Bill Would Ease Regulatory Burdens on Small Businesses, Builders Tell Congress

NAHB Press Release

WASHINGTON, June 28 - The National Association of Home Builders (NAHB) today urged Congress to support bipartisan legislation introduced by Reps. Spencer Bachus (R-Ala.), John Barrow (D-Ga.), Tom Graves (R-Ga.), and Jim Matheson (D-Utah) that would ease regulatory burdens on small businesses.

Testifying on behalf of NAHB before the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law, Kansas builder Carl Harris said that the Regulatory Flexibility Improvements Act of 2013 (H.R. 2542) is critical to provide regulatory relief to small businesses burdened my onerous and excessive regulations.

"As a small businessman operating in a highly regulated industry, I know how difficult and costly it can be to comply with scores of government regulations that apply to my day-to-day work," said Harris. "In fact, in my industry, the sum total of regulations imposed by government at all levels account for 25 percent of the final price of a new single-family home. This is particularly important in an industry where margins are so thin and consumer sensitivity to price fluctuations is so acute."

H.R. 2542 requires federal agencies to identify and reduce the costs of regulations on small businesses when determining the economic benefits of a proposed rule. It also gives small businesses more opportunities to be heard as regulations are written.

Though the Regulatory Flexibility Act already stipulates that federal agencies must consider the effect of their actions on small businesses, Harris noted that too often they circumvent the intent and the letter of a law that is intended to make the regulatory process more cost effective and less burdensome for small businesses.

"To improve federal compliance with the Regulatory Flexibility Act, assure small businesses have a voice in the regulatory process, limit unnecessary regulations and spur job growth, I urge Congress to move quickly on this legislation," said Harris.

Bill Signing Ceremony for S.B. 1077, Act 176, Owner-Builder Exemption

On June 25, 2013, Governor Abercrombie signed into law S.B. 1077, which sets forth specific responsibilities and protections for owner-builders. This exemption to Chapter 444 was established, and intended, for legitimate circumstances where homeowners had the requisite ability, time, and inclination to save money by performing their own home improvements and construction. However, and unfortunately, this exemption has been abused by unlicensed contractors, resulting in millions of lost tax revenue and leaves licensed contractors at a disadvantage because of the higher costs associated with running a legitimate contracting business. Act 176 benefits our construction industry, the State, and homeowners against unlicensed construction activity.

Governor Abercrombie with BIA Government Relations Committee Members

Governor Abercrombie with Greg Thielen, 2013 BIA President

House Lead Paint Bill Would Help Remodelers, Consumers

NAHB Press Release

WASHINGTON, May 22 - Responding to concerns from the National Association of Home Builders (NAHB) and affiliated trade groups, bipartisan legislation to make much-needed improvements to the Environmental Protection Agency's (EPA) Lead: Renovation, Repair and Painting (LRRP) rule was reintroduced in the U.S. House of Representatives today.

The Lead Exposure Reduction Amendments Act of 2013 (H.R. 2093) is identical to legislation introduced in the last Congress. The bill would reinstate the opt-out provision to allow home owners without small children or pregnant women residing in the home to decide whether to require LRRP compliance, allow remodelers to correct paperwork errors without facing full penalties and provide an exemption for emergency renovations. It would also eliminate the requirement that recertification training be "hands on," so that remodelers would no longer have to travel to training facilities out of their region.

The bipartisan bill, companion legislation to S. 484, was introduced in the U.S. House of Representatives by Rep. Tim Murphy (R-Pa.), along with 21 original co-sponsors.

"H.R. 2093 will make common sense improvements to the EPA's lead paint rule for home owners and remodelers who must comply with the regulation's costly work practices and recordkeeping requirements," said NAHB Remodelers Chairman Bill Shaw, GMR, GMB, CGP, a remodeler from Houston. "Most importantly, it will continue to protect pregnant women and small children against lead hazards. I commend the bill's co-sponsors for their commitment to improve this burdensome regulation."

The LRRP rule applies to homes built before 1978 and requires renovator training and certification, adherence to lead-safe work practices and record keeping.

By removing the opt-out provision in July 2010, EPA more than doubled the number of homes subject to the LRRP rule, adding an estimated $336 million per year in compliance costs to the remodeling community - without making young children any safer.

For more information about remodeling, visit www.nahb.org/remodel.

Home Builders Call on Congress to Improve Immigration Bill's Guest Worker Provisions

NAHB Press Release

WASHINGTON, April 22 - The National Association of Home Builders (NAHB) commends the bipartisan Senate sponsors of legislation to advance comprehensive immigration reform and today called on lawmakers to improve the guest worker provisions in the bill to address the significant role that foreign workers play in the housing industry and to help alleviate current labor challenges that are hampering the housing and economic recovery.

Testifying before the Senate Judiciary Committee on the Border Security, Economic Opportunity, and Immigration Modernization Act (S. 744), NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C., urged Congress to implement a new market-based visa system that would allow more immigrants to legally enter the construction workforce each year.

"Despite our efforts to recruit and train American workers through the HBI Job Corps program and other programs, our industry faces a very real impediment to full recovery if work is delayed or even cancelled due to worker shortages," said Judson. "A new, workable visa program would complement our skills training efforts within the nation's borders, and fill the labor gaps needed to meet the nation's housing needs."

In a recent survey of NAHB's membership, 46 percent of the builders surveyed experienced delays in completing projects on time, 15 percent had to turn down some projects and 9 percent lost or cancelled sales as a result of recent labor shortages.

Foreign-born workers have traditionally played a vibrant and important role in home building. Today, they account for 22 percent of the construction labor force, according to the Census Bureau. Moreover, trades with a high concentration of immigrant workers also tend to have more vacancies and labor shortages. There are currently 116,000 unfilled positions open in the construction sector - a post-recession high.

While the W Visa program that addresses a guest worker program for the low-skill sector within Senate bill S. 744 reflects a good-faith attempt on the part of lawmakers to address a serious concern, NAHB believes the program is unworkable for the residential construction industry.

"First and foremost, the program wrongly singles out the construction industry with a discriminating set of rules, including an arbitrary and meager cap that not only ignores but rejects the value of the housing industry to the nation's GDP," said Judson. "Our industry, which in normal times accounts for more than 17 percent of the nation's total economic output, should be afforded the same opportunities as any other sector of the economy. Congress must reassess this critical flaw in the legislation."

Judson also outlined other components of the W Visa program as areas of concern:

The 8.5 percent unemployment trigger. Putting an unemployment trigger in the program ignores the simple fact that immigrant workers and native-born workers sometimes perform jobs that are independent. Moreover, with the current unemployment rate well below 8 percent, labor shortages in all facets of the industry - including framers, carpenters, bricklayers and weatherization workers - continue to undermine the housing recovery.

• Prevailing wages. Employers will already have to pay fees for self-registration and any positions needed. Further adding a complex prevailing wage scale to the program will deter private small business firms from taking advantage of it. Employees should be paid market rate, or actual wages.
• The inclusion of a commission in the W Visa program. The marketplace is best-suited to make wage and worker shortage determinations, not a new bureaucratic entity, said Judson. The most accurate way to measure whether immigrant workers are needed is for employers to try, and either succeed or fail, to hire U.S. workers.
• Complete portability. Under this provision, a registered employer faces the stark reality that a W Visa holder has the option to quit and work somewhere else beginning on the very first day of work. NAHB believes that it is only fair that employers have some assurances that after navigating a confusing and expensive process, the visa holder will actually have to show up and work for the employer who sponsored the worker. This concern is even more pronounced for the construction industry, considering the meager 15,000 visa cap. Employers should receive a credit for losses incurred.

Statement from NAHB Chairman Rick Judson on Senate Immigration Bill

NAHB Press Release

WASHINGTON, April 16 - Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C., issued the following statement regarding comprehensive immigration reform unveiled today by a group of eight bipartisan senators:

"NAHB congratulates Sens. Michael Bennet (D-Colo.), Richard Durbin (D-Ill.), Jeff Flake (R-Ariz.), Lindsey Graham (R-S.C.), John McCain (R-Ariz.), Robert Menendez (D-N.J.), Marco Rubio (R-Fla.) and Charles Schumer (D-N.Y.) for their efforts to advance comprehensive immigration reform.

"We are pleased that the bill would create a fair, efficient and workable employee verification system that preserves the direct employer-employee relationship and the current knowing liability standard so that employers may easily understand their role and obligations. We also appreciate that the measure contains strong protections for employers against prosecution and penalties when acting in good faith and also includes provisions to make the system workable for our nation's small businesses.

"This bipartisan Senate bill represents a responsible solution to bringing the current undocumented population out of the shadows, and NAHB also welcomes the work that has been done to create a new visa program for the low-skill sector. However, we need to improve the size and scope of this program, and NAHB looks forward to working with the U.S. Senate to improve the bill as the legislative process advances."

ACTION Requested on HB 634 HD1 SD2 - Employment

The above bill is VERY BAD for business, as it would provide "job security" for employees who work for a company that has been bought by a new owner. Hawaii does not have a reputation of being business friendly; this bill would make the business climate significantly worse and deter investment.

This bill requires that purchasers of a business in Hawaii will have to keep all existing non-management employees. While a few exceptions are included, this bill goes too far in private business matters. It will hurt any businesses who want to sell their business at market value and help their employees.Many potential buyers will be weary of buying a business in Hawaii or investing as a majority owner and providing much needed capital to that business. The opposite will result--if businesses are unable to sell their business, then they will close shop and their employees will not have jobs.

Please help and act now. Hawaii will be the only state in the nation with this law, which will again label us as a bad place to do business and invest. Whether you plan to sell or not, have 5 employees or 100 employees, the business community must stand together on this issue. Even if this bill does not affect you, it may affect one of your clients and is just bad for our business.

The full Senate will be voting on this measure on the floor tomorrow (April 9, 2013). Please email your request to VOTE NO on this bill to: sens@capitol.hawaii.gov.

Thank you for your help.