In the States

ANNUAL SURVEY REVEALS TOP STATE AND LOCAL LEGISLATIVE ISSUES

BY KEN ROSENFELD

Earlier this year, BOMA International sent a survey to each BOMA local association to determine the top legislative issues they were facing in their markets. The results of the survey help BOMA International match local associations facing similar challenges, allowing them to share insights and resources with each other. The responses also create a valuable snapshot into what issues currently are affecting the industry across the United States. According to the results, local associations have primarily grappled with three main legislative issues: financial challenges, sustainability mandates and property access issues.

Budgets shouldn’t be balanced by turning to taxes that would harm businesses of all sizes.

 

FINANCIAL CHALLENGES

With many states facing budget deficits, proposals of new sales taxes on services have become a recurring challenge. More than one-third of all survey respondents cited this as a major issue. This challenge does not appear to be going away any time soon. Taxing services, such as landscaping, accounting and window washing, to name a few, risks “tax pyramiding,” in which businesses or consumers are taxed multiple times on the same product or service. Many states have successfully fended off these taxes with the message that budgets shouldn’t be balanced by turning to taxes that would place a significant economic burden on businesses. An equal number of respondents listed infrastructure fees as another option being turned to by increasingly desperate state and local governments. While the troubling state of the nation’s infrastructure is a priority issue for BOMA, these fees place an unfair burden on commercial properties.

SUSTAINABILITY MANDATES

The commercial real estate industry has long been a leader in sustainability initiatives and energy management. Energy benchmarking has become an industry best practice, and many properties are moving beyond that into waste and water benchmarking. However, local and state governments across the country have started introducing unfunded mandates that, while designed with good intentions, have created complicated and expensive requirements for building owners and managers—often producing questionable results or unintended consequences.

A majority of survey respondents (58 percent) said that mandatory energy benchmarking has been an issue in their area, and 42 percent said they were facing energy-efficiency requirements. A smaller percentage of those who responded—21 and 16 percent, respectively—said that mandated storm water management and water benchmarking were being introduced in their areas. A third of respondents said they were facing other mandates, such as green roof or solar requirements.

BOMA is working to ensure there are safeguards built into the law that allow for an opportunity to truly remedy accessibility problems before being threatened with a financial settlement.

 

PROPERTY ACCESS ISSUES

An assortment of other issues cited by local associations can be categorized as “access” issues. For example, nearly one-third of respondents said they are seeing a dramatic increase in the number of requests to bring emotional support or comfort animals into buildings. Unlike traditional service animals, some of these animals do not have the level of training required to be safely allowed into public areas. Local markets are working to balance public safety with the assistance needs of tenants. Accessibility is an ongoing priority for BOMA members, but much of the country also has been experiencing an upsurge in “drive-by” lawsuits. In these lawsuits, building owners are threatened with legal action for highly technical violations of the Americans with Disabilities Act (ADA)—sometimes from plaintiffs who have never been to the properties—that are designed to result in a quick financial settlement rather than to increase accessibility. More than half of the respondents cited issues with these lawsuits in their areas. BOMA is working to ensure there are safeguards built into the law that allow for an opportunity to truly remedy problems before being threatened with a financial settlement.

More than a quarter of respondents cited firearms and concealed carry laws as a safety and liability concern. This issue is further complicated by a maze of varying policies across the country. Multiple associations also reported a need for clarifications surrounding drone use. Although they can be beneficial, the presence of drones also can generate safety and privacy concerns, and state and local governments are just beginning to consider appropriate policies.

EVOLVING RESOURCES

BOMA’s local associations and state coalitions are working year-round to advance the interests of the commercial real estate industry on each of these issues. Your participation in grassroots advocacy efforts can make a difference; many local associations offer a variety of ways to participate, from government affairs committees to advocacy days at state capitols.

Local and state governments across the country have started introducing sustainability mandates that have created complicated and expensive requirements for building owners and managers.

 

BOMA International currently is rolling out a suite of new resources, including advocacy maps that capture much of this information on the BOMA International website; a new state legislative tracking service; a state and local advocacy listserv; and a series of white papers on many of these priority issues. For further information, please contact Ken Rosenfeld, BOMA’s director of State and Local Affairs, at krosenfeld@boma.org.

This article was originally published in the March/April 2018 issue of BOMA Magazine.