AAHOA Lodging Business JANUARY 201218

AAHOA Report

AAHOA Advocacy in ActionCongress Passes FDIC Bank Study BillCongress passed H.R. 2056 in

December shortly before the holiday break. This resolu-

tion, which carried strong support from AAHOA, would require the inspector general of the Federal De-posit Insurance Corporation (FDIC) to study the impact of failed banks.

Specifically, the resolution calls for the study to include the follow-ing details:

• The impact of loss-sharing agree-ments (LSAs) upon both banks that survive and the borrowers of those in-sured depository institutions that fail;• FDIC policies and procedures for monitoring LSAs, including those designed to ensure that institutions are not imprudently selling assets at a depressed value;• FDIC policies and procedures for terminating LSAs and mitigating the risk of acquiring institutions having substantial assets remaining in their portfolio when the LSAs are due to expire;• Methods of ensuring the orderly end of expiring LSAs to prevent ad-verse impacts upon either borrow-

ing, the real estate industry or the Depositors Insurance Fund; and• The significance of losses.

H.R. 2056 further specifies the factors that determine the sig-nificance of losses (such as whether appropriate appraisal procedures were used to determine losses arising from loans that had current payments), and it directs the U.S.

Comptroller General to study: (1) the causes of bank failures in states with 10 or more failures since 2008; (2) the pro-cyclical impact of fair-value accounting standards; (3) the causes and potential solutions for the “vi-cious cycle” of loan write downs, raising capital and failures; (4) the impact of bank failures upon the community; and (5) the feasibility and overall impact of LSAs.

AAHOA Petitions Commission for OTA LegislationAAHOA sent a letter Dec.

9 to the members of the Multistate Tax Commission

offering support for any effort to create and expedite a model statute for the tax treatment of online travel agencies (OTAs).

“AAHOA is committed to the policy that all competitors in this

industry should be taxed in a similar manner. The suggestion by OTAs that they be exempt from paying occupancy taxes directly conflicts with principles of fairness in the marketplace by giv-ing the OTAs an unwar-

JANUARY 2012 AAHOA Lodging Business

19

AAHOA Report

AAHOA Leading 2012 Legislative Charge

With the assistance of law firm Patton Boggs LLC in

Washington, D.C., AAHOA is leading the effort to ad-dress capital access issues that persist for small busi-ness owners. In addition to working directly with the Federal Deposit Insurance Corporation (FDIC), AA-HOA is one of the strongest proponents for H.R. 3461, better known as the “Finan-cial Institutions Examina-tion Fairness and Reform Act.”

This act would allow bank examiners to accurately gauge the risk of loan default by recognizing borrowers who are paying on time. The measure would also prevent any negative classification based solely on mutally agreed to loan

modifications.H.R. 10, or “Regulations from

the Executive in Need of Scrutiny

Act of 2011,” already has 200 co-sponsors and the House is expected to pass it when Congress returns in January. This act would require congressional approval of major regulations that place economic burdens on the private sector.

But AAHOA also has legislation on its radar at the state level that

will impact members.As in previous years, many

states in 2012 will pursue legislation

that would exempt online travel agencies (OTAs) from paying their fair share of occupancy taxes, placing the burden on hoteliers.

While Florida could be the largest state to renew consideration of such legislation, other states will have before them legisla-tion that would ensure OTAs pay their fair share, a position AAHOA strongly supports.

In California, lawmak-ers tabled S.B. 432, better

known as the “Fitted Sheets” law, late in 2011 but AAHOA expects the bill to make a return in 2012. AAHOA opposes this bill because it would require the state Occupa-tional Safety and Health Standards Board to adopt rules to mandate that all California hotels use fitted-bottom sheets and provide ergo-nomic tools for housekeeping staff.

These requirements would place an undue cost burden on hotels to provide them.

In Massachusetts, state lawmak-ers will consider S.B. 1843, a bill that contains major portions of the Uni-versal Franchisee Bill of Rights rati-fied in June 2011 by AAHOA and the Coalition of Franchisee Associations, which calls for fair faith and dealing between franchisees and franchisors, among many other things.

ranted competitive advantage,” according to language in the letter.

In recent years, AAHOA has diligently argued OTAs like Expe-dia, Travelocity and Orbitz should not pay their fair share of taxes, rather than placing the burden on hoteliers. In 2011, the association lobbied successfully against legis-lation in Florida and several other states that would exempt OTAs

from paying their fair share.AAHOA hopes the MTC will

draft legislation based on recom-mendations a subcommittee made

AAHOA is committed to the policy that all competitors in this industry should be taxed in a similar manner

on the issue in late November in time for lawmakers to consider it when state legislatures reconvene in January

AAHOA will continue working at all levels of government in 2012 in an effort to look after the best interest of hoteliers and small business owners

Continued from previous page

AAHOA Lodging Business JANUARY 201220

AAHOA Report

Economic uncertainty and the role government should play in addressing problems

stemming from that uncertainty will definitely continue to be a hot topic as the 2012 elections ap-proach. Foreclosures and a lack of access to capital are still daily threats to hoteliers, and the po-litical arena remains divided on what must be done. In an effort to provide information from top political insiders, AAHOA will feature a highly charged political debate between former Democratic National Committee Chair (DNC) Howard Dean and former Repub-lican National Committee Chair (RNC) Michael Steele. This rousing debate will be hosted on Friday, May 4 during the 2012 AAHOA An-nual Convention & Trade Show at the Georgia World Congress Center in Atlanta. The debate will take place during that day’s General Session and will be moderated by ABC News Senior Congressional Correspondent Jonathan Karl.

Before being elected DNC chairman in 2005, Howard Dean served six terms as the governor of Vermont. Dean left office in Ver-mont to run for President in 2003 where he implemented innovative fundraising strategies. As Chair of the DNC, Dean created and imple-mented the “50 State Strategy” and

AAHOA Convention to Feature Howard Dean - Michael Steele Debate

the development of 21st century campaign tools.

Michael Steele was elected RNC chair-man in 2009. Under his leadership, the Republi-can Party broke fund-raising records and won a majority in the House following the 2010 elec-tions. A self-described “Lincoln Republican,” Steele earned a place in history in 2003 when he was elected lieutenant

governor of Maryland, becoming the state’s first African-American elected to statewide office.

One of the news media’s bright-est talents, Jonathan Karl is an ABC News senior foreign affairs correspondent covering the State Department. He joined ABC from

CNN, where he had covered Capitol Hill, the White House and the Pentagon since 1996. Before CNN, Karl was a reporter for the New York Post, where he was referred to as “one of the best young reporters in New York,” by former New York Mayor Ed Koch.

“Howard Dean and Michael Steele are heavy hitters in the political arena and are sure to deliver a knock-

out performance,” AAHOA Chair-man Hemant Patel said. “Our mem-bers are very excited to hear them share their positions regarding the crucial issues as well as their opin-ions on how to help hoteliers and small business owners during these trying economic times.”

“AAHOA is honored to show-case this anticipated debate during our 2012 Annual Convention & Trade Show,” AAHOA President Fred Schwartz said. “Year in and year out, the AAHOA Annual Convention proves to be the pre-mier event in the lodging indus-try with an exceptional lineup of guest speakers, and our upcom-ing Convention in Atlanta will be no different. With the political landscape constantly changing as we approach the 2012 elections, this debate promises to deliver a riveting discussion that no one will want to miss.”

With the political landscape constantly changing as we approach the 2012 elections,this debate promises to deliver a riveting discussion that no one will want to miss

Howard Dean

Michael Steele