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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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.