Legislative Update — February 24, 2023

24 Feb Legislative Update — February 24, 2023

Posted at 20:48h in Legislative Update by Clarke Wise

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February 24, 2023

Today marked the 53^rd calendar day of the 2023 Legislative Session and another major deadline (revenue and appropriations bills) has passed. Much of the week was spent considering revenue and appropriations bills from their original chamber; however, some general bills saw floor action- including one of MAR’s 2023 Legislative Priorities

On February 21, the House Ways and Means Committee met and they debated SB 2647 (the PCDS Liability bill). The bill was amended to include some code section clean up/clarification language, the reverse repealer was removed, and the effective date will be upon passage. On February 22, SB 2647 was brought up for consideration on the House floor. The changes do not harm the intent of the bill and the effective date will be a benefit to licensees. After an explanation from Representative Shane Barnett, there were no questions and the bill passed 108-7.

SB 2647 has been returned to the Senate and is on the calendar for Concurrence. If the Senate concurs with the changes from the House, the bill will be sent to the Governor for his signature.

Another item of note for the Mississippi REALTORS® is HB 1084. This bill, as introduced, created an exemption for CE requirements for Insurance agents who have reached age 65 and have held an active license for 25 years. After the bill passed the House and was referred to Senate Insurance, the bill was amended in the Senate committee to lower the age exemption to 65 for CE for real estate licensees. The bill passed the Senate and will be returned to the House for concurrence. If the House agrees with the changes, the bill will be sent to the Governor for his signature.

Next week includes a deadline for bills to be reported out of the other chamber. This means the Senate committees must take up House (General) bills by Tuesday and the House Committees must report (General) Senate bills out.

If the Senate invites conference, each chamber will appoint three conferees to discuss changes and produce a conference report. If at least two conferees from each chamber sign off on the conference report, the bill goes to each chamber for a straight up-or-down vote. If the bill passes, it is sent to the Governor.

One other item of note, at this point in the session, the Senate will begin to receive nominations for confirmation. MAR makes recommendations to the Governor for positions to the Mississippi Real Estate Commission and the Mississippi Real Estate Appraisal Board. MAR will continue to monitor the Senate Nominations and report on their progress.

There are several bills that impact real estate/private property rights that are currently being evaluated by the Legislative Advocacy Team and will be reported to the Legislative and Regulatory Affairs Committee should additional action be necessary. Some items of interest: legislation to separate the MS Appraisal Board from the MS Real Estate Commission, legislation to reduce the fee to apply/renew real estate licensees, legislation to protect the use of drones for commercial purposes, lowering the age of majority for the transfer of real property to 18, and legislation to prevent municipalities from assessing water usage based on property value.

Please check your email and the MAR website each week for legislative updates on MAR’s Legislative Priorities as well as updates on legislation that impacts the real estate industry. MAR staff will continue to monitor bills filed over the next couple of weeks and provide regular updates through email and www.msrealtors.org to keep you apprised of the activity at your state capitol.

Here is a detailed description on MAR’s 2023 Legislative and Regulatory Priorities (*Please remember that bills and amendments may be added to this list once additional legislation is filed or bills are amended throughout the committee process*):

Opposition to Real Estate Tax Increase

The Mississippi REALTORS® believe in the free enterprise system and oppose undue intervention by government in the affairs of American business. We oppose counterproductive taxation, governmental guidelines, regulations, rules, and procedures which unnecessarily increase consumer costs and overburden the business community.

The Mississippi REALTORS® oppose any taxation on software as a service (SaaS) for real estate and business services.

HB 968: Sales Tax and use tax; exempt sales of certain computer software and computer software services.

Principal Author: Rep. Trey Lamar

House Committee: Ways and Means

Last Action Report: Referred to Senate Finance and is subject to the 2/28/23 deadline

SB 2449: Sales and use taxes; bring forward code sections for the purpose of possible amendment.

Principal Author: Senator Josh Harkins

Additional Author: Senator Daniel Sparks

Senate Committee: Finance

House Committee: Ways and Means

Last Action Report: Referred to House Ways and Means and is subject to the 2/28/23 deadline

Property Condition Disclosure Statement Liability

The Mississippi REALTORS® offer the benefits of our knowledge of real estate, our experience, and our technical resources to the public in general and the government which serves them. Current state law requires that a Property Condition Disclosure Statement (PCDS) be completed by sellers in transactions involving a licensee. The PCDS is a six-page form concerning the condition of residential property of 1-4 units. While the PCDS is a valuable tool in real estate transactions, the current law lacks clarity, and has been interpreted to place liability on the real estate licensee even though the seller is solely responsible for completing the form, a task in which the licensee has no role under statutory law. Current law and regulations have likewise been interpreted to hold licensees accountable for sellers’ failure to properly conduct themselves in real estate transactions involving a PCDS when the seller fails to properly complete the PCDS.

The Mississippi REALTORS® support a statutory change to clarify that licensees cannot and should not be held liable for any inaccuracy or omission in a Property Condition Disclosure Statement, and to clarify that licensees cannot and should not be disciplined or held liable with regard to a seller’s obligation to complete the PCDS or any contents thereof.

HB 773: Real estate brokers and agents; revise liability regarding disclosure statements

Principal Author: Rep. Clay Deweese

Co-Authors: Barnett, Bell (21st), Carpenter, Felsher, Ford (54th), Ford (73rd), Goodin, McKnight, Powell, Shanks, Steverson, Tubb, Yancey, Anderson (122nd), Arnold, Porter, Karriem

House Committee: Judiciary A

Senate Committee: Business and Financial Institutions

Last Action Report: Passed the House of Representatives (108-7) and has been transmitted to the Senate. The bill has been referred to Business and Financial Institutions and is subject to the 2/28/23 deadline.

SB 2647: Real estate licensee; revise liability

Principal Author: Sen. Nicole Boyd

Co-Authors: Sparks, Michel, Williams, England, Chism

Senate Committee: Business and Financial Institutions and Judiciary A

House Committee: Ways and Means

Last Action Report: The bill was amended in House Ways and Means, the reverse repealer was removed, and the bill was made effective upon passage. SB 2647 was returned to the Senate for Concurrence. The deadline for Concurrence is 3/23/23.

Here is a brief summary of what the legislation (HB 773 and SB 2647) DOES and DOES NOT do:

What the bill DOES:

Clarifies that a licensee cannot and should not be held liable for any inaccuracy or omission in a PCDS
Clarifies that licensees cannot and should not be disciplined and held liable with regard to a seller’s obligation to complete and deliver the PCDS or any contents thereof

What the bill does NOT do:

Does not affect the MREC’s authority to define the PCDS form
Does not eliminate the requirement that a PCDS be completed and delivered by the seller to a prospective buyer when a licensee is involved in the transaction
Does not eliminate a seller’s duty to amend a disclosure
Does not negate Mississippi case law that a seller of real property and, by extension, his or her agent, has a legal duty to disclose any known latent defects
Does not create a “buyer beware” state because a seller and/or his/her agent can still be held liable for fraud, misrepresentation or deceit in the transfer transaction, including disclosures concerning physical condition of the property
Does not prohibit a licensee from answering questions about the PCDS or the procedures involving the PCDS
Does not prohibit a licensee from asking another licensee about a PCDS
Does not change MREC’s authority to discipline a licensee who makes any substantial misrepresentation in connection with a real estate transaction, who undertakes any misleading or untruthful advertising, or who acts in bad faith, dishonestly or fraudulently or improperly

2023 MAR Regulatory Priority

REALTORS® will be recognized by the real estate community and the public as the most valued, highly competent, and ethical professionals in the real estate industry. As the “Business Advocate for Mississippi Real Estate Professionals,” the Association will support efficient and effective governance policies and structure which enable the Association to anticipate and respond effectively to changing market conditions and opportunities. The Mississippi REALTORS® seek to cooperate with governmental agencies and to encourage compliance with all published rules and regulations which affect the real estate business.

The Mississippi REALTORS® continue to support and request a comprehensive re-write of the current Mississippi Real Estate Commission Administrative Rules and Regulations.

*Please remember that bills and amendments may be added to this list once additional legislation is filed or bills are amended throughout the committee process*

2023 MAR Legislative Watchlist

Below is a list of bills being monitored by MAR’s Legislative staff. Bills will be added and removed to this list as the session progresses and legislation dies. *This is not an exhaustive list and many of these bills will die on the first committee deadline (1/31/23)*

HB 246: Real property; right of first refusal expires on grantee’s death unless specifically stated otherwise

HB 280: Foreign governments; prohibit sale of agricultural lands to

HB 390: Historic property income tax credit; revise certain provisions regarding

HB 522: Mississippi Individual On-site Wastewater Disposal System Law; extend repealer on

HB 537: Municipalities; authorize waiver of liens, under certain circumstances, for costs associated with cleaning menaced property

HB 556: “Property Clean up Revolving Fund”; establish

HB 665: Ad valorem tax; exempt certain business personal property from

HB 698: Municipal water, wastewater and sewer services; require equity based billing based on use of

HB 821: Notaries; revise residency requirements of

HB 846: Sixteenth Section land; revise zoning authority of local governing entities to prohibit restrictions on school districts’ ability to build on said lands

HB 894: Violations of local zoning ordinances; authorize governing authorities to pursue administrative or civil penalties for

HB 1020: Capitol Complex Improvement District courts; authorize