NEWS - February 2001

Titles:

President's Corner

Having spent the last 40 years in the construction segment of our industry, February 15th has become the date that marks the end of winter for me. I know the arguments about all of the possibilities for snow, ice, and frigid temperatures, to lash away at us beyond the “official date” (March 21st), but you can definitely count on that inclement burst, or whatever Mother Nature throws at us between now and then (“official spring”), will be short lived. No more long stretches of single digit stuff, guaranteed. 

What does all of this rambling have to do with the Electric League? Spring 2001 classes, of course! It's your opportunity to upgrade those skills or add that knowledge that is so necessary in our ever-changing electrical industry. The commitment and effort will definitely pay big dividends in the long run, and your employer will notice, take my word for it.  

Happy 30th birthday to OSHA this month. President Richard Nixon signed the Occupational Safety and Health Act on December 29, 1970, and in February 1971, the Agency was formed. Giving credit where credit is due, work place fatalities have been cut in half and occupational injuries and illness rates have declined 40 percent. At the same time employment in the United States has nearly doubled from 56 million workers at 3.5 million work sites to 105 million workers at nearly 6.9 million sites. Thank you to those who took the time to write letters to our congressional representatives on the OSHA Ergonomics Issues; although it's still not to late for others to write. February birthday wishes must also go to Thomas Alva Edison, historically the most important individual to the electrical industry.  

Right on schedule ... as I look out the window of my living room, the ice boats have been pulled up on shore and the lake has begun to thaw after a good eight weeks of ice. So, Sherry and I are headed for Snowmass to catch a little ski time before the Colorado snow melts.

See you at the Electric League's April luncheon. Unified Government Mayor Carol Marinovich, has been invited to speak on Economic Development in Wyandotte County.           

Jim Lacy,
President

 

Electric League Classes - Sign Up Today

Are you looking for quality, affordable electrical industry education for yourself or your employees? You need not look any further than the Electric League of Missouri and Kansas. The Electric League is offering six of the most popular education classes for the spring semester. Included in the line-up are: Fundamentals of Electrical Theory I, Fundamentals of Electrical Theory II, Motor Control Applications, Transformers - Selection and Application, Programmable Logic Controllers, and Applying the 1999 National Electrical Code. All classes are set to begin in March with the exception of Transformers - Selection and Application which starts April 11. Those enrolling in classes today still have the opportunity to take advantage of the Early Bird Registration pricing - making the classes an even better value.   

A brochure detailing all spring education classes has been sent to members. Anyone needing additional information should contact Cindy Oxley at the League office - 816-561-5323.



Scholarship Applications Available

Scholarship applications are available from the Electric League office for the Electric League Scholarship Fund. The Scholarship Fund is part of the Electric League Foundation, established in 1996, to assist members, their children and grandchildren with educational needs. Scholarships will be granted each spring for the following fall semester. This year the John McDermott Memorial Scholarship will be available. Scholarships are available in amounts from $500 to $1500. Applications must be completed and returned to the League office by March 1st.  

Interested members should contact Olivia at the League office for an application or more information - phone 816-561-5323.


GFCIs - Study Finds Many Do Not Work

A new study from the Leviton Institute found that a high percentage of Ground Fault Circuit Interrupters (GFCIs) installed in homes didn't work when they were tested, and might not protect people from an electrical ground fault.  

A ground fault can occur when current “leaks” from an electrical circuit - for example, through damaged wiring or a defective appliance. GFCIs are designed to detect ground faults and shut down the circuit if they occur.  

The GFCI Circuit Breaker Field Study, sponsored by The Leviton Institute, reviewed data from 13,380 building inspections and found that 15 percent, on average, of GFCIs were inoperative when tested. The study looked at both GFCI circuit breakers and GFCI receptacles, and found similar failure rates for each. The data suggested that lightning strikes are one likely culprit in many inoperative GFCIs. The study found a much higher incidence of failure in areas where lightning is prevalent. In those regions, as many as 58.2 percent of GFCIs were found to be inoperative.  

“GFCIs don't last forever,” said Steve Campolo, lead investigator in the study. “Voltage surges from lighting, utility switching and other sources all take their toll on the units. That's why Underwriters Laboratories requires that GFCIs be tested monthly.” However, the study suggests that many homeowners either aren't conducting these tests or are ignoring the results.  

Traditional GFCI designs may compound the problem. For example, as indicated in the study, most GFCIs will continue to deliver power even if ground fault protection has been compromised, “It's natural for users to assume that all is well if the GFCI is still delivering power,” Campolo said. New “lockout-action” GFCI receptacles now coming on the market offer greater protection. If the GFCI is tripped, it can't be reset unless it's working properly.  

The study used data collected by home inspectors who met membership requirements of the American Society of Home Inspectors. 

Source: The Leviton Institute, January 2001 

 

Think Spring - Think Golf!

Yes, it's time to clean the clubs, shine those shoes and get ready to hit the links! Even if the weather outside today doesn't make us anxious to play 18 holes, the next Electric League Golf Outing will roll around soon. Mark your calendar for Monday, May 14 to play in the Annual Spring Electric League Golf Outing at Shirkey Golf Club in Richmond, Missouri.  

Over the years, this has proven to be a very popular event with a full slate of golfers participating. This year our day will begin with registration at 9 a.m. followed by a shotgun start at 10 a.m. Lunch will be served on the course. For golfers unfamiliar with Shirkey, this is one of the best kept secrets for outstanding courses in the greater Kansas City area. This year, our tournament will be enhanced by a new clubhouse at the course.  

Start planning your foursome today. Registration materials will be sent next month. This tournament fills up fast - so return your registration as soon as possible. See You at Shirkey!!

 

Federal Legislative News

OSHA Ergonomics Rule is Sweeping
The Occupational Safety & Health Administration's (OSHA) new ergonomics program standard will affect almost every employer already covered by OSHA rules. Exceptions are employers in the construction, maritime, agriculture and railroad industries.  

The purpose of the rule is to reduce musculoskeletal injuries caused by repetitive job duties. Examples of jobs which could cause such injuries are long periods at a computer keyboard or repeated lifting of heavy or awkward objects. The rule goes into effect on Jan. 16, 2001 and employers have until Oct. 15, 2001, to comply.  

What to do by Oct. 15 -
All employers must post information and train employees about the signs, symptoms and risk factors for musculoskeletal disorders (MSDs) by Oct. 15, 2001. Information must be posted in a conspicuous place in the workplace. This can be on an employee bulletin board or, if all employees have access, electronic posting. A summary sheet is available from OSHA. If an employee reports a musculoskeletal injury or symptoms of an injury after Oct. 15, the employer will have further obligations. These include designating someone to set up an ergonomics program, involving employees in implementing the program, evaluating job hazards, implementing corrective measures and training employees how to avoid hazards in the future.  

Court challenges and congressional review -
By mid-December, nine lawsuits were pending in a District of Columbia federal court.  

Several were filed by organizations including the National Association of Manufacturers, the National Coalition on Ergonomics, the U.S. Chamber of Commerce, LPA (Labor Policy Association), the National Beer Wholesalers Association and the Society for Human Resource Management. These suits claim the standard is not based on sound medical science and is too vague, that OSHA produced a flawed economic analysis and committed serious procedural violations.  

Twelve insurance groups, under the aegis of the American Insurance Association, filed suit claiming the rule would conflict with state workers' comp laws and several labor unions filed suits challenging “weaknesses” in the standard. Their main objections: employees must be injured before employers are required to act and the rule allows too much time for compliance.  

Further challenges could come from Congress. The Congressional Review Act of 1996 requires major new rules to be submitted to Congress for review. If both houses of Congress pass a joint resolution to disapprove it, the rule would be overturned unless the President vetoes it. The new Congress and the Bush Administration have 60 days to deal with this issue.

Source: National Retail Hardware Association

Congress Fixes a Tax Law
The year ended with a dramatic victory for small businesses. Eight minutes before the 106th Congress adjourned, the Senate passed the Installment Tax Correction Act. The House had passed it a few hours earlier. It repeals a provision in the Tax Relief Extension Act of 1999 that disallowed the installment method of accounting for accrual basis taxpayers selling their businesses.  

The Senate's action sent the bill to President Clinton. He had 10 days to sign or veto it. With one day left, rumors circulated that Clinton was going to “pocket veto” the bill by ignoring it. The rumors were unfounded. He signed the bill on Dec. 28.  

The 1999 law forced owners who sold their businesses on an installment agreement to pay tax on all capital gains on the sale in the first year rather than over the period of the sale. The new law reverts to previous practice of allowing owners to pay taxes on the gains as payments are received. It is retroactive to the date the 1999 law was enacted.
 

Kansas Legislative News

Tight Budget Puts Squeeze on Business Tax Issues
Education is at the top of most legislators' agendas for the 2001 session. Additional spending for education, and the possibility of a tax increase, overshadow the call for business tax cuts. Governor Graves has said that if he had known the state would experience an economic downturn after five years of tax cuts he might have done things differently.  

Business tax cuts may not be a priority this session, but many legislators will help business when they see the opportunity. What business tax issues are on the table this session and have the possibility of passage?  

House Bill 2055, a research and development tax credit, has been introduced in the House New Economy Committee. The tax credit was not renewed last session and sunset at the beginning of this year. HB 2055, which has bipartisan support in the House and Senate, reinstates the tax credit. The fiscal note on this legislation is small, about $1.5 million per year, which increases its likelihood of passage.  

HB 2091 may also gain momentum this session. It increases the property tax exemption for business machinery, equipment, materials and supplies to $1,000. The current exemption is $250. An increase helps many small business owners. Auditors and appraisers, who find this exemption confusing, also support an increase. If a $1,000 exemption is more than legislators believe the state can afford a compromise may be to increase the exemption to $400 or $500.  

Another bill that has gained attention is SB 38. It provides a vendor allowance, which allows retailers to keep two percent of the sales tax they collect with a $1,000 cap per month. The Kansas Department of Revenue has accelerated the timeline for retailers to remit their sales tax to the state. This is frustrating to retailers, creating a cash flow problem for many. Passage of SB 38 would be a victory for retailers who must now collect and remit sales tax without compensation. The challenge for this bill is its large fiscal note.  

Another business-supported proposal, HB 2140, which increases the income tax credit for property taxes paid for machinery and equipment, also has a large fiscal impact. It increases the income tax credit an additional five percent, bringing the total tax credit to 20 percent. During the 1999 session, the same measure carried a fiscal impact of $10.5 million for FY 2001. Such a fiscal note diminishes its chance of success this session.  

The 2001 legislature faces a tight budget year. Sweeping changes to make Kansas business taxes more competitive with neighboring states, such as a reduction in the corporate income tax rates, are simply not in the cards. However, small-scale changes that will benefit Kansas businesses can be implemented.

Source: The Kansas Chamber of Commerce and Industry, February 2, 2001

 
The People Column

Looks like winter just doesn't want to let go, the snow and ice can't seem to miss us this year, and, amazingly enough, the weather forecasters were correct last week!  

Congratulations to Amanda Brown, daughter of Dave Brown of Kriz-Davis Company in Topeka. Amanda has signed a Letter of Intent to play Volleyball for Allen County Community College.....must run in the family, seems her brother, Dustin, plays soccer for Baker University.  

On a sad note, Frank Raudasaw, Sales Engineer for French-Gerleman, Lenexa, passed away on January 3, 2001, at the age of 60, after a long illness. Frank had both a BSME and BSEE from Carnegie-Mellon University and over thirty years experience as a systems engineer and field salesman for Allen Bradley, Reliance, Wesco, and French-Gerleman. He will be missed by all.  

Tyson Robinett of Central Detroit Diesel-Allison, e-mailed us to let his co-members in the Electric League know that his company is the newest distributor and service station for Kohler Power Generation Systems. Tyson, we'll look forward to seeing you at our bi-monthly meetings so everyone can get to know you!  

February happy birthday to: Jonne Thompson, Controller, Independent Electric Machinery Company. Laura Carpenter of Henderson Engineering e-mailed to let us know that we need to give our own Rich Mercer a round of applause. He is the latest recipient of the Robert H. Mabes Award which is awarded annually to a local professional in the greater KC area lighting industry in recognition of contributions made in the areas of design, education and application.  

Belated Happy Valentine's Day to all of you and, Mardi Gras will soon be here, enjoy!   

Keep those faxes and e-mails coming in...this is your column, we just report what you contribute...

Fax: 913-383-3003
E-mail: jefer@micro.com

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