Issue link: http://www.e-digitaleditions.com/i/799392
Dealing with federal, state, and local regulatory rules and life safety compliance laws Custom coating job shops are burdened with a host of constantly changing federal, state, and local environmen- tal regulatory and life safety compliance laws. Getting and staying in compliance and up to date with all of the applicable laws and regulations can be a daunting task. Sure, some jurisdictions are more restrictive than others, and California is one of the most regulated and restrictive states in the country. It's safe to say that environmental regulations and life safety compliance is an important part of the administration for any responsible busi- ness regardless of their location. Shouldering the burden I have spoken with custom coating job shop owners all over the country regard- ing the burden of federal, state, and local government regulatory and life safety compliance. During these discus- sions, I have discovered a few job shops that have been able to skate by without addressing most of the regulatory and life safety compliance requirements. You might wonder, how can this be possible? How can companies ignore the rules and get away with it? Appar- ently, they have been successful at pleading ignorant when they are approached by the regulatory compli- ance authorities and inspectors. One company owner that I spoke with recently said this: "When it comes to dealing with bureaucrats and inspectors, I would rather ask for forgiveness than permission. After all, what are they going to do, arrest me?" Indeed, fines and/or jail time may very possibly be the penalty for serious violations by compa- ny owners and managers that elect to ignore rules, regulations, and life safety compliance requirements. This "head in the sand" approach would certainly not work in a highly regulated and strictly enforced jurisdiction like California. I recently reviewed a legal case involving a finishing system fire where there was substantial property damage caused by regulatory noncompliance of a compa- ny that openly and willingly refused to follow regulatory compliance and life safety rules. In this case, like most, the losses were proven to be preventable. Okay, most would agree that compli- ance to all federal, state, and local regu- lations of all kinds is burdensome, time consuming, and expensive. Some fin- ishers elect to include the cost of com- pliance into their overhead burden cost and others choose to line item this cost as a percentage of the billing amount to the customer. I am in favor of the line item percentage approach listed on the invoice as something along the lines of "California Regulatory Compliance Fee." The percentage factor is deter- mined by compiling all regulatory costs for the year and comparing the number to the total annual revenue as a percent- age number. By adding the line item percentage, the customers are aware of the regulatory compliance burden and cost of doing business in our communi- ty. Regardless of what approach a com- pany takes to identify the cost of regula- tory compliance, the need to get and remain in compliance with the rules and laws cannot be ignored. Getting in compliance So, how do we get started with building a compre- hensive and inclusive com- pliance program? We begin by listing of all of the applicable rules, regulations, and compliance require- ments that apply to our company. Next, we sort and categorize them for possible consolidation into our comprehensive program. Lastly, we take a proactive and pragmatic step-by-step approach to address and customize each element of the program. Step 1: The first step is to identify the scope and purpose of the regulation, rule, or requirement. Coater's Corner Coater's Corner Michael W. Cravens Powder Finishing Consultants and IKON Powder Coating POWDER COATING, March 2017 19