Texas BOMA Weekly Update
Locke Liddell & Sapp LLP

April 30, 2007

HB 3928 - Margin Tax Modifications
Last week, the House adopted a calendar rule on HB 3928. This rule states that all amendments must be filed by 5 p.m. Sunday, and that all amendments must balance and cause no net loss to the bill. On Tuesday, the House will consider the bill on the House floor. The calendar rule will make it very difficult for any substantive amendment to be added to the bill. The bill changes the treatment of partnership rentals from net to gross, and increases the small business exemption from $300,000 to $600,000. Robert Miller will continue to work this issue and keep Texas BOMA apprised.

Immigration Legislation
Several legislators have filed bills this session dealing with the illegal immigration problem.  Some bills exempt conflicts with undocumented workers from the protection of certain laws.  Some prohibit local governmental bodies from deliberately not enforcing federal immigration laws.  Regardless of their form, none of the immigration bills are currently moving.  The only immigration item with any traction is a resolution by Representative Swinford.  This resolution, while non-binding, expresses legislative support for ongoing state-led border security operations to control the Texas-Mexico border.

Energy Efficiency Legislation
Like the immigration bills, several filed bills concern energy efficiency.  The bills would do things such as increase returns for utilities acquiring cost-effective energy efficiency, require minimum efficiency standards for certain appliances, and establish codes for energy efficiency in new commercial construction.  Some bills would require electric utilities to establish a program enabling building owners and tenants to obtain and install energy efficient products, paying for them through a monthly energy services charge.  Currently, none of the energy efficiency bills are moving, and, at this time, none are expected to pass.

Licensing Legislation
Legislators have introduced several bills relating to licensing requirements.  At this point, only a few of those bills have left committee.  HB 1029 (already passed the house) would allow a plumber to perform minor electrical work so long as it was necessary to install, service, maintain, repair, or replace a plumbing fixture or appliance.  HB 1567 (voted favorably from committee) prohibits anyone from using the title "landscape architect" unless they are a certified landscape architect.  SB 1222 (already passed the senate) and HB 3069 (voted favorably from committee) would allow a person installing appliances to perform electrical work limited to connecting or disconnecting an appliance other than via a wall outlet.  No other bill relating to licensing is, at this time, likely to pass.

SB 1729 - Elevator Regulation
SB 1729, as voted from committee, adopts the 2005 ASME code for elevators. Previously, the statute did not specify a year. Instead, the Texas Department of Licensing and Regulation (TDLR) would, by rule, adopt new editions as they were introduced. TDLR has not adopted the 2003 or 2005 versions of the code. Because they haven?t adopted those versions, they are able to fine elevator companies with more advanced (and thus not included in the code) technology. Thyssen-Krupp plans to use this bill as a vehicle to increase technological standards for elevators. There is concern that putting the code year in the statute will not fix the problem, but instead will exacerbate it. Texas BOMA is working closely with TDLR and the elevator industry in monitoring and shaping this legislation.

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