21 Feb Legislative Update – February 21, 2020
February 21, 2020
Friday, February 21st marked the 46th calendar day of the 2020 Legislative Session. To date, the total number of bills, resolutions, and nominations filed and referred to committee is about 2,400 (and counting).
The next major deadline is March 3, 2020. This day marks the deadline for bills to be passed out of committee and sent to the full chamber for consideration. Any general bill that is not passed/reported out of committee by March 3 is dead. Next week, committees will meet to consider bills and advance legislation through the process.
At this point, all of the Mississippi REALTORS®’ 2020 Legislative Priorities have been filed and assigned to a committee. Here is a breakdown and list of the Mississippi REALTORS®’ 2020 Legislative Priorities:
#1 Broker Responsibility Act
For most Mississippians, the home is the largest asset they will possess in their lifetime. The Mississippi REALTORS® are dedicated to instilling consumer confidence and reassurance throughout any real estate transaction by promoting education and responsible management among real estate Brokers. In any real estate transaction, the responsibility to monitor and manage the transaction resides with the real estate Broker.
After careful evaluation of Mississippi’s real estate license law, discussions with the Mississippi Real Estate Commission, and examination of real estate Broker license law in other states, the Mississippi REALTORS® support amending real estate Broker license law to enhance broker education and experience requirements to provide additional consumer protection.
HB 1212 – Principal Author: Speaker Pro Tempore Jason White
SB 2854– Principal Author: Senator Chris Caughman
*Under current law, a salesperson must possess a license and be active for 12 months immediately prior to making an application for the broker’s examination. HB 1212 and SB 2854 amend the current statute to emphasize marketplace experience by requiring a salesperson to possess a license for 36 months immediately prior to making an application for the broker’s examination.*
#2 Home Inspector Background Checks
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.
HB 775 – Principal Author: Representative Donnie Bell
SB 2862 – Principal Author: Senator Josh Harkins
*HB 775 and SB 2862 amend current statute to require that licensed home inspectors must pass a criminal background check as a condition for licensure (this includes new licenses and renewals). The language is nearly identical to the MAR supported Real Estate Licensee Background check bill passed into law with a couple of exceptions. First, a Home Inspector does not have to pay for an additional criminal background check if they already passed a background check from another occupational license regulated by the Mississippi Real Estate Commission. Second, individuals who may have a history or situation identified in the background check may appear before the Mississippi Real Estate Commission to explain extenuating circumstances and allow MREC to make a ruling on the qualifications of the individual seeking a Home Inspector license.*
#3 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.
HB 1227 – Principal Author: Representative Trey Lamar
HB 1228 – Principal Author: Representative Trey Lamar
*HB 1227 brings forward the tax code sections that address the valuation formula for appraising agricultural land. HB 1228 amends the tax code sections that address the valuation formula for appraising agricultural land. Specifically, this change in law would provide a cap on the capitalization value for agricultural land. If this change is made to the valuation formula of agricultural land, counties would be faced with two options: 1) Absorb the cut from a devaluation of agricultural land and 2) Identify other revenue sources to increase in order to make up the difference in a possible revenue shortfall. Because counties only have so many sources of revenue, the owners of residential property, the owners of commercial property, and owners of car tags could see their taxes increase. For the reasons stated above, the Mississippi REALTORS® oppose HB 1227 and HB 1228.*
In addition to the Mississippi REALTORS®’ 2020 Legislative Priorities, legislators will often introduce bills that have an impact on private property rights or the Mississippi REALTORS®. In some cases, legislation that seems helpful or well intentioned may have unanticipated consequences. Below is a list with short titles (this is a sample) of some bills being monitored by the government affairs staff.
HB 1103: MS Real Estate Commission; authorize an appeal to act as a supersedeas and to stay any rule or decision until resolved.
HB 1156: Revised Mississippi Law on Notarial Acts; create and repeal existing statutes on notaries public.
HB 1151: Uniform Partition of Heirs Property Act; create.
HB 1260: Occupational Licensing Review Commission; authorize to review existing occupational regulation to ensure compliance with state policy.
HB 1441: Real Estate Broker; revise license requirements for. (THIS IS NOT THE MISSISSIPPI REALTORS® REQUESTED LEGISLATION)
HB 733: Jointly held property; authorize to be sold by broker in a commercially reasonable manner.
HB 1458: AN ACT TO CREATE NEW SECTION 15-1-83, MISSISSIPPI CODE OF 1972, TO BAR CIVIL ACTIONS AGAINST REAL ESTATE APPRAISERS THAT ARE FILED AFTER THE RUNNING OF THE APPLICABLE STATUTE OF LIMITATIONS; TO CREATE NEW SECTION 15-1-85, MISSISSIPPI CODE OF 1972, TO BAR CIVIL ACTIONS AGAINST REAL ESTATE BROKERS AND SALESPEOPLE THAT ARE FILED AFTER THE RUNNING OF THE APPLICABLE STATUTE OF LIMITATIONS; AND FOR RELATED PURPOSES. (THIS LEGISLATION IS SUPPORTED BY THE MISSISSIPPI REALTORS®)
HB 867: AN ACT TO CREATE THE SALES TAX TAXATION OF SERVICES AND CONSTRUCTION ACTIVITIES STUDY COMMITTEE TO EXAMINE AND DEVELOP RECOMMENDATIONS FOR THE TAXATION OF CERTAIN SERVICES IN MISSISSIPPI AND THE TAXATION OF CERTAIN CONSTRUCTION-RELATED ACTIVITIES IN MISSISSIPPI; AND FOR RELATED PURPOSES. (THE MISSISSIPPI REALTORS® STRONGLY OPPOSE ANY EFFORT TO IMPLEMENT A SALES TAX ON PROFESSIONAL SERVICES)
SB 2340: Historic structure tax credit; extend deadline for eligibility.
SB 2381: Occupational Licensing Review Commission; require supervision of civil actions brought by occupational licensing boards.
SB 2394: Revised Mississippi Law on Notarial Acts; create and repeal existing statutes on notaries public.
SB 2430: AN ACT TO CREATE NEW SECTION 15-1-83, MISSISSIPPI CODE OF 1972, TO BAR CIVIL ACTIONS AGAINST REAL ESTATE APPRAISERS THAT ARE FILED AFTER THE RUNNING OF THE APPLICABLE STATUTE OF LIMITATIONS; TO CREATE NEW SECTION 15-1-85, MISSISSIPPI CODE OF 1972, TO BAR CIVIL ACTIONS AGAINST REAL ESTATE BROKERS AND SALESPEOPLE THAT ARE FILED AFTER THE RUNNING OF THE APPLICABLE STATUTE OF LIMITATIONS; AND FOR RELATED PURPOSES. (THIS LEGISLATION IS SUPPORTED BY THE MISSISSIPPI REALTORS®)
SB 2434: AN ACT TO CREATE THE SALES TAX TAXATION OF SERVICES AND CONSTRUCTION ACTIVITIES STUDY COMMITTEE TO EXAMINE AND DEVELOP RECOMMENDATIONS FOR THE TAXATION OF CERTAIN SERVICES IN MISSISSIPPI AND THE TAXATION OF CERTAIN CONSTRUCTION-RELATED ACTIVITIES IN MISSISSIPPI; AND FOR RELATED PURPOSES. (THE MISSISSIPPI REALTORS® STRONGLY OPPOSE ANY EFFORT TO IMPLEMENT A SALES TAX ON PROFESSIONAL SERVICES)
SB 2790: Occupational Licensing Review Commission; authorize active supervision over existing occupational regulations.
SB 2841: Mississippi Fair Housing Act; enact.
The above list represents a sample of the bills filed that directly or indirectly impact private property rights and there will be more bills entered into the system up to the March 3 deadline.
If you have any questions about the legislative process or a particular piece of legislation, please don’t hesitate to contact the Vice President of Government Relations, Clarke Wise (cwise@msrealtors.org).