Legislation and Regulation – A Review & Look Ahead Karen Wanamaker NWPCA V.P. Industry & Government Affairs

Laws, Regulations, Debt  40,000 State Laws  Federal Laws  Regulations: 80, 933 pages; $1.7 trillion  $ trillion  2011: First credit downgrade in history  Personal Income: -3.2% & -6.7%

Last Year: State Legislation  Moisture content below 20 percent;  Cleansed and sanitized  Maintained in a safe and hygienic manner  No protruding nails, screws, or broken or damaged parts  Penalties include a fine of $10,000 for a first offense and $20,000 for any subsequent offense.

I-9 Audits & No-Match  Feb: 1000 Notices of Inspection (NOIs)  April: Social Security No-Match Letters  June: E-Verify for Federal Contractors  Nov: 500 NOIs

APHIS: Put Up or Shut Up  Risk Assessment -- Insufficient Evidence  Competitive Inequalities  Reactive Approach is Failing  September: Federal Legislative Conference  Meeting February top PPQ official

Food Modernization Act  212 Recalls since July  3 Administrative Detentions  Product tracing requirement  Pallets: No direct contact with food  FDA meeting – Best Handling Practices

Patient Protection & Affordable Care  Minimum level of government-defined coverage  Prohibits new group health plans establishing eligibility rules in favor of higher wage employees

Survey says…  30 percent will “definitely or probably” stop  percent will “definitely” pursue alternatives in 2014

Western States  California Health Benefit Exchange  Oregon Health Exchange  Utah Health Exchange  Washington State Health Insurance Exchange  Arizona, Idaho, Montana, Wyoming: Various stages of research  Texas: Several bills introduced, none passed, Gov. says will veto if they do pass

What’s Ahead on Health Care?  Supreme Court  Repeal & Replace  CLASS Act Abandoned

Hours of Service  July 1, 2013  Egregious Violations - A driver who exceeds, the driving time limit by 3 hours or more will be considered to have committed an egregious violation and be subject to the maximum civil penalties of $2,700 for driver and $11,000 for employer for each offense.

More 2012  Federal Ban on Hand-Held Phones for Commercial Drivers–January 3 –1st violation: a fine ($2,750 driver; $11,000 employer) –2nd violation within 3 years: driver license disqualified for 60 days plus fines –3rd violation within 3 years: disqualified for 120 days plus fines  NLRB Employer Posting Requirement–January 31  Union Voting Changes – April 30

Predictions Manufacturing: 72% of manufacturers surveyed expect sales to increase. Auto: 0.4% gains Roofing: 5.7% gains Grocery: Increased prices will spur growth Pharmaceuticals: Expiring patents challenge industry Overall Market Growth Glacial trend in the right direction