CALIFORNIA
“Job-Center” Housing Legislation
ICSC, along with an unprecedented coalition of business groups,
labor and housing advocates, headed by the California Chamber of
Commerce, recently announced the introduction of a comprehensive
housing development plan known as “Job-Center Housing.” The
introduction of the package of legislation and the groups joined
together illustrates the growing concern among many involved regarding
the impact of the state’s housing crisis on the economy. The basic
objective of the package is to give back to local decision-makers the
tools they need to attract and approve housing development in the
state’s high job growth areas.
New Assembly Speaker Makes Oversight a Priority
Assemblymember Robert Hertzberg (D) became Speaker of the
California State Assembly, effective April 13, and he has taken on the
task with a vengeance. He says he will hire investigators and create
an oversight department in his office to ensure that Governor Gray
Davis’ administration carries out the Legislature's goals when
implementing new laws. Hertzberg has even added wording to legislation
to punish state agencies that fail to follow lawmakers’ wishes,
saying it’s “not enough to pass a law and look the other way…Is the law
doing what it’s supposed to? Are the bureaucrats providing the best
possible service to the public? We are going to demand results.”
Hertzberg said his plan to create a new Speaker’s Department of
Oversight is not meant as a slap at Governor Davis. In turn, Davis
said he encouraged the move. “If that means some of my people are
criticized, so be it,” Davis said.
ICSC Prepared for Legislative Onslaught
On April 24, the legislature began the two-week period in which
most fiscal bills must move through the legislative process and certain
policy issues must be addressed in order to receive action this
session. With dozens of industry bills scheduled to be heard, ICSC
under the leadership of CBPA (California Business Properties
Association) is prepared to move forward on a variety of fronts,
including some of the bills in the Job-Center Housing Package. Some of
the bills that are scheduled include the following:
AB 2412 (Migden, D-San Francisco) would clearly define what
constitutes a nexus for a company doing business as both an e-
commerce retailer for sales tax collection purposes with the goal of
maintaining a level playing field for "brick and mortar" retailers.
(Status: Calendared for Assembly Revenue and Taxation Committee April
24) – ICSC supports.
SB 1577 (Murray, D-Los Angeles) would create a fund with
Proposition 12 monies for use in developing parks in inner cities
through clean up of existing "brownfield" sites. (Status: Calendared
for Senate Environmental Quality Committee on April 24) – ICSC
supports.
SB 1789 (Rainey, R-Walnut Creek) would require the Director of
Housing and Community Development to prepare and submit a report that
includes an inventory of hazardous substance release sites located in
urbanized areas of the state. The report would also identify obstacles
to the development of those remediated sites and incentives to develop
those sites. (Status: Calendared for the Senate Environmental Quality
Committee for April 24) – ICSC supports.
SB 1895 (Poochigian, R-Fresno) would enact the Local Public Agency
Water Supply Infrastructure Act. Requires the Department of Water
Resources to establish a grant and loan program to enable local public
agencies to carry out programs and projects to increase local water
supplies. (Calendared for the Senate Agriculture & Water Resources
Committee for April 26, but is being rescheduled) – ICSC supports.
AB 1893 (Migden, D-San Francisco) would establish a scheme for the
regulation and certification of community association managers of
common interest developments under the direction of the Real Estate
Commissioner. It would also establish fines and criminal punishment for
violations. (Status: Calendared for Assembly Housing and Community
Development April 26) – ICSC opposes.
SB 2001 (Poochigian, R-Fresno) would require that public notice
procedures also be incorporated whenever a local agency considers the
adoption of policies or ordinances affecting drive-through facilities.
(Status: Calendared for the Senate Appropriations Committee for May 1) –
ICSC supports.
AB 2048 (Torlakson, D-Antioch), the Community Infill Housing
Development Incentive Act of 2000 would promote, encourage, and
facilitate adequate housing development to provide affordable housing
for the growing work force. (Status: Calendared for the Assembly
Housing and Community Development Committee for May 3) – ICSC supports.
MASSACHUSETTS
ICSC Encouraging Rewrite of MCAD Regulations
ICSC is working with Associated Industries of Massachusetts,
Retailers Association of Massachusetts and the National Federation of
Independent Businesses to encourage the Massachusetts Commission
Against Discrimination (MCAD) to redraft its proposed regulations
regarding discrimination in places of public accommodation. ICSC
submitted comments on the section that requires landlords and tenants
to be jointly responsible for compliance. ICSC strongly recommended
the language be redrafted to make the party with control over the
matter in question (based upon the applicable legal documents)
responsible for compliance with the regulations.
MICHIGAN
House Committee May Consider Sales Tax Holiday Bill
The House Tax Policy Committee, Chaired by Representative Nancy
Cassis (R-District 38), is planning to hold a hearing the week of May 9
on H.B. 4862, which would exempt state sales tax on clothes during the
week before and week after Labor Day. ICSC has worked very closely
with Representative Cassis on this legislation, and will be prepared to
testify if the bill is considered.
Governor Engler Participates in Internet Forum on Taxing Internet Sales
Governor John Engler (R) will be participating in an Internet
forum with Massachusetts Governor Paul Cellucci (R) on the Internet
magazine "Network World Fusion" (www.nefusion.com), to discuss whether
individuals should pay taxes on purchases made over the Internet.
Governor Engler believes that taxes should be paid, Governor Cellucci
disagrees. While states cannot force collection and payment of sales
taxes by Internet retailers, Congress is being pressured to block
application of sales and use taxes on Internet sales. Governor Engler
has said he would support continuation of a moratorium that would
continue to allow states to have the ability to pursue the collection
of sales and use taxes.
Senate Passes Brownfields Package
The Senate completed work on the brownfields redevelopment package
that was recently adopted by the House. The four-bill package received
overwhelming support and will create some unique opportunities for
economic development in obsolete property rehabilitation districts.
The bills now return to the House, which has just returned from a two-
week recess.
Governor Engler Announces Opening of E-Michigan Office
Governor Engler recently signed an Executive Order creating the E-
Michigan Office, which will coordinate the development of electronic
government service. The office will be housed within the Governor's
office and is classified as a temporary agency, which will expire May
2002.
Guidebook on Environmental Rules to be Published
The Departments of Environmental Quality and Consumer and Industry
Services are compiling a publication that will list environmental
health and safety regulations. The publication would also assist
businesses in determining which rules and regulations may apply
specifically to them.
The guidebooks will be available from the DEQ Environmental
Assistance Division and are expected to cost $25.00. Another way to
attain a guide is to sign up for one of several workshops around the
state that will review the guidebooks.
NEW JERSEY
ICSC Opposes Two-Tier Property Tax System
ICSC has joined a coalition of groups opposed to ACR-58 and A-
1185, which would tax vacant property in urban areas at a higher rate
than property with homes and businesses. These bills would establish a
dual tax system in New Jersey. The sponsors, Assemblymen Michael
Arnone (R-Monmouth) and Jack Collins (R-Salem) and Senators William
Gormley (R-Atlantic) and Diane Allen (R-Burlington) have asserted that
the measure would encourage redevelopment in urban areas.
The other members of the coalition include the New Jersey
Association of Realtors, the Chemical Industry of New Jersey, the New
Jersey Laborers’-Employers Cooperation and Education Trust, the North
Jersey Commercial Association of Realtors, the Building Contractors
Association of New Jersey, the New Jersey Alliance for Action, the
Realty Services Industry Group, and the New Jersey Business and
Industry Association.
The coalition is working to prevent the bill from being considered
by the Assembly Appropriations Committee. It is important that ICSC
members contact Assemblyman Richard Bagger (R-Middlesex) and urge him
not to post the legislation. His office address is 203 Elm Street,
Westfield, New Jersey 07090.
NEW YORK
Budget Nears Completion, Then Suddenly Derails
Press conferences called to announce a budget agreement were
abruptly canceled last week as last minute negotiations fell apart.
The Governor’s last minute insistence on inclusion of a Constitutional
Amendment regarding state debt reform was seen as the deal breaker.
However, this most recent breakdown does not appear likely to affect
significant portions of the budget that have already been agreed to.
Key among these is the utility gross receipt tax phase-out, which would
take effect immediately for manufacturers, and over five years for
other consumers. Other tax cuts include an elimination of New York
State’s marriage penalty and a new $10,000 per year college tuition tax
credit. The budget does not appear to contain any new brownfields
remediation programs. Legislators will return from Easter Recess on
May 1. Completion of the state budget will be top priority.
Telco’s Introduce Forced Access Legislation
Citing the rapidly changing telecommunications companies, led by
AT&T, the legislature has introduced legislation that would give them
unrestricted access to multi-tenant buildings for the purposes of
installing telecommunications wires and equipment. The bills, S. 7059
(Wright)/ A.10054 (Tonko), are modeled after section 828 of the New
York Executive Law, which prohibits landlords from interfering with the
installation of cable television facilities upon their premises. The
legislation has excellent sponsorship in both houses and is high on
AT&T’s agenda, as they have received permission from the Public Service
Commission to offer local service in New York.
This section was the subject of intense litigation 20 years ago,
and received constitutional scrutiny from the U.S. Supreme Court.
Justice Marshall ruled that the provision constituted a taking, but
reserved judgment on whether the law provided adequate compensation.
The New York Court of Appeals held that the section did provide
adequate provisions for compensation, but heavily criticized these
provisions.
ICSC is working in Albany to stop this legislation. In the coming
weeks, ICSC members will be asked to contact their state legislators to
oppose these bills.
OHIO
Senate President Announces Internet Sales Tax Legislation
Senate President Richard Finan (R-Cincinnati) has told Ohio
Chamber of Commerce members that he intends to have legislation
introduced that would address sales tax on Internet purchases. It is
expected to be based on the simplification model legislation prepared
by the National Conference of State Legislatures (NCSL) and the
National Governors’ Association (NGA).
Senator Finan is a member of NCSL’s Task Force on State and Local
Taxation of Telecommunications and Electronic Commerce. He indicated
that Senator Lou Blessing (R-Cincinnati), Chair of the Senate Ways and
Means Committee would sponsor the bill.
TEXAS
ICSC Following Proposed Building Access Rule
ICSC is reviewing a proposed rule by the Texas Public Utility
Commission addressing building access in the Texas Register on April
14. The proposal is called "Standards for Access to Provide
Telecommunications Services at Tenant Request" and sets forth
procedures whereby a requesting telecommunications carrier may seek
access to the lease owner's property to install telecommunications
equipment upon a tenant's request.
Under the proposal, a property owner is prohibited from:
· Preventing a requesting carrier from installing
telecommunications equipment on the property upon a tenant request;
· Interfering with the requesting carrier's installation of
telecommunications equipment on the property upon a tenant request;
· Discriminating against a requesting carrier regarding
installation, terms, or compensation of telecommunications equipment to
a tenant on the property;
· Demanding or accepting an unreasonable payment of any kind from
a tenant or the requesting carrier for allowing the requesting carrier
on or in the property; and
· Discriminating in favor of or against a tenant in any manner,
including rental charge discrimination, based on the identity of a
telecommunications utility from which a tenant receives
telecommunications services.
It also prohibits a telecommunications utility from entering into
an agreement with a property owner to be the sole or exclusive provider
of telecommunications services to a specific or defined group of actual
or prospective tenants on the property.
This rule implements a 1995 law allowing a tenant under a real
estate lease to choose the provider of its telecommunications
services. Comments on the proposed rule are due to the Public Utility
Commission on May 12. There will be a public hearing on Tuesday, June
13. A copy of the proposed rule can be found at www.puc.state.tx.us -
Rules and Laws - 21400 Building Access.
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