05 Apr Legislative Update – April 5, 2021
Thursday, April 1, 2021 marked the 87th calendar day of the 2021 Legislative Regular Session and both the House and Senate adjourned Sine Die!
When the Legislature adjourns Sine Die, that means that the Legislature has concluded business for that Session and cannot reconvene until the next Regular Session or until the Governor issues a call for a Special Session.
The Mississippi REALTORS® had an incredibly successful Legislative Session and ALL of the Mississippi REALTORS®’ approved Legislative Priorities have been signed into law or are awaiting the Governor’s signature!
Since the last Legislative update, both general bills and revenue bills were in conference and any differences were reconciled over “Conference Weekend” on Saturday, March 27 and Sunday, March 28. At this point in the Session, the conferees meet and if an agreement can be reached, a Conference Report is filed. Once a Conference Report I filed, the report must remain on the calendar for a day before any floor action may take place. After at least one day, the Conference Report may be called up and a straight up or down vote occurs on the Conference Report. If any additional changes are requested, the bill may be recommitted for further conference.
On Sunday, March 28, 2021, the Conference Report for SB 2624 was filed. On Monday, March 29, 2021, the Conference Report for SB 2624 was unanimously adopted by both the House (121-0) and the Senate (49-0). On April 1, 2021, the enrolled bill was signed and will be sent to the Governor with a response deadline.
The final Conference Report reflects changes and amendments agreed to by the Conferees after much discussion among themselves and the Administrator of the Mississippi Real Estate Commission. The Sponsors of SB 2624 (Sen. Mike Thompson and Sen. Daniel Sparks) met with the Administrator of the Mississippi Real Estate Commission to discuss any concerns and opportunities to improve the legislation.
Here are some of the changes reflected in the adopted Conference Report for SB 2624:
- The standard of proof to be used in any decision rendered shall be “clear and convincing.” In the current law, there is no defined standard of proof to determine guilt.
- The location of the hearing conducted by the administrative hearing officer will be in Jackson, Mississippi and will be at an agreed upon time by the administrative hearing officer and the MREC. This change was made to prevent statewide travel by the administrative hearing officer and the MREC.
- Clarifying language was added to state that the administrative hearing officers will be staff attorneys with the Mississippi Attorney General’s office. This change was made to specify the eligible administrative hearing officers and address any concerns about additional costs to administer the program.
- Some concerns were expressed that SB 2624 would preclude the MREC from entering into Agreed Orders with licensees prior to a hearing. A sentence was added to the bill that reads “Nothing in this section shall preclude the commission and a licensee from entering into an agreed order resolving a complaint prior to the hearing.”
Here is a copy of SB 2624 As Sent to the Governor: http://billstatus.ls.state.ms.us/documents/2021/dt/SB/2600-2699/SB2624SG.pdf
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 (staff attorney from the Mississippi Attorney General’s office) 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 does not preclude the Mississippi Real Estate Commission from entering into an Agreed Order with a licensee prior to a hearing.
Sponsors: Mike Thompson and Daniel Sparks
Last Reported Action: SB 2624 Conference Report Unanimously passed the House (121-0) and Senate (49-0) and will be delivered to the Governor with a response deadline.
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 identified during this session:
SB 2602: Nonadmitted insurer policy fee; divert certain amount to fund fire trucks and fire apparatus/protection grants. (SENT TO THE GOVERNOR)
SB 2062: Rural Fire Truck Acquisition Assistance Program; authorize an additional round for counties and municipalities. (SENT TO THE GOVERNOR)
HB 953: Homeowners’ associations; regulate managing agents of and require financial reviews by. (LAW)
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 (SENT TO THE GOVERNOR)
HB 1377: Appropriation: Real Estate Commission and Appraiser Licensing and Certification Board (LAW)
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 (DEAD)
SB 2874: Residential and commercial contractors; require sales tax permit from Department of Revenue for pulling building permit (SENT TO THE GOVERNOR)
HB 119: Harper’s Grace Law; extend repealer on authority to research and dispense cannabidiol (CBD oil) for medical purposes (SENT TO THE GOVERNOR) MAR was monitoring the bill because language was inserted to establish a Medical Marijuana program should the court strike down Initiative 65. The language about the Medical Marijuana program was removed in Conference.
SB 2791: Bonds; authorize issuance for state institutions of higher learning (SENT TO THE GOVERNOR) As passed the House, the language to eliminate the state income tax was in the bill. The income tax elimination language was removed and the bill passed as a Bond project bill.
Some of the bills mentioned above include the elimination of the state income tax. Even though the bill passed the House and died in Senate Committee, the policy will likely be revisited in 2022. MAR government affairs staff will continue to engage members of the legislature on the issue and relay the importance of not taxing professional real estate services.
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.