In This Issue:
State Tuned:
President Signs Legislation Extending Key BOMA Tax Provisions
On December 20, 2006, President Bush officially signed into law H.R. 6111, legislation that includes a two-year extension of the 15-year cost recovery for depreciating leasehold improvements and the immediate expensing of brownfields clean-up costs. These measures, which expired at the end of 2005, can now be applied to the 2006 and 2007 tax years. Additionally, negotiators inserted a one-year extension of the tax deduction for energy efficient buildings that was set to expire at the end of 2007. This was a late edition to the package of tax extenders but an issue BOMA International actively supported in the Energy Policy Act of 2005.
Due to the short term nature of these extensions, BOMA will continue to work with Congress to provide for a longer term extension if not made part of the permanent tax code.
Contact: Jason Todd, (202) 326-6356, jtodd@boma.org
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State Tuned:
Telecommunications Legislation Could Be Big in 2007
Telecommunications legislation has the potential to be big in 2007. Reports from state officials and committee staff indicate that 28 states will be reexamining their telecommunication franchising laws. While primarily focused on local cable franchising, these bills could easily address mandatory access or carrier of last resort (COLR). These states include: Alabama, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Iowa, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri, New Hampshire, New Mexico, New York, Nevada, Ohio, Oregon, Pennsylvania, Tennessee, Utah, Vermont, Washington and Wisconsin.
In 2006, real estate suffered a loss in Indiana with the passage of mandatory access legislation which was slipped into similar franchise legislation. Additionally, Florida enacted COLR legislation last year, and the state’s Public Service Commission issued its final rules in December.
BOMA International asks that BOMA local associations in those states remain vigilant in monitoring any developments in your state legislature or public utility commission.
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Arlington County, Virginia, Launches Initiative to Reduce Energy Emissions
Arlington County, Virginia, launched a new initiative this month to significantly reduce the county government’s greenhouse gas emissions by 10 percent over the next five years. Key components of the county’s Fresh AIRE (Arlington Initiative to Reduce Emissions) program include purchasing wind-generated electricity; installing solar energy technology in one or two county facilities to demonstrate its use and feasibility; continued energy efficiency investment in county facilities; planting at least 1,200 trees; and strengthening the county’s green building policy for public buildings by requiring new major public buildings to achieve LEED certification.
The initiative does not create any mandates for businesses or residents. However, it does strive to assist and encourage local businesses to reduce emissions and energy needs through a partnership with the U.S. Environmental Protection Agency’s Energy Star program. It also encourages county residents to reduce their energy consumption by driving fuel-efficient cars or taking public transportation and by using Energy Star rated light bulbs.
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BOMA/Minnesota Sets 2007 Legislative Agenda
In an effort to hit the ground running when the legislature convenes in early January, BOMA/Greater Minneapolis’ Government Affairs Council recently met with the state’s Senate Finance Committee Chair Dick Cohen and House Tax Committee Chair Ann Lenczewski, to discuss the changing climate in the legislature, as well as BOMA/Minnesota’s 2007 legislative agenda, which includes:
Preserving Property Tax Reform
- BOMA/Minnesota is committed to proactively monitoring and defending against any attempts to roll back commercial investment property tax reform gains, including adjusting the formula for the statewide property tax.
Transportation Funding
- Monitor proposals regarding the distribution of Motor Vehicle Sales Tax (MVST) funds for transportation purposes pursuant to the passage of the MVST constitutional amendment, and support other initiatives aimed at securing transportation funding for inter-regional corridors, metro area freeways and mass transit, including a possible increase in the gas tax.
State Leases
- Continue efforts to have the state consider bonding to pay for leasehold improvements to counter the bias in constructing state-owned buildings, possible outsourcing in the management of state buildings and easing the state’s requirement for 30-day cancellation clauses.
Other Issues
- Monitor and provide input or defend as appropriate additional issues including construction code mandates, the reliability of electricity distribution networks, fire-sprinkler retrofits, mold, homeland security measures and workplace smoking bans.
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Ohio Voters Approve Statewide Smoking Prohibition
On November 7, 2006, a majority of Ohio’s voters approved legislation titled the “SmokeFree Workplace Act” that will generally prohibit smoking in all public places and places of employment in Ohio with some exceptions.
The Act’s provisions became effective on December 7, 2006, but will not be fully implemented and enforced until the director of the Ohio Department of Health circulates administrative rules establishing a schedule of fines and procedures for reporting and investigation of violations.
With the new Act, employers and proprietors of public places are required to prohibit smoking in the place of employment or public place, as well as areas immediately adjacent to the ingress or egress of those places.
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Governor Signs BOMA CAL Supported Brownfields Bill
On September 30, 2006, Governor Arnold Schwarzenegger signed legislation aimed at creating another tool designed to free up capital to facilitate the cleanup and redevelopment of brownfield properties. The goal of S.B. 989 authored by the Senate Environmental Quality Committee is to encourage investment in contaminated properties by providing a mechanism to limit liability risks associated with those cases where cleanup costs turn out to be substantially higher than the value of the property itself. The relief contained in S.B. 989 is available only where a developer occupies a property as a long-term ground tenant, but has no impact on the existing statutory liability scheme that applies to present, prior or future owners of property. BOMA CAL supported S.B. 989 and applauds the Governor's action.
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All 50 State Legislatures to Meet in 2007
This month, 42 state legislatures will convene. California and Maine opened their sessions in December while six others start in February, March or April. Sessions vary from only a few months to the full year. California, Michigan, Pennsylvania and New York have some of the longest sessions, while Utah and Wyoming have some of the shortest. For more information on your state’s legislative session, visit http://www.ncsl.org/programs/legismgt/about/sess2007.htm.
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It’s Time to Gear Up for Advocacy Day!
A strong advocacy program is built on relationships with those individuals who make and enforce laws impacting our industry. Advocacy Day 2007 is a time for your association to participate with other BOMA local associations around the country in reaching out to government officials at both state and local levels.
Many officials are new to the world of politics thanks to term limit laws. The 2006 elections prevented a total of 268 legislators in 13 states from running for re-election. This means that you have a chance to educate newly elected officials about the issues impacting the commercial real estate industry and serve as their “go to” person on matters that may affect your business during their time in office. Types of Advocacy Day events can include lobbying at your state capitol, receptions, or inviting a public official to speak at your association’s monthly luncheon. Don’t miss this opportunity!
BOMA International encourages you to get your message out to elected and regulatory officials. Please contact James Cox for the Advocacy Day 2007 packet.
Contact: James Cox, (202) 326-6364, jcox@boma.org
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