State and Local Issues Committee National Association of REALTORS® 2006 REALTORS® Conference & Expo Hilton New Orleans Riverside Melrose Room, 3rd Floor Friday, November 10, 2006 9:00 AM - 12:01 PM
Chair: Mike Flynn (WA) Vice Chair: Ken Jackson (SC) Committee Liaison:Bill Brown (CA) Committee Executive: Bob McNamara (DC)
I. Call To Order A. Opening Remarks - Mike Flynn B. Conflict of Interest Disclosure - Mike Flynn
Ownership Disclosure Policy
1. When NAR has an ownership interest in an entity and a member has an ownership interest* in that same entity, such member must disclose the existence of his or her ownership interest prior to speaking to a decision making body on any matter involving that entity.
2. If a member has personal knowledge that NAR is considering doing business with an entity in which a member has any financial interest**, or with an entity in which the member serves in a decision-making capacity*, or wit, then such member must disclose theexistence of his or her financial interest or decision making role prior to speaking to a decision making body about the entity.
3. If a member has a financial interest in, or serves in a decision-making capacity for, any entity that the member knows is offering competing products and services as those offered by NAR, then such member must disclose the existence of his or her financial interest or decision-making role prior to speaking to a decision making body about an issue involving those competing products and services.
After making the necessary disclosure, a member may participate in the discussion and vote on the matter unless that member has a conflict of interest as defined below.
Conflict of Interest Policy
A member of any of NAR’s decision making bodies will be considered to have a conflict of interest whenever that member:
1. Is a principal, partner or corporate officer of a business providing products or services to NAR or in a business being considered as a provider of products or services (“Business:); or
2. Holds a seat on the board of directors of the Business unless the person’s only relationship to the Business is service on such board of directors as NAR’s representative; or
3. Holds an ownership interest of more than 1 percent of the Business.
Members with a conflict of interest must immediately disclose their interest at the outset of any discussions by a decision making body pertaining to the Business or any of its products or services. Such members may not participate in the discussion relating to that Business other than to respond to questions asked of them by other members of the body. Furthermore, no member with a conflict of interest may vote on any matter in which the member has a conflict of interest, including votes to block or alter the actions of the body in order to benefit the Business in which they have an interest. ________________________________________ *Ownership interest is defined as the cumulative holdings of the member, the member’s spouse, children, siblings and to any trust, corporation or partnership in which any of the foregoing individuals is an officer or director, or owns, in the aggregate, at least 50% of the (a) beneficial interest (if a trust), (b) stock (if a corporation) or (c) partnership interests (if a partnership).
**Financial interest means any interest involving money, investments, credit or contractual rights.II. Approval of Previous Meeting's Minutes III. Review of Committee Goals A. 2006 Goals - Mike Flynn B. Draft 2007 Goals - Ken Jackson
Purpose: - To assist REALTORS in understanding the connections among, “smart growth,” qualityof life issues, and fiscal policy; - To assist REALTORS to act as spokespersons in their communities on quality of life issues; - To monitor state and local tax laws and other budget activities; - To monitor the government financing and construction of infrastructure, including transportation, water and sewer, and education facilities; - To assist REALTORS in promoting fiscal responsibility in state and local government; - To assist REALTORS in promoting the construction ofand the equitable financing of infrastructure to accommodate new growth; - To work for the reduction and more equitable distribution of the tax burden.
The Committee evaluates and makes policy recommendations on programs that build infrastructure, such as transportation and school construction, on community development and economic development programs, on taxation at the state and local levels, and on other smart growth issues. The Committee shares ideas on how to effectively analyze, lobby, and advocate REALTOR® policies at the state and local level, and stays abreast of trends in Smart Growth.
Liaison: Bill Brown
Staff Contact: Bob McNamara, 202/383-1268; Tom Heinemann, 202/383-1090
Goal # 1: The Committee will discuss the implications of changing federal tax policy for state and local tax systems.
Background: Since the Presidential Advisory Panel on Federal Tax Reform submitted its report to the President, there havebeen no proposals announced by the Treasury Department. It is not clear how vigorously the Administration intends to pursue tax reform over the next two years. Some of the recommendations of the Panel, if implemented, could have drastic effects on state and local tax systems which could have serious implications for the taxation of real estate and real estate-related services. For example, if the states follow the federal lead on income tax, they may be forced to compensate for revenue shortfalls by turning to other taxes, including real estate taxes. If the federal government imposes a national sales tax, states and localities may find their own sales tax capacity affected.
Actions to be Taken by Committee to Achieve Goal: - Committee will discuss federal tax proposals and consider their implications for state and local government revenue outlooks. - Committee will receive commentary from state and local taxation analysts. - Committee will suggest research on impacts of reform on state/local tax systems.
Expected Outcome: - Committee will be in a better position to anticipate trends in state and local tax policy. - Possible recommendations for new or amended NAR policy on state and local taxation.
Goal #2: The Committee will monitor and advise staff on the implementation of a Public Education Award Program in conjunction with the Council of Educational Facility Planners International (CEFPI).
Background: The Committee is working onimplementing the last of the recommendations of the Public Education Working Group, i.e., a national award program that will encourage REALTORS® to participate in facilities design projects in local public schools. NAR has partnered with the Councilof Educational Facility Planners International (CEFPI) and the Committee is working to arrange funding for the first national school design competition in April, 2007.
Actions to be Taken by the Committee to Achieve Goal: - Committee willreview budget for the program and consider funding sources. - Committee will monitor implementation of the award program.
Expected Outcome: - Identification of a permanent funding source for the program.
Goal # 3: TheCommittee will continue to monitor legislative developments at the state and federal level regarding eminent domain and property rights issues.
Background: The Committee has an interest in community development and so has been monitoring trends in eminent domain law following the U.S. Supreme Court’s Kelo decision. NAR has followed a number of bills in the U.S. Congress and assisted state associations to address state eminent domain bills through the Land Use Initiative. NAR assisted theGeorgia Assn. of REALTORS® in preparing a draft eminent domain bill and continues to work with the REALTOR® Assn. of New Mexico on eminent domain reform through the Customized Smart Growth Legislation Program. NAR will assist the Hawaii and Nevada associations to draft eminent domain bills for the 2007 state legislative session.
Actions to be Taken by Committee to Achieve Goal: - Committee will track federal property rights legislation, trends in state approaches to eminent domain reform, including ballot initiatives and constitutional amendments. - Committee will share experiences from their own states regarding effectiveness of reform measures.
Expected Outcome: - Committee may make recommendations regarding NAR policy - Committee may recommend research on eminent domain/property rights, including public opinion surveys.
IV. Unfinished Business A. School of the Future Award Program
V. New Business A. Smart Growth Program Update - Joe Molinaro B. State and Local Issue Survey - Gerry Allen C. Results of State Ballot Initiatives - Bob McNamara D. Encouraging Grassroots Realtor Smart Growth Activity E.Discussion of state and local issues by region
