12 Mar Legislative Update – March 12, 2021
Friday, March 12, 2021 marked the 67th calendar day of the 2021 Legislative Regular Session and another week where a major legislative deadline occurred. Wednesday, March 10 was the deadline for original floor action on general bills originating in the other chamber to pass off the floor. This means the House must pass Senate general Bills and the Senate must pass House general bills on order for the legislation to remain alive.
At this point in the session ALL of the Mississippi REALTORS® approved Legislative Priorities are alive and moving through the process.
Two bills (HB 352 and HB 1137) have been sent to the Governor for his signature and one bill is likely heading to conference. If the Senate Declines to Concur with the House changes and Invite Conference on SB 2624, three conferees will be appointed from the House and three conferees will be appointed by the Senate to work out any differences- including the removal of the reverse repealer. If the conferees agree on the changes, they sign off on a Conference Report which goes back to both the House and Senate and each chamber simply votes to approve or oppose the Conference Report. If both chambers approve the Conference Report, the bill is then sent to the Governor for his signature.
Last week, Mississippi REALTORS® launched a Call for Action to support SB 2624. The Call for Action was launched on Monday, March 1 and concluded on Tuesday, March 9. Members received an email and a text message from the REALTOR® Party Mobile Alert system to respond to the CFA and non-action takers received a follow up email and text messages. The response rate was approximately 15%.
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: Awaiting Governor’s Response by 3/17/2021
Last Reported Action: Died on the House Calendar because the identical House Bill passed the Senate
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: Awaiting the Governor’s Response 3/18/2021
*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. Since the bill has already overwhelmingly passed both chambers, the Senate must invite Conference in order to remove the reverse repealer*
Sponsors: Mike Thompson and Daniel Sparks
Last Reported Action: Passed out of House of Representatives by a vote of 119-1. On the House floor, an amendment was made and a reverse repealer was added to the bill. This amendment is a common practice to allow a bill to remain alive and allow additional opportunities to work out any differences in Conference. The bill is now returned to the Senate where they can Concur with the changes or Decline to Concur and Invite Conference. If the Senate decides to act, they will need to Invite Conference to remove the reverse repealer.
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. (RETURNED FOR CONCURENCE)
SB 2332: Comprehensive Hurricane Damage Mitigation Program; extend repealer on development and implementation of program. (DUE FROM GOVERNOR)
HB 1048: Qualification deadline; change to February 1 for certain statewide, state district, county and county district offices. (RETURNED FOR CONCURENCE)
HB 953: Homeowners’ associations; regulate managing agents of and require financial reviews by. (RETURNED FOR CONCURENCE)
HB 632: “All Fuels Act of 2021”; establish (DUE FROM GOVERNOR)
HB 949: Solid waste landfills; prohibit new landfill in county where 2 or more exist, unless referendum held (SIGNED INTO LAW)
HB 955: Abandoned mobile homes; establish a procedure to dispose of (DUE FROM GOVERNOR)
HB 1296: Historic property income tax credit; revise certain provisions regarding (ON THE SENATE CALENDAR)
HB 1377: Appropriation: Real Estate Commission and Appraiser Licensing and Certification Board (REFERED TO SENATE APPROPRIATIONS COMMITTEE)
HB 1439: Mississippi Tax Freedom Act of 2021; create (REFERED TO SENATE FINANCE COMMITTEE)
SB 2765: Mississippi Medical Cannabis Act; create (DIED IN THE HOUSE)
SB 2831: Historic structure income tax credit; cap per taxpayer and authorize sale or transfer (RETURNEDFOR CONCURENCE)
SB 2874: Residential and commercial contractors; require sales tax permit from Department of Revenue for pulling building permit (RETURNED FOR CONCURENCE)
HB 119: Harper’s Grace Law; extend repealer on authority to research and dispense cannabidiol (CBD oil) for medical purposes (RETURNED FOR CONCURENCE)
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.