19 Mar Legislative Update – March 19, 2021
Friday, March 19, 2021, marked the 74th calendar day of the 2021 Legislative Regular Session and another week where a major legislative deadline occurred. Tuesday, March 16, was the deadline for original floor action on revenue bills originating in the other chamber to pass off the floor. This means the House must pass Senate revenue/appropriation Bills and the Senate must pass House revenue/appropriation bills on order for the legislation to remain alive.
One of the most notable actions occurred on Tuesday, March 16, when the Senate Finance Committee did not take up HB 1439 (Income Tax Elimination Bill). Chairman Harkins announced his intention to file a resolution to form a Study Committee and review the tax policy to develop a plan for the 2022 Legislative Session. Following the Senate’s action, the House amended the bond bill, SB 2791, and included similar language from HB 1439. The bill is heading to conference where House and Senate conferees will work out any differences and then each chamber will vote on the Conference Report.
At this point in the session ALL of the Mississippi REALTORS® approved Legislative Priorities are alive and moving through the process!
This week, Governor Tate Reeves signed two of the Mississippi REALTOR®’s Legislative Priorities into law (HB 352 and HB 1137)! These bills include the Home Inspector Background Check legislation and the adjustment to the formula used to calculate the true value of agricultural land in Mississippi.
Thank you to Representative Clay Deweese, Representative Angela Cockerham, Representative Trey Lamar, Speaker Philip Gunn, Senator Chris Caughman, and Lieutenant Governor Delbert Hosemann for their support and work on our 2021 Legislative Priorities!
Here is an overview of each 2021 Approved Legislative Priority:
1.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: LAW
2.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: LAW
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.
3.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.
* SB 2624 contains a reverse repealer. This means that the bill cannot become law unless the reverse repealer is removed. Now that the bill is in Conference, the House and Senate Conferees must remove the reverse repealer and work out any differences between the two chambers.*
Sponsors: Mike Thompson and Daniel Sparks
Last Reported Action: IN CONFERENCE: The Senate has named Chairman Chris Caughman, Senator Chad McMahan, and Senator Daniel Sparks. The House conferees have not been named.
When a bill is in Conference, the conferees are tasked with working out any differences and filing a Conference Report. In order for a Conference Report to be filed, two of the three conferees in each chamber must sign the report. Once the Conference Report is filed, the Conference Report must lay on the Calendar for one day before any action can be taken. Once the Conference Report is filed and is has been on the calendar for a day, each chamber must vote to adopt the conference report in order for it to be sent to the Governor.
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 2602: Nonadmitted insurer policy fee; divert certain amount to fund fire trucks and fire apparatus/protection grants. (IN CONFERENCE)
SB 2062: Rural Fire Truck Acquisition Assistance Program; authorize an additional round for counties and municipalities. (IN CONFERENCE)
SB 2332: Comprehensive Hurricane Damage Mitigation Program; extend repealer on development and implementation of program. (DUE FROM GOVERNOR)
HB 953: Homeowners’ associations; regulate managing agents of and require financial reviews by. (DUE FROM THE GOVERNOR)
HB 632: “All Fuels Act of 2021”; establish (LAW)
HB 955: Abandoned mobile homes; establish a procedure to dispose of (LAW)
HB 1296: Historic property income tax credit; revise certain provisions regarding (IN CONFERENCE)
HB 1377: Appropriation: Real Estate Commission and Appraiser Licensing and Certification Board (DUE FROM GOVERNOR)
HB 1439: Mississippi Tax Freedom Act of 2021; create (DEAD)
SB 2765: Mississippi Medical Cannabis Act; create (DEAD)
SB 2831: Historic structure income tax credit; cap per taxpayer and authorize sale or transfer (IN CONFERENCE)
SB 2874: Residential and commercial contractors; require sales tax permit from Department of Revenue for pulling building permit (IN CONFERENCE)
HB 119: Harper’s Grace Law; extend repealer on authority to research and dispense cannabidiol (CBD oil) for medical purposes (IN CONFERENCE)
SB 3089: Panola County; exempt certain tracts of land from certain provisions of Individual On-Site Wastewater Disposal System Law (ON THE SENATE CALENDAR)
SB 2791: Bonds; authorize issuance for state institutions of higher learning (IN CONFERENCE) This bill contains similar language to HB 1439 (Income Tax Elimination)
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.