Sunday, May 29, 2016

==Legislative Update, 2016 #20== Major bill decision. Updated status on several minor bills


Howdee everyone,
Important Updates:
Update HB1204, Eviction Workout
Still waiting for bill to be sent on to the governor.  (This part of the process can take a while). We’ll let you know if we need you.
HB1656, Real Estate Transfer Tax Exception
The conference committee met to resolve differences between the House & Senate version of the bill and submitted the following report.
“relative to exceptions to the real estate transfer tax. The House version of the bill amended RSA 78-B:2, which are the exceptions to the Real Estate Transfer Tax, by adding the paragraph XXI, which relates to the transfer of title, where no consideration is exchanged, is coincidental to a change in the transferor’s form of organization to that of the transferee. The Senate amended the bill by adding an additional amendment creating paragraph XXII which relates to a transfer of title from the owners of an entity, or from the entity to the owners of the entity. The Senate also amended RSA 78-B:1a, IV related to the definition of the phrase “price or consideration.” This was done so that courts do not misinterpret standard language commonly 
utilized in transfers, which are the subject of the new paragraph XXII. The House conferees concurred with 
the Senate position after clarifying the purpose statement from “implement New Hampshire court decisions” 
to “clarify existing law.”
Next step is to prepare bill for governor and send to the governor’s office. We’ll let you know if we need you.
Action items this week:
None.  Relax, enjoy.  Thanks to all that contacted legislators, showed up at hearings and donated financially.
See more info in Summaries & Full Detail for each bill further below. (includes property owner position, contact info, talking points, and more).
(to jump right to bill detail, use Control-F, Find).
Hearings this week:
None scheduled so far
Hearings next week:
None scheduled so far
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
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.
HB1656     
Title: relative to exceptions to the real estate transfer tax.
Property Owner Position: For
General Status: SENATE
House Status: CONFERENCE COMMITTEE
Senate Status: CONFERENCE REPORT FILED
SB446     
Title: BY GOVERNOR
Property Owner Position: For, Limited Impact
General Status: VETOED BY GOVERNOR
House Status: PASSED/ADOPTED
Senate Status: PASSED/ADOPTED
HB1175     
Title: relative to post-judgment real estate liens.
Property Owner Position: You Decide
General Status: SIGNED BY GOVERNOR
House Status: PASSED/ADOPTED WITH AMENDMENT
Senate Status: PASSED/ADOPTED
HB1590     
Title: (New Title) relative of taxation of short-term rentals.
Property Owner Position: LimitedImpact
General Status: SENATE
House Status: CONFERENCE COMMITTEE
Senate Status: CONFERENCE REPORT FILED
SB342     
Title: (New Title) relative to the sale or exchange of an interest in a business organization under the business profits tax.
Property Owner Position: You Decide
General Status: HOUSE
House Status: CONFERENCE REPORT FILED
Senate Status: CONFERENCE COMMITTEE
HB1579     
Title: relative to regulation of the practice of out-of-state brokers by the real estate commission.
Property Owner Position: You Decide
General Status: SIGNED BY GOVERNOR
House Status: PASSED/ADOPTED
Senate Status: PASSED/ADOPTED
HB1292     
Title: relative to the use of abandoned agricultural property.
Property Owner Position: You Decide
General Status: SIGNED BY GOVERNOR
House Status: PASSED/ADOPTED
Senate Status: PASSED/ADOPTED
HB1204     
Title: relative to payment of rent pending the stay of an eviction proceeding.
Property Owner Position: For
General Status: PASSED
House Status: CONCURRED
Senate Status: PASSED/ADOPTED WITH AMENDMENT
==============================================
Full details on all bills above:
HB1656, Real Estate Transfer Tax Exception
05/23/2016 at 03:00 PM    LOB 104
Title: Title: relative to exceptions to the real estate transfer tax.
Summary: This bill would allow people to transfer real estate, without being subjected to the real estate transfer tax, between entities with the same ownership, and assets and liabilities.  
Property Owner Position: For
Link to Committee Info: 
Email to Committee: 
To:
Subject: HB1656 
Analysis Stated in Bill: 
Talking Points:
This is important to us, as it would allow us to transfer assets into or out of LLC’s or trusts without the transfer taxes. Given some of the rules that the Federal Government has imposed in regard to refinancing, this bill is very helpful. Also, it is important for estate planning purposes and liability protection purposes.   Why should we be taxed just because we have decided to restructure our assets into LLC's or Trusts.
=====================
SB446, Building Code Requirements
03/24/2016 at 11:00 AM    LOB Room 306
Title: VETOED BY GOVERNOR
Summary: This bill provides that any rule adopted by the state building code review board related to applications for permits under the International Residential Code shall require only such data as is reasonably required for the building inspector to act on the application.
Property Owner Position: For, Limited Impact
Link to Committee Info: 
Email to Committee: 
To:
Subject: SB446 
Analysis Stated in Bill: 
Talking Points:
We're basically just letting you know this bill is here incase you think it may impact you. Without any analysis it sounds like a good idead.  If you learn more please let us know.
=====================
HB1175, Post-Judgment Real Estate Liens
03/31/2016 at 02:00 PM    SH Room 100
Title: Title: relative to post-judgment real estate liens.
Summary: Clarification and detailing for RSA 524 liens on real property.
Property Owner Position: You Decide
Link to Committee Info: 
Email to Committee: 
To:
Subject: HB1175 
Analysis Stated in Bill: 
Notes:
This bill amends RSA 503, the statute on small claims, and RSA 524, the statute on court issued judgments. Current law allows a successful party in a small claims action to place a lien on the party’s real estate by recording a certified copy of the judgment in the registry of deeds where the property is located during the duration of the judgment.
The bill has the same requirements as current law, and it clarifies the procedures to be used to discharge the lien.  It also makes it clear that the lien is effective for 20 years after the cause of action accrued.  In addition, it addresses the procedure that has to be followed once the judgment is satisfied. The bill also give the courts authority to discharge liens when a plaintiff fails to do so, and makes it a class B misdemeanor to induce a court to execute a discharge on the basis of information and statements known to the person to be false.
The bill, if it became law, does not make any substantial substantive changes in the law. It does not add any additional procedures that we can use to collect on judgments from former tenants.
Talking Points:
=====================
HB1590, Apply Rooms & Meals Tax to Short Term Rental
05/23/2016 at 01:00 PM    LOB 302
Title: Title: (New Title) relative of taxation of short-term rentals.
Summary: Legislative service’s analysis is: This bill requires short-term rental businesses to register as businesses with the secretary of state and meet certain posting and reporting requirements. The bill also expands the meals and rooms tax to apply to short-term rental businesses.
Property Owner Position: LimitedImpact
Link to Committee Info: 
Email to Committee: 
To:
Subject: HB1590 
Analysis Stated in Bill: 
Talking Points:
Simply, the purpose of the bill is to tax, under the room and meals taxes, the revenue that people and the rental services generate, from renting out rooms or the entire home on a short term basis.  This bill also requires short-term rental businesses to register as businesses with the secretary of state and meet certain posting and reporting requirements. 
Note that the position of one of our core team is "For" the bill with the thinking that the bill would "level the playing field" for NH hotels which are loosing revenue to short term rental services.
=====================
SB342, Business Profits Tax Changes
05/25/2016 at 12:15 PM    LOB 102
Title: Title: (New Title) relative to the sale or exchange of an interest in a business organization under the business profits tax.
Summary: This bill makes certain changes to business profits tax provisions affecting a business organization when owners sell or exchange ownership interests in the business.
Property Owner Position: You Decide
Email to Committee: 
To:
Subject: SB342 
Analysis Stated in Bill: 
Talking Points:
This is another bill that should be review by someone with knowledge of the business profits tax. Not sure we have the knowledge to take a position on the bill.  If you learn more please let us know.
=====================
HB1579, Regulation Of Out Of State Real Estate Brokers
04/12/2016 at 02:15 PM    SH Room 100
Title: Title: relative to regulation of the practice of out-of-state brokers by the real estate commission.
Summary: A bill regarding the regulation of out of state real estate brokers
Property Owner Position: You Decide
Link to Committee Info: 
Email to Committee: 
To:
Subject: HB1579 
Analysis Stated in Bill: 
Notes:
This bill would regulate or amend the regulation of out of state real estate brokers and salespersons in the sale of commercial real estate (all real estate except residences of four units or less).  The out of state person would have to have a specified working relationship with an in state broker.
Talking Points:
=====================
HB1292, Abandonment of Agricultural Property
04/13/2016 at 09:00 AM    LOB Room 101
Title: Title: relative to the use of abandoned agricultural property.
Summary: The bill simple amends the existing statute by deleting the word “disuse” to “abandonment “ to allow for special exceptions to the reestablishment of use of land for agricultural purposes.  
Property Owner Position: You Decide
Link to Committee Info: 
Email to Committee: 
To:
Subject: HB1292 
Analysis Stated in Bill: 
Talking Points:
We're basically just letting you know this bill is here incase you think it may impact you.  Not sure we have the knowledge to take a position on the bill.  If you learn more please let us know.
=====================
HB1204, Eviction Workout
04/26/2016 at 08:00 AM    SH Room 100
Title: Title: relative to payment of rent pending the stay of an eviction proceeding.
Summary: Provide statutory method for allowing eviction work out agreements which became disallowed in District Courts because of the NH Supreme Court Mountain View v. Robson decision in May of 2015.
Property Owner Position: For
Link to Committee Info: 
Email to Committee: 
To:
Subject: HB1204 
Analysis Stated in Bill: 
Talking Points:
First thing to say is disregard the bill as originally written.  We have been negotiating with NHLA on the language for this bill & have an agreed upon amendment which rewrites the bill. So do not spend much time reviewing the original bill.  We are calling the amendment the “1/24/16 HB1204 RPOA NHLA Amendment”.   Please urge legislators to pass the bill as amended by the “1/24/16 HB1204 RPOA NHLA Amendment.”. 
Based upon RSA 540:13c, Landlords and Tenants have entered into agreements in eviction actions based upon non-payment of rent allowing tenants to remain in possession of the leased premises so long as they make payments that are written in the agreement. In many instances, the Landlord and Tenant agree to a schedule where the tenant pays rental arrearages, but is also required to pay future rent as it becomes due.
          These agreements are advantageous to both the Landlord and the Tenant. The Tenant has the opportunity to remain in their home and not be evicted. The Tenant can pay the rental arrears over a period of time that they have negotiated with the Landlord, while the Tenant does not fall further behind in rent. This is particularly helpful to a tenant who fell behind in rent due to a sickness, injury or slowdown in work, who has subsequently overcome these problems.
          The Landlord gains the opportunity to be paid the arrears, and future rent, without the need to file a new eviction action should the tenant not abide by the agreement.
          However, the Supreme Court of New Hampshire, in the case of Mountain View Park LLC v. Robson, decided August 11, 2015, ruled that agreements entered into between Landlords and Tenants in non-payment of rent cases, cannot contain provisions regarding the future payment of rent. Any agreement containing clauses requiring the Tenant to pay future rent submitted by the parties to an eviction action based upon non-payment of rent will have to be rejected by the Circuit Court. This decision takes away from both Landlords and Tenants an effective tool to resolve eviction cases to their mutual benefit. 
HB1204 as we have amended it revises the statute to specifically allow these type of agreements and spells out the procedures for the court to follow if the tenant fails to make payments as required by the agreement.
Please note that we did some research and found out that there presently is no statutory guidance or guidance in rules from Judge Kelly's office for the affidavit of non-compliance process.  This means courts could get to the process where the tenant does not make payment and have sympathy for tenant and not order the writ of possession or severely drag this out.  For instance, presently Derry court allows 10 days from landlord’s affidavit of non-compliance (tenant didn’t make payment) for tenant to respond and then it would schedule hearing.  Based on our research many courts would be like Derry which is why we need the extra detail of the later part of this bill.R[-1]C
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Saturday, May 21, 2016

Legislative Update, 2016 #19== Major bill decision. Legislative season slowing down. Updated status on several minor bills.

Howdee everyone,
 
Important Updates:
 
Update HB1204, Eviction Workout
This bill is doing very well.  The House “Concurred” with the Senate regarding the small amendment we worked out with tenant advocates and the NH Court system.  This means there will be no Committee of Conference.  The next step will be to send the bill on to the governor.  We’ll let you know if we need you.
 
HB1656, Real Estate Transfer Tax Exception
A conference committee has been scheduled to resolve differences between the House & Senate version of the bill.
 
 
Action items this week:
None.  Relax, enjoy.  Thanks to all that contacted legislators, showed up at hearings and donated financially.
 
The legislative process for us slows way down at this point.  Legislative updates may now be 2 weeks apart.

 
See more info in Summaries & Full Detail for each bill further below. (includes property owner position, contact info, talking points, and more).
(to jump right to bill detail, use Control-F, Find).
 
 
Hearings this week:
05/23/2016 at 02:00 PM    LOB 104
HB1656, Real Estate Transfer Tax Exception
Level of Response: Attend hearings, Email & Call Legislators
Property Owner Position: For
 
 
Hearings next week:
None scheduled so far
 
 
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
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.
 
HB1656     
Title: relative to exceptions to the real estate transfer tax.
Property Owner Position: For
General Status: SENATE
House Status: CONFERENCE COMMITTEE
Senate Status: CONFERENCE COMMITTEE
 
HB1590     
Title: (New Title) relative of taxation of short-term rentals.
Property Owner Position: LimitedImpact
General Status: SENATE
House Status: CONFERENCE COMMITTEE
Senate Status: CONFERENCE COMMITTEE
 
SB342     
Title: (New Title) relative to the sale or exchange of an interest in a business organization under the business profits tax.
Property Owner Position: You Decide
General Status: HOUSE
House Status: PASSED/ADOPTED WITH AMENDMENT
Senate Status: CONFERENCE COMMITTEE
 
HB636     
Title: (Third New Title) relative to forfeiture of property; relative to the sale of premixed synthetic urine; establishing a grant program for high schools for heroin and opiate prevention education; and clarifying who may petition to adopt.
Property Owner Position: For
General Status: SENATE
House Status: NONCONCURRED
Senate Status: PASSED/ADOPTED WITH AMENDMENT
 
HB1204     
Title: relative to payment of rent pending the stay of an eviction proceeding.
Property Owner Position: For
General Status: PASSED
House Status: CONCURRED
Senate Status: PASSED/ADOPTED WITH AMENDMENT
 
HB1298     
Title: (New Title) relative to damage to private property and relative to the authority of federal border patrol agents to make arrests in Coos county.
Property Owner Position: Against unless amended
General Status: PASSED
House Status: CONCURRED
Senate Status: PASSED/ADOPTED WITH AMENDMENT
==============================================
Full details on all bills above:
HB1656, Real Estate Transfer Tax Exception
05/23/2016 at 02:00 PM    LOB 104
Title: Title: relative to exceptions to the real estate transfer tax.
 
Summary: This bill would allow people to transfer real estate, without being subjected to the real estate transfer tax, between entities with the same ownership, and assets and liabilities.  
 
Property Owner Position: For
 
 
Email to Committee: 
Subject: HB1656 
 
Analysis Stated in Bill: 
 
Talking Points:
This is important to us, as it would allow us to transfer assets into or out of LLC’s or trusts without the transfer taxes. Given some of the rules that the Federal Government has imposed in regard to refinancing, this bill is very helpful. Also, it is important for estate planning purposes and liability protection purposes.   Why should we be taxed just because we have decided to restructure our assets into LLC's or Trusts.
=====================
HB1590, Apply Rooms & Meals Tax to Short Term Rental
05/23/2016 at 01:00 PM    LOB 302
Title: Title: (New Title) relative of taxation of short-term rentals.
 
Summary: Legislative service’s analysis is: This bill requires short-term rental businesses to register as businesses with the secretary of state and meet certain posting and reporting requirements. The bill also expands the meals and rooms tax to apply to short-term rental businesses.
 
Property Owner Position: LimitedImpact
 
 
Email to Committee: 
Subject: HB1590 
 
Analysis Stated in Bill: 
 
Talking Points:
Simply, the purpose of the bill is to tax, under the room and meals taxes, the revenue that people and the rental services generate, from renting out rooms or the entire home on a short term basis.  This bill also requires short-term rental businesses to register as businesses with the secretary of state and meet certain posting and reporting requirements. 
 
Note that the position of one of our core team is "For" the bill with the thinking that the bill would "level the playing field" for NH hotels which are loosing revenue to short term rental services.
=====================
SB342, Business Profits Tax Changes
05/23/2016 at 12:00 PM    LOB 102
Title: Title: (New Title) relative to the sale or exchange of an interest in a business organization under the business profits tax.
 
Summary: This bill makes certain changes to business profits tax provisions affecting a business organization when owners sell or exchange ownership interests in the business.
 
Property Owner Position: You Decide
 
 
Email to Committee: 
To: 0
Subject: SB342 
 
Analysis Stated in Bill: 
 
Talking Points:
This is another bill that should be review by someone with knowledge of the business profits tax. Not sure we have the knowledge to take a position on the bill.  If you learn more please let us know.
=====================
HB636, Forfeiture Of Property
04/07/2016 at 12:30 PM    SH Room 100
Title: Title: (Third New Title) relative to forfeiture of property; relative to the sale of premixed synthetic urine; establishing a grant program for high schools for heroin and opiate prevention education; and clarifying who may petition to adopt.
 
Summary: This bill would revise the New Hampshire forfeiture laws – the laws that allows the state to take property that is contraband, property obtained due to a commission of a crime, and instrumentalities a person used in the commission of the crime.
 
Property Owner Position: For
 
 
Email to Committee: 
Subject: HB636 
 
Analysis Stated in Bill: 
 
Talking Points:
The state will have the right to seize property that it believes was used in the commission of a crime.
 
Prosecutors only have to prove by a preponderance of the evidence that the property is related to the crime, therefore subject to forfeiture.
 
Law enforcement has a profit motive to pursue forfeitures.
 
Once property is taken, the burden lies on the innocent owner to defend against the forfeiture.
The bill gives an innocent owner a defense.  Therefore, we support the bill.
=====================
HB1204, Eviction Workout
04/26/2016 at 08:00 AM    SH Room 100
Title: Title: relative to payment of rent pending the stay of an eviction proceeding.
 
Summary: Provide statutory method for allowing eviction work out agreements which became disallowed in District Courts because of the NH Supreme Court Mountain View v. Robson decision in May of 2015.
 
Property Owner Position: For
 
Link to Committee Info: 
 
Email to Committee: 
To:
Subject: HB1204 
 
Analysis Stated in Bill: 
 
Talking Points:
First thing to say is disregard the bill as originally written.  We have been negotiating with NHLA on the language for this bill & have an agreed upon amendment which rewrites the bill. So do not spend much time reviewing the original bill.  We are calling the amendment the “1/24/16 HB1204 RPOA NHLA Amendment”.   Please urge legislators to pass the bill as amended by the “1/24/16 HB1204 RPOA NHLA Amendment.”. 
 
Based upon RSA 540:13c, Landlords and Tenants have entered into agreements in eviction actions based upon non-payment of rent allowing tenants to remain in possession of the leased premises so long as they make payments that are written in the agreement. In many instances, the Landlord and Tenant agree to a schedule where the tenant pays rental arrearages, but is also required to pay future rent as it becomes due.
 
          These agreements are advantageous to both the Landlord and the Tenant. The Tenant has the opportunity to remain in their home and not be evicted. The Tenant can pay the rental arrears over a period of time that they have negotiated with the Landlord, while the Tenant does not fall further behind in rent. This is particularly helpful to a tenant who fell behind in rent due to a sickness, injury or slowdown in work, who has subsequently overcome these problems.
 
          The Landlord gains the opportunity to be paid the arrears, and future rent, without the need to file a new eviction action should the tenant not abide by the agreement.
 
          However, the Supreme Court of New Hampshire, in the case of Mountain View Park LLC v. Robson, decided August 11, 2015, ruled that agreements entered into between Landlords and Tenants in non-payment of rent cases, cannot contain provisions regarding the future payment of rent. Any agreement containing clauses requiring the Tenant to pay future rent submitted by the parties to an eviction action based upon non-payment of rent will have to be rejected by the Circuit Court. This decision takes away from both Landlords and Tenants an effective tool to resolve eviction cases to their mutual benefit. 
 
HB1204 as we have amended it revises the statute to specifically allow these type of agreements and spells out the procedures for the court to follow if the tenant fails to make payments as required by the agreement.
 
Please note that we did some research and found out that there presently is no statutory guidance or guidance in rules from Judge Kelly's office for the affidavit of non-compliance process.  This means courts could get to the process where the tenant does not make payment and have sympathy for tenant and not order the writ of possession or severely drag this out.  For instance, presently Derry court allows 10 days from landlord’s affidavit of non-compliance (tenant didn’t make payment) for tenant to respond and then it would schedule hearing.  Based on our research many courts would be like Derry which is why we need the extra detail of the later part of this bill.R[-1]C
=====================
HB1298, OHRV, Pollution Triple Damages
04/26/2016 at 08:20 AM    SH Room 100
Title: Title: (New Title) relative to damage to private property and relative to the authority of federal border patrol agents to make arrests in Coos county.
 
Summary: The bill creates a cause of action for a landowner whose land is damaged by pollution. This bill also creates a cause of action for a landowner whose land is damaged by OHRV, Off-Highway Recreational Vehicle, use.  There is also provision for triple damages and attorney's fees.
 
Property Owner Position: Against unless amended
 
Link to Committee Info: 
 
Email to Committee: 
To:
Subject: HB1298 
 
Analysis Stated in Bill: 
 
Talking Points:
This bill could be a two edge sword for anyone who owns land and has any material on the property that can be deemed hazardous if it leaked.  Heating oil might be included in this. It also gives a landowner the right to sue another for polluting that landowner’s property.  That right probably exists at this time but the right does not include the right to seek triple damages based upon the recklessness of conduct and attorney’s fees which the bill would allow. It also allows an owner to seek injunctive relief to stop continuing pollution and to force the cleanup of the damage.
The bill also has a section allowing for triple damages to land from off road vehicles.
The bill can impose greater liability upon us.  Triple damages are always dangerous and ripe for abuse.  What if a tenant dumps oil on your property and it seeps onto a neighbor.  Will the neighbor be able to sue you for triple damages?
However, the bill also gives us more protection from polluters.
We would support the bill if amended from triple damages to actual damages.
We also would like to see something defined that a landlord would not be held liable for a tenant's action if the landlord was unaware of the tenant's action.
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