HB 3928 - Margin Tax Modifications
Last Friday, the Senate Finance Committee voted out a committee substitute for HB 3928. When the bill left the House, it exempted any business with gross revenues less than $600,000 from the margin tax altogether. It lowered the ownership threshold for a "controlling interest" from 80 percent to more than 50 percent for determining whether a company is to be included in a combined group. It also included a provision effectively precluding landlords from passing through the margin tax to tenants. After much lobbying, Locke Liddell successfully convinced Senator Ogden, Chairman of Senate Finance, to exempt a "bill or invoice under a contract for the lease of real property" from the margin tax pass through exemption. Locke Liddell will continue to follow this bill and will keep Texas BOMA informed.

SB 270 - Sales Price Disclosure
As reported last week, Senator Wentworth successfully voted SB 270 out of committee. As drafted, SB 270 requires sales price on commercial property and vacant land be recorded as part of the deed filed with the county clerk. Failure to include this information carries a 5% penalty. Texas BOMA opposes mandatory sales price disclosure, and has joined other organizations in a coalition to keep SB 270 from coming before the full senate. Texas BOMA signed a letter opposing SB 270, and Locke Liddell is lobbying against the bill. Our efforts have been successful so far. Because of the legislative session?s timeline (there are less than two weeks left), we are increasingly optimistic that SB 270 will not pass.

HB 167 - Seizure of Certain Property
HB 167 prohibits a person from seizing a bible. Locke Liddell is currently working with the Senator Hinojosa, the bill's Senate sponsor, on an amendment. We hope to include a knowledge requirement so that unknowingly seizing another's bible, such as a bible included in a box of books left by a tenant, will not be a violation of the law.

SB 1739 - Relating to the inspection, installation, maintenance, and repair of elevators
SB 1739 has been voted out of House Licensing and Administrative Procedures as substituted. The changes are acceptable to Texas BOMA. We will continue to closely monitor this bill to ensure that it remains acceptable to Texas BOMA.

Speaker's Race
There is a strong effort underway in the House move to vacate the Chair. This would come in the form of a motion. If approved by the membership, Speaker Craddick would be removed as Speaker and there would be an immediate election for a new Speaker. Interestingly, Speaker Craddick would be eligible to run in the new election. The leading contender to replace Speaker Craddick is House Ways & Means Chairman Jim Keffer. At this point, although it is very close, I do not think that the motion to vacate will succeed.