The 2019 Legislative Session proved to be successful for the real estate industry. Here is a brief recap of the bills on our watch list:

ID HB 433:  PASSED AND SIGNED            
Title:  HOME INSPECTOR LICENSING ACT 
Position:  Support
Sponsors:  Alonzo Baldonado, Matthew McQueen, Kelly K. Fajardo, Rod Montoya, Daniel A. Ivey-Soto 

Enacts the Home Inspector Licensing Act to regulate and supervise the business of home inspection and evaluation by the newly created NM Home Inspectors Board. Creates the Home Inspector Fund and appropriates $200K to the fund for use in 2020 and subsequent years to carry out the purposes of the act.

ID SB 120:  PASSED AND SIGNED            
Title:  REAL ESTATE AUCTIONEER LICENSURE & FEES 
Position:  Support
Sponsor:  Pat Woods 

Exempts auctioneers working under the control of a qualifying broker by means of an express written agreement from licensure, provided the auctioneer who is not a broker may only receive a fee for services performed in the auction and not a commission.

ID SB 238:  DIED ON HOUSE FLOOR                        
Title:  REQUIRE BOND TO PROTECT PROPERTY OWNER 
Position:  Support
Sponsor:  James P. White 

Authorizes the NMREC to require that a Real Estate Broker who manages residential Real property to provide a bond in order to protect the property owner.

ID HB 497:  DIED IN COMMITTEE            
Title:  MARKET NM TO ATTRACT RETIREES 
Position:  Support
Sponsors:  Rebecca Dow, William "Bill" Pratt 

Appropriates $1 million (GF) to the Economic Development Dept. for use in FY 2020 for a targeted marketing and research campaign to attract retirees to live in NM.

ID HB 98:  PASSED AND SIGNED                              
Title:  FINGERPRINTS TO RENEW A BUSINESS NOT REQUIRED
Sponsor:  William "Bill" R. Rehm
Position:  Support 

Amends the Uniform Licensing Act to bar requirement to resubmit fingerprints for license renewal where they were required and submitted for initial issuance.

D HB 206:  DIED IN COMMITTEE                              
Title:  ENVIRONMENTAL REVIEW ACT 
Position:  Oppose
Sponsors:  Gail Chasey, Mimi Stewart 

Sets forth requirements for environmental assessments and impact statements.  Appropriates $1 million to several agencies for two full-time positions to carry out provisions on the act.

ID SB 150:  PASSED AND SIGNED                            
Title:  HOMEOWNER ASSOCIATIONS CHANGES 
Sponsor:  Mimi Stewart 
Position:  Support

Amends the HOA Act including a $300 cap that can be charged for disclosure statements.

ID HB 597:  DIED IN COMMITTEE                            
Title:  CRIME OF STEALING REGULATED MATERIAL 
Position:  Support
Sponsors:  Karen C. Bash, Joy Garratt, Abbas Akhil 

Designed to deter theft of copper wiring and other “regulated materials” by adding cost of repair to a crime: if over $3,000 the crime becomes a felony.

ID SB 563:  DIED IN COMMITTEE                             
Title:  UNIFORM OWNER-RESIDENT RELATION COURTS 
Position:  Support
Sponsor:  Daniel A. Ivey-Soto 

If a judgment is rendered against a renter, the renter and all occupants will be prohibited from re-entering the premises for 180 days without the permission of the owner.

ID HB 647:  DIED ON HOUSE FLOOR       
Title:  LIMITS ON VALUATION OF CERTAIN PROPERTY 
Position:  Oppose
Sponsor:  Matthew McQueen

Limits the 3% cap on year-to-year increase in residential property valuation to owner-occupied residences. Applies to 2020 and subsequent property tax years.

ID HB 374:  DIED IN HOUSE COMMITTEE            
Title:  UNDERGROUND WATER END USER IDENTIFICATION 
Position:  Support
Sponsors:  Gail Armstrong, Candie G. Sweetser 

The House Agriculture and Water Resources Committee Substitute for House Bill 374 adds two new sections to Chapter 72 (Water Code) Article 12 to include additional requirements for an applicant desiring to supply water to an entity with a forty-year water use planning period, and further requires the state engineer to apply existing law to the specific facts raised by the application. Lastly, the bill amends Section 72-12-3 (Application for Use of Underground Water; Publication of Notice; Permit) to make clear third-party applicants desiring to appropriate water to an entity described above must also comply with the additional application requirements.

ID HB 520:  DIED IN COMMITTEE                            
Title:  PROPERTY TAX ON CERTAIN SOLAR SYSTEMS 
Position:  Support
Sponsors:  Matthew McQueen, Abbas Akhil 

Includes residential solar energy systems within the list of exempt tangible personal property for the 2020 and succeeding property tax years.

ID HB 632:  DIED IN COMMITTEE                            
Title:  HOME WARRANTY ACT 
Position:  Monitor
Sponsor:  Patricio Ruiloba 

Requires a builder of a newly constructed home to provide a warranty to the owner guaranteeing the home is free from certain defects.

ID HB 429:  PASSED AND SIGNED                            
Title:  PROPERTY TAX INCREASE LIMIT FOR SOME PEOPLE
Position:  Support 
Sponsors:  William "Bill" R. Rehm, Jane E. Powdrell-Culbert 

House Taxation and Revenue Committee Substitute for House Bill 429 proposes a restructuring and modest increase in income levels necessary to qualify for a property tax valuation freeze from $32,000 to $35,000. This income limit is indexed to the Consumer Price Index (CPI-U), with a base year of 2020 and a calculation year of September of the year before the tax year. This House Bill 429/HTRCS – Page 2 restructuring will allow indexing to actually work to increase the $35,000 limit each year to account for inflation.

ID SB 7:  DIED IN COMMITTEE                  
Title:  OCCUPANCY TAX FOR AFFORDABLE HOUSING 
Position:  Oppose
Sponsor:  Peter Wirth 

Senate Bill 7 adds an occupancy surtax to a portion of the lodger’s tax authorized by 3-38-15 NMSA 1978. The occupancy surtax is up to 2 ½ percent of the gross taxable rent of single-family residential rentals. Money to be earmarked for “Affordable Housing.”

ID SB 106:  PASSED AND SIGNED                            
Title:  SHORT-TERM OCCUPANCY RENTALS TAX 
Position:  Support
Sponsor:  John M. Sapien 

Senate Bill 106 removes an exemption from the local-option occupancy tax (3-38-13 et seq. NMSA 1978) for short-term rentals (less than 30 days) by a vendor that does not offer at least three rooms within or attached to a taxable premises for lodging or at least three other premises for lodging or a combination of these within the taxing jurisdiction. It appears the intent of this bill is to remove an unanticipated tax exemption for homeowners who rent rooms through third-party websites and applications, as well as to level the playing field between designated and compliant accommodations and somewhat less compliant accommodations.