Greetings

Legislative Update

Upcoming Events

Welcome New Members

Renewing Members

Member Resources

Marketing Update

Texas Team Contact Information

AeA Texas Council Newsletter - May 2007

Greetings

From the desk of...Clare Emerson  

One of AeA’s top priorities is to provide bottom line savings on core products and services your company needs.  I am very happy to announce two new partnerships for AeA members in Texas, Louisiana, Oklahoma and Arkansas that are designed to do just that.

Also, AeA is launching the new and improved Salary Survey which will be FREE to members who submit their data.  The Texas Salary Survey Participation Day is May 16, and all companies who submit their data on that day will receive a $25 Starbuck’s card as a token of our appreciation. Be watching your email for more information on this new and improved member benefit. As many AeA members have learned,. using this survey can help keep your salaries within the acceptable norms for specific positions.

You may know that AeA recently changed health insurance carriers for the AeA Health plan. After 26 years of partnering with Aetna, we switched to United Healthcare in order to provide a better network of coverage for our members nationally.

Over the years, AeA member companies have come to rely on us to provide one of the highest quality healthcare plans available to help your company be more competitive in recruiting and retaining the best and brightest employees. At a very competitive rate.

I believe you will be very pleased with the new AeA United Healthcare plan.  After a lengthy and involved interviewing process in which I assessed nine of the top employee benefits firms, I am very pleased to announce a new and very important partnership with McQueary Henry Bowles and Troy (MHBT), who will be the exclusive and protected broker representing the AeA United Healthcare Plan in Dallas and Austin for groups of 100+ employees.  Webco, our longtime partner in Dallas will continue to be the protected broker for groups under 100 employees in Dallas. MHBT in Austin will handle AeA groups of all sizes.

MHBT is one of the oldest and most highly respected insurance brokerage firms in Dallas and has one of the most dynamic and innovative employee benefit practices I have ever seen. I think you will truly enjoy working with them; they are very knowledgeable, highly professional people who have deep experience working with technology companies and United Healthcare. MHBT is honored to have the opportunity to represent AeA, and we are very excited about making this benefits plan available to your company.

Also, I am very pleased to announce a new partnership here in Texas with ADP, the payroll management company.  AeA members not currently a client of ADP, may now get their payroll and related services at significant discounts with savings up to 20%. ADP also offers a software application that allows clients to completely manage all of their employee benefits, and give the convenience of self-service to every employee. This application also has a direct link to United Healthcare and will allow AeA members who choose the AeA United health plan to seamlessly integrate all of their employee benefits and payroll information into one easy to use system.

Please contact either myself or Greg Heider for more information and to get a quote for your company.  We will be sending out more detailed information about the new AeA United Healthcare plan as well as the ADP discounts for members in the mail in the next few weeks.

Check out the rest of the AeA Texas Council Newsletter for more news on programs, new members, new services and an update on our legislative activities in Austin

If you have any questions or need further information, please contact me directly at clare_emerson@aeanet.org or 972-386-6540 x104.

back to top

Legislative Update

The AeA Texas Council’s public policy program has been actively working during the 80th Texas Legislature to fend off legislation harmful to high-technology businesses and to promote initiatives designed to improve the business environment, improve state education systems, and enhance the profitability of Texas’ high-tech companies.

Our programs are guided by member needs and are overseen by our lobby staff in Austin. The AeA Texas Council’s Public Policy Committee provides additional guidance and meets weekly during the legislative session to review pending legislation, to discuss and develop initiatives, and to formulate strategies for implementation. If you have an interest in serving as a member of the Public Policy Committee, please contact Jeff Clark (jeff.clark@aeanet.org) in the AeA Texas Council’s Austin office.

Taxes and Spending
Determined to shift some of the state’s tax burden away from the property tax, during the summer of 2006, the Texas Legislature reformed the state’s business tax doing away with the Franchise Tax and replacing it with a new tax on gross margins. The tax has not been in place long enough for clear predictive data to be available. This has created some uncertainty as to the overall impact of the tax and what the fiscal implications of the tax might be for future state budgets. Some experts have estimated that the tax may generate as much as $1 Billion less than anticipated when the tax was created.

Because of this uncertainty, legislators have been hesitant to enact any substantial tax decreases during the 2007 session. AeA, however, is strongly making the case for reductions in the taxes on high-tech businesses. AeA is also working to defend the current tax code’s provisions from unnecessary changes.

One such change, which was presented as a technical change in the House Ways and Means Committee, would have changed the way in which R&D expenses are accounted for. As proposed, R&D expenses would have had to be tied to a finished product and deducted as a cost of goods sold. This is one example of an occasion in which the legislature lacked an understanding of the nature of science-based industries. AeA opposed the change arguing that R&D many times does not lead to an immediately marketable product. The legislature responded affirmatively, rejecting the change and leaving the current system intact.

Research and Development
One of the AeA Texas Council’s primary areas of focus is on improving the Research and Development climate in Texas. To that end, the Council has proposed and our supporters have filed legislation to create a state sales tax exemption on all materials and equipment used in the course of Research and Development. This would help to cut the cost of conducting research in Texas and would encourage more companies to bring research to our state.

While the aggregate amount of R&D conducted in Texas is quite large, Texas ranks 26th in R&D spending on a per capita basis. Other states are increasingly enacting provisions exempting research and development equipment from sales taxation and, according to a survey conducted by Site Selection Magazine in November 2006, a majority of states now provide a tax exemption to encourage and attract research and development activities to their states. Texas had previously offered an R&D credit which was applied to the franchise tax but this credit was eliminated when the Franchise Tax was replaced with the Margins Tax in 2006.

Presently, Texas offers a sales tax exemption for equipment used in manufacturing and specifically excludes R&D equipment. For many companies, this exclusion creates ambiguity and confusion with regard to whether a piece of equipment is R&D equipment or manufacturing equipment. In many cases, the line is unclear. Extending the sales tax exemption to R&D equipment – and continuing to include manufacturing equipment – would resolve this issue and would more realistically reflect the trend in the high-technology industry toward a convergence of the R&D and manufacturing processes and the accelerated progression of product lifecycles. Extending the exemption also recognizes emerging technologies as holding the greatest promise for future prosperity and promotes their development. Finally, this incentive would create jobs in our state by attracting R&D activities to Texas. And, for every R&D related job directly created, two more jobs are created in trade, services, and other industries.

Education
Education remains a perennial issue on the AeA legislative agenda. We are working to expand science, mathematics, and technology courses in the public schools and to improve the performance of our state’s higher education. We recognize that Texas is competing both nationally and internationally and we’re helping to build a K-16 education system that prepares students for success in the high-technology information-based environment of tomorrow.

To that end, we continue to support the state’s Master Teacher Certification program to keep highly qualified teachers in the classroom. We are also working to drive more technology into the classroom where students can benefit from immersive instruction and real time diagnostics, while developing a familiarity and comfort level with technology. Working with the Office of the Governor, AeA has supported a package of legislation to create incentives for universities that are focused on our future workforce needs. These incentives, along with additional scholarship funding, will help Texas universities to graduate more students in the high-technology fields, like electrical engineering, so critical to our future economic development.

Environmental Issues
Companies that manufacture in Texas face unique environmental issues and the Texas Council’s Environmental Committee is reviewing pending legislation to make certain that new legislation is based on science and does not place unreasonable or unnecessary regulations on business.

In the area of e-Waste/Recycling, AeA has played an educational role helping Texas legislators as they attempt to craft a system that protects the environment, meets the needs of consumers, and does not place an undue burden on industry. AeA’s voice in the debate helps ensure that the concerns of electronics manufacturers are heard and our commitment to the environment is reaffirmed. AeA represents electronics manufacturers of all types and is working to see that eWaste/Recycling legislation reflects their products’ and their markets’ unique characteristics.

Other Issues
Many other issues are being considered in the 80th legislature and AeA is playing a role in the debate. We’re pushing legislation to expand state economic development incentives to include data centers in the list of eligible facilities. We’re battling trial lawyers who want to expand their ability to bring suit against businesses for data breaches. We’re defending private property rights at high-tech facilities. We’re helping lead the fights to continue and expand the Texas Emerging Technology Fund and the Texas Enterprise Fund.

In short, if it affects the high-tech industry in Texas, we’re working on it.

There is a great deal going on in your state capitol and the AeA Texas Council is in the middle of the fight. We’re working to make Texas a premiere location in which to operate a high-technology business and we welcome your participation in our work. Please on us whenever you have questions or concerns. For more information on the AeA Texas Council legislative program, please contact Jeff Clark in the Austin office at 512-474-4403 or by email at jeff.clark@aeanet.org.

back to top

Upcoming Events

5.16.07 - Dallas - International Business Series - AIM Update: Is It For Your Company?

Speakers: Mike Bishop and John Cowie of Smith & Williamson, Steve Blakeley and Sebastian Rice of Akin Gump, Moderated by Rob Toker of UK Trade & Investments.

5.17.07 - Dallas - AeA Texas CEO Roundtable

The CEO Roundtable is a monthly meeting for DFW based AeA member company CEOs to discuss their most pressing business issues while offering and/or seeking the advice of their peers. Each participant is required to sign a non-disclosure agreement, and the Forum is professionally moderated. *CEOs only*  *AeA members only*  If you are interested in joining the CEO Roundtable, please contact Tiffany Sefton at (972) 386-6540 or  tiffany_sefton@aeanet.org.

5.24.07 - Dallas - TX Hi-Tech Roundup

Join us for the first annual AeA/MTBC Hi-Tech Roundup, a special happy hour that will give you an opportunity to mix and mingle with folks from Texas technology companies as well as the industry's service providers. The saloon will be open from quittin' time 'til dusk.

5.31.07 - Dallas - AeA Texas HR Forum

Location: InterContinental Hotel Dallas.  More details to come.

6.21.07 - Dallas - AeA Texas CEO Roundtable

The CEO Roundtable is a monthly meeting for DFW based AeA member company CEOs to discuss their most pressing business issues while offering and/or seeking the advice of their peers. Each participant is required to sign a non-disclosure agreement, and the Forum is professionally moderated. *CEOs only*  *AeA members only*  If you are interested in joining the CEO Roundtable, please contact Tiffany Sefton at (972) 386-6540 or  tiffany_sefton@aeanet.org.

6.26.07 - Dallas - AeA Texas CFO Forum - Acquisition  Strategies 

Location: InterContinental Hotel Dallas.  More details to come.

6.27.07 - Dallas - A Night at the Ballpark

AeA Texas takes you out to the Dr Pepper Ballpark to watch the Frisco RoughRiders play the Arkansas Travelers. Join us for dinner on the Party Deck as we watch the game - we'll even buy you some peanuts and cracker jacks.

June - Austin - Women in Technology - Networking Event

Join AeA and Women working in the technology sector in Austin for a fun night of networking.  More details coming soon.

  
Local Council Events - AeA Events Calendar

back to top

---

Welcome New Members

Comerica

 

The Comerica Bank Technology and Life Sciences Division has helped provide flexible banking products to emerging companies for over a decade. With offices in Dallas and Austin as well as locations along both coasts, Comerica understands the challenges emerging companies face and has the expertise to provide financing solutions to meet them. The Technology and Life Sciences Division has experienced bankers that are able to assist early-stage companies as well as the size and resources to help mature companies. Comerica's commitment to the technology sector is backed by over $58 Billion in assets and the considerable resources of one of America's top business banks.

Fish & Richardson

 

Fish & Richardson P.C. has the largest intellectual property practice in the world today, according to Managing Intellectual Property, and is ranked number one nationally for patent litigation, according to IP Law and Business. Counsel to inventors such as Thomas Edison, Alexander Graham Bell, and the Wright Brothers, we now counsel today's leading innovators, researchers, scientists, and technologists. For over 125 years we have served to protect countless ideas, to nurture discoveries, and to bring new concepts to market. Our clients are across the globe, developing the concepts, technology, and advancements of tomorrow. They trust Fish & Richardson with their intellectual capital, because we help our clients capture the value of these assets through patent, trademark, copyright, and trade secret protection. From our offices across the country, our team of legal professionals advise companies throughout all cycles of development and growth. Fish & Richardson has the experience, vision and commitment to help your business succeed. Fish & Richardson is there, every step of the way.

Texas Institute of Science

 
Texas Institute of Science ("TxIS", or “Institute”), headquartered in Richardson, TX provides its Clients with proof-of-concept scientific research services. TxIS’s operation relies on the Institute's database of 15,000 Ph.D. scientists located in 54 technology universities and research institutes in Eastern Europe, former Soviet Union, and China. TxIS, one of the first true global science organizations concentrating on multi-discipline, real-time R&D, is providing vital research augmentation to US based high-tech companies. According to Laslo Olah, CEO of TxIS: "Most of our Clients have no full-time scientific staff, but they need scientific, proof-of-concept research to bring a new product to the market. We manage the projects to their completion while providing open communication channels between our scientists and our Client's R&D staff for technical details. This way our Client's engineers are comfortable having full knowledge of the Project's progression".

Thomas Group, Inc.

 
Thomas Group, Inc., based in Irving, Texas is an international, professional services firm specializing in operational improvements. Thomas Group’s unique brand of process improvement and performance management services enable businesses to enhance operations, improve productivity and quality, reduce costs, generate cash, and drive higher profitability. Known for Breakthrough Process Performance, Thomas Group creates and implements customized improvement strategies for sustained performance improvements in all facets of the business enterprise. Founded in 1978, Thomas Group is located in Irving, Detroit, and Hong Kong. For an introduction to Thomas Group services, please visit www.thomasgroup.com, send an email to info@thomasgroup.com or call 972.869.3400.

back to top

 

---

Thank You Renewing Members

Ayoka
Akin Gump Strauss Hauer & Feld
BCD Electro
Bridge360
Cushman & Wakefield
Dell
Estech Systems
Gemalto
Heidrick & Struggles
iMedica Corporation
InterFET
IRM Corporation
RF Monolithics
Research in Motion
Softbrands
Staktek Holdings
TriNet
University of Texas at Arlington
ViewCast
Vignette
Whitley Penn
 

back to top

Member Resources