1. Managing Business in an Increasingly Regulated Environment Karen Wanamaker, V.P. Industry and Government Affairs NWPCA

3. Priority Issues Health Care Costs Estate (Death) Taxes US Postal Service Debarking vs. Bark-Free Wood Quarantine Immigration Reform/Access to Labor

4. Health Care: Affordability and Access Americans happy with quality Concerns over affordability and access Costs doubled between 1993 and 2004 18% of non-elderly people lack health insurance

5. Small Business Health Plans Purchase through trade associations. Same benefits as Fortune 500 and Unions –economies of scale –lower premiums –administrative efficiencies –superior medical coverage

6. Estate Tax Exemption/Tax Rates 1998$625,00055% 1999650,00055% 2000675,00055% 2001675,00055% 20021,000,00050% 20031,000,00049% 20041,500,00048% 20051,500,00047% 20062,000,00046% 20072,000,00045% 20082,000,00045% 20093,500,00035% 2010Estate Tax Repealed0 2011$1,000,00055%

7. Compromise Legislation New majority does not support permanent repeal 109 th Congress – Compromise Support –Democrats expressed support for using 2009 rates under current law – tax estates over $3.5 million at 45% –Republicans supported exempting estates under $10 million in assets and taxing those over that threshold at 15%.

8. U.S. Postal Pallets TOTAL PALLETS PRICE PER PALLET TOTAL COST 2004 2,244,672$11.36$25,506,006 2005 670,00014.2310,000,000 2006 (Jan-Mar) 299,70022.756,818,175

9. USPS Strategies Media Congressional Committee with Oversight

10. ISPM 15 Bark-Free vs. Debarked Penn State Study Congressional Resolution Department of Commerce U.S. Trade Rep. Definition –Clear –Practical –Train Port Inspectors

11. USDA Ash Wood Quarantine Dec 2006: Illinois, Indiana, Ohio joined lower Michigan Maryland (State Quarantine – Federal Pending) Other States Involved Not yet a Paperless System NWPCA –Member Alert –Customer Alert –Magazine Article Alternative Materials Using Issue

12. Comprehensive Immigration Reform Border security State financial assistance for criminal aliens A new H-5A essential worker visa program Employer verification mandates and penalties for hiring undocumented workers A partnership with Mexico to promote economic opportunities, improved health care access, and encourage re-integration of citizens to their home country Family unity Path to citizenship for H-5 visa holders and their families Federal reimbursement for hospitals providing emergency care to undocumented immigrants.

13. Comprehensive Reform Many Targets Separate Bill Passed Those Here Stay – From Now On KEEP OUT! Employers as Immigration Police –Intense Enforcement –Reap Benefits/Pay Costs

14. Legal Worker Access Existing H2B Visa – Unskilled Workers Cap of 66,000 (1990) Industry Marketing & Government Affairs Committee Market-based approach to setting cap NWPCA – Lobbying Staff & Members

15. NWPCA Coalitions & Alliances Small Business Health Plans –U.S. Chamber of Commerce –National Federation of Independent Businesses –National Association of Manufacturers –National Association of Realtors Permanent Death Tax Repeal – See SBHP U.S. Postal Pallets: NWPCA ISPM 15 –NWPCA Wood Coalition –American Lumber Standards Committee –Hardwood Federation U.S. Wood Quarantine: NWPCA Worker Access –Essential Worker Immigration Coalition –U.S. Chamber of Commerce –NWPCA

16. What Does it Mean to Members? Quarantine –Member alert: step-by-step compliance guide –End user alert: member to customer handout –USDA discussions US postal service –E-mail confirmation system to USPS and NWPCA –PDS for comparable wood pallets –Ongoing negotiations Worker access –Member alert about industry raid –PalletCentral article –Audio PalletCentral interview with I-9 attorney –Seminar in Richmond with I-9 attorney –Seminar in Atlanta at R&R with ICE agents and I-9 attorney –Chief of the Employment Verification System –Seminar with former INS general counsel and former DHS attorney

17. NWPCA Participation Annual Leadership Conference February 17-20, 2007 Orlando, Florida (Committees Feb 16; Board Feb 17) Federal Legislative Day April 17-18, 2007 Washington, D.C.