Sunday, June 8, 2014

Legislative Update 6/8/2014 - Action Item required for HB590

This Legislative Update is provided by Nick Norman, Director of Legislative Affairs for the RPOA.

I would like to thank Nick Norman for his hard work on Legislation and particularly HB1409. Without Nick's time and effort many bills would be passed that aren't in the best interest of property owners.  - Jeannine Richardson, President Landlord Connection

Nick could use some help so if anyone is interested in spending a couple of hours a week helping during the Legislative season, please contact Nick at nicknorman@yahoo.com

----------------------------------------------------------------------------------------------------------------------------

Howdee everyone,

Important Updates:HB590, Unauthorized Practice of Law
This is very important to us.  It allows landlords to represent themselves in civil court when property is owned in a small LLC or corporation.  See the Bills Updated Status summary below for more detail.

As many of you know some of our civil courts had been requiring landlords to hire attorneys to process evictions if the property was owned by an LLC or corporation.  For many of us that was an unnecessary expense. This bill would allow us to represent ourselves and save the cost of an attorney.

Action items this week:
Write and/or call the Governors office asking the governor to pass HB590.
Governor's office is 271-2121
You can e-mail the governor by going to the following website:

http://www4.egov.nh.gov/governor/goveforms/comments.asp

See more info in Summaries & Full Detail for each category further below (includes property owner position, contact info, Talking points, and more).(to jump right to bill detail, use Control-F, Find).

This week:None

Next week:None

Further below is:Bills Updated Status summary:
Full details on all bills above
(Which includes property owner position, contact info, talking points, and more)

Love & Light,
Nick Norman
RPOA Director of Legislative Affairs
==============================================
We only list the committee reports on the most important bills affecting the real estate business.  If you want to get the committee report on one of the other bills contact me & I will show you how to get them on line.  Its not terribly hard to get but not straight ahead either.
==============================================
Bills Updated Status summary:We only list the committee reports on the most important bills affecting the real estate business.  If you want to get the committee report on one of the other bills contact me & I will show you how to get them on line.  It’s not terribly hard to get but not straight ahead either.

HB421, Real Estate Brokerage Regulation   
Title: relative to regulation of real estate brokerage and sales by the real estate commission.
Property Owner Position: LimitedImpact; You Decide
House Status: CONFERENCE REPORT ADOPTED
Senate Status: CONFERENCE REPORT ADOPTED

Committee of Conference recommends “That the Senate and House each pass the bill as amended by the Senate.”

HB590, Unauthorized Practice of Law   
Title: relative to the unauthorized practice of law.
Property Owner Position: For
House Status: CONFERENCE REPORT ADOPTED
Senate Status: CONFERENCE REPORT ADOPTED

Committee of Conference report says it recommends "That the Senate and House each pass the bill as amended by the Senate."  Which says:
a person of good character who is not approved to practice law in New Hampshire, but is a member or employee of a limited liability company, corporation, or partnership, which has 5 or fewer members, shall, with the proper written authorization from the organization, be authorized to represent the entity on matters in the circuit court of New Hampshire arising under this chapter; provided that each such appearance shall require a new written authorization.

Effective Date. This act shall take effect 60 days after its passage.
==============================================
Full details on all bills above:

HB421, Real Estate Brokerage Regulation
05/23/2014 at 02:30 PM    LOB 204
Title: Title: relative to regulation of real estate brokerage and sales by the real estate commission.

Summary: Changed a lot of the wording around to be more clear – addressed disciplinary actions by Board, increased credit requirements from 9 to 12 hours.

Property Owner Position: Limited Impact; You Decide

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/HB0421.html

Analysis Stated in Bill: This bill makes various changes to the real estate practice act and regulation by the New Hampshire real estate commission, including the investigation and prosecution of unlicensed practice.

Talking Points:
The first part of the bill attempts to modify who is exempt from needing a license to sell or lease real estate. We are not sure if they intended to amend the statute to the extent that we are reading it.  It seems that the owner of real estate has to be licensed but not his employees. This is problematic for those of us who rent our own property.

The rest of the bill is wording changes that appear to be just for clarification, and one provision dealing with Continuing education of the brokers and salespeople increasing credit requirements from 9 to 12 hours.
=====================
HB590, Unauthorized Practice of Law
05/22/2014 at 03:00 PM    LOB 208
Title: Title: relative to the unauthorized practice of law.

Summary: Allows a person who is not authorized to practice law but who is a member, or employee of a limited liability company, corporation, or partnership, which has 5 or fewer members, to represent the entity on civil matters (like evictions & small claims) in the circuit court of  New Hampshire.

Property Owner Position: For

To: 
Subject: HB590

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/HB0590.html
Analysis Stated in Bill:

Talking Points:
HB 590 would amend RSA 311, the statute that enables the Supreme Court of the State of New Hampshire to regulate the practice of law within the state.  Under current law, any person may represent him or herself, or be represented by a person of good character.  All citizens are presumed to be of good character unless demonstrated otherwise.  However, no person shall be commonly permitted to practice as an attorney in court unless he or she has been permitted to do so by the court. (Current requirements are graduating from an accredited law school, which generally is a three year program on a full time basis and passing the New Hampshire Bar Exam, unless allowed to practice based upon reciprocity).

Basically, someone of good character can represent another person in court, but may not hold him or herself out as an attorney unless that person has been admitted to practice law in this state.

HB 590 changes the above to clarify that person of good character who is a member or employee of a limited liability company (an LLC), corporation, or partnership which has 5 or fewer members, shall, with the proper written authorization from the organization be authorized to represent the organization in Circuit Court.  However, there needs to be a new authorization for each appearance in court.

The bill, as amended, does not address properties held in a trust or an estate.  Also, a corporation has officers and shareholders and not members as does an LLC. I would think that the Courts would allow a corporation with 5 or fewer shareholders to make use of this bill, but not trusts or estates.

This bill is useful to the all businesses, including landlords, who are organized in LLC's, partnerships or corporations. It avoids the necessity to hire an attorney for evictions, collection suits both in small claims and circuit court level, other cases brought for and against the business person in circuit court.

Most likely the authorization will have be given by the majority of the members of the LLC or shareholders of the corporation.  The acting or managing partners/members will likely have to give it for the partnership/LLC.

This allows any person of good character to represent the business in court with the proper authorization.  Note however, it does not, however, change any of the evidence required to prove a case. (The employee may not have personal knowledge that a tenant is behind in rent, but may have only been told that by the employer, which is hearsay and not admissible.)

We plan to propose a clarifying amendment to address corporations(not having members), trusts and also family LLC partnerships with more than 5 family members.

Being that different circuit courts presently interpret this situation differently from court to court, the bill would add clarity for circuit court judges.
=====================

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.