Summer 2014 Newsletter

Printed by Copy Center of Topeka
Summer 2014 Edition
General Conditions
“Building Quality of Life for Kansas”
AGC of Kansas Elects 2014 Officers
Associated General Contractors (AGC) of Kansas and its 250 Kansas construction
firms and their 8,000 employees, recognized as the “CHAMBER OF COMMERCE” for the
construction industry, elected its 2014 slate of officers.
The 2014 AGC of Kansas President is Michael “Mike” Hafling (CAS Constructors,
Topeka, KS). Prior to his election to become the AGCKS President, Mike Hafling served
on the AGCKS Board for the past three years, serving as Vice President, Treasurer and
serving on several task forces/committees. In addition, Mr. Hafling has served on AGCKS
Advisory Council for Kansas State’s Construction Science Program.
In addition, Ron Fowles (Ron Fowles Construction, Manhattan Kansas) was elected to
serve as Vice President and Kurt Grier (Martin K. Eby Construction, Wichita Kansas) was
elected to serve as Treasurer. Gregg Oblinger (Simpson Construction, Wichita Kansas) will
serve as Past President.
Board members include Scott Casebolt (Key Construction), Patrick Crossland
(Crossland Construction), Raymond Dondlinger (Dondlinger & Sons), Tracy Green
(BA Green Construction), Ben Hutton (Hutton Construction), Luke Kunkel (Conco
Construction), Jim Rinner (JE Dunn), Joe Samia (Central
What’s Inside:
Air Conditioning Co.), Tom Saffel (Prairie Landworks),
Tim Sinclair (Pal’s Glass), Mike Swift (Thomas McGee), AGC of Kansas Elects 2014 Officers . . . . . . . . . . . . . 1
Eric Turner (McCownGordon Construction), Rean Wessels President’s Message . . . . . . . . . . . . . . . . . . . . . . . . 2
(Lee Construction), Fred Willich (Hi-Tech Interiors) and State Convention Sets Records . . . . . . . . . . . . . . . . 4
Legislative Update . . . . . . . . . . . . . . . . . . . . . . . . 6
Bob Burns (Robert Burns Atty at Law).
AGC Member “SPOTLIGHT” Agua Fina . . . . . . . . . . . . 7
National Board members include Bennie Crossland Annual Salina Golf Tournament . . . . . . . . . . . . . . . 8
(Crossland Construction), Jim Grier III (Martin K. Eby Winning Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Construction), Mark Hutton (Hutton Construction) and Thank you to OUR Golf Tournament
Corporate Sponsors . . . . . . . . . . . . . . . . . . . . . 10
Rich Kerschen (The Law Company).
AGC of Kansas’s Subcontractor Council . . . . . . . . . . 11
Construction Law Series . . . . . . . . . . . . . . . . . . . . 12
Affordable Care Act—Things You Need To Know . . . 14
Mark Your Calendars . . . . . . . . . . . . . . . . . . . . Back
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President’s Message
Mike Hafling, (CAS Constructors, Topeka)
Entropy. “We Can’t Stop It but We can Try to Control It”.
Whether it be in our personal or business lives, things are perceived as entropic. Most times
we must be the ones to try to control that randomness and control the state and the amount
of disorder. In our Association, with the changing times, we need to put our resources and
attention on the items that are of the greatest importance and benefit to our members and not
be as distracted by the others.
On May 29-31, 2014 the AGC of Kansas Board held a Strategic Planning Session at the Raphael
Hotel in KCMO. The event was facilitated by Steve Phillips. Mr. Phillips put out an initial Board Survey to all
participants to complete prior to the event (he gave us our homework). Using those confidential survey comments
as a guide we were led through a weekend to develop a plan for the next few years.
Over 20 Board Members attended the weekend planning session with great results. Lots of topics were extracted
out of the initial survey and after some additional discussions and condensing of the initial list, a final list of items
was developed.
A rough description of these items that made the final cut (not in any priority list) are below:
• PAC and Legislative Affairs
• Introduction to New Subcontractors, Suppliers and Professional Service Firms
• Safety & Workforce Development Programs
• Construction Science Students and Young Professional Development & Retention
• Growth in AGCKS Non-Dues Revenue for Discounted Products/Services to the Membership
Action Plans were developed for each of the items that are currently being summarized and documents are being
prepared for distribution. This DOES NOT MEAN that this is a static plan. As with any schedule or plan it
is a dynamic document that should change based upon whatever situations that occur and it should certainly
be reviewed, evaluated, revised and updated regularly. Some immediate committees were assigned for some
immediate action. The Board will receive the developed plan in advance of our next full board meeting which is
now planned for October 9th in conjunction with the NE Kansas Steak Fry Membership Event in Topeka.
I want to thank all of the Board Members that attended the weekend and actively participated in the planning
session. I felt that we all learned a lot about AGC of Kansas and AGC of America and we all felt a lot of energy in
the room.
Board Planning Session
Board Planning Session
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On another front, we are still working on the combined AIA-ACEC-AGC of Kansas JOINT INDUSTRY
CONVENTION that is currently planned for September 2015. Mike Gibson (AGC EVP) has been working with
AIA and ACEC association executive directors on the preliminary documents and location in preparation for
the combined association’s SPECIAL EVENTS COMMITTEE to do the event planning details/plan. The Special
Events Committee members from our side will be Ron Fowles, Jim Rinner and Jim Grier III (thank you to all for
volunteering for this endeavor).
Also, AGC of Kansas is always focused on bringing “true value” to your membership and maximizing your time
spent at AGC events. Value comes in your active participation and involvement so don’t forget the upcoming
events – GET INVOLVED:
September 17 – Western Kansas Golf and Networking Event (Garden City)
September 25 - South Central Kansas Steak Fry Membership Event (Wichita)
October 9 – Northeast Kansas Steak Fry Membership Event (Topeka)
October 25 – AGC – Kansas State Football Tailgate Event (KSU vs Texas in Manhattan)
Steve Phillips (Facilitator), Ron Fowles (Ron Fowles Construction),
Mike Hafling (CAS Constructors), Fred Willich (Hi-Tech Interiors)
Tom Saffel (Prairie Landworks) and family with Bennie Crossland
(Crossland Construction)
Mary Hutton, Ben Hutton (Hutton Construction),
Gregg Oblinger (Simpson Construction),
David Snodgrass (Snodgrass & Sons), Erin Hutton
Heather & Cliff Pray (Foley Equipment)
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State Convention Sets Records
AGC of Kansas’s State Convention was held in early February 2014 at the Wichita Marriott Hotel & Conference
Center. A record attendance of more than 325 Industry professionals, design professionals, owners and industry
partners attended this two day event which is Kansas’s largest single construction event of the year.
Kurt Grier (Martin K. Eby Construction) says that this event gives general contractors, subcontractor/specialty
contractors, suppliers and professional service firms an opportunity to meet and create an atmosphere of
collaboration on issues that impact the construction industry. Tom Saffel (Prairie Landworks) says that this
convention is a great opportunity for any construction-related firm to develop new business relationships and
renew old relationships and these relationships are key to future business opportunities.
During the convention attendees were able to attend business breakout sessions on a variety of subject matter ranging
from Prevention Measures on Fraud in the Workplace (BKD CPA’s & Advisors, Springfield, IL), Construction
Technology to Increase Productivity (Textura/Gradebeam, Chicago, IL), Construction Outlook for 2014 (McGraw
Hill Construction, Seattle WA) and Lean Construction Methods (Pittsburg State). In addition, an update on
Legislative & Political issues in Washington, DC was provided by Jeff Shoaf, AGC of America’s Legislative Affairs
Director (Washington, D.C.)
AGC of Kansas State Building Awards Luncheon was held to recognize the “Best of the Best” construction projects
across Kansas. We would encourage you to visit the AGC of Kansas website at www.agcks.org to see which projects
received AGC of Kansas Building Awards.
The convention concluded with its Annual Scholarship Dinner that raised a record $ 54,000 for student scholarships
for Kansas State and Pittsburg State construction science students. Rich Kerschen (AGC’s Kansas Construction
Education Foundation Chair) announced that over the years AGC of Kansas and its members have raised and
funded over $ 900,000 in scholarships and professorships for both KSU and PSU.
Ron Fowles (AGC Vice President) and Joe Samia (Central Air Conditioning Co.) both commented that there
is nothing like the AGC of Kansas State Convention in Kansas in that this event provides construction industry
professionals a “ONE STOP SHOP” of industry information, business development contacts and opportunities to
learn how to add to a construction firm’s bottom line.
AGC of America’s Legislative Affairs, Jeff Shoaf (Washington, D.C)
Ron Fowles, Jeff Shoaf, Gregg Oblinger, Mike Hafling
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Gregg Oblinger presents Steve Johnson 55 Year Award for E.W. Johnson
Construction’s membership in AGC of Kansas
Gregg Oblinger presents Randy Worrell 30 Year Award for Glassman
Corporation’s membership in AGC of Kansas
AGC of Kansas Past President’s and Recognition Breakfast Event
Convention Kickoff Breakfast Sponsored by the Past Presidents and AGC
recognizing Members for Years of Membership in AGC
Business Seminar Attendees
Kurt Grier and Martin K. Eby’s employees enjoying dinner at the
Scholarship Auction Event
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Legislative Update
The 2014 Kansas Legislative Session is now history but AGC of Kansas was very active during the 79 day
session. First, AGC of Kansas was the champion for HB 2616 which creates the opportunity for Kansas
to take local control of Federal OSHA Regulations and enforcement. HB 2616 passed both the House and
Senate and signed by Governor Brownback in May. HB 2616 authorizes the Dept. of Labor Secretary, Lana
Gordon, and her staff the authority to develop a study/plan to take over the oversight and management of the
OSHA responsibilities. This plan will be presented to the Senate and House in the 2015 Legislative Session for
approval. AGC of Kansas will be an active partner with the Kansas DOL and looks forward to working with
Secretary Gordon. HB 2616 was introduced because of two recent events, one the Obama Administration
continues to implement “Executive Orders” that overreach and re-write (without legislative approval) the
existing OSHA regulations and second AGC has been informed by federal OSHA officials that they have been
directed by the Obama Administration to write OSHA citations to justify their existence, regardless of merit.
Other key legislation in the 2014 Kansas Legislative Session (visit kansaslegislature.org
for details):
HB 2643
Property Tax – classification of commercial & industrial machinery (reclass, appraisals)
HB 2430
Promoting Employment Across Kansas (PEAK)
SB 309
Health Insurance for Qualified Professional Associations
SB 372Allows employers to reduce worker hours while allowing the workers to receive a portion of
unemployment insurance coverage.
HB 2576
will reduce unemployment insurance rates for new categories of Kansas employers.
HB 2616
State OSHA Study/Plan development
Now that the Kansas Legislative Session has concluded, state candidates running for state office will begin
their campaign re-election efforts. AGC of Kansas’ PAC will be reviewing these candidates and discussing
campaign contributions based on the candidates voting record on pro-construction and pro-business issues.
AGC of Kansas would like to thank its Legislative Consultants Jason Watkins and Scott Schneider for their
great work in representing AGC of Kansas during the 2014 session.
Should you like to submit recommendations for candidate campaign contributions from AGC of Kansas’ PAC
please call Mike Gibson (AGC EVP) at 785-260-1434.
“Get into Politics or Get Out of Business”
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AGC Member “SPOTLIGHT”
AGUA FINA IRRIGATION & LANDSCAPE, L.L.C.
Agua Fina Irrigation & Landscape L.L.C was little more than a discussion at the kitchen table a few years ago but
these discussions evolved to action when Hector Dean and his father Michael Dean put a business plan together to
establish a construction company that was based on “hard work and a desire to succeed”.
The company began in 2011 with a focus to service the irrigation, landscape and waterworks needs of general
contractors and prime contractors in the Kansas City metro area and later broadening its focus on many parts of
Missouri and Kansas. Agua Fina Irrigation & Landscape L.L.C is a certified MBE/DBE firm and registered as such
in both Missouri and Kansas.
Some of the projects that the company has been awarded include the Unified Gov’t of Wyandotte County, 5th
Street Trail Link Kansas Dept. of Transportation, KCATA Midtown Transit Center in Kansas City, Rehabilitation
of NE T-Hangers Taxilanes FAA and Johnson County Airport Commission, Martway Street KDOT. The company
works for many of the largest contractors in both Missouri and Kansas and services projects ranging in small to
large in nature and provides all of the bonding and insurance requirements needed for a construction project.
Just this month the Kansas City Kansas Chamber of Commerce recognized Agua Fina Irrigation & Landscape
L.L.C. by presenting their company with the 2014 New Small Business of the Year Award. This award recognizes
those small new businesses with exceptional business practices and great customer service (see the Kansas City
Kansas website for details www.kckchamber.com).
Agua Fina Irrigation & Landscaping L.L.C is a proud active member of AGC of Kansas and is looking forward to
future opportunities to visit with the entire membership.
Should your company be interested in taking part of AGC of Kansas’s Member Spotlight,
please contact Mike Gibson at 785-260-1434.
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Annual Salina Golf Tournament
Sets All Time Record
In June AGC of Kansas hosted its 61st Annual Golf Tournament at Salina Country Club in Salina Kansas. Over
140 golfers with a record number of corporate sponsors participated in this annual event. Ron Fowles, AGC of
Kansas Vice President (Ron Fowles Construction, Manhattan), Kurt Grier (Martin K. Eby Construction, Wichita),
Joe Samia (Central Air Conditioning Co, Wichita) and Bob Simpson (Simpson Construction, Wichita) all commented how this event seems to draw out a great cross section of industry folks to network and play a little golf and
wind down the week. AGC of Kansas would like to thank ALL OF OUR CORPORATE SPONSORS.
Winning teams included:
Casey Henning (Carter Waters)
Tom Saffel (Prairie Landworks)
Vic Dyke (Carter Waters)
Tyler Greer (Prairie Landworks)
Brad Tindel (Carter Waters)
Michael Wallace (Prairie Landworks)
Ed Parr (Restoration & Waterproofing)
Patrick LeValley (Prairie Landworks)
Zach Barger (Industrial Comm. Insulation)
Rudi Sauerwein (Sauerwein Construction)
Todd Rouw (Industral Comm. Insulation)
Bill Keckler (Cornejo Construction)
Rick Hanny (Industrial Comm. Insulation)
Robert Cummins (Cornejo Construction)
Mike Vandermus (Industrial Comm. Insulation)
John Gratz (Cornejo Construction)
Jeff Brundrett (Chubb Insurance Co)
Bob Simpson (Simpson Construction)
Mark Striegel (Chubb Insurance Co.)
Josh Vogel (Simpson Construction)
Closest to the Pin: Chris Beasley (Kilian Electric)
Longest Drive: Don King (Hi-Tech Interiors)
Closest to the Pin: Mitch Gillman (Cornerstone KC)
Longest Drive: Blake Swaggerty (Pittsburg State)
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Ray Yunk and his KSU
students & Faculty
Winning
Teams
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THANK YOU
to OUR Golf Tournament Corporate Sponsors
Hole In One Sponsors
Martin K. Eby Construction
Lockton Companies
Prize Sponsor
McCownGordon Construction
Breakfast Sponsor
White Star Machinery & Supply
Beverage Sponsors
CBIZ & Mayer Hoffman McCann P.C.
Mechanical & Sheet Metal Contractors Association
Hat Sponsor
Building Controls & Services
Specialty Hole Sponsors
Allen, Gibbs & Houlik, L.C.
Shelley Electric, Inc.
IMA of Kansas
Restoration & Waterproofing Contractors, Inc.
Hole Sponsors
Carter Waters, LLC
Cornejo Construction
Foley Equipment
Hi-Tech Interiors
Hutton Construction
Kansas Building Products
Kilian Electric Service
The Monarch Cement Co.
Restoration & Waterproofing
Salisbury Supply Co.
Snodgrass & Sons Construction
Travelers
Claco Supply
Enterprise Fleet Management
The Guarantee Co. of N. America
Hopper’s Glass
Industrial Commercial Insulation
Kennedy & Coe
The Law Company
PKM Steel Service
Salina Planning Mill
Sauerwein Construction
Tatro Plumbing Co.
United Rentals
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AGC of Kansas’s Subcontractor Council
In February, AGC of Kansas’s Subcontractor Council met in Wichita for its Quarterly meeting. The Council is cochaired by Tim Sinclair (Pal’s Glass, Wichita), Joe Samia (Central Air Conditioning Co., Wichita) and Fred Willich
(Hi-Tech Interiors, Manhattan).
Over 45 subcontractors and specialty contractors from around the State of Kansas attending the Council Meeting
at Pal’s Glass corporate office in Wichita. Tim Sinclair says that this Council is gaining momentum in that many
subs and specialties are experiencing a variety of challenges to their company due to changing market conditions,
challenges brought on by the national economy and industry competitiveness issues.
Tim Sinclair says that AGC’s Subcontractor Council is a great forum for issues to be identified and solutions
developed to address these industry issues and says he encourages all of AGC’s subcontractor and specialty
contractors to attend a future meeting and get involved.
During the February Council meeting the group discussed issues that included but not limited to workforce
development programs offered by AGC of Kansas through its partnerships with over 60 high-schools and
community colleges across the state, an interest in a standard contract between the GC and Sub, safety programs
offered by AGC of Kansas to supplement members existing in-house programs, immigration reform issues in
Washington DC and the State of Kansas and insurance/worker’s comp programs.
Also, AGC of Kansas staff provided an update on the recently concluded Kansas Legislative Session and discussed
some key issues that AGC supported and defeated.
Tim Sinclair, Joe Samia and Fred Willich challenged the attendees to provide additional industry issues for the
Council and AGC of Kansas to address. The Council will develop a plan of action to present to the AGC of Kansas
Board of Directors for support.
Fred Willich (Hi-Tech Interiors), Bryan Newell (Riley Const),
Troy Osborne (Drywall Systems), Dale Meyer (Drywall Systems)
Jason McCrackin (Hi-Tech Interiors),
Mike Kilian (Kilian Electric),
Brooks Innes (Kilian Electric)
Brady Martin (Belford Electric),
John Belford (Belford Electric)
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Construction Law Series
AGC of Kansas is extremely fortunate to have Robert “Bob” Burns, Robert P. Burns P.A. that is providing legal
expertise in offering a cost effective/quality series of Construction Law Seminars to the membership. Bob Burns
serves as the Chief Legal Counsel to the AGC of Kansas Board of Directors and serves as an ex-member on the
Board of Directors.
Recently, AGC of Kansas heard from many of its members that attended the 2014 AGC State Convention that their
companies are having challenges with contract language and challenges with understanding the Kansas Statutes as
it relates to public and private construction work.
As a result, AGC’s Executive Committee asked Bob Burns to develop a series of Construction Law Series to address
these member’s challenges and work with AGC staff to schedule these seminars around the State of Kansas.
Mike Hafling, 2014 AGC of Kansas President (CAS Constructors, Topeka) says that these construction law
seminars are timely and of great benefit to both large and small general contractors, subcontractors and suppliers.
“These AGC seminars are cost effective for your employees to get the most up to date information to protect your
company as it deals with construction contracts and allow for your company to protect itself on a broad cross
section of issues”.
Fred Willich, 2014 AGC of Kansas Subcontractor Board Member (Hi-Tech Interiors, Manhattan) says he found
the Kansas Fairness in Public & Private Construction Contracts Act Seminar to be very informative in that he got
the latest information on the state’s statutes and he got the opportunity to have an interactive discussions with both
the GC and Subs/Supplier and hear issues from both perspectives. “There is not too many times where you see this
type of exchange of ideas, experiences and perspectives on contract issues”.
AGC of Kansas will be offering a wide range of Construction Law Seminars (Lien Rights, Bonds, Kansas Fairness
Public & Private Act, etc.) throughout the year and we encourage your company to send folks to these cost effective
and quality seminars. If you are interested in attending a future seminar please contact the AGC office. If you
have ideas of other issues or areas that you believe would be beneficial to offer in these seminar please email Mike
Gibson (EVP) at [email protected]
Bob Burns discusses the rights contractors have regarding Public & Private projects incorporated in the Kansas Statutes.
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Affordable Care Act—Things You Need To Know
With the Affordable Care Act (ACA) moving forward and being closer to full implementation,
AGC of Kansas members need to be aware of changes due to regulations and administrative
executive orders. AGC members should also be aware of new court challenges that may impact
this new law.
MORE DELAYS – The final regulations promulgated by the IRS provide for additional delays
to the implementation of the law depending on the size of your firm. Employers of 50-99—the
Act covers any employer with 50 or more full-time employees as an Applicable Large Employer.
Those employers of 50-99 full-time employees do not have to comply with the employer mandate
to provide health insurance coverage for their full-time employees until January 1, 2016 (after
which they may incur penalities). Employers can take advantage of this delay in implementation
so long as they do not (1) reduce their workforce to under 100 for purposes of avoiding the Act
for another year, or (2) eliminate or materially reduce the health insurance offered to full-time
employees from what was offered on February 9, 2014.
Employers of 100 or more—the Employer mandate goes into effect on January 1, 2015, for
employers of 100 or more full-time employees; however, these employers will only need to offer
coverage to 70% of the full-time employees to avoid the “no-coverage” penalty for 2015. In 2015,
this $2,000 per employee penalty is assessed if an employer fails to offer minimum coverage to 70%
of its employees (and their dependents) and at least one full-time employee purchases subsidized
exchange coverage. In 2015, this penalty will be assessed with respect to each of a violating
employer’s employees, minus the first 80, even if some of those employees are offered coverage.
Employers will have to offer coverage to 95% of their full-time employees to avoid the imposition
of this penalty in 2016. Futher, the penalty will be assessed with respect to all employees, minus
the first 30, in 2016.
What is a Full-Time Employee?
The Act defines “full-time employee” as an employee who, with respect to any month, works
at least 30 hours per week. A Legislative Bill currently working its way through Congress will
attempt to amend the Act to define “full-time employee” as an employee who works at least 40
hours a week. Such a change in the Act would reduce the type of employee to whom employer’s
need to offer coverage. Such a change in the law could also affect which employers the Act deems
to be Applicable Large Employers (through part-time employees’ work hours factor into this
calculation).
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Worker Classification
The Act increases the adverse consequences of misclassifying employees as independent
contractors. If an employee is determined to have been misclassified as an independent contractor,
the employer is subject to shared responsibility penalties if the work is a full-time employee under
the ACA. In the worst case scenario, the retroactive reclassification could result in the employer
falling below the percentage coverage threshold for its employees (70% in 2015 and 95% in 2016)
and incurring a $ 2,000 per employee penalty.
Non-Discrimination Rules
In order to comply with ACA’s non-discrimination rules, employer group health plans must:
•Not discriminate in favor of highly compensated individuals as to eligibility to participate
in a plan, and
•Not discriminate by offering highly compensated individuals benefits not offered to all
other participants.
As defined, a highly compensated employee is one of the top paid officers of the company; a
shareholder owning more than 10% of the company’s stock; or an employee who is among the
highest paid 25% of all employees. The non-discrimination rules prohibit employers from offering
different plans and different employer subsidies to highly compensated individuals. If a plan is
found to be discriminatory, the penalty is $ 100/day for each day of non-compliance.
Recent Litigation
The Supreme Court recently considered whether certain corporations can opt out of the ACA’s
contraceptive mandate due to the corporate owner’s religious convictions, though its impact on
the ACA will be fairly minimal. A case with a greater potential impact on the ACA that is currently
pending before the Federal Court of Appeals for the District of Columbia, concerns whether the
federal government can give health care subsidies to individuals in states that haven’t set up their
own health care exchanges. Only 16 states currently have established and maintained health care
exchanges. Individuals within those states can still get health care and apply for federal subsidies
through the Federal Health Care Exchange.
ACA is the law of the land, but it’s still in flux. Further, it will likely be subject to major changes as a
result of the 2014 mid-term elections. Keeping up with this law’s changing requirements is a must
for covered employers. AGC of Kansas will continue to work with AGC of America in keeping our
members up to date on the latest in the Affordable Care Act.
MARK YOUR CALENDARS
September 15
AGC PAC Golf Tournament (Sand Station Creek, Newton)
September 17
Western Kansas Golf Outing (Garden City)
September 25
Southcentral Kansas Steak Fry (Eberly Farms, Wichita)
October 9
Northeast Kansas Steak Fry (Topeka)
October 25
AGC & K-State Tailgate Event (KSU vs Texas Football Game)
Associated General Contractors of Kansas
200 W. 33rd. Street
Topeka, KS 66611