CECO REPORT - May, 2003

CECO REPORT

May, 2003

IN THIS ISSUE

** A/E/LS Services NOT On Repeal List for Professional Services
-- At Least Not for Now
** Official Notice of CECO Annual Meeting
** Nominating Committee Report
** CECO Convention with Missouri/Arkansas set for June 5-7 in Branson
** Governor Henry Makes Appointments to State Boards and Commissions
** State Board Changes Certificate of Authorization Renewal Dates
** ACEC's Newest Survey Results.

A/E/LS SERVICES NOT ON REPEAL LIST FOR PROFESSIONAL SERVICES
-- At Least Not for Now

The Oklahoma Legislature is in the final stretch run heading for a May 23rd adjournment. While the Constitution requires adjournment on the last Friday of May, the House and Senate Leadership have announced that they will adjourn one week prior.

With that, "silly season" is upon us. The General Conference Committee on Appropriations (GCCA) is working out the final budget dollars, while other conference committees are trying to solve differences between House and Senate versions of bills.

This is the most dangerous time of the legislative session, as much of this work is being done behind closed doors, with little or no public oversight or input. This is where the infamous "wooly-boogers" suddenly appear in bills, which many times are not discovered until the bill has already passed.

CECO is keeping a close eye on the activities at the Capitol, and will do our best to protect your interests as the session draws to a conclusion.

Here's an update to the two most important issues CECO is currently working:

SALES TAX ON PROFESSIONAL SERVICES As reported in our "Legislative Alert" in late April, Engineering and Architectural Services were on a "short list" of sales tax exemptions which were being considered for repeal.

A special legislative committee, working with input from the Oklahoma Education Association, Oklahoma Public Employees Association, Oklahoma Municipal League and select others, was trying to come up with a list of exempt services which would generate some $350 million of new revenue if the sales tax exemptions were removed.

This had been a "secret" list, but sources told CECO that A/E/LS services were included.

Well, the list is now public! As reported in the May 7, 2003 editions of the Daily Oklahoman and Tulsa World, the "targets" have been identified, and A/E/LS services are NOT on the list, at least for right now.

HB 1357 will be the vehicle for the repeal of the sales tax exemptions, which according to the articles include:

Attorneys; Notaries; Title & Abstract services; Accounting, Tax Preparation; Payroll Services; Employment placement, temporary help and employees leasing services; Telephone Call Centers, Answering Services and Telemarketing bureaus; Automotive repair, maintenance, body work, painting and glass replacement; Personal and Household goods, repair, and maintenance including home and garden equipment, appliance repair, furniture repair and shoe and leather goods repair; Personal and Laundry Services including weight-loss centers, dry cleaning and laundry services, pet care services, photo finishing, parking lots and garages; Solid Waste Collection; Amusement and Recreation industries; Couriers; Cable Television and other distribution services; Data Processing; and, Recreational Vehicle Parks, Camps and Campgrounds.

The trade off for removing these exemptions is the removal of the state sales tax on groceries. However, that repeal would not go into effect until at least 2005, while the exemption removal would take place immediately, barring legal challenge.

As you can see, the groups being targeted come from a variety of different service areas, and according to the bills author, Rep. Jim Wilson, D-Tahlequah, the bill's goal is to shift some of the existing tax burden away from the state's poorest residents.

Just because A/E/LS services are not on the list doesn't mean that we can let up on our efforts to oppose such a tax on our services. While this is the list that is going forward at this time, THE LIST CAN BE CHANGED ANYTIME PRIOR TO FINAL PASSAGE.

For example, Attorneys and Accountants are currently on the list. Be assured that there is a major lobbying effort going on right now by attorney and accountants to be removed from the list. If they are removed, A/E/LS services could be used to replace them.

Also, if the Legislature is allowed to "cherry pick" select services this year, then you can fully expect more "cherry picking" to happen again next year and in following years. Rather than tackling the entire list of 250+ exemptions all at once, they will pick them off one-by-one.

This is simply a case of letting the "camel get his nose under the tent." Before your know it, the whole camel will be inside.

As a good friend of mine likes to say, "FEAR THE CAMEL!"

Keep your letters and phone calls going to your Representatives and Senators. We have won half the battle, but the war won't end until May 23rd!!!!!

MOTOR FUEL TAX INCREASE HB 1385 has passed both houses and is now in a Conference Committee. However, the bill has stalled and passage is at-best questionable.

There are many differences to be worked out, with the latest being that the County Commissioners Association wants a full one-penny increase solely for counties. Anything less, and the counties will oppose the bill.

Currently the sponsors of the bill and the Coalition which has been working on this all session is trying to work out a funding package that both the Legislature will accept and which can be "sold" to the public in 2004. This is not an easy task and may spell the end of the bill this session.

CECO is working closely with all concerned, and we are hopeful that an agreement can be reached. But, at this point, things do not look good.

That's our report! Keep the pressure on your Representative and Senator regarding the Sales Tax on Professional Services, and we'll keep you updated on any developments.

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OFFICIAL NOTICE OF CECO ANNUAL MEETING

As required by the CECO By-Laws, this shall serve as official notice of the Annual Meeting of the Council, scheduled for 9:00am, Friday, June 6, 2003. The meeting will be held at the Chateau on the Lake, Branson, MO.

The 2003-2004 CECO Annual Budget will be presented for consideration and approval, annual reports will be presented, and election of officers for the 2003-2004 year will be conducted.

All members are urged to attend.

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NOMINATING COMMITTEE REPORT

The CECO Nominating Committee presented its report at the April CECO Meeting. The slate of officers for the 2003-04 year are:

Chairman-Elect: Don Vick, JGVE, Inc, Oklahoma City

Vice Chairman Membership: Jerry Farrar, EarthTech, Tulsa

Treasurer: Jim Stewart, PSA Consulting Engineers, Oklahoma City

Vice Chairman - Business Practice: Jim Fisher, TranSystems Corporation Consultants, Tulsa

Vice Chairman - Education/P.R.: Steve Ford, Zahl-Ford, Inc., Oklahoma City

ACEC National Director (3-year Term): Mike Arand, Dewberry Design Group, Tulsa

Mike Homan, Terracon, Tulsa, will automatically assume the position of Chairman of the Board, and Chuck Darr will continue on the Board as Immediate Past President.

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CECO CONVENTION WITH MISSOURI/ARKANSAS SET FOR JUNE 5-7 IN BRANSON

We are making final preparations for the CEC Midwest Meeting at the Chateau on the Lake, Branson, MO, June 5-7, 2003.

Hotel rooms are going fast, and we would suggest that you make your hotel reservations immediately by calling 1-888-333-5253. Be sure to mention the "CEC Midwest Meeting" to get the special rate of $134.00 per night. Hotel reservations must be made by May 16th!!!! After that date, rooms will be available on a "space available only" basis.

We have an exciting weekend planned and here is a preview of what we are doing:

Thursday, June 5
3:30 p.m. Registration
6:00 p.m. Opening Reception
Sponsored by Lockton Companies

Friday, June 6
7:30 a.m. Breakfast/Program by Lockton Companies
9:00 a.m. CEC Board Meetings

(Lunch on Own)

1:00 p.m. "It Hurts When I Do That" Seminar
5:30 p.m. TALL TIMBER LUMBERJACK SHOW
Sponsored by ACEC Business Insurance Center & ACEC Retirement Trust/Prudential
Retirement Services

Saturday, June 7
7:30 a.m. Continential Breakfast/Program I-40/Arkansas River Bridge Reconstruction
8:30 a.m. "Taking the Firm to the Next Level" Seminar
Noon Golf Tournament
6:30 p.m. Reception
Hosted by ACEC Life/Health Insurance Trust
7:30 p.m. Multi-State Installation Banquet

Promising something for just about everyone, this event will be the opportunity for you to get away from your business and network with your peers from ACEC/Arkansas and ACEC/Missouri.

You will be able to pick up at least 8 PDH's, learn some new business practice techniques and relax with your family on a spring weekend in Branson.

We are going to dress Business Casual - so leave your high heels, suits, and ties in your suitcases until the Annual Installation of Officers Banquet.

Registration information has been sent to all members and is also available on our website, http://www.cecok.org.

See you in Branson!!

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GOVERNOR HENRY MAKE APPOINTMENT TO STATE BOARDS & COMMISSIONS

Governor Brad Henry announced the following appointments to the State Board of Registration for Professional Engineers and Land Surveyors and the Oklahoma Transportation Commission.

Theodore A. Sack, Sand Springs, has been reappointed to the State Board for a term expiring June 28, 2009. Ted was originally appointed by Governor Keating, and is the current Chairman of the State Board. CECO encouraged Governor Henry to reappoint Ted, and is pleased that the Governor followed our request. We look forward to working with Ted over the next six years.

Additionally, Governor Henry has named six new members to the Oklahoma Transportation Commission, while retaining two. They are:

Jackie Ray Cooper, Oklahoma City, for a term expiring Feb. 15, 2011. He replaces Tom Love, who resigned.

Danny Blaine Overland, Shawnee, for a term expiring Feb.15, 2011. He replaces Jimmie Austin, who resigned.

Jack Vernon Begley, Goodwell, for a term expiring Feb. 15, 2009. He replaces Ed Sutter.

James H. Dunegan, Calera, for a term expiring Feb. 15, 2007. He replaces David Burrage.

Larry Raymond Wade, Elk City, for a term expiring Feb. 15, 2005. He replaces Bill Crawford.

Bradley Warren Burgess, Lawton, for a term expiring Feb. 15, 2005. He replaces Gib Gibson.

Guy Berry, Sapulpa, was retained for a term expiring Feb. 15, 2009.

Carlisle Mayberry, Okmulgee, was retained for a term expiring Feb. 15, 2007.

The new Transportation Commission was sworn in on May 5th, and Dan Overland was elected the new Chairman of the Commission.

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STATE BOARD CHANGES CERTIFICATE OF AUTHORIZATION RENEWAL DATES

Recently, all firms holding a Certificate of Authorization from the State Board of Registration received their renewal notices.

However, some received a renewal notice for a one-year renewal while other received a two-year renewal notice.

Why, you ask?

Well, State Board has over 2,500 companies holding CA's, and all of them "come due" on the same renewal cycle. In an effort to make for a smoother renewal cycle, the State Board is dividing the renewals so that half will come due one year, with the balance renewing in the following year.

So, if your firm is in the "A thru G" grouping, this year you received a notice for a one year renewal. You will renew this year and again next year, after which you will renew on the normal two year cycle. Firms "H thru Z" will stay on the normal two year cycle.

Also, renewal rates have been reduced to $100 for the two year cycle. Of course, if your are in the "A thru G", your renewal this year is only $50, since you are renewing for only one year. Next year, "A thru G" firms will renew for a two year cycle.

Hope that clears up any confusion. If you have any questions, call the State Board of Registration at (405) 521-2874.

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ACEC'S NEWEST SURVEY RESULTS

The ACEC 2003 Business Trends Survey is now available for purchase, and can be used to assess your firm's business activities, and/or revise your firm's strategic plan.

Key findings include net revenue per employee, multiplier rates, overhead rates, gross revenue per project type, profit margin as a percentage of net revenue. This survey was sent to key principals at ACEC member firms in 2002. To order, call ACEC at (202) 347-7474 or go to http://store.acec.org/shoppingcart/main.asp, Keyword "business trends".

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