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S o u t h C a r o l i n a’ s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

What’s Ahead in 2011?

Who knows . . .

your association, its leadership and staff are working to keep its members “in the know” and ahead of changes. Are you “in the know?” Stay in touch and aware -- use your membership.


S o u t h C a r o l i n a’s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

Inside This Issue

SCAHACC membership has grown -and in this economy! Read more.

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This year’s legislative session means a lot to SCAHACC with the reintroduction of the HVAC Consumer Safety Act.

SCAHACC Convention and Trade Show is right around the corner. Read about what will be happening for this year’s ROCKFEST.

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Member Spotlight: Past President and long time member, Van Edwards continues involvement.

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Health Care Legislation -- what does it mean to our small business members?

Trade Show Vendors: Check out what companies/ vendors will be participating in this year’s trade show.

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S o u t h C a r o l i n a’s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

president’s message Hello All: As I’m driving to the office this morning it’s 16 degrees outside! And it’s only December 7th. I can’t remember it being this cold this early in the year. Where’s global warming? Our newspaper has even jumped on this. Their cartoonist showed an elderly couple where the man was writing a letter to Al Gore. In the caption the wife says “he does this every time it gets below 20 degrees.” Whatever you call it global warming or climate change, it’s good for the HVAC industry. The year is nearing an end and what a year it has been!  The association has had another great year, with increased membership, great training programs, awesome fundraisers and a trade show and convention in 2010 that WOWed us all!   I hope we have all made our plans for 2011.  I know your association board members have been hard at work planning for 2011.  In November, your board participated in its annual planning meeting in Wampee.  Look for some exciting new programs in the new year.   And my personal thanks to all of the board members for their time and effort they put into this association. If you have not made your plans to attend the 2011 Convention and Trade Show, please do so today!  There are some new additions to this year’s convention and trade show, additions you are sure to enjoy.  Look for more vendors and more training than ever, these are sure to make the 2011 Annual Convention the BEST EVER. Also new this year, I’m hosting a President’s Party on Thursday evening, January 27 as part of our convention it’s by invitation only (and anyone who registered for the convention will receive an invitation)! A very special thanks to several of our Johnstone Supply partners for making this possible. So, once you register, look for your personal invitation to arrive soon thereafter. As this year winds down and the holiday season passes, I am so grateful and blessed for so many things in my life.  We should all take this time to count our blessings and cherish what makes us who we are.  I have taken great pleasure this past year serving as president of this great association, and I look forward to an exciting new year.  I hope to see you all in 2011 at the Annual Convention and Trade Show. Merry Christmas and Happy New Year. Scott

President’s Party January 27 Hard Rock Cafe


S o u t h C a r o l i n a’s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

THE

GROWING MEMBERSHIP

One of the leadership’s top priorities in 2010 was a focus on membership and its growth. At that time, newly elected president Scott Kelly asked Anne Campbell with Carrier Enterprises to lead that charge as the chair of the Membership Committee. If you know Anne, you know that if you ask her to do something -- it WILL BE DONE! And so it was! Thanks to her efforts and those of several key association leaders (Danny, Medd, Scott, Bill R. -- to name a few), the SCAHACC roles grew by more than 38 members including 32 new contractor members. In the area of contractors membership, this was more than a 15% growth. Way to go Anne! Way to grow SCAHACC!

Contractor Members Air Concept Solutions, LLC AirMax All Pro Heating, Air and Refrigeration Berkeley Heating & Air Conditioning, Inc. Bobby’s Service Company Briggs Air Systems Carolina HVAC, LLC Carolina Temperature Control Cassell Brothers Heating & Cooling, LLC Gaston Refrigeration Service Gunter Heating Hagan Heating & AC Jackson Mechanical KFI Mechanical Lever Repairs Manly Brothers Martin Heat & Air Max-Aire Htg McKies Heating Mr. Central Pardee’s Service Experts PECO Heating and Cooling PRO Heating & Cooling, Inc. Robinson Heating & Energy The Allergy Shop Youmas Heating & AC Supplier/Associate/Utility Members Black River Electric Cooperative Inc. Call Experts Coastal Geo Exchange, LLC Ductz of Greater Columbia H-VAC Supply M&A Supply R.E. Michel Thermaflex

BOARD MEMBERS Thank you for helping move this industry foward

Executive Committee President Scott Kelly Carolina Heating Service Vice-President Lee Boylston Holley Heating & A/C Secretary Todd Wagstaff Comfort Services, Inc. Treasurer Jill Marshall Santee Cooper Co-Treasurer J.D. Steedly Santee Cooper Immediate Past President Verlon Wulf Carolina Cool Board of Directors Gary Andrews Michael Atkins Gilly Bailey Gene Bishop Medd Box Anne Campbell Van Edwards Joey Henderson Tee Hooper Brad Myers Jeff Owens Randy Pardee Richard Powers Henry Powers Bill Rathbun Joel Reese Jeff Singletary Tommy Sinn John Tuckwiller Kevin Williamson

Progress Energy At Your Service, Inc. Climatic Comfort Products Bishop’s Heating & AC AirMax Carrier Enterprise Edwards Refrigeration, Inc. General Wholesale Distributors General Wholesale Distributors Climate Control, Inc. McGee Heating & A/C Pardee’s Refrigeration & A/C Piedmont Natural Gas Powers & Gregory, Inc. Johnstone Supply of Columbia SCANA Pee Dee Electric Cooperative The Service Company Inc. Carolina Air, Inc. Broom Heating & A/C

Welcome new to the board in 2011, Bret Ross with Waterfurnace.

“The very essence of leadership is its purpose. And the purpose of leadership is to accomplish a task. That is what leadership does -- and what it does is more important than what it is or how it works.” -- Colonel Dandridge M. Malone


S o u t h C a r o l i n a’s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

SCAHACC Tax Credit Program: Free Money for Hiring Millions of dollars in tax credits go unclaimed each year by companies that qualify to claim credits but do not file the appropriate paperwork. In many industries, the work opportunity tax credit (WOTC) is a particularly lucrative tax credit that tends to be missed. WOTC is a credit for employers that hire qualified individuals. Qualifying individuals are hired on a regular basis, yet many companies do not bother to screen new hires for WOTC. In effect, these companies lose up to $2,400 every time a qualified person is hired. Qualifying individuals for WOTC are people that fall into one or more of these categories: • Member of a family receiving welfare • Member of a family receiving SNAP (food stamps), and 18-39 years of age • Qualifying SSI recipients • Individuals who have received vocational rehabilitation • Qualifying individuals 18-39 years of age living in a federal zone • Qualified low income veterans • Unemployed veterans • Recently discharged veterans with a service-connected disability • Disconnected youth (youths up to 25 years of age lacking sufficient education/skills) • Qualified summer youths For an employer to claim WOTC, the qualifying new hire must sign a completed IRS form 8850, indicating that they were screened for WOTC on or before the day they were offered a job. Then, the taxpayer must get the new hire certified by the state WOTC office. The process of screening new hires and dealing with the related paperwork can be an administrative burden. To help SCAHACC members with this process, the association has partnered with Outlaw Consulting, a tax credit consulting firm. Under this service offering, Outlaw Consulting will help manage this process and make sure you get the credit you deserve. They can also make sure you are claiming other credits that might apply, including the Renewal Community Tax Credit, the Empowerment Zone Tax Credit, and the South Carolina Job Tax Credit. Contact the SCAHACC headquarters office toll free at 1-800-395-WARM(9276) or Outlaw Consulting at (770) 461-2308 to learn more about this program.


S o u t h C a r o l i n a’s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

SCAHACC to tackle the HVAC Consumer Safety Act Again With a new Governor in the State House, SCAHACC will once again work to pass the HVAC Consumer Saftey Act. The following is the situation analysis and solution as we see it. We will need all members to work with us to get this legislation passed into law. Problem: Under current South Carolina law unlicensed individuals can purchase any type of heating and air conditioning equipment, including complex and ultra-high efficiency systems. This practice can cause costly and dangerous issues for the consumer, invalidate manufacturer’s warranties and severely complicate the enforcement of South Carolina’s residential heating, ventilation, and air conditioning (HVAC) licensing law. Consumers may not receive their expected comfort and energy savings. This practice: • Allows for unfair competition; licensed contractors, in compliance with state law, lose business because an unlicensed individual will often under bid the job; • Reduces state and municipal revenues; unlicensed contractors do not pay license fees to the state or inspection and permit feels to local governments; • Increases liability of the licensed contractor; licensed contractors may be held legally responsible for work performed by employees who moonlight; • Creates an unsafe situation for consumers; heating and air conditioning systems are often complex, requiring trained and certified technicians and the use of specialized tools and instruments. Individuals who are not properly trained in the HVAC trade can make elementary mistakes potentially resulting in substantial damage to a person’s home, creating an unsafe environment for the homeowner and his/her family and even resulting in bodily injury; and • Encourages improper handling of hazardous materials; unlicensed contractors may not employ proper practices of handling and disposing of

hazardous materials, including refrigerants and oils, in violation of both federal and state environmental laws. Solution: The South Carolina Association of Heating and Air Conditioning Contractors supports the HVAC Consumer Safety Act to end this anti-consumer, unfair and illegal practice. This legislation would: • Establish guidelines for the purchase of and regulation of installation of HVAC systems to ensure the consumer is protected; • Set standards for retailers so it is clear who can purchase residential HVAC equipment. • Exempt homeowners who wish to perform repair work on their own home systems; • Exempt window units not covered under current regulations; and • Ensure the retailer is not held responsible for the actions of individuals doing work without the proper licenses, permits and expertise. Why the HVAC Consumer Act is good for South Carolina: • The likelihood of potential errors and omissions that result in increased costs, property damage or bodily injury would be significantly reduced; • Unfair competition in the industry would be eliminated; • Compliance with all applicable building codes would be ensured; • Enforcement would be easier for the Department of Labor, Licensing and Regulation (LLR) which is already funded to enforce the law; • Litigation for errors and omissions would be reduced; • Warranties would remain valid if equipment is installed by a licensed contractor; and • Consumers would be protected and would be assured that a licensed and trained contractor is installing their equipment. The HVAC Consumer Act will not do the following: • Regulate window units. • Regulate homeowners who work on their own home systems.

Background: The South Carolina General Assembly approved regulations requiring the licensure of residential heating and air conditioning contractors beginning July 1, 2004. A provision was included in these regulations to grandfather those contractors who had been practicing for some time and who met established requirements. These regulations were provided for in Section 40-59-220 of the Code. Current law is unclear as to whether or not a retailer may sell to an unlicensed contractor. The many recent significant changes in equipment has made the installation and repair of residential heating and air conditioning equipment even more complex. 1. The Environmental Protection Agency (EPA) requires an individual be certified in refrigerant handling before a contractor can purchase or handle refrigerants. This certification helps ensure the proper removal and disposal of refrigerants thus avoiding their release into the atmosphere further compromising the earth’s ozone layer. 2. In addition, the Department of Energy mandated that after January 26, 2006 only 13 SEER (Seasonal Energy Efficiency Rating) equipment or higher could be manufactured. This is a 30% increase in SEER from the previously mandated 10 SEER equipment. This complexity requires contractors to have an even greater level of expertise. Much of the necessary training and technical information required to properly install and service this new generation of equipment is not available to an unlicensed contractor.


S o u t h C a r o l i n a’s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

More Legislative Items

Take a Stand with Us

LEGISLATIVE BREAKFAST 2011 SCAHACC plans to introduce legislation this year and will need our members help and support. One of the most visible and important way to be a part of our association’s industry efforts is to be PRESENT at our Legislative Breakfast. The 2011 Breakfast is set for Thursday, Feb. 17, 2011. SAVE THAT DATE. More details will be shared as the event gets closer.

on February 17, 2011 SC Legislature Plans to Make Sales Tax on Service Contracts a Priority for 2011 House Majority Leader Kenny Bingham spoke at a recent Small Business Chamber meeting. He shared information on legislative priorities for 2011. One of the the items of special interest to SCAHACC members is legislation to address the problems associated with the collection of sales tax on service contracts. Representative Bingham confirmed that the Department of Revenue is not enforcing the law as they currently interpret it because Governor Sanford asked that they not do so until the Legislature can act to clarify the law. Representative Bingham indicated correcting this problem would be a priority when the Legislature returns in January. He noted it was never the intent of the Legislature to tax service contracts. In 2005, the General Assembly passed a package of changes to the state tax code. Part of those changes included language to address warranties for televisions sold at the time of purchase. The intent was originally not to tax warranties or service contracts but rather to tax the added value of the product (i.e televisions) resulting from an extended warranty. The law was then changed to prevent retailers from circumventing the tax liability by selling the warranty through a separate company or on a subsequent day. DOR later interpreted this to allow them to tax services. SCAHACC will follow this issue and keep you posted on developments in 2011. New Law Could Effect You . . . Read On Earlier this year legislation was passed dealing with civil liability for liquefied petroleum gas (or propane) dealers. The new law requires an installer or service worker to notify the supplier of propane before beginning any work on the system supplied by a gas supplier. If more than one liquefied petroleum gas supplier has supplied gas to the container of the system, the last supplier of liquefied petroleum gas must be notified before any work is performed on the system. The new law provides immunity to the liquefied petroleum gas supplier IF an alteration, modification or repair is made that results in the cause of an accident provided the accident was not linked to a problem caused by the supplier not exercising reasonable care. Immunity is also granted to the supplier if the liquefied petroleum gas system or gas burning appliance is used for other than its original purpose. What does this mean to you? Make sure to notify the supplier before beginning any work on propane systems. Maintain your high standards of work and service. Discourage your customers from using liquefied petroleum gas systems or gas burning appliances for any other than their original purpose. Document your work and keep good records of the service or repairs you perform. And most importantly nothing in this new law limits responsibility for suppliers and equipment that is badly designed or part of a product liability claim. A copy of the actual bill language is located on the association’s website (schvac.net).


S o u t h C a r o l i n a’s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

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Marriott Grande Dunes, Myrtle Beach, SC

Tough Times Tour

We can’t wait until January 29th - 30th 2011! Our Annual Convention in 2010 was a huge success, and we’re expecting this year to be even bigger and better. With the largest HVAC trade show in the Southeast - we put contractors from all over the state together with vendors and suppliers from the industry! This year the convention has essentially grown by a day in that we have added five more educational sessions -- doubling that which was offered last year.

EVENT

HOTEL RESERVATIONS can be made by calling the Marriott at 1-888-641-4804 and ask for SCAHACC’s rate.

Two for the Road A comedy show that is Shaken&Stirred!

Comedy veterans Karen Morgan and Nancy Witter bring you a uniquely funny evening of stand-up comedy, story swapping, joke telling and audience interaction. The most fun you can have without getting a hangover, these ladies leave ‘em a laughing in theatres all across the country. Two Bring your friends and your Depends because

Every performance is a party!

for the Road

production

Stan Slap is known in the business as a “rock star.” He’s edgy; no one has ever called him ordinary -- methods used or results achieved. He’ll be our headliner . . . our own HVAC Business Rock Star.

If you’ve been to our conventions, you know we host some of the best entertainment . . . this year’s line-up is nothing less. In fact, not one but two comedians will usher in “happy hour” and provide our opening act for SCAHACC’s Rockfest.

Comedy entertainer, Jason Huneke has perfromed on America’s Got Talent, Carnival Cruise Line, Disney, etc. His show is clean, fun and edgy. His comedy and juggling act has been a huge hit all over the US -- and will hit you too . . . we mean be a hit with you!

Crocodile Rocks Dueling Pianos... will provide our closing night’s entertainment . . . outrageous, contagious, sing-a-long, clap-along, in your face, party! Brace yourself as our versatile entertainers take to their pianos to play your requests...their way!

on Friday night

on Friday night

on Saturday morning

on Saturday night


S o u t h C a r o l i n a’s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

ROCKFEST 2011

Thursday, January 27

The association has set up golf (tee-times) and clayshooting . . . see page 10 for details. 5 - 6:30 pm 7 - 8 pm

8:30 am 9 am 10 am 11:30 - Noon 2 - 4 pm 12:30 - 4 pm 5 - 8 pm 8 pm

8:30 am 10:30 am 11 - 3 pm Noon - 1 pm 1 - 5 pm 2 - 3 pm 2 - 4 pm 2 - 3 pm 3:10 - 4:10 pm 4:20 - 5:30 pm 6 - 6:30 pm 7 - 7:30 pm

Early Registration/Hotel Check In President’s Welcome Reception Hard Rock Café

Friday, January 28

Vendor Set Up Chapter Reps Meeting Full Board of Directors Meeting Lunch How to Maximize a Trade Show -- Speaker Walker McKay 5 Ways to Expand Your HVAC Business On Your Own for Dinner Association President to host Chapter Reps -- Rising Stars for Dinner Rockfest begins . . . Trade Show Opens, Happy Hour, Two Comedians and Stan Slap -- World Class Speaker

Saturday, January 29

Breakfast/Live-Ads and Eye-Opener with Jason Huneke Welcome LARGEST HVAC TRADE SHOW IN THE SOUTHEAST Lunch Daypasses welcome HVAC Instructors Meeting Spouse/Guest Program (see page ) 3 Concurrent Learning Labs (1) How to be more efficient using mobile solutions (2) How to sell when no one is buying (3) Manual J: More and more efficient means Manual J is more and more important 3 Concurrent Learning Labs (1) BPI -- What should it mean to a contractor and How to use it (2) How to sell when no one is buying (3) How to get the most out of your technician ONE LEARNING LAB for all Contractor Panel -- featuring contractors from Georgia Gold Member Reception Closing Event Begins . . . Oyster Roast, Dualing Pianos and a Live Auction

DRAFT SCHEDULE


Thursday, January 27 Clay Shoot Outing

. and S o u t h C a r o l i n a ’ s H e a t i n g a n dThe A Convention i r C o n dhas i t grown i o n i .n. g P rgrowth o f e shas sionals caused a few changes. This year, there will be twice as many education sessions -- beginning on Friday.

In years past, we held a clay shooting tournament and golf tournament on Friday. Although we aren’t hosting either tournament this year, we have set up a clay-shooting outing and a golf outing for those interested . . . on Thursday afternoon, January 27. The clay shooting will begin at 1 pm at the Backwoods Quail Club in Georgetown, and is $50 per shooter. The afternoon “play” includes one “round” through the club’s course and a 4-person cart.

Backwoods Quail Club, Georgetown

For the golfers in our group, we have set up a few tee-times for those interested starting at 12:30 pm on Thursdsay, January 27. The course is Shaftesbury Glen, 951 Shaftesbury Lane, Conway, just off Hwy. 22. The afternoon times have been set up in order to allow you to return in time for another new event: The President’s Party (no add’l charge). Details on the Party will be sent soon.

Registration Form for Clay Shooting or Golf Outing*

Thursday, January 27 Golf Outing

* $50 per person Name:___________________________________ Name:___________________________________ Name:___________________________________ Name:___________________________________ Company: ________________________________ Phone:__________________________________ Email:___________________________________

Shaftesbury Glen, Conway

___ Check

____ Credit Card

Name on Card ____________________________ Card # __________________________________ Billing Address ___________________________ ________________________________________

You may fax your registration to 803-252-7799.


S o u t h C a r o l i n a’s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

Member Leader Spotlight Van Edwards Edwards Refrigeration When and how did you get started in the HVAC industry? 1977 – Started my Business straight out of Florence-Darlington Tech. College. Never worked for anyone in HVAC. Started my business from scratch, had no family in HVAC. What are the challenges you currently face in your business? Finding Good people especially Service Techs and Duct Installers Health Insurance Cost Workers Comp Cost Affordable Financing for my Customers. Cash Flow What has been your biggest success? Personnel was President of SCAHACC, Recognized as Pinnacle Dealer by Bryant and Various other Awards Business is just being able to run a Profitable Company and make a good living. How did you become involved in SCAHACC? Started out by coming to Chapter Meetings, Chapter Rep, VP, and President What is your advice to fellow SCAHACC members about working through the current economy? Sell your Company as the best, give great service, warranties, and be there for your customers. Don’t be afraid to ask for what you need to sell a system. Don’t work for wages, charge the correct amount to be profitable. Know what it cost you to keep your doors open and make money. Use the tools available to you through the SCAHACC and your Distributors. Why is SCAHACC membership important to you? Helps to keep me on the cutting edge with what is happening in the HVAC Industry. Keeps me informed on the newest Legislation that involves our industry. Make new friends and stay in touch with old ones. Info that we share. What would you say to a member who may be considering attending the SCAHACC Convention and Trade Show? You absolutely want to be there, if you don’t come you are missing the best Trade show in SC if not the Nation. Once you go you will always be there.

Thank You Leadership As we approach the end of our year, we wish to recognize and thank our leadership on the local level -- our chapter reps. These gentlemen provide input, ideas, suggestions and contacts that help the board of directors know WHAT THE MEMBERSHIP WANTS AND NEEDS. All of these folks run businesses and still find and make the time to help the association, the industry and their competitors. We can’t thank them or recognize them enough. Please help us thank these leaders . . . John Tuckwiller Carolina Air, Inc. Beaufort/Hilton Head Chapter

Van Edwards Edwards Refrigeration, Inc. Pee Dee Chapter Lee Boylston Holley Heating & A/C CSRA Chapter

Michael Atkins At Your Service, Inc. Spartanburg Chapter

Kevin Williamson Broom Heating & A/C Midlands Chapter

Verlon Wulf Carolina Cool Horry/Georgetown Chapter

Jeff Owens McGee Heating & A/C Anderson Chapter

Tommy Sinn The Service Company Inc. Greenville Chapter

Medd Box AirMax Charleston Chapter


S o u t h C a r o l i n a’s H e at i n g a n d A i r C o n d i t i o n i n g P r o f e s s i o n a l s

Health Care Update -- NOW and FUTURE On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act of 2010, the core piece of legislation that overhauls the health care system in this country. On March 30, the President signed the Health Care and Education Reconciliation Act of 2010, a shorter piece of legislation that amends several provisions in the Patient Protection Act. Taken together, these two pieces of legislation provide for massive health care reform and include an estimated $437 billion in new taxes and fees. The expanded health care coverage provided by the legislation is expected to reduce the number of uninsured by 32 million. Provisions in the health care reform laws will gradually go into effect over the coming years. The following timeline highlights some of the key tax provisions in the legislation.

2010

Tanning Services • Effective July 1, 2010, a 10% tax will be imposed on indoor tanning services. Adoption Credit • The 2010 tax credit for adoption expenses is increased to $13,170 and is made refundable. Also, the credit is extended through 2011. Business Tax Credit • Small businesses with up to 25 employees may qualify for a tax credit for the cost of purchasing health insurance for their employees. In general, eligibility for the credit is based partially on full-time equivalent (FTE) employees, not the number of employees, and partially on average annual wages per employee.

To qualify for the credit, the employer must pay at least 50% of the cost of health coverage at the single rate. Both businesses and tax-exempt organizations are eligible for the credit. For 2010, the maximum credit is 35% of premiums paid by businesses and 25% of premiums paid by taxexempt organizations. The maximum credit goes to those employers with ten or fewer employees who pay annual average wages of no more than $25,000. The credit gradually phases out for firms with average wages between $25,000 and $50,000 and between 10 and 25 full-time equivalent workers. Because the calculation involves FTEs, not the actual number of employees, an employer with more than 25 workers could qualify for the credit, if some or all of the workers were parttime. Other 2010 Changes • Children can remain on parents’ insurance policies through age 26. •

Insurance companies cannot deny coverage to children with pre-existing conditions.

Medicare recipients in the drug coverage “donut hole” will receive a one-time $250 rebate check to offset their costs. (“Donut hole” refers to the gap in drug coverage for Medicare patients.)

Included in the Reconciliation Act are provisions ending private lending for student loans. Starting July 1, 2010, those who take out student loans will borrow directly from the federal government instead of from a bank or other private lender.

2011

Medicare Drug Coverage •

For those with Medicare drug coverage in the “donut hole,” the law provides a 50% discount on brand-name drugs. Additional discounts are phased in over the coming years, and the donut hole is eliminated by 2020.

Long-Term Care • Long-term care insurance program is created, financed by voluntary payroll deductions. New Reporting Requirement • Employers must report the high value of each employee’s health insurance coverage on the employee’s annual Form W-2. Medical Savings Accounts • Unless prescribed by a medical professional, over-thecounter medications can no longer be paid for with funds in health savings accounts (HSAs), flexible spending accounts (FSAs), and health reimbursement accounts (HRAs). •

The additional tax on nonqualified distributions from HSAs increases from 10% to 20%. For nonqualified distributions from an Archer medical savings account (MSA), the additional tax increases from 15% to 20%.

Drug Industry Fee • An annual fee is assessed on drug manufacturers, starting at $2.5 billion in 2011 and increasing over the following years. Please go to the association’s website for the remainder of the article. This infomation is reprinted with permission from by Zion & Company, www.zionco.com


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Protect your company from becoming part of these statistics! &EDERATEDOFFERSAPROGRAMWITHTHETOOLSANDRESOURCESYOUNEEDTOHELP MAKEYOURBUSINESSONETHATISDRUG ANDALCOHOL FREE&ORMORE INFORMATION CONTACTYOURLOCAL&EDERATEDREPRESENTATIVEORCALL

1-800-533-0472. * American Council for Drug Education (Printed in EHS Today 10-6-2009)

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SOME HVAC GOOD NEWS Proposed 2011 Chapter Meeting Calendar Gene’s Heating and Air Celebrates Grand Opening Gene’s Heating and Air broke ground this summer for their new building that is located on Raccoon Road in Manning, between Hwy. 260 and 301. The company celebrated its grand opening on December 15.

This year, the chapter reps and staff will focus on a chapter - a month. Although your chapter may be the focus one month, there may also be social events in other chapters that same month. As the dates and details become known, they will be added. Check out the website for your chapter’s month of focus.

SCAHACC offers its congratulations to owners Gene Floyd and Archie Pierson. “It’s great to see our members growing their businesses, particularly in this economy,” said SCAHACC Executive Director Leigh Faircloth.

HVAC Instructors Continue to Be Students Themselves Each year, SCAHACC members and HVAC instructors gather together to discuss changes in their programs, current issues, and ways to better educate their students. This fall, the instructors met in Columbia at Midlands Technical College with a good attendance and positive results. This year, one of our own, Terry Rogers, shared a presentation on “Developing a Troubleshooting Presentation and Lab.” Executive Director Leigh Faircloth, CAE who attended the meeting, commented, “It’s important for our instructors to continue to be students themselves! And, sharing knowledge, is always a priority at these meetings.” Associate Member Rome Lindler with Southern Educational Systems wasn’t able to attend this year but that he along with the association sponsored the group’s meeting and refreshments. All instructors in attendance continue to report high enrollments. These numbers while positive also represent a potential problem of placing students for employment in a difficult and tight job market. The instructors discussed the value of attending the association’s annual convention and trade show. They planned their next meeting to coincide with the convention. The meeting will be scheduled so the instructors can attend and take advantage of the other educational sessions and the trade show.

Technical Education


GreenSCene At the beginning 2010, we weren’t sure exactly what GreenSCene would be . . . we weren’t even sure two months before the program itself . . . but, in the end, GreenSCene proved to be an executive style training and successful program with close to 100 members and guests taking part.

GreenSCene 2011 Proposed Training Topics To finalize our 2011 training plans, we still need input from several chapters on your preferred topic. Let us know what YOU want . . . you never know, you may be the only one who provides a topic . . . and if that’s the case, it’s likely you’ll get what you want. Topics to select from are as follows: Wiring Diagrams & Reading and Troubleshooting Refrigeration Cycle Diagnostics TXV Troubleshooting Air Flow Diagnostics Manual D- Proper Duct Design & Sizing February Spartanburg March Beaufort/HH April Pee Dee May Anderson September Greenville September CSRA October Charleston October Horry/G’town November Midlands

Need input Need input Manual D refresher Manual J refresher TXV Need input Airflow Need input Wiring

Other courses to be offered in 2011 include Manual J Refresher for Codes Officials and a one-day Manual J for contractors as well as Priority Management Course.

Thanks in part to an outstanding facility and a smaller group setting, each session felt more like a think-tank of future focused contractors and industry professionals. The programming included eight different topics on the greener options available to the HVAC industry. Bill Rathbun, from Johnstone Supply, commented that he took the place of another employee who couldn’t attend at the last minute. He said he was glad that he did. “The program was excellent and those who missed it . . . really missed something valuable!” During lunch, a number of utility representatives and Trish Jerman from the State Energy Office, shared programs and incentives aimed at helping to make green options for consumers and contractors more attractive and more affordable. “The format and concept turned out to be a strong combination that will no doubt be repeated next year,” said Training Committee Chairman Joey Henderson. “The topics will change but THIS TYPE PROGRAM will be back!” Thank you also to the instructors of the sessions as well as the exhibitors of the event which included Lennox Industries and Trane Commercial Systems.


SCAHACC PO Box 11035 Columbia, SC 29211 1-800-395-WARM

2011 Trade Show Set to take the ENTIRE Ballroom at the Marriott 57 Booths Sold SO FAR (as of 12/13) Activetek Environmental-- SPONSOR AT&T -- SPONSOR Baker Distributing -- SPONSOR BRS Sales (5 Booths) CC Dickson (2 booths) -- SPONSOR Call Experts Carrier Enterprise (4 booths) Climatic Comfort Products (2 Booths) Comfort Institute Ductz of Columbia East Coast Metal Distributors Epting Distributors (2 Booths) Farrell Chevrolet (3 Booths) Federated Insurance -- SPONSOR Gateway Supply Co (2 Booths) Geiger O’Cain Advertising General Wholesale Distributors (3 booths) GPS Management Solutions Geiger O’Cain Advertising Global Test Supply GPS Management Solutions GWD (3 Booths)

Hart & Cooley HVAC Warranty Johnstone Supply--Upstate, SPONSOR Johnstone Supply -- Columbia, Summerville Charleston -- SPONSOR Knauf Insulation Lennox Industries -- SPONSOR Lukjan Metal Products Midsouth Marketing Nu-Calgon Progress Energy -- SPONSOR Profit Strategies Rapid Recovery Santee Cooper -- SPONSOR SCE&G SC Living Magazine Southwark Metal Trane Commercial Systems Ultra Air Dehumidifiers WaterFurnance (2 booths) Yandle Witherspoon (2 booths) ZONEFIRST -- SPONSOR

SCAHACC Recognizes Gold Level Distributor Members In the 20 years the association has been in existance, the distributor dues have never been increased. And, since the distributor members provide crucial support for various association activities like the annual convention and trade show, duct fair and the scholarship golf tournament, the board has been reluctant to increase their dues. However, at the planning meeting last year, an increased option was provided for distributors to move to a gold level. This higher level of dues provides several additional benefits. These benefits include being displayed ar the front page of the newsletter and the website. If you are interested in going gold, call SCAHACC Headquarters and a member of the staff will discuss the benefits associated with the gold level. Thanks to our gold level distributors in 2010, Johnstone Supply of Columbia, Charleston, and Summerville, Johnstone Supply of the Upstate, Climatic Comfort Products, and Thermaflex. Winter 2010


SCAHACC Winter Newsletter