In This Issue:
President's Working Group, GAO Weigh in on Terrorism Risk Insurance
Helping to revive the focus of the federal government on terrorism risk insurance issues and the future potential for the insurance industry to provide adequate coverage to policy holders upon the expiration of the Terrorism Risk Insurance Extension Act (TRIEA), the President's Working Group on Financial Markets and the U.S. Government Accountability Office (GAO) each released a report on the issue. TRIEA is set to expire on December 31, 2007, and it remains unclear if a remodeled program will take its place upon expiration.
The President's Working Group report recognizes the difficulty in modeling for terrorism risk and identified concerns over chemical, nuclear, biological and radiological (CNBR) risks, noting that: "Given the general reluctance of insurance companies to provide coverage for these types of risks, there may be little potential for future market development."
The GAO report focused on the extent that risks associated with CNBR terrorist attacks are measurable and insurable by the private and public sectors, and concluded that the private insurance market would not be able to provide sufficient coverage to American businesses from such an attack.
Last week, the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises and the Subcommittee on Oversight and Investigations held a joint hearing on "Protecting Americans from Catastrophic Terrorism Risk." Christopher J. Nassetta, CEO of Host Hotels & Resorts, Inc., testified at the hearing on behalf of the Coalition to Insure Against Terrorism (CIAT), a policyholder coalition of which BOMA International is a member. Nassetta urged Congress to begin work now on a long-term, public-private terrorism insurance solution.
Contact: Karen Penafiel (202) 326-6323 kpenafiel@boma.org
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International Code Council Code Hearings Conclude
The International Code Council (ICC) Conference and Code Hearings came to a conclusion on October 1 following 16 days of extensive business meetings and intense review of changes to all of the International Codes. During the ICC Board of Directors meeting, both BOMA International Chairman & Chief Elected Officer Kurt Padavano and President & Chief Operating Officer, Henry Chamberlain made presentations.
Approximately 2,700 proposed changes were considered by the ICC committees and those in attendance. These changes will affect the 13 I-Codes (those codes that are administered and governed by the ICC). Prominent among the proposed code changes were those that would implement the recommendations contained in the final National Institute on Standards and Technology on the World Trade Center Disaster report. The resulting actions on a few of these proposals include-
- F220 - Fuel oil storage: Would establish controls on the storage and distribution of fuel oil in high rise buildings. Disapproved by the Fire Code Committee.
- F221 (IFC) - Sprinkler riser design: Would increase the reliability of fire suppression systems in buildings that exceed 420 feet in height by requiring looping of sprinkler uses and independent street-level water feeds. Disapproved by the Fire Code Committee.
- G71 (IBC) - Additional exit stair: Would require an additional exit star in all high-rise buildings greater than 420 feet in height. It is intended to enable rapid full evacuation of very tall buildings by ensuring that firefighting activity does not reduce the total required exit capacity needed to evacuate the building. Disapproved by the ICC General Committee.
- G72 (IBC) - Exit remoteness: The purpose of this proposal is to require stair shafts to meet remoteness criteria. Stairs would have to be located one-half of the diagonal distance of the floor apart if there are two stairways or no more than one-third of the way apart if there are three or more stairways. Disapproved by the ICC General Committee.
- G73 (IBC) - Exit enclosure integrity: Would establish a standard for the structural integrity of exit stairway enclosures. Disapproved by the ICC General Committee.
The proposed changes still have a ways to go before they become a part of their respective code and implemented. The hearings report will be published on December 1 at which time public comments will be solicited. The deadline for receipt of public comments on the proposed code changes is January 24, 2007. The final action hearings will be held on May 22-25, 2007 after which the 2007 Supplement to the I-Codes will be published.
Contact: Dave Johnston (202) 326-6357 djohnston@boma.org
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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. In the 2006 elections, term limits will prevent a total of 268 legislators in 13 states from running for re-election. This means that you have a chance to educate them 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 Days can include lobbying events 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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Congress Leaves Town Yet Again With Tax Extenders In Doubt
Despite the efforts by Senators Charles Grassley (R-IA), Chairman of the Senate Finance Committee and Max Baucus (D-MT), Congress once again adjourned for another recess without addressing important tax extenders coveted by the business community. Instead, Congress spent most of September debating terrorism issues and national security, leaving the tax extenders package, which includes 15-year leasehold depreciation and immediate expensing of brownfields cleanup costs, pending. At this point, it is anyone's guess as to what the fate of the popular tax breaks will be considering much of Congress' activity in November will depend on the outcome of the midterm elections. The commonly referred to "trifecta" bill that passed the House in early August, but later failed in the Senate was the last attempt by Congress to pass these extenders. BOMA International will continue to urge Congress to pass these important real estate tax breaks when it returns in November.
Contact: Jason Todd (202) 326-6356 jtodd@boma.org
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BOMA PAC Lends Its Support to Shaw and Wilson Campaigns
With both locked in extremely tight battles for reelection, BOMA PAC joined the real estate community in its support of Representatives Clay Shaw (R-FL) and Heather Wilson (R-NM). Facing one of his most competitive races to date, Shaw has spent the last 25 years representing South Florida's 22nd Congressional District. As the second most senior Republican serving on the Ways and Means Committee, Shaw is considered to be one of the top candidates to take over as chairman for Rep. Bill Thomas (R-CA) if successful in his bid for reelection.
Rep. Wilson, a Republican in a Democratic leaning district and state, typically finds herself in a tight race each election. Having represented New Mexico's 1st Congressional District since 1998, Wilson currently serves on the Committee on Energy and Commerce. Her district is centered in Albuquerque, and includes Bernalillo and Torrance counties and part of Santa Fe, Sandoval and Valencia counties.
BOMA PAC is proud to support the reelection efforts of those members of Congress who understand and take a special interest in supporting the commercial real estate industry.
Contact: Jason Todd (202) 326-6356 jtodd@boma.org
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National Issues Conference Returns to Washington, D.C. March 12-13, 2007
Registration is now open for the 2007 National Issues Conference in Washington, D.C. Please join BOMA International on March 12-13 when we visit Capitol Hill to discuss the issues impacting the commercial real estate industry. This is an exciting opportunity for BOMA members to meet their elected representatives and senators in support of BOMA's key issues. The National Issues Conference will be the springboard for an aggressive advocacy effort in 2007. Learn more and register...
Contact: Noah Marine (202) 326-6365 nmarine@boma.org
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Free BOMA International 2006 Issues Reports
It's not too late to receive your copy of the 2006 Issues Report. As a special offer to BOMA local associations, the 2006 Issues Report is free and will be shipped at no additional cost. These make a great membership tool for the second half of the year. If interested in receiving your free copies, please contact Noah Marine at 202-326-6365 or at nmarine@boma.org.
We are also accepting orders for the 2007 Issues Report. This essential tool is vital in understanding the issues affecting the commercial real estate industry.
Contact: Noah Marine (202) 326-6365 nmarine@boma.org