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September 2018 issue www.hbaswi l .org To promote, educate and advocate for the Residential Building & Remodeling Industry; providing resources that benefit industry professionals and consumers in the communities we serve. The 2019 IBS will again co-locate with the National Kitchen & Bath Association's (NKBA) Kitchen & Bath Industry Show® (KBIS) for the 6th annual Design & Construction Week® (DCW). The two shows are expected to host more than 2,000 exhibiting brands spanning over a million net square feet of exhibit space, for the largest annual gathering of the residential design and construction industry. Celebrating its 75th anniversary, the show will return to the Las Vegas Convention Center, Feb. 19-21, 2019. Full Registration Package (3 days) includes admittance to 130+ IBS education sessions $325 thru 09/30 First-Time Attendee Special Offer $150 for NAHB Members Only Expo ONLY Pass Registration $0 for NAHB Members The 2019 show will kick off on the morning of Feb. 19 with an exciting Opening Ceremonies event featuring Emmy-award winning actor and comedian Dana Carvey and a performance from Blue Man Group. That evening, Drai's Beachclub and Nightclub at the Cromwell Hotel will host the Official IBS House Party. Other events throughout the week include the Young Pro Party and the IBS Spike Closing Concert where attendees will close out the week by enjoying a performance by worldfamous rock band, the Goo Goo Dolls.

Under new legislation, interior designers are now protected under the Illinois Mechanic’s Lien Act. Contractors and owners in Illinois should now include interior design professionals in their list of sub-contractors from whom they should require a release of mechanic’s lien upon payment. Permits for new construction that are issued by the Village of Glen Carbon will have a requirement in the inspection process to stake the “lowest point of entry” out and be verified when that point of construction comes into play. This may be prior to the time a walk out basement floor is poured or if a full basement is on the site when the foundation wall is poured. It is the responsibility of the permit holder to survey that elevation and have it clearly posted. The Village of Glen Carbon will also be rolling out a new process for inspections regarding new construction & remodels. We will be utilizing a software program to document inspections. We will still leave a printed report on site. Someone “must be present” at the location where an inspection is scheduled at the time of the inspection. It is not required that a particular trade subcontractor or the general contractor be present. The party onsite for the inspection may be required to sign that they were present for the inspection and they received a printed report. This particular change will roll out in the Month of September 2018. If you have any questions feel free to call Glen Neal, Building Inspector. 2

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Painful Truths from the Illinois Policy Institute Belleville spent more than $2.5M on workers’ comp settlements in less than 5 years -Vincent Caruso Illinois industry shoulders the burden of the highest workers’ compensation costs in the region. But what many Illinoisans paying some of the nation’s highest property taxes may not realize is that they’re picking up the tab for those costs, too. The city of Belleville offers one example of the high price of workers’ comp for local governments. Since 2013, Belleville has spent more than $2.5 million on workers’ comp settlements, according to city records of Illinois Workers’ Compensation Commission contracts. In 2018 alone, the city has so far spent $420,000 settling workers’ comp claims. Between 2013 and 2018, Belleville’s costliest year for workers’ comp payouts was 2016, during which the city spent $662,000 on workers’ comp settlements. The claims vary widely in their severity and cost. One claim settled in 2013 involving a worker “hit by a car while collecting signs” resulted in a payout of $26,100. Meanwhile, a comparatively less serious claim filed that year resulting from “lifting a heavy garbage can” earned one worker a $125,000 settlement. Many cases in which workers reported sustaining only mild injuries, and returned to work the next day, nonetheless resulted in large workers’ comp settlements, records show. One worker who reported an injury sustained while landing awkwardly exiting a firetruck collected $39,750. Another worker who reported an injury after pulling a hose collected $24,000. Both returned to work the day after their respective incidents. In fact, more than 35 percent of workers who received a workers’ comp payout between 2013 and 2018 returned to work the day after the reported accident date – amounting to nearly $360,000 in settlements. A city of Belleville human resources official confirmed payouts for workers’ comp settlements are paid directly by the city, unless a settlement surpasses $250,000, in which case insurance coverage kicks in. To be sure, workers sustaining the most extreme injuries – “dealing with a combative juvenile” or “trying to remove a door at a fire” – were more likely to receive six-figure settlements. However, comparably ambiguous and modest claims – “testing heavy equipment” or “hauling hose line” – also delivered at least $100,000. Five workers who reported “repetitive trauma” received between $19,300 and $33,000. Workers’ comp insurance as well as provisional income injured workers receive while off the job collectively cost state and local governments $1 billion each year in Illinois, a 2017 Illinois Policy Institute report found. And local governments bear the brunt of this mandate, shouldering $727 million of that nine-figure annual bill. The state’s costly workers’ comp law is no fault of individual workers. Rather, it’s state lawmakers who have failed to reform it to bring costs in line with surrounding states. A 2015 report by Illinois’ Local Government Consolidation and Unfunded Mandates Task Force found workers’ comp to be the third-most burdensome unfunded mandate for municipalities. This runs parallel to the effect the state’s workers’ comp law has on the private sector, driving businesses across state lines toward more practical regulatory environments. While it’s necessary to have a system in place through which workers are made whole for workplace accidents, Illinois’ workers’ comp law has failed to evolve with the changing landscape of modern workplace environments. Originating in 1911, an era in which workplace danger was commonplace, Illinois’ workers’ comp law was established to guarantee medical coverage and replacement income to workers temporarily immobilized in the event of a work-related injury. But as innovations have transformed the workplace – and therefore workers’ needs – Illinois’ workers’ comp law has remained a century behind. Illinois would stand to gain from rehabilitating its workers’ comp system to better reflect the workplace of the modern age. By simply bringing costs in line with neighboring states, lawmakers would attract investment from the private sector as well as generate needed taxpayer savings. Positive reforms would include limiting Illinois’ maximum wage replacement rate to 100 percent of the state’s average weekly wage, and tying the medical fee schedule to Medicare reimbursement rates or private insurance reimbursement rates. Reforming the state’s outmoded workers’ comp system would free up public funds, allowing municipalities – including Belleville – to introduce tax relief and strengthen core services while preserving worker safety. 8

August 2018 Renewed Members Absolute Specialty Services, Inc. - 13 years AUTCO Home Appliances - 8 years CMI Construction - 11 years D&F Home Builders - 19 years Eagle Flooring - 5 years Fischer Lumber Co. - 22 years Homes by Deesig n - 8 years Metro Marble & Granite - 1 year Negwer Materials, Inc. - 18 years Providence Bank (affiliate) - 1 year RE/MAX Alliance (affiliate) - 1 year RE/MAX Preferred - The Markham Network - 14 years RE/MAX Results - 1 year Weyerhaeuser - 2 years Remodelers Council CMI Construction Helitech Waterproofing & Structural Repair Henges Interiors P&A Drywall Professional Women in Building Council Fulford Homes, LLC 10

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You belong to THREE HBA organizations with your single membership. All 3 entities run Political Action Committees (PAC) to support our businesses locally, statewide and nationally. And all three PACs need the support of the entire membership! Every year you budget for expenses. So ask yourself: What’s your budget for staying in business? Creating a better business climate? Keeping lawmakers aware and in check??? THIS IS WHAT YOUR PACs DO FOR YOU We’re your watchdog and voice for the But that takes continuing annual donations!!! Local HBA PAC __$25 Annual donation New Construction and Remodeling Industry in all our local cities and towns! HBA PAC Pledge __ $50 Annual donation __ $100 Annual donation __ $500 Annual donation includes 1 Gov’t Official Reception ticket ($250 Local; $150 State; $100 National) __ $1,000 Annual donation Includes 2 Gov’t Official Reception tickets and 3 PAC 50/50 raffle tickets. ($500 Local; $300 State; $200 National ) __ Other amount, based on suggestions above $___________________________________________________ Name & Company Name: ________________________________________________________________________________ Phone# & Email: _____________________________________________________________________________________ ___Amount enclosed (payable to Southwest IL HBA PAC) Home Builders Association PAC 6100 West Main St., Maryville, IL 62062 Office: (618) 343-6331 - Fax: (618)343-6335 www.hbaswil.org ~ Email: hba@hbaswil.org ___Invoice company A copy of our report is (or will be) filed with the State Board of Elections 12

• REGISTRATION ON SITE • WALK THE FLOOR TO PICK OUT YOUR BOOTH –or– VIEW YOUR BOOTH • GET THE MOST OUT OF YOUR PART IN THE HOME SHOW Sandwich choice (circle one) Turkey # of reservations _______ Ham Roast Beef Vegetarian ________________________________________________________________________________________________________ Company Name Phone# & Email ________________________________________________________________________________________________________ Name(s) of attending Home Builders Association 6100 West Main St., Maryville, IL 62062 Office: (618) 343-6331 - Fax: (618)343-6335 Email: hba@hbaswil.org 13

ANNUAL Thursday, November 1st 5pm Happy Hour ~ 6pm Trivia Start VFW Post 5691, 1234 Vandalia, Collinsville Trivia & Dinner $25 each Chicken dinner with all the fixings, including 2 FREE drinks Put your useless knowledge to work! 7 rounds of friendly music trivia ~ Prizes for BEST Halloween costumes 1st , 2nd & 3rd Place CASH prize ~ Door Prizes _________________________________________________________________________________________________________________ Primary Contact / Company Name _________________________________________________________________________________________________________________ Phone # / Email Address _________________________________________________________________________________________________________________ Player Names 8 person team ___ $200 METHOD OF PAYMENT: ___ Check Enclosed Individual participants ___ $25 each ___ Invoice Member Company Door Prize Donation ___ ___ Charge to Visa/Mastercard ** credit card payments will include an additional 4% convenience fee Card# ___________________________________________ Exp Date ____________ Signature___________________________________ Cancellation will be accepted 3 days prior to TRIVIA NIGHT . No refunds or credits will be given for cancellations or no-shows. Home Builders Association of Greater Southwest Illinois 6100 West Main St., Maryville, IL 62062 Office: (618) 343-6331 - Fax: (618)343-6335 - Email: hba@hbaswil.org 14

2018 HBA Home Show Corporate Sponsors OFFICERS President, Chris Matteo - Fulford Homes, LLC 1st Vice President, Beth Jacob - Jacob Family Enterprises 2nd Vice President, Aaron Klemme - Klemme Construction 2018 Home Builders Association Platinum Annual Sponsors Associate Vice President, Mindy Shafer - Wells Fargo Home Mortgage Secretary, Jerry Yaekel, Jr. - Yaekel & Associates, Inc. Treasurer, Ken Diel - Kerber, Eck & Braeckel, LLP Immediate Past President, Dave Padgett - Padgett Building & Remodeling Co., Inc. 2018 HBA Gold Annual Sponsors DIRECTORS Jason Klein - Ameren Illinois Art Stumpf- AUTCOhome Appliances Michelle Null - Benchmark Title Company Coy Mullenix - CMI Construction Joe Knox - Copious Technologies Joel Keel - Custom Floors & More Robb Treat - Fairway Independent Mortgage Corp. Mark Fulford - Fulford Construction 2018 HBA Silver Annual Sponsors 2018 HBA Bronze Annual Sponsors 15 John Snapat, CAPS, CGR - Fulford Home Remodeling Steve Macaluso - Halloran Construction Jon Edler - Henges Interiors Robert Dee Jr. - Homes by Deesign Josh McDermott - J.T. McDermott Remodeling Contractors Jason Huelsmann - New Tradition Homes Ron Padgett - Padgett Building & Remodeling Barbara Markham - RE/MAX Preferred, The Markham Network Ryan Butler - Remington Properties Jeff Schmidt - RLP Development Sue Schultz - Sandberg Phoenix & von Gontard P.C. Mike Rathgeb - Spencer Homes Mark Vogt - Vogt Builders, Inc.

6100 West Main Street Maryville, IL 62062-6688 Office (618) 343-6331 Fax: (618) 343-6335 Email: hba@hbaswil.org WWW.HBASWIL.ORG 16

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