2014 - On the Home Front
2014 Legislative Session, House and Senate Members:
2013 and 2014 Current Hawaii Bills:
House Bills for both 2013 and 2014, Senate Bills for both 2013 and 2014
2014 - Local Advocacy
We try to identify and advocate for bills on the national, state and local levels that could have both positive and negative impacts to our industry. So if there is any particular bill you would like to bring to our attention please do so. For example â€śMinimum Wageâ€ť, there are at least 6 separate bills coming up through both the house and senate that are related to raising the minimum wage. Senate Bill SB2609
and House Bills - HB1488
are 5 I would keep an eye on. House Bill 1488 for example has a scheduled increase of $1 per year for 3 years the others rely on various increases with future increases to match the Consumer Price Index.
This is a challenging subject but after meeting other BOMA representatives in San Francisco and some other US cities our 7.25 to at the highest 9.00 by 2017 is mild in comparison to San Francisco who is facing huge increases from 10.74 (currently) to 12.00 and another proposal from 10.74 to 15.00. (But) we should still do what we can to help our members protect their ability to generate revenue and create jobs in this economy.
Also brought to our attention by a BOMA Hawaii member is Senate Bill SB2651_SD1
, introduced by Senators Mike Gabbard and Donovan Dela Cruz. This bill would essentially impose fines for owners of Parking facilities with at least one hundred parking spaces available for use by the general public that do not already have at least one parking space exclusively for electric vehicles and equipped with an electric vehicle charging system located anywhere in the parking structure or lot by July 1, 2012.
According to the current language in the proposed bill SB2651_SD1
enforcement would begin Jan. 1, 2015, and establish fines of:
- (1) $1,000 for the first violation;
- (2) $5,000 for the second violation;
- (3) $10,000 for the third violation; and
- (4) $20,000 for the fourth violation and any subsequent violations thereafter;
Owners of parking lots shall be allowed 120 days after any violation to comply without being cited for another violation. Police will be responsible for issuing citations. The bill was approved unanimously by the Senate Committee on Energy and Environment on Jan. 30. It moves next to the Committee on Judiciary and Labor before coming up for a third and final reading in the Senate.
2014 - On the National Front
The Terrorism Risk Insurance Program will expire at the end of 2014. As we all know Terrorism will remain a threat for the foreseeable future; the federal terrorism insurance program must remain in effect until the re-insurance industry is prepared to accurately underwrite and assume the whole risk when these events occur. Without adequate insurance, it is difficult, if not impossible, to operate or acquire properties, refinance loans, and to sell commercial-backed securities. Mitigating the risk of terrorism is not something the private sector has control over so BOMA is taking an active role in making sure one of three bills passes through both House and senate.
Bomaâ€™s Position - The issue - beginning January 1, 2014, tenant improvements must be depreciated on a 39-year depreciation schedule.
Leasehold improvements, also known as tenant improvements, include changes to walls, floors, ceilings, lighting, and plumbing to meet the needs of a new or existing tenant. In the commercial real estate marketplace, with the average lease running from five to ten years, such reconfigurations are commonplace. A 15- year depreciation schedule although still not perfect but still more closely reflects the reality of the marketplace. BOMA International fully supports the 15-year timeline be made permanent, either through comprehensive tax reform or as a stand-alone bill or included with another piece of legislation.
SPRINKLER REPLACEMENT DEPRECIATION
Bomaâ€™s Position - BOMA International fully supports tax incentives to promote the installation of new roof systems and sprinkler installation in existing buildings. BOMA also supports a reduced 20 year depreciation schedule (currently 39 years) for the installation of new roof systems and 15 year schedule, (currently 39) for sprinkler installations in existing commercial buildings. In short were working with congressional representatives to support reduced depreciation schedules. As we all know a new roof only has a 20 year life and in Hawaii this is even less. For Sprinklers a 15 year depreciation would add a financial incentive as an encouragement to overcome a cost impediment of new installation, where costs range from $2-3 dollars a square foot in some parts of the country as high as $10 per square foot.
Building Codes and Voluntary Standards
BOMA International is the only national commercial real estate trade organization with an aggressive codes and standards advocacy program. BOMA's advocacy team is involved in codes and standards development from the moment they're created; not after they're released.