dan High Priority Issues...... 9 Statewide Branch will compete in a runoff . Paxton U.S. Senate: Republican Sen. John Cornyn was endorsed by U.S. Sen. . Dem- A CALL TO ACTION!...... 10 cruised to victory in the primary. On the ocrat Sam Houston awaits in November. Continued on page 9... TCA BOARD Message from the President OFFICERS It’s an election year. For many people, the mid-term elections typically are Brian Chester - Chair not quite as exciting as a Presidential election year; however, for those with a American Subcontractors Association penchant for mudslinging, the campaigns leading to the Texas primaries this North Texas Chapter year proved to be more exciting than usual. Read the election results in this Ken Boen - Vice Chair issue. Plumbing-Heating-Cooling  e members of the TCA Political Action Committee provided endorsements Contractors of Texas for the primary elections and will soon be looking at the runoff and the fall Victor Longo - Secretary general elections.  anks to the members of the PAC for the valuable service Southwest Terrazzo Association you provide for our members. SAVING MONEY?  is past December on my way to Irving, I picked up a Jerry Bratton - Treasurer printing/copying job at Offi ce Depot in Waco.  e charge was $172.93. When Texas Structural Steel Institute the TCA store purchasing card discount was applied to the purchase, the total Raymond Risk - President / CEO changed to $84.76.  e TCA National Commerce Group program provides Texas Construction Association savings in-store or online for a large number of products and services at Offi ce Depot. Is your company registered for this TCA Member Bene t? For more DIRECTORS information, contact TCA Vice President Jeff Webb. His email is jwebb@ texcon.org. Or see the Member Bene ts page in the Membership Center of the TCA web site, www.texcon.org. Mackie Bounds American Subcontractors Association of Texas I acknowledge the brilliant work Gina O’Hara has done as Master Agent for the TCA-Texas Mutual Workers’ Compensation program.  is TCA Member Keith Colvin Bene t program is in its 11th year and is now the largest construction safety Texas Iron Workers Employers’ Association group at Texas Mutual. Gina has just been awarded Safety Group Marketer of Roger Fisher the year by Texas Mutual. It’s her 2nd time to win it. She won last year. TCA Texas Council - Painting & Decorating members win every year due to her work on the TCA WC program.  anks, Contractors of America Gina! Gil Heldenfels Rmn Precast Concrete Manufacturers’ Association Mike Kanetzky National Electrical Contractors Association Chris Lambert Central Texas Subcontractors Association Tim Riley DFW Drywall & Acoustical Take Advantage of TCA’s WEX Fuel Card Program Discounted Pricing on Fuel Management Contractors Association Get all of the tools you need to reduce costly waste and save up to 15% on David Stone fuel management costs. Fire Sprinkler Contractors Association of Texas WEX’s fuel card program gives you security by helping to protect against Lindsey Stringer unauthorized spending and gives your drivers the convenience of being Texas Masonry Council able to fi ll up just about anytime and anywhere they want. Contact Patrick Finnegan at TCA Vacant [email protected] or 512-473-3773 Mechanical Contractors Association of Texas Allan Woodruff Texas Crane Owners Association Jerry Wright Tighter Control over spending Texas Glass Association Gain Control of your vehicles

LEGAL COUNSEL Acceptance where & when you need it Richard Thomas Thomas, Feldman, & Wilshusen Service you can count on In 2013, the Texas Legislature passed a num- ber of bills that will impact the construction industry. Below is a brief description of each of the bills that went into eff ect on September 1, 2013 and January 1, 2014. Eff ective Dates Construction Laws of Eff ective 9/1/13 New Laws State Breach of Contract  e state no longer has immunity from be- Rainwater Treatment Installations ing sued for breach of contract in disputes Construction Laws Individuals are not required to be licensed of $250,000 or more. For disputes under Eff ective 1/1/14 for rainwater treatment installations, ex- $250,000, the state offi ce of administrative changes, services, or repairs, other than the hearings, commonly known as SOAH, will Worker Classi cation Under Govern- treatment of rainwater to supply a plumb- continue to be the venue.  is bill aff ects ment Contracts ing xture or appliance. HB 2062 by Rep- claims arising from contracts executed on Employers awarded a contract for pub- resentative John Davis (R-Houston) and or a er September 1, 2013. HB 586 by Rep- lic works must ensure that any individual Senator Larry Taylor (R-Friendswood) resentative Paul Workman (R-Austin) and performing services under the contract for Senator Bob Deuell (R-Greenville) that employer is properly classi ed as an employee or independent contrac- Career and Technical Education tor. An employer who misclassi es is Programs in Public Schools subject to a $200 ne for each individ- Public schools students now have ual misclassi ed.  e enforcing state curriculum exibility in high school agency,  e Texas Workforce Com- graduation requirements that, in part, mission, can also assess other penal- will pave the way for career and tech- ties and interest. HB 2015 by Repre- nical education programs in the state’s sentative John Davis (R-Houston) and public schools to train and prepare Senator Kirk Watson (D-Austin) students for various certi cations and Changes to the Franchise Tax careers in the diff erent segments of the construction industry as well as Law in other Texas industries and profes- Institutes a temporary across the sions. HB 5 by Representative Jimmie board tax cut of 5% to be phased in Don Aycock (R-Killeen) and Senator over two years.  e current $1 mil- Dan Patrick (R-Houston) lion small business exemption will be substituted for a revised tax calcula- Alternative Project Delivery tion that a taxable entity will use to Minor adjustments were made to the determine its taxable margin based on law dealing with alternative project the lesser of 70% of the taxable entity’s delivery methods that was passed in total revenue, or an amount equal to 2011.  e adjustments were based the taxable entity’s total revenue mi- on the experience of governmental nus $1 million, or an amount com- entities and their request for minor puted by subtracting from total reve- changes to the 2011 law. HB 1050 by nue the greater of $1 million, costs of Representative Bill Callegari (R-Katy) goods sold, or compensation. HB 500 and Senator Troy Fraser (R-Horseshoe by Representative Bay) Additional License Not Required for (R-Kerrville) and Senator Glenn Hegar Installation of a  ermostat (R-Katy) Roo ng Contractors Prohibited From A person licensed to provide private se- Exclusion of Certain Flow- rough Acting as Insurance Adjusters curity services will not be required to be  e Insurance Code was amended to make licensed as an air conditioning and refrig- Funds from the Franchise Tax Subcontractor payments related to real clear that a roo ng contractor cannot ad- eration contractor in order to perform the property improvements and remediation just or advertise to adjust claims for proper- limited work related to the installation, projects can be excluded in determining the ties which the contractor is the contractor repair, replacement, or modi cation of a taxable entity’s total revenue for purposes of record. HB 1183 by Representative Ryan thermostat or other temperature control in- of the franchise tax. HB 2766 by Represen- Guillen (D-Rio Grande City and Senator terface. HB 2294 by John Kuempel (R-Se- tative Todd Hunter (R-Corpus Christi) and Eddie Lucio, Jr. (D-Brownsville) guin) and Senator (R-Dallas) License Not Required for Certain Senator John Whitmire (D-Houston).

Texas Construction Association 3 2006 - TCA worked with the Governor’s Task Force and the legislative sponsors of A Stroll Down Memory Lane the legislation that made a major revision in Highlights of TCA Supported Legislation the business franchise tax during a Called Session of the 79th Legislature. At the re- Texas Subcontractor passed. Also, the bill required insurance quest of TCA, the sponsors included a pro- companies to establish bonds on a project Legislative Achievements when the company is replacing a building TCA was established in 1998. Prior to to satisfy a claim instead of paying cash for that time the various Subcontractor As- the claim. sociations worked together informally on 1999 - A bill passed that amended the pri- legislative issues.  e following is a sum- vate work prompt payment act to provide mary of the legislative accomplishments for the right to suspend work if payment realized by the industry over the years. has not been received and to shorten the time for an owner to pay a contractor. 2001 - TCA supported bills to require vision that allowed the construction indus- sureties to act in good faith when process- try to deduct the costs of materials as well ing bond payment claims and require the as their labor costs when calculating the surety contact information to be printed on new business tax.  is one change saved the payment bond. Amendment passed to contractors and suppliers an amount equal sunset bill that provided limitations on in- to 1% of their material costs each year that demni cation for state agency construction they would have otherwise paid in franchise projects. Surety good faith and surety con- taxes. If a contractor spends $1,000,000 per tact information bills passed. year in material costs, the savings in fran- 1985 - Texas’ rst construction prompt chise taxes would total $10,000 for that payment law passed for public works proj- year. Also, an amendment was inserted in ects. the tax bill at the request of TCA allowing 1991 - Texas Construction Venue Law the full deduction from its gross revenue passed. Gave contractors the right to le suit calculation for a subcontractor’s payments in Texas despite out-of-state venue clause in to lower tiered subcontractors. contracts. Construction indemnity bill that 2007 - SB 324, the contingent payment would ban broad form hold harmless claus- bill, was passed and signed into law.  is es in contracts was introduced. measure provides that a contingent pay- 1993 -  e Private Work Prompt Pay Act ment clause is not eff ective 1) when the for privately owned projects passed de- 2003 - Bill passed that amends the pub- subcontractor does the work properly and spite strong opposition. Revisions passed lic work prompt pay act.  e bill provided the owner withholds payment because of to Public Work Prompt Pay Act that closed a right to suspend work if the owner does actions of the general contractor or another the loopholes which allowed governmental not pay. Bill passed that overturned Texas subcontractor; 2) the owner/general con- entities to escape from the provisions of the Supreme Court ruling that gave counties tractor relationship is a sham; and 3) the sovereign immunity. enforcement of the contingent payment clause would otherwise be unconsciona- 2005 – A TCA supported measure passed that prohibits the assertion by any local governmental entity of a sovereign im- munity defense in a construction contract dispute. Also, supported by TCA and pass- ing, were measures restricting the ling of frivolous silicosis lawsuits, a measure that act. Work on construction indemnity bill restricts a local governmental entity from gained strength. providing construction services to other governmental entities, and a bill that sub- 1997 - Surety Bill requiring companies is- stantially rewrote the workers’ compensa- suing performance or payment bonds for tion law. TCA, working with other groups, ble.  e clause is eff ective when the owner construction projects to have a certi cate helped to prevent the imposition of an does not pay when the owner is insolvent; of authority from the treasury onerous payroll tax as a method to nance however the subcontractor can give notice the public schools. to the general contractor a er payment is Continued on next page... Texas Construction Association 4 not made in accordance with the prompt types of projects and certain types of in- 2013 - Saw Legislative and regulation ad- pay act that for future work the clause is not demnity agreements, the bill’s overall ef- vances for the construcion industry in sev- eff ective. fect is to make unenforceable indemni - eral areas: cation agreements that require a person to Margins Tax 2009 - Because of the broad language con- be responsible for another’s negligent acts. Eff ective June 5, 2013, the Texas Comptrol- tained in the Texas Fraudulent Lien Act,  ere is a similar restriction on additional ler revised Margin Tax Rule §3.588 con- an innocent mistake or error exposed the insured endorsements on the indemnitor’s cerning the Cost of Goods Sold (COGS) claimant to signi cant civil and criminal insurance policy.  is legislation capped deduction. Under the revised rule, taxpay- penalties. Many subcontractors and sup- decades of work by the subcontracting in- ers may include as COGS both direct labor dustry in its repeated attempts at relief from costs and those indirect labor costs, other indemni cations for negligence of others. than service costs, that are subject to cap- Consolidated Insurance Programs italization under Internal Revenue Code  e rst successful legislative inroads into (IRC) §263A and its regulations. this area of insurance provided that a gen- State Breach of Contract eral liability policy issued under a consol-  is legislation waives the state’s immuni- idated insurance program must provide a ty in construction contract disputes. For minimum of 3 years of completed opera- disputes of $250,000 or more, state district tions coverage. court will be an option for resolution of the Retainage Lien claim. For disputes under $250,000, the  e legislature saw t to remove some of state offi ce of administrative hearings, com- pliers were reluctant to le liens because the harsh impediments in the law to give monly known as SOAH, will be the venue. of this exposure.  e Act was amended to lien claimants a more reasonable path to Career and Technical Education provide that a violation of the act involving placing a lien for retainage, while still main- Programs in Public Schools a mechanic’s and materialman’s lien re- taining protections for property owners. quired the showing that the claimant led  is bill provides curriculum exibility in the lien with an intent to defraud. Lien Waivers high school graduation requirements to  e legislature passed a bill that prescribes train and prepare public school students  e Texas Construction Trust Fund Act conditional and unconditional statutory for various certi cations and careers in the (TCTFA) was amended to provide that lien waiver forms for construction pay- diff erent segments of the construction in- funds subject to the Act are not subject to dustry as well as in other Texas industries, seizure by a claim by a bankruptcy trustee professions and careers. for an upstream payor who les bankrupt- cy.  e Act was also amended to overturn Worker Classi cation an appellate court decision that limited a Under Government Contracts claimant’s remedies for non-payment on a  is legislation requires that employers public project to the payment bond.  e awarded a contract for public works must language change included providing that ensure that any individual performing ser- the remedies under the TCTFA and oth- vices under the contract for that employer is properly classi ed as an employee or in- er remedies are in addition to any remedy ments. Additionally, in most all cases, a dependent contractor. An employer who provided by a payment bond. person cannot waive a right to a mechan- misclassi es is subject to a $200 ne for ic’s lien prior to receiving payment for work Legislation was also passed providing that each individual misclassi ed. if a contractor or supplier prevails in a suit performed or materials supplied. involving a construction contract with a lo- Public-Private Partnerships Exclusion of Certain Flow  rough cal governmental entity, the contractor or  is legislation established a process for Funds from the Franchise Tax supplier is entitled to recovery of its attor- governmental entities to contract with pri-  is bill provides that subcontractor pay- ney fees from the governmental entity. vate entities to construct and operate a va- ments related to real property improve- riety of facilities, TCA proposed an amend- ments and remediation projects can be ex- 2011 - Despite a Legislative Session that cluded in determining the taxable entity’s was lled with major statewide issues in- ment that was accepted by the legislature to require performance and payment bonds to total revenue for purposes of the franchise volving huge state budget issues and Leg- tax. islative and Congressional redistricting, be in place before the start of any projects major legislation aff ecting the construction under the new law. industry passed. Other bills that passed included one deal- Indemni cation ing with alternative delivery system pro-  e enforceability of broad form indem- curement for public work construction, the ni cation and related additional insured awarding of attorney fees in proceedings endorsements for general construction to foreclose a lien or enforce a bond claim, work was limited by the legislature. While and the awarding of interest in a breach of there are some exceptions in the bill for contract lawsuit.

Texas Construction Association 5 Early Peek at 2015 Construction Issues

Worker Classi cation and subcontractors are not made aware of construction loan. the decision of a lender to no longer fund  e Problem a construction loan, they will continue to  e Solution to the Problem Legislation was passed in 2013 that dealt work on a project, and may never receive Legislation should be passed to require the with misclassi cation of employees for em- payment for labor and materials expended owner to set aside in a separate account the ployers working under government con- on the project. retainage amount not paid each month to tracts. In the private sector the practice con- contractors and subcontractors for con- tinues and will continue. Misclassi cation  e Solution to the Problem struction costs during the life of a project of employees as independent contractors Legislation should be passed to require to ensure that those contractors and sub- reportedly is widespread in the construc- Lenders to give notice to prime contractors contractors will be paid the retainage to tion industry in Texas. When employees when the lender determines it will no lon- which they are entitled.  is account can are not properly classi ed, tax revenue is ger disperse funds that are part of the loan be a simple bank checking or savings ac- lost as a result of unpaid state unemploy- for a construction project.  e law should count and does not require a lawyer-pre- ment insurance taxes and federal employ- allow the contractor and subcontractors the pared agreement. As an alternative to ment taxes. Employers who misclassify opportunity to stop working on a project setting aside the retainage each month, their workers have a competitive advantage when this notice is given. legislative language should give the owner in bidding for jobs and divert work from an option to purchase an inexpen- employers who do pay taxes, sive payment bond to ensure that overtime and workers’ compen- contractors and subcontractors sation premiums for their work- would be paid the full amount ers. In addition, the consequenc- of the retainage they have earned es for those employers violating and are owed. the law are not strong enough to deter them from continuing the Lien Law Reform practice of misclassifying their  e Problem workers.  e original intent of the lien law  e Solution to the Problem as contained in the Texas Consti- Legislation should be passed to tution was to provide a remedy amend the Labor Code to re- for mechanics, materialmen and quire a construction employer artisans to secure payment for to report properly the employ- labor, materials or machinery ment status of each employee as furnished in the improvement of required by the Texas Workforce property.  rough amendments Commission (TWC) rule and the to the lien law over many decades, Texas Unemployment Compen- its intent has been lost because sation Act. In any legislative solution, the Retainage Trust Fund of diff erent notice requirements placed on construction employer who violates this subcontractors and suppliers. Today, the law should be required to pay the TWC an  e Problem numerous notice and ling requirements initial violation monetary penalty for each Texas law requires a non-public proper- in the lien law trip up subcontractors and employee not properly reported by the em- ty owner to retain from the contractor 10 suppliers, resulting in the loss of certain ployer. For each subsequent violation, the percent of the construction contract price lien rights available to them. Many times employer should be required to pay a much or value of the work, until completion of the reason for subcontractors and suppli- higher penalty than the penalty imposed the work on the project.  at 10 percent ers not timely giving the required notice for the rst violation of the law.  e law is called retainage. In situations where a or perfecting their liens is that the current should have safeguards to allow companies lender is providing construction nanc- complexity of the lien law makes the law to continue using legitimate independent ing, typically the lender only funds a loan confusing and makes the requirements in contractors on construction projects. amount for 90% of the value of the work the law hard to understand. each month and does not fund the remain- Lender Notice to Contractors ing 10% until the project is nished. If  e Solution to the Problem  e Texas lien law should be revised so that  e Problem the owner of a construction project funds the processes and procedures for providers  ere is no law in Texas that requires a construction with a loan from a lender and of construction labor or materials to perfect lender on a construction project to give any the 10% retainage is not transferred to the and maintain their lien rights are easier to notice to subcontractors or prime contrac- owner each time the lender advances loan understand and are straightforward.  e tors when a lender determines that it will proceeds, then contractors, subcontractors result would be that compliance under the cease or suspend funding a construction and others entitled to the retainage o en law would no longer be a stumbling block nancing agreement. If prime contractors do not get paid if the owner defaults on the to trip up a laborer or materialman result- Continued on next page... Texas Construction Association 6 • Shaina Payne able,” says Gina O’Hara, Master Agent for Schmidt Electric, Austin the group. “ ey’ve recommended import- • Sud Pugil ant strategies such as webinars and bilin- Safety TE-KO Contractors, Houston gual Toolbox Talks.  eir work has paid off for Texas employers and their employees • Lonny Schneider Say  anks to a from both a safety and a nancial stand- Koy Concrete, Houston point.” Safety Committee Member! • Jerry Wright Many of the members have served on the TCA Safety Committee members play a AAA Glass and Mirror, Ft. Worth committee for multiple years. Be sure and pivotal role in keeping Texas workers safe give a pat on the back and say “thanks!” if and helping employers earn nancial re- During quarterly teleconferences, they re- you know a Safety Committee member. wards for creating safe workplaces. In fact, view claims losses and look for trends to employers who purchased workers’ comp help employers keep their employees safe insurance policies through Texas Mutual and their bottom line solid. Join the Safety Committee! earned $175 million in dividends in 2013. For example, they recommended a We are looking for some new Safety bi-weekly educational bulletin, now known  e generous payback can be directly at- Committee volunteers. If your rm as Toolbox Talks.  e popular online news- tributed in part to initiatives recommended is safety aware and you’d like to help by a small group of safety-minded employ- letter is produced twice a month and covers support your Safety Group, please ers - the TCA Safety Committee. relevant topics, such as Driving in Winter Conditions or Back Safety.  e newsletters consider volunteering your time.  e six-member group is selected from are reaching workers and employers, and Meetings are held via teleconference employer representatives across the state. generate an average open rate of 27 percent, each quarter and always last less than  ey volunteer their time to make recom- which is quite signi cant for an online pub- mendations about improving safety in the one hour. lication. Best of all, the tool is helping keep workplace.  ey include: workers safer and allowing employers to For more information, contact: • Dwayne Davis reap bene ts in the form of nancial divi- Gina O’Hara Davis Electric, Wichita Falls dends. Offi ce: 512.330.9836, ext. 6324 • Travis Fromme “ ere is no doubt that the work the Safe- Cell: 512.415.6480 Zarsky Lumber, Victoria ty Committee performs is incredibly valu-

Early Peek at 2015 or alternative form of security securing a project could put the state and is required of a private entity taxpayers at risk if the private entity or its Construction Issues Continued... that enters into a comprehen- contractor fails. ing in the loss of lien rights.  is can be sive development agreement accomplished while providing property  e Solution to the Problem with the Texas Department of Transporta- Legislation should be passed to amend the owners mechanisms to assure a lien-free tion (TxDOT), a regional tollway authority project. Texas Transportation Code to require the or a regional mobility authority. Current performance and payment bond required Large Construction Project law authorizes these governmental entities for the comprehensive development agree- Surety Bonds to substitute any alternative form of securi- ments be issued by a corporate surety au- ty they determine to be suitable. Concerns thorized to issue surety bonds in Texas.  e  e Problem have been raised that the law is vague and amount of the bond or alternative form of Bonds are a commonly accepted method could cause the governmental entity to security should be suffi cient to protect con- of providing performance and payment se- fail to obtain adequate security for a proj- tractors, subcontractors and suppliers and curity for a public construction contract in ect without knowing that it had failed to should be equal to the cost of constructing Texas. A performance and payment bond do so.  e consequences for inadequately the project.

Texas Construction Association 7 Political Action Committee Event

Brian Chester, TCA Chairman, reported to match pledges from various contribu- that the event set a record for subcontractor tors. A “Wheel of Fortune” and bean bag PAC fund raising and congratulated Ricky toss were also part of the fund raising fes- tivities, where participants spun the wheel or tossed the bean-bag to see how much they would be contributing to the PAC. Congratulations to the sponsor ASA- North Texas and its members on their re- North Texas TCA Members came together cord-breaking PAC fundraising event! at the top of Reunion Tower on February 20 to greet state elected offi cials from the area. Elected offi cials attended the recep- Locke, event chair. With over $220,000 tion hosted by 66 TCA members. A er a raised at the event it greatly surpassed great time over cocktails, the members bid money raised at any TCA PAC events over the years. As part of the fundraising event, partici- pants were challenged to contribute money

Upcoming PAC Events • ASA-Houston – April 8, 2014 the offi cials farewell and then moved to the • Houston-Area Subcontractors main event. Clay Shoot – August 26, 2014 TCA Members Dennis Lewis, Brian Ches- • ASA-San Antonio – Early Fall ter, Tim Cummings, and Mike McAdams led TCA Members in a robust evening of • Central Texas Subcontractors jovial fund raising for the political action Assn – Late Summer or Early committee. Fall

TCA website and search a collection of marketing approaches is, unlike other The TCA resumes stored in a resume database. In commercial job boards, the TCA Career Center addition to posting their resumes, job Career Center targets a speci c talent seekers can browse and view available pool in the construction industry. So Advantage jobs based on the criteria and save although employers may nd fewer those jobs for later if they choose. You total applicants, those who do apply, will An important bene t of TCA can also create a search agent to provide most likely match your requirements! Membership is our online employment email noti cations of jobs that match resource, the TCA Career Center, the criteria.  e TCA Career Center can be a great which can help you streamline your venue for promoting your company. hiring process by providing targeted For Employers the Advantage of Along with each job posting, you access to the best job seekers in your using TCA Career Center over other can include information about your eld.  e TCA Career Center can be company, your corporate logo, a google found under the Member Bene ts in map to your location and a link to your the Membership Center at www.texcon. website! org. TCA encourages its members to use the  e TCA Career Center is a free service TCA Career Center to attract potential for job seekers that provides access to job seekers! Go to the Membership employers and jobs. As construction Center at www.texcon.org. projects continue to grow in Texas, so does the need to employ talented workers. Members can use the TCA Career Center to post jobs on the

Texas Construction Association 8 employees as independent contractors on workers, employers, income tax withhold- ing, and the unemployment insurance sys- High tem.” As part of the study on misclassi ca- tion of employees, the committee will also, “Review current statutory deterrents, in- cluding those required by HB 2015 (83R), and make recommendations for changes Priority if necessary.” HB 2015 was the legislation passed in 2013 that dealt with misclassi - cation of workers performing services in connection with governmental contracts. Issues As of the time of publication of this news- letter, the Lieutenant Governor has issued a few interim charges, none of which deal Legislative Interim conduct public hearings, the legislative with TCA’s priority issues. Two issues of committees may recommend legislation be signi cance to our industry that are ex- Studies to Address TCA Issues led to deal with the one or more of the is- Although the Texas Legislature does not pected to be part of interim studies in the sues they have reviewed. convene again until January 2015, the leg- Senate are the retainage trust fund and islative interim, the time between legisla- In February, House Speaker Straus issued lender notice issues. tive sessions, is an active time period for his interim charges for House committees. TCA staff has initiated discussions regard- the legislature. During the legislative inter-  e House Business & Industry Committee ing interim committee hearings with com- im, the Speaker of the House of Represen- received several interim charges, including mittee staff and will keep TCA members tatives and the Lieutenant Governor issue two that are signi cant to the construction apprised of when and where hearings will “charges” to each of their respective leg- industry.  e rst charge calls for the com- take place. In addition, we will continue islative committees regarding issues they mittee to, “Review existing lien laws in Tex- to monitor new interim charges issued by want the committees to address during as.”  e committee staff has indicated that the Lieutenant Governor or Speaker of the the interim. Each of the House and Senate the House Business & Industry Committee House. committees will convene public hearings will include the retainage trust fund and in the spring, summer and fall of this year lender notice issues as part of the interim It is imperative that TCA members be pres- to address the charges given to each them. study on Texas’ lien laws. ent and testify or register their support for our issues at the upcoming interim hear- Interim studies can be broad or narrow in In addition to the review of Texas’ lien laws, scope covering a number of issues or one ings. TCA will also have experts present- the House Business & Industry Committee ing testimony at the hearings. speci c issue. A er the committees will, “Examine the issues of misclassifying

Railroad Commission: Another former Primary Results Representative, Wayne Christian will face Continued from front page... Ryan Sitton in the GOP runoff .  e win- ner will face Democrat Steve Brown. Comptroller: Sen. Glenn Hegar narrowly missed an outright win in the GOP prima- ry (49.99% of the vote). Subsequently, sec- ond place nisher Rep. Harvey Hilderbran withdrew from the runoff . Debra Medina nished a distant third. Mike Collier was the only contestant in the Democratic pri- mary. Land Offi ce: Republican George P. Bush coasted to victory, as expected. He will face Democrat John Cook in November. Agriculture: Two former State Represen- tative Republicans, Sid Miller and Tommy Merritt, will meet again in the runoff . On the Democratic side, Kinky Friedman and Jim Hogan will face each other in the run- off .

Texas Construction Association 9 • Remember that you and your business are important to your legisla- tor-your legislator works for you, not the A CALL other way around. • Your meeting with your legislator to is about you and your interests. ACTION! • Talking about your issue or issues will help you to relax and speak from your Now Is the Time to In addition, during the months leading up to the General Elections on November 4, heart without memorizing a lot of informa- Meet with Your Legislators 2014, another important form of grassroots tion. And advocacy is for constituents to volunteer • Connect your issue to personal Get Involved in their time and talents to help with their leg- experience. If possible, talk about others who have been harmed by situations that Political Campaigns islators’ political campaigns. Campaign vol- unteers, among other things, put up yard have arisen related to this issue. Connect  e Texas Legislature will convene its Reg- signs, assist with phone banks and block this as a jobs issue. It costs you money. ular Session in January 2015.  e Texas walk to handout campaign material. You • Prior to your meeting, familiar- Construction Association will again be may volunteer for a few hours of work or, ize yourself with TCA’s legislative agenda promoting a strong legislative agenda on if you have the time, you may want to vol- in case your legislator asks you questions behalf of the construction industry.  e unteer for more hours to help with a cam- about any of those issues. success of TCA’s legislative agenda will be paign. All you need to do is call your local dependent on our members’ involvement candidate/legislator’s campaign offi ce and  e Basics of Setting Up a Meet- tell the staff that you ing With Your Legislator want to do volunteer • Call the senator’s or representa- work for the campaign. tive’s district offi ce and ask to schedule an Your off er of your time appointment with your legislator at his or will be very welcome her earliest convenience. to the campaign and • Identify yourself as a constituent – will be remembered by either because of where you reside or where your legislator. your business is located (or both).  e following is a ba- • Tell the legislator’s staff person sic how to guide to set that you only need 15-30 minutes of your up a meeting with and legislator’s time. what to do when you meet with your legis- • Ask the legislator’s staff person in educating their state senators and state lator. Keep in mind, when you meet with what would be the easiest way for the legis- representatives about the issues that aff ect your Senator or Representative it will be lator to meet with you-at the district offi ce, their day-to-day lives and their businesses similar to a marketing meeting with anoth- for breakfast, for coff ee or for lunch. and how the legislative agenda issues will er business person.  e other person in the •  e staff person you are talking to aff ect their business and employees. meeting just happens to be a legislator and may ask if it would be all right for you to meet with a legislative staff person instead  e advocacy work carried out on the lo- you happen to be a constituent that lives or of the legislator. cal level when our members meet and talk works in his or her legislative district. You with their elected offi cials is paramount to are marketing your issues to the legislator. the success of the TCA legislative agenda. Make a sale! Continued on next page...  is local-level work is known as grassroots Overview legislative advocacy and it is the most basic •  e purpose of meet- form of taking your case to your elected of- ing with your legislator cial and asking for his or her support to is to build a relationship advocate for you.  is kind of constituent with him or her so that advocacy is the most important work that you can easily contact members of an association can do to pro- that member when is- mote the passage of or the defeat of legis- sues important to you lative initiatives impacting their lives and are being considered by their businesses. Constituent input is the the Texas Legislature. most pure form of advocacy that exists in • Your mission for your the political process. When a grassroots meeting is to convey to advocacy program is embraced and carried your legislator what is- out by members of an association, the suc- sue(s) you are passion- cess of that association’s legislative agenda ate about and most eff ect is more likely to be realized. you and your business.

Texas Construction Association 10 • Say you would prefer to meet with Meeting With Your Legislator to this issue and ask your legislator if they the legislator and will do so at a time that is • Be on time for your meeting. can help you. convenient for him or her. • Address your legislator as Senator • Don’t be long-winded. Make your • In the end, you may only be able __ or Representative __, unless he or she “pitch” as succinctly as possible. to meet with a staff member.  at’s okay. asks you to use his or her rst name. • Be prepared for questions during Make the most of it! your “pitch.” • If you don’t know the answer to Preparing for Your Meeting a question your legislator or their staff With Your Legislator person asks, there is nothing wrong • Remember that this will be with saying, “I don’t know, but I’ll nd YOUR meeting with your legislator. the answer and get back to you.” • Write down the points you • You may want to invite your legis- want to make in your meeting and re- lator to visit your business. view them prior to the meeting. • At the conclusion of the meeting, • Go online at www.house. thank your legislator for taking the state.tx.us and click on “Members” or time to meet with you to talk about an at www.senate.state.tx.us and click on issue that is important to you. “Senators”. Once at either of the sites, • Leave your contact information click on your legislator and familiarize with your legislator’s staff . yourself with your legislator and his or • Send a thank you note a er the her background. • One of the legislator’s staff ers may meeting and send any information that you • Review the TCA Legislative Agen- join the meeting. were requested to send. da to be familiar with the issues. • Introduce yourself and tell the legislator about you, where you live, where THE TIME TO TAKE ACTION IS • Call the legislator’s district offi ce a NOW! PREPARE THE WAY FOR A day or two prior to the meeting to con rm your business is located and how many SUCCESSFUL LEGISLATIVE SES- the day, the time and the place for the meet- people your business employs. ing. • Usually your legislator will ask SION IN 2015! • It’s usually easier to get an ap- you what you want to talk about or what he or she can do for you. VOLUNTEER NOW TO HELP pointment with your legislator during the YOUR LEGISLATORS’ POLITICAL interim period between legislative sessions. •  ank your legislator for asking and begin talking about your issue. Tell CAMPAIGNS! him or her that you have a problem related

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