Riso Report: August 23, 2018

The Riso Report
PHCC National’s Continued Push to Structure an Association Health Plan
Expanded Association Health Plans (AHP) is the result of a June 2018 U.S. Department of Labor rulemaking.  PHCC National received more than 230 contractor-member responses to a recent survey which assessed interest in a PHCC AHP - and also gathered information about demographics of members.  Thank you to all who responded! The PHCC survey noted great interest (95%) in a potential AHP.  Insurance carriers, however, are reluctant to offer plans as they monitor a lawsuit that includes 12 states.  PHCC’s Executive Committee and Government Relations Committee are strategizing on ways to expedite the process...the bottom line, establishing a PHCC AHP could be a great benefit to members - and potential members (by driving down the cost of quality health insurance).  PHCC National also recently met on Capitol Hill with the Senate Health, Education Labor & Pensions Committee, as well as professionals from the U.S.  Department of Labor, to better understand how to structure the plan and hence,  provide optimum benefit to current and potential PHCC members.  Though the lawsuit may have a delaying impact on the AHP, PHCC continues to push forward and will send a letter to President Trump as well as other regulatory agency leaders asking them to do what they can to move this forward. More to come.  

EPA Releases Affordable Clean Energy Rule

By Chuck White, Vice President of Regulatory Affairs
On August 21st, The U.S. Environmental Protection Agency (EPA) released a proposed rulemaking, the Affordable Clean Energy (ACE) Rule. The rulemaking replaces the previous administration’s rule which was viewed as being overly prescriptive. EPA Acting Administrator Andrew Wheeler is quoted as saying, “The ACE Rule would restore the rule of law and empower states to reduce greenhouse gas emissions and provide modern, reliable, and affordable energy for all Americans. [The] proposal provides the states and regulated community the certainty they need to continue environmental progress while fulfilling President Trump’s goal of energy dominance.” The proposed rule returns much of the control back to the states to allow them to implement strategies that meet their individual needs. A Press Release was issued to explain the general principles of the rule; a 60-day comment period will allow the public to weigh in on the issue.  The 236-page proposal may be viewed here.
IRS Issues Pass-Through Entity Guidance
By Chuck White, Vice President of Regulatory Affairs
The Internal Revenue Service (IRS) issued guidance for pass-through entities such as Sub-Chapter S corporations, sole proprietors, partnerships, and other forms of ownership except for C Corporations. Changes in the tax law are now allowing a 20% deduction of Qualified Business Income (QBI) for owners of these businesses. As with most tax regulations, there are many details to be considered. A list of Frequently Asked Questions has been prepared for taxpayers to read. Additionally, the 184-page guidance document can be read here. If you believe your business would benefit from this rule, PHCC strongly recommends you seek early consultation with your professional tax advisor for more information regarding your personal tax situation. 
Submit Your State Association Applications for a Legislative Award!
                      PHCC Washington - 2017                                          PHCC Pennsylvania - 2017
PHCC National will present two legislative awards at CONNECT 2018 in Albuquerque, New Mexico.
The awards will be announced during the PHCC-PAC event on Wednesday, Oct. 10, 2018.

1. PHCC Legislative Award – demonstrate a legislative goal at the chapter/state level and how that goal was accomplished (even if the project is still in progress)
2. PHCC Grassroots Legislative Award – demonstrate a grassroots legislative goal at the chapter/state level and how that goal was accomplish (even if that project is still in progress)

The purpose of these awards is to recognize outstanding chapter/state and grassroots legislative activity that demonstrates commitment and follow-through in the legislative process.  Please submit a written summary (three or more paragraphs) describing both the purpose of the activity and the outcome (including any supporting materials). You may apply for both awards - please note which award you are applying for on your submission. We encourage innovative and creative new ideas and activities. The deadline to submit your nomination(s) is COB Friday, Sept. 7, 2018. Your submission must be sent directly to Mark Riso. Winners will be notified by Wednesday, Sept. 14, 2018. Thank you in advance for your submissions. If you have any questions or concerns please contact Mark Riso (Direct: 703.752.9871 Email: [email protected])
Guns in the Workplace
By Chuck White, Vice President of Regulatory Affairs
The PHCC Insurance, Safety, & Risk Management committee recently had its annual meeting hosted by corporate partner Federated Insurance in Owatonna, Minnesota. The topic of guns in the workplace was discussed at this meeting. There were no pro or con positions taken, just an examination of what rules might apply. All 50 states have legal means to carry handguns; seven of these states are “free states” with no permit requirements. Permit requirements in the other states have varying degrees of training and “demonstration of competency” requirements. According to Federated Attorney Ted Leone, employers are allowed to control guns on their premises; a written policy is a must. Visitors or clients to a business must be informed of no gun policies by posted signs but these policies again vary by state. A website was recommended for state-by-state information which may help clarify the rules.
Driving Biggest Risk for Contractors
By Chuck White, Vice President of Regulatory Affairs
Driving risks were a large topic of discussion at the recent Insurance, Safety, & Risk Management meeting at Federated Insurance in Owatonna, Minnesota. It was reported that driving represents 60% of losses for contractors. Fatalities are up 5 to 6% in 2018 over 2017 and may exceed 40,000 deaths. Incidents in all age categories are up but highest increase is in age 45 to 54 bracket.
Driver’s records are important in that auto claims are the number 1 source of claims. Statistics show:
            66% of drivers have no violations (3-year window)
            20% have one violation             1.8 times more likely to have an accident
            8% have 2 violations                 2.36 times more likely to have an accident
            4% have 3 violations                 3.0 times more likely to have an accident
            2% have 4 violations                 3.5 times more likely to have an accident
            1% have 5 violations                 4 times more likely to have an accident
                           6 violations                4.5 times more likely to have an accident
                           7 violations             5 times more likely to have an accident
It is recommend this year that contractors consider some form of electronic video monitoring resources which offer outward and inward monitoring. Inward monitoring allows employers to see what’s going on in the cab and identify opportunities for training and follow-up with employees. There is a huge need to keep hammering the message of distracted driving and instituting safe driver policies.

PHCC Victory on Reauthorization of the Carl D. Perkins Act

PHCC members should be proud to have worked so hard in the past few years to push Congress to reauthorize the Carl D. Perkins Act (career and technical education).  It is a five-year $1.2B reauthorization (2019-2014) with modest increases.  PHCC will offer a revised webinar to help educate members on how the Perkins Act works -- in the meantime, please take time to review a Perkins webinar PHCC offered last year. Watch here. 

Start Planning and Budgeting for your State Day at the Capitol Now
Most state legislatures are in session the first half of each calendar year.  PHCC State Associations held a State Day at the Capitol in most states.  PHCC National will be reaching out to your state within the next week to help assist you put your program together for next year - as well as receive testimonials regarding State Days at the Capitol from 2018.
Congressional August Recess
Congress is currently in its annual August recess.  meaning that Members of Congress are working from their respective states until after Labor Day.  This is a great time to set up a meeting with your Member(s) of Congress in their district/state office and build a relationship.  If you need assistance setting up a meeting - simply contact PHCC National (Mark Riso - 703.752.9871 - [email protected]) for help.
CONNECT-2018-Session Proposal Open
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