The AAHOA report discusses the passage of H.R. 2056, which mandates a study on the impact of failed banks by the FDIC, reflecting AAHOA's strong advocacy. Additionally, AAHOA is actively opposing legislative efforts for OTAs to be exempt from paying occupancy taxes while supporting legislative reforms to ensure financial institutions are regulated fairly. The report also highlights an upcoming political debate featuring Howard Dean and Michael Steele at the AAHOA convention, addressing economic uncertainty and its implications for hoteliers.

1. AAHOA Report
AAHOA Advocacy in Action
Congress Passes FDIC Bank
Study Bill
C
ongress 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(LSAs) upon both banksagree-
ments
impact of loss-sharing
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 ing, the real estate industry or the Comptroller General to study: (1) the
a depressed value; Depositors Insurance Fund; and causes of bank failures in states with
• FDIC policies and procedures for
terminating LSAs and mitigating the
• The significance of losses. 10 or more failures since 2008; (2)
the pro-cyclical impact of fair-value
risk of acquiring institutions having H.R. 2056 further specifies the accounting standards; (3) the causes
substantial assets remaining in their factors that determine the sig- and potential solutions for the “vi-
portfolio when the LSAs are due to nificance of losses (such as whether cious cycle” of loan write downs,
expire; appropriate appraisal procedures raising capital and failures; (4) the
• Methods of ensuring the orderly
end of expiring LSAs to prevent ad-
were used to determine losses
arising from loans that had current
impact of bank failures upon the
community; and (5) the feasibility
verse impacts upon either borrow- payments), and it directs the U.S. and overall impact of LSAs.
AAHOA Petitions Commission for
OTA Legislation
A
AHOA sent a letter Dec. industry should be taxed
9 to the members of the in a similar manner. The
Multistate Tax Commission suggestion by OTAs that
offering support for any effort to they be exempt from
create and expedite a model statute paying occupancy taxes
for the tax treatment of online directly conflicts with
travel agencies (OTAs). principles of fairness in
“AAHOA is committed to the the marketplace by giv-
policy that all competitors in this ing the OTAs an unwar-
18 AAHOA Lodging Business JANUARY 2012

2. AAHOA Report
AAHOA is committed to the policy
Continued from previous page
ranted competitive advantage,”
that all competitors in this industry
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,
should be taxed in a similar manner
rather than placing the burden on
hoteliers. In 2011, the association from paying their fair share. on the issue in late November in
lobbied successfully against legis- AAHOA hopes the MTC will time for lawmakers to consider it
lation in Florida and several other draft legislation based on recom- when state legislatures reconvene
states that would exempt OTAs mendations a subcommittee made in January
AAHOA Leading 2012
Legislative Charge
W
ith the assistance that would exempt online
of law firm Patton travel agencies (OTAs)
Boggs LLC in from paying their fair share
Washington, D.C., AAHOA of occupancy taxes, placing
is leading the effort to ad- the burden on hoteliers.
dress capital access issues While Florida could be
that persist for small busi- the largest state to renew
ness owners. In addition to consideration of such
working directly with the legislation, other states will
Federal Deposit Insurance have before them legisla-
Corporation (FDIC), AA- tion that would ensure
HOA is one of the strongest OTAs pay their fair share, a
proponents for H.R. 3461, position AAHOA strongly
better known as the “Finan- supports.
cial Institutions Examina- In California, lawmak-
tion Fairness and Reform Act of 2011,” already has 200 co- ers tabled S.B. 432, better
Act.” sponsors and the House is expected known as the “Fitted Sheets” law,
This act would allow bank to pass it when Congress returns late in 2011 but AAHOA expects
examiners to accurately gauge the in January. This act would require the bill to make a return in 2012.
risk of loan default by recognizing congressional approval of major AAHOA opposes this bill because
borrowers who are paying on time. regulations that place economic it would require the state Occupa-
The measure would also prevent burdens on the private sector. tional Safety and Health Standards
any negative classification based But AAHOA also has legislation Board to adopt rules to mandate
solely on mutally agreed to loan on its radar at the state level that that all California hotels use fitted-
bottom sheets and provide ergo-
AAHOA will continue working at all nomic tools for housekeeping staff.
These requirements would place
levels of government in 2012 in an
an undue cost burden on hotels to
provide them.
In Massachusetts, state lawmak-
effort to look after the best interest of ers will consider S.B. 1843, a bill that
contains major portions of the Uni-
hoteliers and small business owners versal Franchisee Bill of Rights rati-
fied in June 2011 by AAHOA and the
Coalition of Franchisee Associations,
modifications. will impact members. which calls for fair faith and dealing
H.R. 10, or “Regulations from As in previous years, many between franchisees and franchisors,
the Executive in Need of Scrutiny states in 2012 will pursue legislation among many other things.
JANUARY 2012 AAHOA Lodging Business 19

3. AAHOA Report
AAHOA Convention to Feature
Howard Dean - Michael Steele Debate
E
conomic uncertainty and the development of 21st
the role government should century campaign tools.
play in addressing problems Michael Steele was
stemming from that uncertainty elected RNC chair-
will definitely continue to be a hot man in 2009. Under his
topic as the 2012 elections ap- leadership, the Republi-
proach. Foreclosures and a lack can Party broke fund-
of access to capital are still daily raising records and won
threats to hoteliers, and the po- a majority in the House
litical arena remains divided on following the 2010 elec-
what must be done. In an effort tions. A self-described
to provide information from top “Lincoln Republican,”
political insiders, AAHOA will Steele earned a place in
feature a highly charged political history in 2003 when he
debate between former Democratic was elected lieutenant Howard Dean
National Committee Chair (DNC)
With the political landscape constantly
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-
changing as we approach the 2012
nual Convention & Trade Show at
the Georgia World Congress Center elections,this debate promises to
in Atlanta. The debate will take
place during that day’s General deliver a riveting discussion that
no one will want to miss
Session and will be moderated by
ABC News Senior Congressional
Correspondent Jonathan Karl.
Before being elected DNC
chairman in 2005, Howard Dean governor of Maryland, becoming out performance,” AAHOA Chair-
served six terms as the governor of the state’s first African-American man Hemant Patel said. “Our mem-
Vermont. Dean left office in Ver- elected to statewide office. bers are very excited to hear them
mont to run for President in 2003 One of the news media’s bright- share their positions regarding the
where he implemented innovative est talents, Jonathan Karl is an crucial issues as well as their opin-
fundraising strategies. As Chair of ABC News senior foreign affairs ions on how to help hoteliers and
the DNC, Dean created and imple- correspondent covering the State small business owners during these
mented the “50 State Strategy” and Department. He joined ABC from trying economic times.”
CNN, where he had “AAHOA is honored to show-
covered Capitol Hill, case this anticipated debate during
the White House and our 2012 Annual Convention &
the Pentagon since Trade Show,” AAHOA President
1996. Before CNN, Karl Fred Schwartz said. “Year in and
was a reporter for the year out, the AAHOA Annual
New York Post, where Convention proves to be the pre-
he was referred to as mier event in the lodging indus-
“one of the best young try with an exceptional lineup of
reporters in New guest speakers, and our upcom-
York,” by former New ing Convention in Atlanta will
York Mayor Ed Koch. be no different. With the political
“Howard Dean landscape constantly changing as
and Michael Steele are we approach the 2012 elections,
heavy hitters in the this debate promises to deliver a
political arena and are riveting discussion that no one will
Michael Steele sure to deliver a knock- want to miss.”
20 AAHOA Lodging Business JANUARY 2012