JANUARY 2015

TODAY Newsletter Thanks to our Advertisers:

Message from President Ted Galbraith Foxworth-Galbraith Lumber There are some things you learn best in calm, and some in storm. Having been privileged to visit both Galveston, Texas and New Orleans, Louisiana this last year, I’m reminded of the famous Yogi Berra quote: “It's tough to make predictions…especially about the future” and/or weather! Hurricanes Katrina (2005), Rita (2005) and Ike (2008) caused both untold damage but also fostered a spirit of resolve and cooperation among our coastal citizens. I am glad to have witnessed both cities, and LBM dealers, thriving despite these unpredictable catastrophic events.

While can’t forecast future events it does keep members informed of changes and opportunities that can impact our industry and your business. During our fall board and committee meetings in Austin we had political consultant and strategist Dana Chiodo provide members perspectives of probable Texas election outcomes, short and long term. And in our upcoming (129th!) April convention at Moody Gardens in Galveston we have scheduled a presentation by social media expert Crystal Washington. Crystal has been a consultant to Google, Microsoft and GE and will give us a fantastic and dynamic presentation that everyone will learn from. In addition our association continues to provide educational and training

programs in both states to help all dealers with their training needs. Watch for the weekly email news from on upcoming programs. If you don’t receive these emails, let Craig@lat.org know to add your name to the list. Political needs will be always at the forefront of ensuring our industry is well represented in Austin, Baton Rouge and Washington. This past year LUMPAC, our Texas political action committee, provided more than $15,000 total in financial support to 34 candidates – representatives and senators all throughout Texas - who have helped us in past

Texas legislative sessions, and/or who we expect will support our goals and intiatives in 2015. We depend on

members for this information and LUMPAC trustees / members make the final decision for all contributions. It is through continuous effort, support and expertise from our retail members and associate members, that

will remain “the premier organization” of the building material industry in Texas and Louisiana.

Make plans now to attend the April 8-9 convention in Galveston! All the information, registration forms, are included in this newsletter. We expect to see you there! Ted Galbraith

The Lumbermen’s Association of Texas & Louisiana serves quality building material dealers in Louisiana And Texas.

Office – 1016 La Posada Drive, Suite 150, Austin TX 78752 Phone – 512-472-1194 Fax – 512-472-7378 Web – www.lat.org

EXPECT GREAT THINGS

at the 129th ANNUAL CONVENTION – APRIL 8-9, 2015 at the MOODY GARDENS RESORT HOTEL IN GALVESTON, TEXAS

EXPECT GREAT THINGS!

The 2015 Convention will be Wednesday &

Thursday, April 8 & 9, on beautiful Galveston Island!

Mark April 8 & 9 on your 2015 calendar and join us in Galveston, Texas

The weekend is yours! All Convention events on Wednesday & Thursday

Golf with your friends Wednesday afternoon & Support LumPac

Ten Reasons to Attend the LAT 2015 Convention 1. Learn how your website & social networking can enhance your business. 2. Share the knowledge and experience with your key employees. 3. Observe expert wood crafters and their wares on the show floor. 4. Discover new products and services from exhibiting suppliers. 5. Network with your peers – they can be a great source of information. 6. Meet new - and strengthen ties with existing suppliers. 7. Develop new strategies to improve your business 8. Support the association and PAC that supports your business! 9. Enjoy beautiful Galveston Island and

$5,000 in PRIZE$ for attending DEALERS!

offers THE BEST – and the MOST COST EFFECTIVE – venue to network

with your business peers and suppliers. The Lumbermen’s Association of Texas & Louisiana serves quality building material dealers in Louisiana And Texas.

Office – 1016 La Posada Drive, Suite 150, Austin TX 78752 Phone – 512-472-1194 Fax – 512-472-7378 Web – www.lat.org

“As the second oldest trade association in Texas, LAT has been helping protect Lumber Folks for a long time. Back in the day … as we helped build Texas. Now LAT helps protect us from bad legislation, as we continue to assist in building Texas … and now Louisiana too. For those with saw dust in the veins, LAT Membership is a must.

Gary Weaver, Timber Tech Texas

2015 LUMPAC Golf Tournament Thanks to 2015 Sponsors (as of 12/31/14)

Tournament Sponsors: Weyerhaeuser, Boise Cascade, Triple A Lumber

Moody Gardens Golf Course Wednesday, April 8 - $145 per person Includes $20 Mulligan and Lunch at the club - 11:30 am – 12:30 pm On the links from 12:45 – 5 pm

March 20, 2015 Deadline - Limited Space Available Name: ________________________________________________________ Company: _____________________________________________________ Must be a LAT member company - 2015 dues paid Home Address __________________________________________________ City, State, Zip: _________________________________________ Provide Fax or email for confirmation _________________________________ Email __________________________________________________________ Home address required to process registrations. It is for political action committee reporting and will not be used for any other purpose.

List team members you’d like to play with, along with each player’s handicap:

Name ___________________________________________________ Name ___________________________________________________ Name ___________________________________________________ Name ___________________________________________________

NO CORPORATE FUNDS! Only payable by personal check or credit card! Make checks payable to LUMPAC.

PAYMENT OPTIONS: Check enclosed Check #_____________ Charge $______ to: Visa Master Card AmEx Discover Card #: __________________________________ Exp: ________

Name on card;_________________________ Security Code: _____

Signature: ______________________________________________

Card Billing Address w/ Zip: ________________________________

Moody Gardens Golf Course is Galveston’s new premier public course. Fresh with a 16 million

dollar Jacobsen Hardy makeover, this seaside links coarse is ready to play. 500

palm trees line the lush fairway with Sydnor Bayou lapping at

the shore creating a relaxing & tropical golf experience.

Moody Gardens Golf Course is located at 1700 Sydnor Lane,

Galveston TX 77554 409-683-GOLF

Please go to www.moodygardensgolf.com

For directions

Fax form to 512-472-7378 or mail to LUMPAC

1016 La Posada Drive Suite 150 Austin, TX 78752

Questions? Call or email Craig

craig@lat.org/512-472-1194

No refunds after March 15, 2015

EXPECT GREAT THINGS at the 129th ANNUAL CONVENTION - APRIL 8-9, 2015

at the MOODY GARDENS RESORT HOTEL IN GALVESTON, TEXAS

Expect DYNAMIC, KNOWLEDGEABLE SPEAKERS TO INSPIRE YOU.

Expect TWO DAYS OF NETWORKING IN A VARIETY OF FORMATS

WITH THE FINEST SUPPLIERS and BUILDING MATERIAL DEALERS.

Expect A PERFECT MIX OF BUSINESS WITH PLEASURE …

ON THE GOLF COURSE … AT THE BUSINESS SESSIONS … and AT EVENING

PARTIES and ON THE AFTERNOON SHOW FLOOR with the BEST SUPPLIERS IN

TEXAS & LOUISIANA and TEXAS WOOD CRAFTSPEOPLE, and $5,000 in PRIZE$ for DEALERS …

WE’LL EXPECT TO SEE YOU THERE!

The Lumbermen’s Association of Texas & Louisiana serves quality building material dealers in Louisiana And Texas.

Office – 1016 La Posada Drive, Suite 150, Austin TX 78752 Phone – 512-472-1194 Fax – 512-472-7378 Web – www.lat.org

MOODY GARDENS HOTEL RESERVATION DEADLINE is MARCH 15, 2015. Hotel room rate is $149+tax / night. Free wifi, Free self-parking. Valet parking is $18 / night. CALL 888-388-8484 to make RESERVATIONS

before March 15. Specify for the $149 rate.

Tip of the Iceberg

Beware of hidden fee’s when telemarketers claim to have the

lowest rates.

Ask them tofax you theirStatement…

As quoted!

Then call our advisor, Sam Nardi to compare their best program to LAT’s. We provide a One Page

Transparent Statement with V/MC’s cost pass through with a small markup. Enrolled members enjoy

20 – 50% savings on their monthly fees. You can visit with Sam Nardi by calling @ 847-219-6711.

(TriSource Solutions LLC is a registered MSP/ISO for Merrick Bank Corp., Woodbury, NY 11797)

Tip of the Iceberg

Beware of hidden fee’s when telemarketers claim to have the

lowest rates.

Ask them tofax you theirStatement…

As quoted!

Then call our advisor, Sam Nardi to compare their best program to LAT’s. We provide a One Page

Transparent Statement with V/MC’s cost pass through with a small markup. Enrolled members enjoy

20 – 50% savings on their monthly fees. You can visit with Sam Nardi by calling @ 847-219-6711.

(TriSource Solutions LLC is a registered MSP/ISO for Merrick Bank Corp., Woodbury, NY 11797)

EXPECT GREAT THINGS at the 129th ANNUAL CONVENTION - APRIL 8-9, 2015

at the MOODY GARDENS RESORT HOTEL IN GALVESTON, TEXAS

Expect DYNAMIC, KNOWLEDGEABLE SPEAKERS TO INSPIRE YOU.

Expect TWO DAYS OF NETWORKING IN A VARIETY OF FORMATS

WITH THE FINEST SUPPLIERS and BUILDING MATERIAL DEALERS.

Expect A PERFECT MIX OF BUSINESS WITH PLEASURE …

ON THE GOLF COURSE … AT THE BUSINESS SESSIONS … and AT EVENING

PARTIES and ON THE AFTERNOON SHOW FLOOR with the BEST SUPPLIERS IN

TEXAS & LOUISIANA and TEXAS WOOD CRAFTSPEOPLE, and $5,000 in PRIZE$ for DEALERS …

WE’LL EXPECT TO SEE YOU THERE!

The Lumbermen’s Association of Texas & Louisiana serves quality building material dealers in Louisiana And Texas.

Office – 1016 La Posada Drive, Suite 150, Austin TX 78752 Phone – 512-472-1194 Fax – 512-472-7378 Web – www.lat.org

MOODY GARDENS HOTEL RESERVATION DEADLINE is MARCH 15, 2015. Hotel room rate is $149+tax / night. Free wifi, Free self-parking. Valet parking is $18 / night. CALL 888-388-8484 to make RESERVATIONS

before March 15. Specify for the $149 rate.

EXPECT GREAT THINGS at the

129th ANNUAL CONVENTION - APRIL 8-9, 2015 at the

MOODY GARDENS RESORT HOTEL IN GALVESTON, TEXAS

2015 SCHEDULE

Tuesday, april 7 EARLY ARRIVALS Arrive early & enjoy Galveston Island & Moody Gardens

wednesday, April 8 8 am–2 pm Registration Open 11:30 am–5 pm Lunch & Golf Tourney at Moody Gardens Golf Course

7-10 PM Welcome Beach Party at Palm Beach dress beach casual Music by the LINEUP BAND, Food, Drink & Golf Tournament Awards!

Thursday, April 9 7-10 am Exhibitor Move in & Set up 7 am-6 pm Registration Open

Expect DYNAMIC & KNOWLEDGEABLE SPEAKERS TO INSPIRE. 7:30–9 am Annual Membership / Board of Directors Meeting Breakfast Texas Legislative Update, National Update 9:30-11 am Making Social Media Work for Your Business - Crystal Washington

Google, Microsoft and GE book Crystal Washington when they want their teams to take action online. Crystal has a unique ability to take complex Web and social media topics and make them easy to understand and accessible for everyday people and small business owners. Crystal will tell you how to make Facebook, Twitter, LinkedIn and YouTube work for YOUR business. She hosts a weekly technology segment on Houston’s Fox television affiliate. She has been interviewed by ABC, NBC, FOX, CBS, Associated Press, and numerous magazines around the globe as a social media expert. Prepare for a DYNAMIC, ENTERTAINING & INFORMATIVE session!

11:30 – 12:30 Lunch in the Exhibits Noon–4:30 pm LUMPAC SILENT AUCTION OPEN in Exhibits 12:30-5 pm Networking with Exhibitors & Hourly Prizes for Dealers - $500 at 2, $1000 at 3, $1500 at 4 & $2000 at 5 pm! 5 – 9 pm Exhibitor move out 7-10 pm Closing Party in the Aquarium dress beach casual Music & Dinner with the Fishes ENJOY A SAFE DRIVE HOME ON FRIDAY & ENJOY YOUR WEEKEND!

The Lumbermen’s Association of Texas & Louisiana serves quality building material dealers in Louisiana And Texas. Office – 1016 La Posada Drive, Suite 150, Austin TX 78752

Phone – 512-472-1194 Fax – 512-472-7378 Web – www.lat.org

The 2015 LUMPAC Silent Auction

The 18th annual LUMPAC Silent Auction will be featured in the exhibits Thursday afternoon, April 9, 2015, in Galveston, Texas. It’s FUN for ALL …AND benefits LUMPAC -

THE Voice of the Lumber & Building Material Industry in the Texas Legislature. Contribute something and join in the bidding fun!

LUMPAC contributed more than $120,000 to Texas campaigns in the past five years. We need your help to replenish those funds for 2015.

Stumped as to what to donate? We can help!

Just mail a personal check payable to LUMPAC and we’ll do the shopping for you. Please notify us in advance, if you’re planning on sending or bringing something to the show.

Delivery of livestock or large items should be arranged with the winning bidders after the auction – just bring pictures & descriptions for the silent auction display.

Contributions from INDIVIDUALS ONLY will be accepted.

State & federal laws governing PACs prohibit corporate contributions to political action committees. ________________________________________________________________________________________________

ALL contributions will be displayed & up for bid at the 2015 Convention in Galveston, Texas!

Please provide: 1.The reasonable value of your donation? $____ If you require a minimum bid, note amount here: $_____ 2. Description of your donated item(s): Please provide detailed information about your item(s) consigned to the LUMPAC Silent Auction. If it pertains to an event or facility, include dates, times, specific location, exact number of persons provided for, if transportation and/or meals are included.

______________________________________________________________________________________ ______________________________________________________________________________________

Donor’s Name: ________________________________________________Company: __________________________ Home Address: ______________________________________________________________City, ST, Zip: _________ Phone: __________________ Fax: _________________ E-mail: __________________________________________ LUMPAC receives 100% of the proceeds from individual contributions. LUMPAC receives only the amount over the reasonable value of the item(s) from corporate contributions. Every contribution is greatly appreciated, but due to the ramifications of state laws, individual contributions are preferred.

Complete & return this form ASAP – to:

LAT - 1016 La Posada Drive, Suite 150 ~ Austin, TX 78752

Phone: 800/749-5862 or 512/472-1194 / Fax: 512/472-7378 / E-mail: craig@lat.org

Successful items include: sporting, hunting, fishing gear, gift baskets, home décor, jewelry, toys, books, art, furniture, electronics, weekend getaways, sports collectibles, game tickets, gift certificates, even livestock!

2015 EXHIBITORS: as of 12/31/2014

7D Wholesale ABS – American Building Supply

Automatic Payroll Systems BlueTarp Financial Boise Cascade

Cedar Supply Center-Line Trailers Denver Southwest

Dixie Plywood & Lumber DMSi Software DoItBest

DW Distribution Gaiennie Lumber Georgia Pacific Wood Products

GRK Fasteners HDW Holland Southwest Intl.

Hoover Treated Wood Products Huttig Building Products

Klumb Forest Products Lignum Forest Products

Lumber Insurance Service Milgard Windows & Doors Orgill

Pacific MDF Products PLM/ILM Insurance

PrimeSource Building Products RoyOMartin Seneca Sawmill

Snavely Forest Products Southwest Moulding

Spruce Computer Systems TimberTech Products True Value

W. W. Cannon Weyerhaeuser … AND MORE TO BE ANNOUNCED!

EXPECT GREAT

THINGS !

MOODY GARDENS HOTEL RESERVATION DEADLINE is MARCH 15! Hotel room rate is $149+tax/night. Free wifi, Free self-parking. Valet parking $18/night. CALL 888-388-8484 to make RESERVATIONS before March 15.

Specify for the $149 rate.

THANKS to 2015 CONVENTION SPONSORS: as of 12/31/14

American Building Supply Boise Cascade Builders FirstSource

Dr. Ike's Home Centers Huttig Building Products

Lumber Insurance Services McCoy’s Building Supply Morton Lumber

RoyOMartin Triple A Lumber Weyerhaeuser Thanks to these companies, all convention event prices remain low for all attendees!

MEMBER EXPECTATIONS FOR 2015

From LAT President Ted Galbraith, Foxworth Galbraith Lumber Despite the 20 -30 % increase many economists have projected since 2009, we believe we will see a 8% increase in revenue with 4% increase in demand. The difference being commodity inflation. Dealers will feel pressure to keep costs low…but that has always been true for our industry. Employees will continue to multitask. According to the National Association of Homebuilders: Housing isn’t staging a more vigorous recovery because for every plus, there’s a minus. Mortgage rates are low, but lending standards remain extremely tough. Rising home prices are gladdening the hearts of homeowners, but they’re making it hard for first-time buyers to break into the market. The economy is getting stronger, which helps buyers, but it also raises the cost of labor and materials. And if the economy gets much stronger, market forces and Federal Reserve actions could start to drive up mortgage rates. From LAT President-elect Brian F. McCoy, McCoy’s Building Supply We are coming off a solid year of sales in most of our markets. And we’re grateful to be in Texas, as most of our ‘out of Texas’ locations have not experienced the rebound in sales in recent years. We are very concerned about the dramatic decrease in oil and gas prices in recent weeks and months. No doubt consumers are benefitting, and perhaps that will help offset some of the impact that will surely be felt in producing areas of the State. Low unemployment and a diversified economy will hopefully help our industry in 2015. Our builder customers remain largely optimistic going into the New Year. We hope to continue to earn back business from Home Depot and Lowes in the repair/remodel part of our business, mostly though better service and in product categories in which we can perform better than the box stores. From Immediate Past President John Jones, Cassity Jones Lumber 2014 was a good sales year for us with the largest increases coming from our largest markets. Our small market yards have increased, just not as much. We are forecasting business in 2015 to be only slightly up from 2014. There will be some downward pressure from our east Texas markets due to the oil price drop. We are hoping the positive pressure of pent-up demand from the last 6 years will offset that. Generally, we believe the trend is heading upward for the next several years. We feel very blessed to be living and serving in Texas. From LAT Treasurer Aaron Elliott, President, DW Distribution We believe our industry is entering an exciting time for growth in our industry through 2015 – 2017 with 9-10% growth each year on a national basis. As for Texas, we have been in a great position for quite some time and we believe there are several economic factors still working in our favor. That being said, the impact of the drop in oil will have a slowdown effect in certain markets and that is sure to spill over to many other markets in Texas as it is such a “driver” to our economy. The big question is at what point do prices rebound? We follow a certain economist who has proven to be very accurate and very effective. He admits that the drop in oil caught him by surprise due to the amount and the short time period. However, he does believe it will rebound in the beginning of 2015 and that should again put additional “lift” into the Texas market.

The Lumbermen’s Association of Texas & Louisiana serves quality building material dealers in Louisiana And Texas. Office – 1016 La Posada Drive, Suite 150, Austin TX 78752

Phone – 512-472-1194 Fax – 512-472-7378 Web – www.lat.org

LEGISLATIVE NEWS – TEXAS Texas legislatators began pre-filing legislation for the 2015 Texas Session in November, 2014. Of interest to LAT members should be bills filed in the House (by Trey Martinez Fischer) and in the Senate (by Rodney Ellis) to increase the state minimum wage to $10.10/hour or equal to the federal minimum wage (currently $7.25/hour). Two Senate bills have been filed by Estes and Perry to repeal the state franchise tax. And, HB 102 by Allen Fletcher adds Cargo Theft to Organized retail crime and increases penalties for anyone involved in cargo theft (drivers, storage facilities, etc.). This is one that LAT will certainly support, with an additional late train LUMPAC contribution to Rep. Fletcher before the December 13 deadline. By the time the filing deadline rolls around on March 13 there will be thousands of bills filed in both the House and Senate. Staff will continue to monitor these, and report on those that impact our members.

WATCH FOR WEEKLY EMAIL UPDATES FROM LAT ON CURRENT LEGISLATION WE ARE MONITORING AND/OR ACTING ON FOR YOU!

TEXAS LEGISLATIVE SESSION DATES: Tuesday, January 13, 2015 Regular Session Begins 84th Legislature convenes at noon Friday, March 13, 2015 (60th day) Deadline for filing bills and joint resolutions other than local bills, emergency appropriations, and bills that have been declared an emergency by the governor Monday, June 1, 2015 (140th day) Last day of 84th Regular Session; corrections only in house and senate Regular Session Ends Sunday, June 21, 2015 (20th day following final adjournment) Last day governor can sign or veto bills passed during the regular legislative session Monday, August 31, 2015 (91st day following final adjournment) Date that bills without specific effective dates (that could not be effective immediately) become law

AWARD NOMINATION FORMS were sent to all members

in December in your EMAIL NEWS. They are also available on the website. www.lat.org/member-resources/industry-links or contact your LAT staff for a copy to be mailed or faxed to you. February 1

deadline to submit your nominations for the Texas / Louisiana lumber dealer and Associate member of the year!

The Lumbermen’s Association of Texas & Louisiana serves quality building material dealers in Louisiana And Texas. Office – 1016 La Posada Drive, Suite 150, Austin TX 78752

Phone – 512-472-1194 Fax – 512-472-7378 Web – www.lat.org

BUILDING NEWS – TEXAS Since late 2013, months of inventory has been less than four months in Texas, indicating a very tight housing Market that puts upward pressure on home prices. The demand for homes has far outpaced the supply, especially in the major MSAs such as Austin and Houston. The development of lots and limited labor for new home construction have affected the supply of Texas homes for sale. Source: “Balancing Act: What is a Normal Market” by James Gaines, Real Estate Center at Texas A&M University

& LOUISIANA According to the National Association of Home Builders, in late December, homebuilders should have a good year in 2015,as pent-up demand, continued low mortgage rates, improved employment rates and a growing economy are forecast. The home builders group is expecting a 26% increase in single-family home construction in 2015, reaching more than 800,000 units. For 2014, single-family home production was expected to end the year with a 2.5 percent increase to 637,000 units. By 2016, construction on 1.1 million new single-family homes is expected. Using a benchmark for normal activity before the Great Recession, the number of single family homes built in the 2000-2003 period was 1.3 million a year. The housing market bottomed out in 2009 when there was only 27 percent of normal activity. Job growth is expected to be strong, with many young people who had delayed buying – and possibly moved back home or doubled up in rented apartments to save money – now ready to buy their own homes. The housing recovery will continue to vary by state and region, with those areas with highest employment levels recovering the fastest. Texas and Louisiana are two of the Middle America states experiencing economic revival through energy production, along with North Dakota, Oklahoma and Wyoming, and they are also seeing the strongest comebacks in their housing markets. The top 10 major cities in our two states topping the Leading Markets Index list in housing growth are: 1. Baton Rouge, La. 2. Austin, Texas 5. Houston, Texas 9. New Orleans, La. Among smaller market areas in TX & LA –with populations less than 500,000 – those with the strongest home building growth are: 1. Midland, Texas 2. Odessa, Texas 6. Johnson City, Texas 7. Abilene, Texas 8. Corpus Christi, Texas 10. Lafayette, La.

MORE MEMBER NEWS WELCOME NEW MEMBERS! The following companies joined in December 2014: Southwest Assurance Group is based in Bedford Texas, Charlie Miller is President. 2350 Airport Freeway, Suite 202, Bedford, TX 76022 Phone 817-329-7007 email cmiller @swagdfw.com Seneca Sawmills is in Eugene, Oregon. www.senecasawmill.com

NEWS Your National association is working on the 2015 National Policy Agenda in preparation for the NLBMDA Annual Legislative Conference to be held in Washington, DC, this March 23-25, at the Renaissance Dupont Circle Hotel. For more information, and to register and be a voice to YOUR congress people for this important annual event, go to www.dealer.org

THESE ARE THE ISSUES NLBMDA WILL BE WORKING ON FOR YOU THIS YEAR IN WASHINGTON, DC (This is from a draft copy staff was working on at the time of this newsletter printing): HOUSING & CONSTRUCTION Lumber and building material dealers play a critical role in home ownership and advancing affordable housing as suppliers to the building industry. As the housing market continues to grow, it is imperative that government intervention not jeopardize our economic viability. Sound fiscal policies are needed to ensure homebuyer confidence and to spur lending that will facilitate new construction activity. Incentives for energy-efficient home improvements can be a powerful tool to restore jobs across the housing sector. NLBMDA will continue to work with policymakers to support responsible homeownership and lending practices that promote and preserve the value of home ownership. We support reinstating higher conforming loan limits for Fannie Mae, Freddie Mac and FHA-insured home loans for greater mortgage liquidity and better certainty for the housing market. We believe that the Department of Housing and Urban Development (HUD) must continue to provide support for struggling and prospective home buyers, and we support adequate funding for its grant and loan programs. We will also continue to advocate for disaster recovery assistance to help homeowners and businesses recover from national disasters. GREEN BUILDING Building material dealers occupy a unique place between manufacturers, builders and homeowners and are well-situated to bring new technologies and environmentally preferred products into the supply chain. NLBMDA members increasingly participate in the residential green building movement as they respond to the growing interest in environmentally friendly building materials. Demand for green building products continues to increase. NLBMDA supports responsible forestry practices and our members are committed to sourcing products from sustainably managed forests. We believe that the various, commonly-recognized forest management certification bodies for North America serve as exemplary regimes and support the development and use of an “eco-label” on wood products to more readily identify them as responsibly-sourced and appropriate green building products. Green building provides an opportunity to promote wood as the most sustainable and "green" choice for construction and rating systems play an important role. We believe that the market will determine which program or programs are preferable for certain applications and are concerned that stifling competition in this rapidly developing field could have unintended consequences of limiting further innovation. We urge Congress to continue supporting green building without imposing mandates that give preference to only one green rating system. BUILDING CODES Building material dealers strive to bring the latest product innovations to market and must maintain knowledge of the latest developments in homebuilding technology and building codes. NLBMDA will work with the International Code Council (ICC), National Institute of Building Sciences (NIBS) and other relevant bodies to provide feedback on building codes that impact housing affordability. It is important that code and policy changes provide meaningful safety or environmental benefits and reflect sound science and industry best practices. TAX AND ECONOMIC POLICY Comprehensive tax reform is needed to restore the competitiveness of America’s small businesses. We oppose efforts to repeal the mortgage interest deduction, which would have an adverse effect on the entire housing market, potentially reducing home values and slowing sales. With many building material dealers organized as pass-through entities, such as S-Corporations, partnerships and sole proprietorships, their ability to access capital is severely impaired by the current tax code. Any tax reform proposal must consider the impact that individual income tax rates have on the many small businesses in the lumber and building material industry structured as pass-through entities. NLBMDA continues to maintain that tax incentives must be made permanent to reduce the lingering uncertainty for business owners. Building material dealers are also concerned that proposed accounting changes and the looming Social Security crisis could undermine economic growth and increase the tax burden on employers.

continued LEGAL REFORM While significant legal system reforms have been enacted over the past decade, there are still several areas where lawsuit abuse continues to threaten legitimate business activity, such as the sale of products at the retail level. In these instances, unfounded and unfair lawsuits are increasing and they are crippling the ability of dealers to run their businesses. Surveys of NLBMDA members show that more than 1 in 4 have been the subject of a lawsuit over a product they sold but did not manufacture, alter, or install. Under current law, sellers can be equally and wholly liable for damages regardless of any wrongdoing. According to Small Business Administration, it can cost as much as $100,000 to defend against a predatory lawsuit, which often forces dealers to settle the suit regardless of the merit of the case. These frivolous claims drive up the costs of insurance and force small business owners to spend time away from their daily operations. While some states have enacted product seller protections, a federal standard is needed to provide uniformity and protect building material dealers and other similar types of businesses who operate across state lines. Frivolous lawsuits can also be reduced through strengthening of Rule 11 of the Federal Rules of Civil Procedure, to ensure adequate enforcement and levying of sanctions against attorneys who repeatedly file baseless claims that clog up our courts and waste defendants’ time and resources. Moreover, NLBMDA will oppose any efforts to repeal previously enacted legal protections, including class action reform, or to otherwise subvert the legislative process to create new or expanded causes of action. CONSUMER PROTECTION NLBMDA supports reasonable protections for consumers and homeowners. Identity theft is a legitimate concern for consumers and businesses alike. Building material dealers have established relationships with contractors and customers in their communities, and as businesses, they have traditionally been identified as “low risk” entities in relation to identity theft. Yet increased regulations often impose costly and time-consuming administrative burdens on businesses such as dealers. Identity theft prevention measures should be flexible and easy for small businesses and building material dealers to administer. Bankruptcy reforms enacted in 2005 must not be undone in a misguided attempt to enable judges to alter the terms of mortgages during bankruptcy proceedings. Prior to the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, building material dealers were frequently left with uncollectable accounts after a homeowner or builder filed for bankruptcy. Allowing judges to alter mortgages after the fact would cause greater instability in the mortgage market and make it even more difficult for prospective buyers to obtain favorable mortgage terms. Consumer protection also extends to the convenience of electronic commerce. Building material dealers also oppose efforts to increase the cap on debit card fees, which have helped not only retailers, but also consumers save money. HEALTH CARE The Patient Protection and Affordable Care Act imposed significant new mandates on employers who already struggle to provide affordable healthcare benefits to their employees. A 2010 survey of building material dealers found that a majority are less likely to hire new employees as a direct result of the healthcare mandate. Unfortunately, the small business relief contained in the Act is targeted to only the smallest of businesses, leaving out the majority of building material dealers. NLBMDA will work with the broader business community to identify and seek to repeal and/or reform the more onerous portions of the law. NLBMDA also supports efforts to repeal annual limits on flexible spending accounts (FSAs) and other valuable pre-tax saving options for employees. DEMOCRACY IN THE WORKPLACE NLBMDA continues to oppose any efforts to roll back workers’ rights to secret ballot elections in determining union representation. As the National Labor Relations Board (NLRB) has announced plans to revisit a number of prior decisions impacting employers’ rights to communicate with their employees during union organizing activities, NLBMDA will continue to monitor legislative and regulatory activity on collective bargaining. NLBMDA also opposes labor interests’ efforts to seek mandatory, binding arbitration in union contract negotiations which will restrict the ability of employers and employees to negotiate mutually acceptable employment terms. IMMIGRATION REFORM Immigration reform continues to be a hot button issue before Congress and state governments, and presents many challenges for the lumber and building material industry and the entire construction sector. At the heart of the debate is the proper balance between protection of national security and the need to ensure that employers continue to have access to a steady pool of available workers. Recent reform proposals would have imposed significant time and

continued LEGAL REFORM While significant legal system reforms have been enacted over the past decade, there are still several areas where lawsuit abuse continues to threaten legitimate business activity, such as the sale of products at the retail level. In these instances, unfounded and unfair lawsuits are increasing and they are crippling the ability of dealers to run their businesses. Surveys of NLBMDA members show that more than 1 in 4 have been the subject of a lawsuit over a product they sold but did not manufacture, alter, or install. Under current law, sellers can be equally and wholly liable for damages regardless of any wrongdoing. According to Small Business Administration, it can cost as much as $100,000 to defend against a predatory lawsuit, which often forces dealers to settle the suit regardless of the merit of the case. These frivolous claims drive up the costs of insurance and force small business owners to spend time away from their daily operations. While some states have enacted product seller protections, a federal standard is needed to provide uniformity and protect building material dealers and other similar types of businesses who operate across state lines. Frivolous lawsuits can also be reduced through strengthening of Rule 11 of the Federal Rules of Civil Procedure, to ensure adequate enforcement and levying of sanctions against attorneys who repeatedly file baseless claims that clog up our courts and waste defendants’ time and resources. Moreover, NLBMDA will oppose any efforts to repeal previously enacted legal protections, including class action reform, or to otherwise subvert the legislative process to create new or expanded causes of action. CONSUMER PROTECTION NLBMDA supports reasonable protections for consumers and homeowners. Identity theft is a legitimate concern for consumers and businesses alike. Building material dealers have established relationships with contractors and customers in their communities, and as businesses, they have traditionally been identified as “low risk” entities in relation to identity theft. Yet increased regulations often impose costly and time-consuming administrative burdens on businesses such as dealers. Identity theft prevention measures should be flexible and easy for small businesses and building material dealers to administer. Bankruptcy reforms enacted in 2005 must not be undone in a misguided attempt to enable judges to alter the terms of mortgages during bankruptcy proceedings. Prior to the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, building material dealers were frequently left with uncollectable accounts after a homeowner or builder filed for bankruptcy. Allowing judges to alter mortgages after the fact would cause greater instability in the mortgage market and make it even more difficult for prospective buyers to obtain favorable mortgage terms. Consumer protection also extends to the convenience of electronic commerce. Building material dealers also oppose efforts to increase the cap on debit card fees, which have helped not only retailers, but also consumers save money. HEALTH CARE The Patient Protection and Affordable Care Act imposed significant new mandates on employers who already struggle to provide affordable healthcare benefits to their employees. A 2010 survey of building material dealers found that a majority are less likely to hire new employees as a direct result of the healthcare mandate. Unfortunately, the small business relief contained in the Act is targeted to only the smallest of businesses, leaving out the majority of building material dealers. NLBMDA will work with the broader business community to identify and seek to repeal and/or reform the more onerous portions of the law. NLBMDA also supports efforts to repeal annual limits on flexible spending accounts (FSAs) and other valuable pre-tax saving options for employees. DEMOCRACY IN THE WORKPLACE NLBMDA continues to oppose any efforts to roll back workers’ rights to secret ballot elections in determining union representation. As the National Labor Relations Board (NLRB) has announced plans to revisit a number of prior decisions impacting employers’ rights to communicate with their employees during union organizing activities, NLBMDA will continue to monitor legislative and regulatory activity on collective bargaining. NLBMDA also opposes labor interests’ efforts to seek mandatory, binding arbitration in union contract negotiations which will restrict the ability of employers and employees to negotiate mutually acceptable employment terms. IMMIGRATION REFORM Immigration reform continues to be a hot button issue before Congress and state governments, and presents many challenges for the lumber and building material industry and the entire construction sector. At the heart of the debate is the proper balance between protection of national security and the need to ensure that employers continue to have access to a steady pool of available workers. Recent reform proposals would have imposed significant time and

continued paperwork costs on employers and could have led to extreme labor shortages, posing a threat to the strength of the construction sector. While NLBMDA believes that our nation’s immigration system is in critical need of reform, we are also concerned that policies could place an undue burden on employers and would expose them to significant liability by forcing employers to certify the work eligibility of their employees without government-provided tools that ensure accuracy. Sanctions against employers should be reserved for intentional violations of the law, and employers should be provided adequate resources to assess their hiring practices and comply with all current and future requirements. FAMILY & MEDICAL LEAVE POLICIES The lumber and building material industry is composed of many small and family-owned businesses who seek to provide the best possible work environments to retain employees in today’s competitive environment. Proposals to expand the Family Medical Leave Act (FMLA) and/or impose mandatory paid sick leave would create considerable burdens on small businesses in the lumber and building material industry. Government mandates take away employers’ and employees’ ability to negotiate flexible benefits packages and increase the time, paperwork and cost of complying with labor laws. ENVIRONMENTAL REGULATION NLBMDA and the lumber and building material industry understand the need to reasonably ensure the safety and health of our customers, homeowners and contractors. Moreover, we are concerned about the increased use of “sue and settle” tactics that circumvent the traditional rulemaking process and force overly burdensome regulations onto businesses. Unfortunately, federal agencies have undertaken aggressive rulemaking that over-regulates our businesses with little or no demonstrated health benefits. For example, the EPA’s rush to promulgate and enforce the Lead: Renovation, Repair and Painting (LRRP) Rule in 2010 significantly hampered our industry. Lack of training opportunities, unreasonable requirements such as the removal of the “Opt Out” clause after the rule took effect, and lack of accurate test kits all severely impacted dealers, whether they have installed sales operations or not. Dealers lost business at a time when the economy most needed home remodeling to help add jobs and economic activity. Dealers were also forced to educate their customers about the Rule in the absence of adequate education by the EPA. Moreover, the Agency’s failure to supply accurate test kits to comply with the Rule exposes building material dealers to undue liability. NLBMDA continues to monitor implementation of the LRRP Rule to ensure that the impacts on the lumber and building material industry and home remodeling sector are considered. NLBMDA will also work with the appropriate oversight committees to seek legislative assistance when needed to reduce the compliance burden on the industry. SAFETY & TRAINING The Small Business Administration Office of Advocacy estimates our federal regulatory system costs employers $1 trillion annually, with a disproportionate share of that burden falling on small and mid-size businesses. Our industry is closely regulated by OSHA. NLBMDA will continue to provide the latest compliance materials to dealers to help them meet the various requirements under OSHA regulations. Dealers, primarily small businesses, have a vested interest in protecting the health and safety of their employees at their yards and on the road, as lost time due to injury impacts the employee and employer alike. The recordkeeping and training requirements mandated by OSHA and other agencies can pose a significant cost burden on employers. Other OSHA regulatory efforts can be overly-broad, covering activities that do not create the risks or hazards intended to be addressed, or overly-complicated, making compliance expensive and enforcement difficult and ambiguous. NLBMDA believes such mandates must be carefully reviewed to ensure new regulations balance the need to promote safety with the time and cost burden of compliance. NLBMDA continues to work in partnership with OSHA to improve communication and provide compliance assistance with the lumber and building material industry. PRODUCT SUPPLY Lumber makes up the largest single product category supplied by building material dealers, and NLBMDA has long had an interest in supporting a stable supply of domestic and foreign wood products needed to supply our nation’s homebuilders and construction sector. NLBMDA supports responsible forest management policies that promote the environmental sustainability of wood as a resource and maintain the health and continued viability of our nation’s federal forests. While we support the goals of the Endangered Species Act, Clean Water Act and other major environmental programs, we believe that private property rights must be protected and balanced with environmental objectives. We

continued support cooperative efforts between industry and governmental agencies to work proactively to ensure the environmental and ecological health of forests and private lands. The industry is actively engaged with forest certification issues and green building programs that promote wood as an environmentally preferable building product and works in tandem with forest product and building supply manufacturers to bring certified building products into the supply chain. We believe the carbon capture potential of appropriately managed forest lands is a strong endorsement for increased emphasis on certified wood use in green construction. Design values for dimensional lumber have long played an important role in ensuring safe and lasting construction. NLBMDA supports appropriate established and timed design value changes such that no change will threaten the current use or inventory of any species or dimension. Sudden changes in these design values without an open, consistent and transparent process can lead to great uncertainty in the marketplace and unanticipated liability for dealers. A change in design values without an appropriate period of time for the marketplace to adjust threatens to devalue the lumber inventory and creates unnecessary stress on all members of the supply. TRADE Restrictions on access to domestic timber has made lumber and building material dealers increasingly reliant on imports from Canada and other nations, with as much as one-third of the framing lumber used in the U.S. coming from Canada each year. The species of wood imported from Canada, and required for framing in many parts of the U.S., is not available in sufficient quantities domestically. Likewise, materials must be imported from Europe and Central and South America to meet our builders’ demand and homeowners’ expectations. Even in challenging economic times, we cannot meet this demand with domestic products alone. While we believe that fair trade policies must be adhered to, to ensure a reasonably level playing field for domestic and foreign manufacturers, we oppose tariffs and other restrictions that serve only to restrict availability and increase costs to U.S. consumers. We also continue to oppose attempts to reinstate the Continued Dumping and Subsidy Offset Act (CDSOA), which provides a cash incentive for the filing of trade actions and has been ruled in violation of NAFTA and the WTO. ENERGY Building material dealers rely on access to affordable fuels to transport products and make deliveries to customers and job-sites. Volatility in the price of fuel is an additional burden the industry can ill afford in the current economic circumstances. The flawed “cap-and-trade” approach to regulate emissions and impose a carbon tax is of grave concern to building material dealers, where additional costs are passed on to the consumer and impact housing affordability. NLBMDA’s members believe that Congress must pragmatically seek to increase the availability of our domestic energy resources to stabilize fuel price fluctuations that undercut our economic recovery. Moreover, comprehensive energy legislation should emphasize the energy efficiency gains that can be achieved through voluntary incentives for homeowners, commercial building owners and builders and not through federal mandates that infringe upon the current consensus-based model code process. As Congress explores alternative fuel sources, NLBMDA encourages Congress to provide favorable tax treatment for forest products biomass initiatives, which support maximum utilization of our timber resources and reduce our reliance on fossil fuels. NLBMDA continues to support policies that promote energy-efficiency in residential and commercial construction, and tax credits and other incentives for consumers who purchase energy-efficient appliances and materials. TRANSPORTATION The lumber and building material industry relies on the ability to receive inventory in a timely manner and to make on-time deliveries to our customers. The deteriorating infrastructure and heavy congestion on our nation’s roads and rails is a growing threat to the industry. In many small towns and regions of the country, rail service is not an option, which forces more building material freight onto federal highways and local roads. Nearly 90 % of NLBMDA members report congestion as a significant burden to their operations. The current size and weight restrictions for commercial trucks often results in partially filled vehicles on the road, costing time and money and increasing the amount of pollution per vehicle miles traveled. NLBMDA believes that the federal maximum weight limit for tractor trailers should be increased, coupled with an additional axle to improve safety, in order to more efficiently move freight on our roads. Currently, the patchwork of various state weight limits, and higher limits for trucks in Canada and Mexico, makes shipping logistics unnecessarily complex.

continued HIGHWAY SAFETY The Federal Motor Carrier Safety Administration does not differentiate between long haul and local carriers when drafting or enforcing safety regulations, which requires building material dealers to expend considerable time and effort to ensure they are in compliance with all relevant regulations. While building material dealers place considerable emphasis on driver training, drivers are also salespeople and product experts for whom driving is often only a portion of their job responsibilities. Compliance information must be made more readily available and user-friendly to support non-trucking businesses in understanding their obligations. Likewise, new training requirements and safety regulations must be developed with consideration of their applicability to short haul carriers.

The Lumbermen’s Association of Texas & Louisiana serves quality building material dealers in Louisiana And Texas. Office – 1016 La Posada Drive, Suite 150, Austin TX 78752

Phone – 512-472-1194 Fax – 512-472-7378 Web – www.lat.org

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continued HIGHWAY SAFETY The Federal Motor Carrier Safety Administration does not differentiate between long haul and local carriers when drafting or enforcing safety regulations, which requires building material dealers to expend considerable time and effort to ensure they are in compliance with all relevant regulations. While building material dealers place considerable emphasis on driver training, drivers are also salespeople and product experts for whom driving is often only a portion of their job responsibilities. Compliance information must be made more readily available and user-friendly to support non-trucking businesses in understanding their obligations. Likewise, new training requirements and safety regulations must be developed with consideration of their applicability to short haul carriers.

The Lumbermen’s Association of Texas & Louisiana serves quality building material dealers in Louisiana And Texas. Office – 1016 La Posada Drive, Suite 150, Austin TX 78752

Phone – 512-472-1194 Fax – 512-472-7378 Web – www.lat.org

Network with Suppliers & Dealers - $5,000 in Cash Prizes for attending Dealers! Golf! Two Great Evening Parties – on the Beach AND in the Aquarium! Free Self Parking

ATTENDEE / RETAIL DEALER REGISTRATION FORM Name: ________________________________________ Spouse/Guest: _______________________________________

Children:_____________________________ / ______________________________ / ____________________________

Company: ____________________________________ Address: _____________________________________________

City: ____________ State:___ Zip:______ Email:_________________ Phone: ______________ Fax: ________________

PRE-REGISTRATION FEE for DEALERS, spouses/guests, children Includes admittance to Exhibits Lunch AND Networking Thursday afternoon – sign up for ALL events below $20 per person…………………………………………………………………………………………………..……………………….. x ___ = $_____ # of registrants

EVENT pre-registration FEES: $ave by registering early – higher onsite fees for all events in effect after March 15

Wednesday, April 8 Golfers - Register on separate LUMPAC GOLF form 7 – 10 pm Party on Palm Beach ….… dress – beach casual ……….……………….………..$60 per person…….......x___ …………….…………$_____ includes transportation to & from hotel to Palm Beach & Hotel, drinks, dinner & music # of registrants

Thursday, April 9 7:30 -9 am Board of Directors & Annual Membership Meeting Breakfast ……………………..$30 per person……….x ___=………………….$_____ includes National Update & Texas Legislature Update # of registrants 9:30–11 am Making Social Media Work for Your Business……..…………………………………..$40 per person.……… x ___=……………….….$_____ # of registrants 7 – 10 pm Dinner in the Aquarium dress – beach formal (shoes required)…………………..$60 per person….……x ___ =………………….$_____

Drinks & Music too! # of registrants

TOTAL AMOUNT DUE………………………………..…………………………………… $ _____ PAYMENT OPTIONS Check enclosed Visa MasterCard Amex Card # _______________________________ Exp. Date_____ Security Code_____ Name on card ____________________________ Signature: _______________________ Billing Address of Card w/ Zip Code_____________________________________________

No refunds after April 1, 2015. Refunds requested before April 1, 2015 subject to $50 administrative fee. Fax – 512-472-7378 or mail to LAT ~ 1016 La Posada Drive Ste 150. ~ Austin, TX 78752 ~ 512-472-1194

Make your hotel reservations at the Moody Gardens Resort BY MARCH 15 – Call 888-388-8484 and note LAT for the $149 daily rate.

ATTENDEE REGISTRATION -

2015 Convention at Moody Gardens Resort & Convention Center – Galveston, Texas– April 8-9, 2015 PRE REGISTER BY MARCH 15!

2015 Convention SPONSORSHIPS Please sign up promptly so we can begin promoting your generosity right away! Sponsors as of 12/31/14

Be a STAR with All sponsorships include recognition on the LAT website, in the convention program, in weekly e-blasts, the LAT TODAY newsletter before and after the

convention, as well as recognition at each event sponsored on signs or printed materials. Non-exhibiting companies are welcome to sponsor as well.

Wednesday Afternoon GOLF TOURNAMENT at Moody Gardens Golf Club $ 2500 Tournament Sponsor Builders FirstSource Weyerhaeuser (2 - Filled) ___ $ 1500 Lunch Sponsor (2 Available) ___ $ 750 Hole Sponsor Boise Cascade Triple A Lumber (18 Available)

Wednesday evening WELCOME BEACH PARTY at Moody Gardens’ Palm Beach $ 2500 LIS, Morton Lumber, RoyOMArtin (3 - Filled) Sponsorships include 2 tickets to event & Your company’s recognition at the event

Thursday, April 9 BOARD OF DIRECTORS & ANNUAL MEMBERSHIP Breakfast MEETING $ 800 LIS RoyOMartin (2 - Filled) Sponsorships include 2 tickets to event & Your company’s recognition at the event

Thursday Business Session - Social Networking & Your Business with Crystal Washington ___$ 1750 Morton Lumber RoyOMartin)(4 Available) Sponsorships include 2 tickets to events & recognition at the session

Thursday Lunch in the Exhibits ___$ 900 American Building Supply Dr. Ike’s Home Center RoyOMartin (5 Available) Sponsorships include Your company name on each lunch table sign

Thursday evening Aquarium Dinner Party Honoring outgoing president Ted Galbraith, president-elect Brian McCoy & annual awardees $ 2000 Boise Cascade LIS Weyerhaeuser (3 - Filled) Sponsorships include 4 tickets to event Lanyard Sponsor Huttig Building Products $500 Sponsor must supply 500 lanyards with their own company logo to LAT Staff on Wednesday, April 8.

THANK YOU for your sponsor commitment. Please return completed form to LAT asap so we can recognize your generosity early and often.

FAX to 512-472-7378 / EMAIL to Craig@lat.org / Mail to LAT – 1016 La Posada Drive Suite 150, Austin, TX 78752

SIGN US UP for the sponsorship(s) checked below: Company :__________________________________ Contact Name:______________________________ Email:_______________________ Phone:___________________ Fax:__________________ ___ Check enclosed / ___ to be mailed separately ___Invoice me

Golf is a fundraiser for LUMPAC, ‘s Political Action Committee. Sponsorships pay for green fees, and prizes, so all individual registrations benefit LUMPAC.

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Contact Gina O’Hara at (512) 330-9836, ext. 6324 or email gina@txconstructionwc.com. Visit us at www.txconstructionwc.com.

1016 La Posada Drive Suite 150 Austin Texas 78752

Serving quality building material dealers in Louisiana AND Texas

SAVE THESE 2015 DATES!

March 23-25 Legislative Conference, Renaissance Dupont Circle Hotel, Washington, DC.

April 8-9 129th annual convention Moody Gardens Resort & Convention Center, Galveston, TX

September 22-23 FALL MEETINGS, Embassy Suites, San Marco, TXs

1016 La Posada Drive Suite 150 Austin Texas 78752

Serving quality building material dealers in Louisiana AND Texas

SAVE THESE 2015 DATES!

March 23-25 Legislative Conference, Renaissance Dupont Circle Hotel, Washington, DC.

April 8-9 129th annual convention Moody Gardens Resort & Convention Center, Galveston, TX

September 22-23 FALL MEETINGS, Embassy Suites, San Marco, TXs