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May 2006 Issue
Page 2
NATIONAL NEWS
FCC JUNK FAX RULE GOES INTO EFFECT AUGUST 1, 2006 |
The Federal Communications Commission has issued its final rule on the federal Junk Fax Protection Act. Although the content of the rule was released earlier, the printing of the final rule identifies the effective date of the regulations, August 1, 2006. The rule requires businesses to give contacts 30 days to opt out as a recipient and identifies what "cost free" mechanism fax senders can use for consumers to transmit their opt-out requests. The FCC refused to place a limit on the duration of an opt-out and established that an opt-out request would terminate the existing-business relationship exemption even if the parties continued the business relationship. To read the rule, click here. |
FTC SEEKS FEE HIKE FOR DO NOT CALL REGISTRY ACCESS |
The Federal Trade Commission wants to increase the rate it charges businesses to access its Do Not Call Registry to $62 per area code from $56, a notice of proposed rulemaking issued May 1 says. For access to the entire registry, the fee would increase to $17,050 from $15,400. Businesses would retain the ability to access up to five area codes without charge. Public comments on the proposed hike are invited. To make a comment, refer to "TSR Fee Rule, Project No. P034305,'' on both the envelope and text and send two copies of the letter to: Federal Trade Commission, Office of the Secretary, Room H-135 (Annex D), 600 Pennsylvania Avenue, N.W., Washington, DC, 20580. Deadline: June 1. NAR is developing comments for submission. To access the FTC's notice, click here |
NAR NEWS
WASHINGTON D.C. LEGISLATIVE MEETINGS — YOUR RPAC DOLLAR AT WORK
Each year the Elkhart County Board of REALTORS® and the MLS sends representatives to Washington D.C. to attend the Legislative meetings. The meetings give us an opportunity to become familiar with the issues in the Federal Government that impact the real estate industry. We meet with the NAR lobbiest for our region who explain in detail what is going on in the legislature so we are equipped to speak on these issues with the Congressman and Senators.
We then spend two days at the Capital meeting with all of Indiana’s Congressman and Senators and their staff to review these issues. We are invited to their offices where we sit face to face and break down what impact this bill would have on private property rights and the real estate industry back home in Indiana. I have heard many members over the years, such as Larry Bontrager, Gary Secor, Dave Myers and others articulate precisely how the bill would translates in the “real world”, they make it real and that is an invaluable service that we bring to the table. .
We also have an opportunity each year to hear the President of the United States speak the REALTORS® at our convention hotel. This gives an upclose and personal opportunity to hear the President’s views. This year I am told both President Bush and Past President Clinton will be meeting with us.
NAR also sponsors many forums where key Senatory and Congressman will speak to us on the issues we are concerned with.
OVERVIEW OF COMMITTEE MEETINGS
I) POTENTIAL ACTION ITEMS/SENSITIVE ISSUES
FEDERAL HOUSING POLICY COMMITTEE
Potential Action: The Committee may recommend policy supporting the Department of Housing and Urban Development’s proposal to establish a risk-based premium structure for FHA single-family mortgages.
Basis for Action: The Bush Administration has proposed legislation dramatically reforming the FHA single-family mortgage insurance program. Among the proposals is a new risk-based pricing model for FHA. This new model would eliminate the statutory maximum levels for the upfront premium (2.25%) and the annual insurance premium (.5%). FHA is seeking statutory authority to charge borrowers different premiums based upon their risk.
FEDERAL TAXATION COMMITTEE
1) Potential Action: The Committee may recommend policy regarding estate tax reform.
Basis for Action: Efforts to make the 2010 repeal of the estate tax permanent continue. NAR supported the repeal effort in 2001, but continues to express, as it did in 2001, concerns about the propriety and the complexity of carryover basis for the heirs of family assets. Committee discussions, as well as any new policy recommendations, will focus on two central features of an estate tax: carryover vs. stepped-up basis and the appropriate tax rate for an estate tax. If Congress does not act, the estate tax is repealed for 2010 only, and will revert to its pre-2001 levels as of January 1, 2011. If the estate tax reverts, the exclusion will be $1 million and the top rate will be 55%.
2) Potential Action: The Committee may recommend policy regarding tax-incentives for employer-assisted housing benefits.
Basis for Action: Under current law, employers have no incentive to provide housing assistance benefits to their employees. When employers do provide such assistance, the employee is required to pay tax on the assistance received. The Committee will consider proposals to provide employers a tax credit for housing assistance programs and to permit employees who receive such assistance to exclude any funds they receive from taxation.
COMMERCIAL LEGISLATION & REGULATORY SUBCOMMITTEE
Potential Action: The Subcommittee may recommend policy supporting the notion that, in a tenant-in-common (TIC) transaction, an interest in a TIC is an interest in real estate and that a real estate licensee should be required to be involved. Further, in a TIC transaction, it is in the interest of consumers to use a real estate professional when in the market for and purchasing a TIC.
Basis for Action: NAR’s TIC Working Group determined that TIC’s are in fact real estate transactions regardless of how they may be structured or sold. This fact forms the basis of NAR’s discussions with the Securities and Exchange Commission (SEC) in trying to resolve issues pertaining to compensation of real estate professionals for real estate advisory service in securitized TIC transactions, and with ARELLO and the NASAA (North American Securities Administrators Association) on the applications of state securities and real estate laws. The Working Group provided a framework by which real estate professionals may be compensated in the brokerage of securitized interests. NAR is pursuing a meeting with the SEC to communicate its position regarding the role of real estate professionals in the brokerage of securitized TIC interests.
LAND USE, PROPERTY RIGHTS & ENVIRONMENT COMMITTEE
Sensitive Issues:
1) Eminent Domain. The Committee may be asked to revisit its policy regarding eminent domain. This action stems from some members who believe the policy adopted by NAR at the 2005 Annual Convention does not go far enough in addressing the use of eminent domain. Specifically, some members believe that the federal government should have a role in determining the breadth and scope of eminent domain authority. NAR’s policy adheres more closely to the language of the 5th Amendment of the Constitution and that states should establish its own rules and laws governing eminent domain without interference from the federal government.
2) Natural Disaster Insurance. The Committee may be asked to consider recommendations on natural disaster insurance to hasten advocacy of legislation. In the wake of Hurricanes Katrina, Rita & Wilma renewed attention has focused on a natural disaster insurance program to help the U.S. better prepare for and protect its citizens against the ravages of natural catastrophes. To date, legislative attention has been demonstrated in the House but not the Senate. While NAR supports natural disaster insurance legislation, movement of such legislation has been slow because of Congress’s reluctance to consider federal legislation providing a reinsurance program.
Continued....
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