April 2008 Legislative Update

SB 2 (Special Session - 2007)
The key provision of this bill for BOMA members is the enactment of transfer and recordation taxes of the conveyance of a "controlling interest" in a real property entity. For the application of this bill to a proposed real estate transaction click here and go to page 57 of the bill.

The remaining bills are from the 2008 legislative session

HB 13 - This bill, which did not pass, would have imposed new requirements on landlords who seek reimbursement from tenants for expenses relation to common area maintenance. BOMA opposed this bill.

HB 26 - This bill, which did not pass, would have expanded the mechanic's lien law to include the services of land surveyors and engineers under certain circumstances. BOMA initially opposed the bill, and subsequently negotiated amendments with the bill sponsor.

HB 260 - This bill, which did not pass, would have expanded the recordation tax to include indemnity deeds of trust.

HB 307 - This bill, which did not pass, would have established a task force to study stormwater management issues. BOMA supported the bill and worked with its sponsor, Delegate Bob Costa of Anne Arundel County.

HB 369 - This bill, which passed, was introduced by Governor O'Malley for the purpose of directing the Chesapeake Bay Trust Fund Revenues to nonpoint source pollution control projects.

HB 647 / SB 313 - This legislation, which did pass, would have prohibited retention provisions in construction contracts that exceeded 5%. BOMA strongly opposed the bill and an amendment was added in the Senate to condition the 5% retention on the provision of 100% performance and payment bond from the contractor to the owner.

HB 663 - This bill, which did not pass, would have authorized incorporated towns and cities in the State to impose a building excise tax on new construction. BOMA opposed the bill.

HB 694 - This bill, which was withdrawn, would have imposed specific toilet and lavatory requirements on construction projects. BOMA opposed the bill.

HB 1193 / SB 590 - This legislation, which passed, changed the statute of limitations for regulatory prosecution of an environmental violation from the current period of three years after the violation was committed to three years after the government agency "knew or reasonably should have known of the violation." The bill applies prospectively only.

HB 1247 - This bill, which did not pass, would have expanded the availability of a mechanic's lien to certified interior designers. BOMA opposed the bill.

HB 1424 - This bill, which did not pass, would have authorized certain counties and cities to impose individual transfer taxes on real property. BOMA opposed the bill.
SB 46 - This bill repealed the sales and use tax on computer services that was imposed during the 2007 Special Session and replaced it with other revenues, including an income tax surcharge on high income residents of the State.

SB 1013 - Of interest to BOMA members will be this legislation, which was passed to authorize the settlement agreement between the State and Constellation Energy. The bill provides $187 million in BGE rate credits to residential customers.

February 2008 Legislative Update

BOMA Baltimore Update on Selected Legislation
2008 Maryland General Assembly

Although we expected a quiet 2008 Session of the Maryland General Assembly after a controversial Special Session in 2007, a number of bills have been introduced that may significantly affect the operations of BOMA members.

Mechanics Lien Legislation
The Maryland legislature has been expanding the ability to impose mechanics liens on real property in recent years. BOMA typically opposes such legislation, of which there are two examples this year: HB 26 for land surveyors and HB 1247 for interior designers.

BOMA worked closely with NAIOP and HB 26 sponsor Marvin Holmes (D-Prince Georges) to limit the scope of a mechanics lien for land surveying. If our suggested amendments are accepted we will withdraw our opposition to this bill. We intend to oppose, however, HB 1247 for certified interior designers. For BOMA members, this could include the space planners used by many BOMA members, and we do not see a compromise possible at this point.

Indemnity Deed of Trust
House Bill 260 - the IDOT bill - has been introduced again by Delegate Ann Kaiser from Montgomery County. After the passage of "controlling interest" legislation during the 2007 Special Session, BOMA will redouble its efforts to oppose any attempt to impose transfer or recordation taxes on this type of financial instrument. IDOTs are frequently used by both large and small businesses, and are an essential development tool for BOMA members. We have defeated this legislation in past years and will continue our vigorous opposition.

Statue of Limitations for Environmental Violations
An important - but little noticed bill (HB 1193, sponsored by Delegates McIntosh & Hucker) would make an important change in the statute of limitations for environmental violations. Currently, the law requires that a civil or criminal action must commence within three years of the underlying violation. The bill extends that three year period to run from the date the Maryland Department of Environment actually knows or should "reasonably" have known of the violation. BOMA will point out to legislators the open-ended nature of the liability created by this bill.

Rest Rooms on Construction Sites
House Bill 694 would require that rest rooms and lavatories be provided on construction sites where the contract is in excess of $500,000. The bill also includes detailed specifications for these facilities. This would impose an unworkable burden on many routine construction contracts and the BOMA Legislative Committee does not believe there is an issue at present. We are opposing this bill

Anne Arundel County Impact Fees
BOMA testified against Bill 06-08 before the Anne Arundel County Council, which would quadruple impact fees in the County. This is part of the expansion of our legislative mission to become more active on selected issues before local legislative bodies in Maryland. Last year, we testified before the Howard County Council on a bill to impose significant environmental requirements on new commercial construction in that county.

If you have any questions about BOMA Baltimore's legislative efforts, please contact Legislative Chairman Stan Meros at smeros@sjpi.com.