the business e nvironment

The Business Environment

Going To The Next Level

Regional Operations Mission:Create New Markets, Protect

Existing Markets, Improve the Business Environment.

We Don’t Watch Things Happen

We Make Things Happen!

Path Towards SuccessOur Plate is Full – We Must Motivate Members to Get Involved.Key is Chapter Development promoting Committee Activity – THE key to Chapter Development is promoting member involvement.Many problems faced by our members fall under the business environment category.Create a Crisis!

Number One Business Issue?Frivolous Litigation.Difficult to get members to share information that they are being sued.Companies have gone out of business because of frivolous litigation – the Panama City Florida freeze issue.

Success StoriesMeeting the Needs of

Our Membership

Anything is PossibleStatute of Repose – a timeline that curbs latent defect litigation – some states have 5 years after C of O as the ending date of liability.Warranty Timelines.Workers’ Compensation Reform.Prompt PayConstruction defects control. Limiting liability for mold.

Anything is PossibleOCIPs limits – closing gaps and providing tails. Retainage reforms.Pay if Paid prohibitions.Litigation controls – horizontal immunity. Limits on transferring responsibilities. Prohibit waiver of Mechanic’s Lien rights.

Industry Specific Legislative IssuesWhat do the members want?Liability Avoidance.ITM Indemnification.Engineer Responsibility Issues.Contractor Licensing.Residential Sprinkler Laws.Scope of Practice Clarity.Reduced Fees.

Liability AvoidanceLinked to Scope of Practice laws.Construction Defect Laws.Freye vs. Daubert DoctrineCertificate of Merit.Liability Limits.OCIP Restrictions.WC Vertical and Horizontal Indemnification.

Owner’s LiabilityThe Owner of a property is responsible to provide a safe environment for occupants notwithstanding codes or mandates or lack there of imposed by the AHJ. MGM Grand litigation first, or at least the first big claim, to hold owner liable for not providing a safe environment even though the hotel met Clark County requirements.The National Model Codes and Standards have been used as the basis for a “reasonable level of fire safety.”

ITM LiabilityHuge insurance concern – large source of insurance claims. NICET level licensure.Proper training and education.Liability limits by contract.Statute of Repose

Role of EngineerEngineer does Design Concepts; contractor prepares layout documents. Contractor may be responsible for both in Design/Build projects.If engineer specifies pipe and sprinkler location, they are responsible for correctness – no risk transfer.Engineer plans review contractual option with owner.

Contractor LicensingWe support contractor licensing.We want indemnification, tort avoidance, risk transfer prohibitions and other business environment language added to licensing laws.We have sample contractor licensing law.

Residential Market Promotion

The IRC Initiative

Scope of PracticeOther Trades want our work.Scope must focus on liability avoidance.Scope consistent with nationally accepted Standards of Practice.Different classifications of contracting.Statewide application – local business license prohibitions.

Reduce FeesGovernment impact and permit fees.Eliminate duplicative fees.Manage use of fees.Water Utility Fees.Duplicative Taxes – Fab Tax.Government project tax relief.

Two Substantive Focuses 1. Industry specific legislation dealing

with market development, market protection, and industry specific business environment threats.

2. Construction Coalition to collectively address common business environment issues impacting all those in the construction trades like tort reform and workers’ compensation.

THE TWO AVENUES

1. Legislative Action using Lobbyist – Lobbyist paid by Chapter or Supplier.2. Create a Coalition of Construction Trades

Industry Lobbyist

Prioritize List – A MustPriorities Come From Your

Regional Membership

Tells Us What You WantGet members to identify AND prioritize issues. Need assistance in highlighting potential resolutions – contact the RO Team. Set up a Committee to push the issue.Develop a plan of action.

Paid LobbyistNFSA has very limited resources.Most lobbyists are paid through Chapter fund-raising – golf outings, member contributions.If you lobby make sure you follow lobby registration requirements. If you lobby or manage a lobbyist follow Buddy’s Lobbying 101.

Consider Construction Coalition

If the business environment issues are also experienced by other construction trades, a coalition effort is the best path towards success.

The Construction Coalition

We are little fish in the big sea – we need to

form coalitions

Florida Construction Coalition Political “Power” comes from the number of votes and $$$$.Created in 2001Currently 59 associations and a total of 78 lobbyists.Buddy was co-founder and 2003-2005 Chairman.2003 WC success.

Establishing a CoalitionAll contracting trades have insurance woes.All contracting trades have Workers’ Compensation issues.Working together to solve common problems is sellable – must have an understanding that there may be issues between the trades that will conflict – issues all agree are approved by the coalition.

Florida’s Construction Coalition

Holds weekly, sometimes daily, meetings during Legislative session. Key Legislators speak at meetings. Annual retreat attended by Speaker of House and Senate President and other key Legislators. 2nd most powerful Tallahassee Lobby.

Florida’s Construction CoalitionMost Active Members

Alarm Association of FloridaAmerican Fire Sprinkler Association

American Specialty Contractors of FloridaAmerican Subcontractors Association of Florida

Asphalt Contractors Association of FloridaAssociated Builders and Contractors

Fenestration Manufacturers AssociationFlorida Air Conditioning Contractors Association

Florida Association of Electrical Contractors


Florida Associated General Contractors CouncilFlorida Association of Plumbing, Heating &

Cooling ContractorsFlorida Building Material Association

Florida Concrete & Products AssociationFlorida Fire Equipment Dealers Association

Florida Fire Sprinkler Association, NFSA ChapterFlorida Home Builders Association

Florida Pool & Spa Association/ NSPI Region VII


Florida Onsite Wastewater AssociationFlorida Refrigeration & Air Conditioning

Contractors AssociationFlorida Rental Association

Florida Roof Deck AssociationFlorida Roofing, Sheet Metal & Air

Conditioning Contractors Assn.Florida Solar Energy Industries Association

Florida Surety Association


Florida Transportation Builders' AssociationFlorida Wall and Ceiling Contractors Association

Florida Water Quality AssociationIndependent Electrical Contractors of Florida

Southeast Glass AssociationUnderground Utility Contractors of Florida

The Coalition PremiseNot all lobbyists have easy access to all Legislators. Working as a coalition team, the coalition has easy access to all committee members.72 lobbyists representing the construction trades sat in the committee hearings to cap WC attorney’s fees in 2003.

Let’s Make it HappenBusiness environment issue are impacting our members.Let’s get them to identify issue then we can establish a action plan to get resolve.Need me as a Chapter speaker give me notice.

Buddy’s Lobbying 101

When passing laws, it is not what is right or wrong, it is what is

doable.

Realization by Buddy Dewar Clyde’s Bar, after bad day of lobbying, 1982

PoliticsPoli..From the word poly meaning many.

..ticsBlood sucking creatures.

Always Be Professional

Watch For the Kramer Factor

InfluenceInfluencing legislators is a function of “power.”Most Legislators respect power.Power is built or taken, not a given.Building power comes from effective development of the advocacy.Think of the number of votes your

advocacy represents as your power base.

Preplanning CriticalFor Success

Over 70% of the work needed to pass legislation is taken prior to meeting with a bill sponsor.Showing your hand before all agree on the specific language can be very costly. Opposition exploits your confusion – exploit your opposition’s confusion.

Before walking the Legislative hallways…..

Assess your assets.What are your strengths?What are your weaknesses?SWOT-CHow stable is your support?What is the geographic distribution

of your support.

Pinellas

Miami Beach

Palm Beach

Volusia

Broward

Destin

Naples

High-Rise Retrofit Hot Zones


Assess your assets continued. What is your status within the

organization?Does the leadership of the organization

solidly support the issue?How effective are your leaders?How effective are your communications

efforts – e-mail, Twitter.


What are your resources?Do you have sufficient financial

resources to take up the fight?Who are your allies? What is an

assessment of their “power?”What are your staff resources?What “insider information” do you

possess?


The Political Climate. What is the mood of the session?What are the pressing issues being

addressed by the Legislature?Crime, taxes, schools, welfare, etc.

Scope of your issue – does it impact a large constituency?


Establish profiling.Seek voting record.Family history.Hobbies and Interests.Organizations.

Political Career.Religious Interests.Media interviews.Friends.Personal Objective

Know your legislators.


Know the Legislative Institutional Elements.Executive Branch Influence.Leadership of the Body.Partisanship.Legislative Procedures.

Committee structure.Hearings procedures.Floor procedures.


Know Thy Enemy. Understand the root of their opposition.

How “sellable” is their stand?Evaluate their “power.”Look for weaknesses. Identify their allies.Evaluate their past legislative

successes. Identify their legislative fears.


Draft Legislation.Ensure your needs are addressed.Ask for more than you want but don’t

ask for the moon. Identify issues you are willing to give up

and those issues you must win.Share draft within for a review to ensure

completeness.


Outline Legislative process.All committees of reference.Identify members of the committee.Map member locations.Identify key staffers.Evaluate capabilities.

Knowing the LegislatureIdentify management philosophy of Legislative leadership.If all bills addressed and passed must be approved by top leadership, seek someone who has access to the Speaker and/or President.If leadership strongly opposes your bill, go home.

Partisan PoliticsThe leadership of the party controls the issues addressed and the issues passed by the body.Those voting against party lines often assigned less responsibility.Identify potential bill sponsors by recognizing partisan standing.

Analyze AssessmentsMuch less Power than opposition –seek partners or coalitions to build your power base.Be cautious in forming coalition as the partner’s agenda may overwhelm your interests. Set rules for the operation of the coalition.

Analyze AssessmentsNo money?Strengthening fire safety laws is considered by the fire services as a life safety and property preservation measure. To everyone else it is an economic issue. Seek support from those who benefit.

The 5-Step Process

What to do after the assessment.

Introducing LegislationInformal talks with opposition to determine if there could be common ground. Do not share draft legislation at this time.You will be asked by sponsor if you met with opposition in an attempt to resolve conflict.

Step 1

Introducing LegislationIdentify committees of reference.Meet with committee staff director.Tell staff director: Of intent of seeking a bill sponsor for

legislation. That you met with opposition and briefly

explain differences. Why this legislation is important and how the

public will benefit.

Step 2

Introducing Legislation

Meeting with Staff Director:Ask to meet with the Committee Chair.Ask if the issue could be considered a

Committee Bill?Ask who on the staff would be assigned

the legislation?Ask who would be a good member of

the committee to sponsor the bill?

Step 2

Introducing Legislation

Meeting with Staff Director is critical. Watch body language, facial expressions, and look for any indication as to the Staff Director’s interest or lack thereof for the legislation. Legislators address hundreds of bills each session and rely on staff for guidance.

Step 2

Finding SponsorsSeek a bill sponsor who is a member of the committee that will hear the bill.Ask Committee Staff Director or Staffer assigned the bill if they wish to attend meeting with potential bill sponsor.Use local constituent to open door to bill sponsor. Offer who supports and who opposes legislation. Do not conceal opposition.

Step 3

Finding SponsorsMay need bills introduced in both Houses because of time constraints. Attempt to keep the language of the bills in both Houses identical.Any needed amendments should be placed on bill in friendliest House first, argue conforming amendment in other House.

Step 3

Working the BillAlways keep bill sponsor informed.Meet with all committee members seeking support.Tally votes before committee meeting.If votes not in your favor, delay discussion until you have the votes.Do not overkill during public testimony, you should already know how they will vote.

Step 4

Working the BillCirculate accurate but brief information. One page bullet points appropriate. Aggressively correct misrepresentations. Any misrepresentation left unchallenged will be assumed as true.Remain consistent in your actions and your response.

Step 4

Working the BillLegislators pay attention to local newspapers.Letters to Editor grass roots campaign.Visit Editorial Boards.Send copy of news article to legislator.

Step 4

Working the BillMeet regularly with staffer.Assist staffer in understanding legislation and in the drafting of the staff analysis. I provide staffer with draft Staff Analysis on thumb drive to help facilitate their efforts.

Step 4

When the bill passesVisit Committee Staffer to thank for support.Visit with state agency empowered to implement act and offer assistance. Don’t rub success in the face of opposition.

Step 5

Important Lobbying Axioms…“Never circumvent staff. Always keep staff informed.”“Never ever misrepresent facts.” “If you do, go home.”“Always be civil, regardless of how aggravating your opponents may be and how much you would like to choke them.” “Those who lose their cool lose.”

Important Lobbying Axioms…“More is not necessarily better.” “Maintain support by keeping information flow consistent but brief.” “Always correct misrepresentations or they will be thought of as true.”“Keep all players informed and up to date.”

Important Lobbying Axioms…“Changes can happen at the last moment…don’t read about them in the morning paper… always stay alert.”“Be alert for an acceptable compromise position.” “Legislation that is agreed upon by opponents stands a great chance of passing.”

Know your issues…Know your Legislature…Know your role…

You can make a difference.Preplanning can avoid many pitfalls.Preplanning is the key to success.Integrity and honesty must be paramount.Nothing replaces hard work.

Questions?

the business e nvironment

Documents

liability limits

business environment

business environment

business issue

licensing laws

liability avoidancelinked

safe environment

scope of practice laws