February 5, 2003—With recent victories on the terrorism insurance legislation and the Massachusetts telecommunications ruling, BOMA is entering into 2003 with optimism that the commercial real estate industry will see even more success this year.
The following is a brief look at the issues BOMA expects to see active in the federal and state legislative regulatory areas:
Energy. Partisan bickering over some major policy issues thwarted efforts to pass a national energy policy during the 107h Congress. BOMA International had actively supported energy efficiency tax incentives for commercial buildings the died along with rest of the bill. BOMA expects to see energy bill reemerge early in the 108th Congress.
Leasehold Depreciation. Legislation to permanently alter the time period over which leasehold improvements are depreciated is expected. Anticipated legislation would make qualified leasehold improvements eligible for a 25-year depreciation period, as opposed to the current 39-year period, beginning in 204.
Mold. During the last Congress, legislation was introduced that called on the EPA to issue guidelines that would test toxicity levels of mold. The legislation would also have required the Centers for Disease Control (CDC), EPA and the National Institutes of Health (NIH) to study the health effects of mold exposure. BOMA opposed many of the provisions in this bill, which did not see action. BOMA expects to see the effort begin again the 108th Congress.
There has also been increased interest in the state legislatures. Several bill concerning mold have been pre-filed in Texas. Florida and California are also hot states to watch as well as Indiana, Maryland, Massachusetts, New York and Pennsylvania.
Telecommunications/Forced Access. The forced access community, in spite of its repeated setbacks, continues to work at the federal level. A mandatory access provision was slipped into the FY 02 Department of Defense appropriates bill. It would have mandated that the federal government require multiple service providers for buildings it occupies.
As the Tanglewood v. Texas PUC legal battle continues, several states may consider legislation relating to forced access in 2003. All eyes are on Missouri, where legislation was introduced during the 2002 session. Arizona, Kansas, Minnesota, Nevada, New York and Virginia may also see some activity on this issue.
OSHA and Ergonomics. Last April, OSHA announced that it is prepared to go ahead with new ergonomics efforts next year. The agency report that its plan is designed to dramatically reduce ergonomic injuries through a combination of industry targeted guidelines, tough enforcement measures, workplace outreach, advanced research and dedicated efforts to protect Hispanic and other immigrant workers.
International Codes. With the national Fire Protection Associations (NFPA) building code (NPFA 5000) complete, there will be increased competition between the international Codes and NFPA 5000. California, Louisiana, Washington, West Virginia, Wyoming, Vermont and Phoenix, Arizona are expected to be the major battlegrounds in 2003..
Security/Emergency Preparedness. Several states have considered legislation that would protect evacuation plans, emergency response plans, security measures or emergency health procedures. The issue of open records will continue to be of interest across the country.
State Tax Issues. As states continue to suffer in this economic downturn, state budgets will monopolize the attention of legislatures, governors, mayors and city councils across the country as they explore cost-saving and revenue-raising options. Sales tax and property tax will most likely be popular sources of revenue for public officials in 2003.
Based on a report from BOMA International
