05 Mar Legislative Update – March 5, 2021
Friday March 5, 2021 marked the 60th calendar day of the 2021 Legislative Session and another significant legislative deadline passed. Tuesday, March 2, 2021 was the deadline for all general bills to be reported out of committee from the other chamber (Senate committees had to pass House Bills and House Committees had to pass Senate Bills).
I am pleased to report that ALL of the Mississippi REALTOR®’s 2021 Legislative Priorities are alive and moving through the legislative process. All of the 2021 Legislative Priorities are General bills and must be taken up by the House and Senate chambers by Wednesday, March 10, 2021.
On Monday, March 1, 2021, a statewide Call For Action was launched in support of SB 2624. The Call For Action is live and REALTORS® across the state have the opportunity to respond to their Representative and ask them to support SB 2624 and enhance the due process rights of licensees in regulatory discipline matters.
Here is a link to respond the Call For Action on SB 2624: https://www.votervoice.net/NAR/1/campaigns/81534/respond?TrackingID=Website
Here is a breakdown of the Approved 2021 Legislative Priorities and the status of each bill:
- Background Checks for Home Inspectors in Mississippi
Home Inspectors in Mississippi are not required to pass a background check to receive a license. In Mississippi, Real Estate licensees and Appraisers must pass a criminal background check before they are eligible to legally operate; however, Home Inspectors do not have to complete the same requirement. Like Appraisers or Real Estate Licensees, Home Inspectors have access to personal information, enter homes, and their licensing requires them to be “trustworthy.”
The Mississippi REALTORS® support legislation to require Mississippi Home Inspectors to complete and pass a background check in order to be properly licensed.
Last Reported Action: Passed out of Senate committee on 3/2/2021 and is on the Senate Calendar
Last Reported Action: Passed out of House Judiciary A Committee on 3/2/2021 and is on the House Calendar
*The HB and SB language are identical. Depending on floor action, if one chamber decides to take up the legislation and pass it, the other chamber will skip over the item/let it die on the calendar.
- Preventing a Property Tax Increase/Real Property Taxation
REALTORS® believe homeownership is the cornerstone of our national economy, including the economy of Mississippi. Homeownership contributes to community development, economic and employment stability and family security and wellbeing. Our tax laws should be constructed to provide increased opportunities for homeownership. The potential to raise property taxes for homeowners will negatively impact the home buying public in general and in the end, the Mississippi economy.
The Mississippi REALTORS® urge the Mississippi legislature to continue to encourage homeownership by opposing any tax provisions that could potentially result in a tax shift to the real estate industry and property owners.
Last Reported Action: Passed out of Senate Finance Committee and Senate Agriculture Committee on 3/2/2021 and is on the Senate Calendar
*After several meetings with the Mississippi Property Tax Alliance, the Mississippi Association of Tax Assessors and Tax Collectors, subject matter experts/ Agricultural Economists at Mississippi State University, Appraisers, and the Chairman of House Ways and Means, and the Chairman of Senate Finance Committee the Mississippi REALTORS® agreed on a proposal that codifies some existing regulations established by the Mississippi Department of Revenue and changes the current formula on how crop prices are determined from a 3 year average to a 10 year average. The agreed upon proposal is reflected in HB 1137. Mississippi REALTORS® government affairs staff will continue to monitor the bill as the process continues and report on any updates.*
- Enhancing Due Process Rights of Real Estate Licensees
The Mississippi REALTORS® strive to enhance the ability of its members to achieve career success in an ethical and professional manner and to promote and protect the rights of private property ownership. Through years of member surveys and member input, Mississippi REALTORS® have consistently expressed an interest in amplifying the rights of licensees when dealing with the regulatory authority.
SB 2624 enhances the due process rights of real estate licensees during disciplinary proceedings. Specifically, this bill provides licensees with an option to request a hearing before an impartial third-party hearing officer or before the commission consisting of active market participants. The bill also affords to licensees the right of supersedeas so that they may continue to earn a living while appeals are working their way through the court system, except in cases where the court finds clear and convincing proof that they pose a threat to the public.
This bill has no effect on the current authority and practices of the commission in processing, investigating and seeking alternate resolution of complaints. SB 2624 would only come into play at the hearing stage, when the licensee would be given the option of choice of forum.
Here is an explanation of SB 2624:
- Establishes a 3-year pilot program that will serve as an OPTION for licensees to use in disciplinary hearings.
- The pilot program allows licensees the option to request a hearing from an impartial third-party administrative hearing officer (licensed attorney) rather than a hearing where the presiding officers are active licensees.
- SB 2624 allows licensees to continue to practice while they appeal a judgment from the Mississippi Real Estate Commission. This feature impacts licensees because the time of appeal may be weeks or months and licensees whose license is suspended are prevented from working while their appeal is pending.
- The Mississippi Real Estate Commission may file (within 10 days of the notice of appeal) a request to lift the supersedeas if they can prove by clear and convincing evidence that immediate and irreparable harm will or may occur if the licensee were to continue practicing.
*During the House Judiciary A Committee meeting, a reverse repealer was added to the bill. This amendment means that the bill cannot become law unless the House removes the amendment or the Senate invites Conference on the bill.*
Sponsors: Mike Thompson and Daniel Sparks
Last Reported Action: Passed out of House Judiciary A Committee and is on the House Calendar
In addition to the adopted 2021 Legislative Priorities, Mississippi REALTORS® government affairs staff, in consultation with the Legislative Advocacy Team, monitors and takes action when necessary in order to act on legislation or policies that advance the mission and vision of the association. Here are some of the bills LAT has identified to this point (this is not a comprehensive list as bills may be amended throughout the legislative process):
SB 2792: Fresh Start Act of 2019; expand.
HB 953: Homeowners’ associations; regulate managing agents of and require financial reviews by.
HB 632: “All Fuels Act of 2021”; establish
HB 955: Abandoned mobile homes; establish a procedure to dispose of
HB 1296: Historic property income tax credit; revise certain provisions regarding
HB 1377: Appropriation: Real Estate Commission and Appraiser Licensing and Certification Board
HB 1439: Mississippi Tax Freedom Act of 2021; create
SB 2765: Mississippi Medical Cannabis Act; create
SB 2831: Historic structure income tax credit; cap per taxpayer and authorize sale or transfer
If you have questions about the 2021 Legislative Session or any of the 2021 Legislative Priorities, please email MAR’s Vice President of Government Relations at cwise@msrealtors.org.