Session Overview From Your Lobbying Team  
 

To understand the 2019 legislative session and its far-reaching impacts from both a historical and policy perspective, one needs to start on November 8, 2018, the day after the general election. Democrats were swept into office up and down the ballot box, from the Governor's seat down to most Assembly seats. If there was any doubt about the state of politics in the Battle Born state, it was put to rest as the sun rose that day. As Democrats celebrated their victories, the special interest groups that helped get them to Carson City readied their very aggressive, very progressive and very anti-business agenda. The die for the session was cast that fateful morning, its impacts and lingering effects resonated from that morning forward until the gavel went down on sine die to mark the end of the legislative session on June 3rd. This is the story of that tumultuous session.

When historians look back on the 2019 session, much will be made of the historic nature of the first majority female legislature in the nation. It is a distinction that is well deserved, and the Washington Post highlighted that achievement in a front page article in mid-May. But the session will also be recognized for the curve balls thrown from the early weeks of the session all the way to sine die. A "heavenly vacancy" shook the entire building while a seat was relinquished from each house due to unforeseen circumstances. We lost Assemblyman Tyrone Thompson too soon, but with the legislative clock ticking, we had no choice but to lean on one another and keep moving forward. Former Senate Majority Leader Kelvin Atkinson resigned in the wake of an FBI indictment over misappropriation of campaign funds and Assemblyman Sprinkle resigned over sexual harassment allegations.

Nicole Cannizzaro became our first female Senate Majority Leader. She, along with Jason Frierson, Speaker of the Assembly, took the lead of their respective houses. Democrats were still in full control since taking both houses in the 2017 session. A progressive body controlled the agenda while the conservatives were outnumbered in every way. Big issues in the legislature this session included healthcare, public education, and small business matters - all of which were all laid out in the Democratic Nevada Blueprint. In the end, business interests took a backseat to social issues that will serve as wedge issues for the 2020 campaign. Businesses' objectives this session - minimize the damage that could be done by harmful legislation.

Along with many freshman legislators roaming the legislative grounds this year, Governor Steve Sisolak was amongst them in his inaugural session. While he was a seasoned politician when it came to the County Commission, it was interesting and fascinating to watch him grow into the Governor's seat. Many members of his staff were also unseasoned, having served more in a political capacity rather than a policy capacity. In his State of the State address given in January, his priorities included a salary increase for teachers, healthcare coverage for preexisting conditions, as well as a minimum wage increase. His first bill, SB143, signed just two weeks into session, required background checks on private gun sales and transfers. This ultimately set the tone for the rest of his session, giving precedence to bills from his campaign initiatives.

Early on in the session, Senate and Assembly Democratic leadership coalesced around a number of key initiatives which formed the basis for their aggressive legislative agenda for the 120-day session. Key initiatives included:

  1. Healthcare;
  2. Public education;
  3. Update to school funding;
  4. Small businesses; and,
  5. Paid sick leave / earned sick leave.

And as the session came to a close, many of these objectives were fulfilled.

Education

Steve Sisolak, the first Democratic Governor to be elected in the Silver State in over 20 years, delivered on his promise and donated his salary to public education. He introduced SB543 on the 99th day of the legislative session. It creates the Nevada State Education fund, which restructures Nevada's education funding formula. It also establishes the Commission on School Finance to oversee the new funding formula and provide guidance to school districts as well as the Nevada Department of Education.

Marijuana

While Nevada made momentous strides in the cannabis industry, this in turn leads to tougher legislation in the space and making it an imperative focus on the Sisolak priority list. He created the Cannabis Compliance Board (AB533) to provide oversight and accountability in both retail and medical marijuana. Transparency in Nevada will change forever with the passage of SB32. The release of marijuana licensing information will "usher in a new era of transparency that will benefit the industry and the public."

Healthcare

Prescription drug pricing was at the forefront of healthcare issues along with Medicaid funding and hospital billing. Senator Yvanna Cancela spearheaded the transparency movement on prescription drug pricing with SB262 and SB378, which change the way information is tracked, monitored and reported to the Department of Health and Human Services. An interim study will also be conducted related to the cost of prescription drugs (SB276). AB348 caused an uproar among hospitals, where a new workplace violence prevention plan would impose costly upgrades and possible privacy issues. A $1.2 billion increase to the Medicaid budget will provide funds to cover more care for neonatal and pediatric patients in Nevada (Budget - Early Intervention Services).

Business

Legislators will tell you this session was full of business-friendly bills. Fake news. Legislators attempted to regulate problems that are nonexistent in Nevada. Bills came through the building with only the employee in mind, and no regard to the harmful effects these measures would have on business owners. Small businesses will have to try and manage to keep their doors open with unrealistic minimum wage increases (AB456), mandatory paid leave (SB312), and outrageous employment discrimination penalties (SB166).

Carrara Nevada's strong reputation in the legislature allowed us to conquer these tough issues on our clients' behalf while maintaining a high level of respect from Nevada legislators and fellow lobbyists. Our team worked tirelessly to stand up for our clients' interests and make a difference in the state of Nevada. We thank you for the opportunity to serve you this legislative session.

Finally, we want to thank NVR's leadership and staff for navigating the session with us. Under the leadership of President Keith Lynam and Legislative Committee Chairman Kevin Sigstad, the Legislative Management team guided the Lobbying Team through some tough conversations and negotiations. We would be remiss if we didn't mention the yeoman's work that NVR CEO Teresa McKee, Legal Counsel Tiffany Banks and Government Affairs Coordinator Beth Morrissey put in on your behalf throughout session.

Your Carrara Nevada Team,

Rocky Finseth, Jenny Reese, Connor Cain, Isabelle Beaumont-Frenette, Heather Lunsford, Ashley Cruz, Samantha Sato

 

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  How Did REALTORS® Fare?  
 

For the REALTORS®, 2019 was about property taxes, and minimizing damage from progressive groups. Leadership for the REALTORS® understood that a strong effort to get a California like property tax initiative onto the 2020 ballot was priority one for some legislators. While not opposed to the idea of property tax reform, the real estate community was concerned with the harmful impacts that a point of sale mandate would have on the sale of homes. Thus, SJR14* became a strong focus during the 2019 session. Internal polling conducted by the REALTORS® clearly showed that SJR14* was unpopular with the public, and passage of it by legislators would be unpopular in the voting booth. Thus, SJR14* never surfaced, and didn't even have a hearing in 2019, meaning the joint resolution died and will not appear on the 2020 ballot.

REALTORS® in Nevada did face other challenges though during the session. Those were focused on landlord-tenant issues and a fundamental effort to undermine what have been long standing policies that supported tenants' rights and property rights, striking a proper balance of both. Strong efforts were made this session to fundamentally alter the balance of power in favor of tenants and to the detriment of landlords and property owners, but in the end those efforts fell short and the most egregious bill, SB256, died. Unfortunately, due to some last minute, late-night antics from the proponents of SB256, two provisions of that bill made their way into SB151, focusing on the capping of late fees and requirements for landlords to hold possessions of evicted tenants. Both policies are likely to increase costs for landlords, and those costs are likely to be passed on to tenants.

Finally, REALTORS® brought in an aggressive agenda this session, focused on increasing professionalism amongst their ranks (SB230). The measure increased both pre-licensing and CE educational hours, and it also addressed a long-standing problem concerning the use of nicknames by their members. Another important bill extends the life of an HOA resale package and clarifies some important timelines that had been in question (AB335).

Overall, the 2019 legislative session was a good one for the members of NVR. But ominous clouds sit on the horizon for future sessions.

 

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  Real Estate Licensing  
 

SB230 Status: Passed. Effective January 1, 2020, for the pre-licensing requirements, and July 1, 2019, for the purpose of adopting regulations for the other provisions of the bill.

Introduced by Senator Mo Denis at NVR's request, SB230 requires that advertisements include your license number and requires the Real Estate Commission to set by regulation the conditions and limitations under which a licensee may advertise under a nickname.

It also changes the law to allow brokers to keep their agents' licenses in a secure manner and to make them available for inspection by the public or the Division upon request (instead of requiring that they be prominently displayed).

SB230 makes significant changes to education requirements. It increases the pre-licensing requirements to no less than 120 hours of instruction that must include a minimum or 15 hours in contracts and 15 hours on agency. The measure also increases the CE requirements to at least 36 hours per licensing period. The details will be set by the Real Estate Commission through regulation.

The bill further requires the Commission to set the "core" classes that every licensee must complete as part of the CE requirements. It requires that the Commission set a process for a licensee to apply for an exemption from any requirement to complete CE outside of the core classes if the licensee is 65+ years of age, is in good standing and has been licensed in Nevada for 30+ years.

NVR has prepared an FAQ on SB230, you can access it here.

 

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  Independent Contractor Status  
 

SB493 Status: Passed. Effective June 8, 2019 for the purpose of appointing the members of the Task Force; effective July 1, 2019, for all other provisions.

SB493 creates the Task Force on Employee Misclassification. As introduced, the bill did not really impact the real estate industry. However, Teamsters International proposed an amendment that would have changed the definition of independent contractor to such an extent that real estate agents would no longer have been considered independent contractors. Your Lobbying Team was able to ensure the provisions of this bill only applied to contractors licensed under NRS 624. As passed, this bill does not impact real estate licensees.

Your independent contractor status is a crucial issue we always watch, engage in and will continue to engage in on your behalf to protect the status that works so well for the real estate industry.

 

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  HOA Issues  
 

AB335 Status: Passed. Effective May 25, 2019, for the provisions regarding 10 calendar days vs. 10 days, resale package good for 90 days and allow HOAs to provide a statement of demand to seller and prospective buyer; effective on January 1, 2020, for all other provisions.

Introduced by Assemblywoman Sandra Jauregui and Assemblyman Gregory Hafen, AB335:

  • Allows a CIC to charge a reasonable fee for opening and closing the file for each unit based on the actual cost the association incurs, not to exceed $350; that fee cannot be charged to both the buyer and the seller.
  • Clarifies that the CIC has 10 calendar days to provide the resale package.
  • Requires the Commission to set a maximum amount a CIC may charge to prepare the certificate, not to exceed $185, unless the owner/authorized agent requests that it be prepared sooner than 3 business days after the date of the request.
  • Eliminates the fee that an association can charge for providing certain electronic documents.
  • Ensures the resale package remains effective for 90 calendar days instead of 30.
  • Increases the maximum amount a CIC can charge for a demand letter to $165 (from $150 currently).
  • Limits the maximum fee for the certificate, the transfer fee and the demand letter may increase on an annual basis by a percentage equal to the Consumer Price Index but not to exceed 3%.

AB 335 was worked on by the NV REALTORS®, the Nevada Land Title Association and CAMEO over the course of 2 years to negotiate language that is acceptable to all parties. There was no significant opposition to the bill.

AB369 Status: Did Not Pass.

AB369 was introduced by Assemblywoman Sandra Jauregui to address HOA superpriority issues. This bill would have prohibited an HOA from recording a notice of sale or take other actions that are necessary to proceed with the foreclosure unless at least a total of 12 months of assessments are due. A number of entities expressed concern over the measure, and in the end, consensus was not attained.

Assemblywoman Jauregui decided to pull the bill, and instead indicated that she would create a work group in the interim so that all stakeholders can come to an agreement, similar to the work that we did with AB335.

Knowing that this bill was all but dead, President Lynam, Legislative Chairman Sigstad and CEO McKee asked us to make a run on HOA new fee schemes that seemed to be creeping up in smaller HOA management companies, and requested that we insert this language in AB369 instead of the language that was currently there: "An association or related entity shall not require any additional fees outside those enumerated in this section." In the end, the Legislative Counsel Bureau ruled that this provision was not germane to the original bill, so that provision was never inserted in AB369.

AB161 Status: Passed. Effective October 1, 2019.

AB161 restricts an HOA from prohibiting an owner from keeping at least one pet within the residence, subject to the HOA's reasonable rules. If an HOA adopts a rule restricting the number of pets kept by an owner, this applies going forward and allows owners to keep a pet that otherwise complied with the previous rules of the HOA. HOAs that currently prohibit pet ownership do not have to abandon an existing restriction. Newly formed HOAs are allowed to restrict pet ownership.

 

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  Landlord-Tenant Issues  
 

AB266 Status: Passed. Effective July 1, 2019.

AB266 was introduced to address unintended consequences from a bill passed in 2017 (AB107) that automatically seals the case when an eviction is denied or dismissed, or when the landlord fails to submit the necessary affidavit in the allotted time. When it became law, we started to see the problem that when a landlord wanted to appeal the decision, they first had to have the case unsealed before they could file an appeal.

This bill provides for the automatic sealing not until 10 judicial days after the decision, in order to give a landlord the opportunity to file an appeal, or 31 days after the tenant files an affidavit if the landlord failed to respond. It also prohibits any entity from making public the notices to surrender.

AB393 Status: Passed. Effective June 8, 2019.

AB393 is similar to a bill currently being debated in Congress, the Federal Employee Civil Relief Act. It applies to federal, state or tribal workers as well as to certain members of their households.

AB393 authorizes a tenant who is a person described above to request to be allowed to continue possession of the rental during a shutdown and up to 30 days thereafter and requires a landlord to allow the tenant to continue in possession during this period. It prevents summary eviction of a tenant who provides proof that he/she is such a worker. It makes the terms of a lease that requires payment at a specific time unenforceable during a shutdown and 30 days thereafter for those workers. It also prohibits lenders and HOAs from foreclosing on a worker covered by this bill during a government shutdown and 90 days thereafter.

NVR proposed an amendment that was adopted that adds protection to landlords of workers impacted by a shutdown, as described in this bill. In addition, the amendment allows the landlord to petition the court to determine whether the landlord or the tenant has the greatest burden if the shutdown is longer than 30 days. If the court determines the tenant has the greatest burden, the tenant is afforded the protections of the bill as outlined above. If the court determines the landlord has the greatest burden, the parties can renegotiate the lease or the landlord can terminate the lease.

SB74 Status: Passed. Effective October 1, 2019.

Current law specifies that an appeal of summary eviction for nonpayment of rent must be filed within 10 judicial days but does not address summary evictions for non-rent violations (nuisance, waste, non-rent lease violations), which resulted in courts around the state using different timelines from one jurisdiction to the next. SB74 sets the timeline to 10 judicial days to file an appeal for non-rent violations summary evictions.

The bill also allows a tenant to file a verified complaint of expedited relief even when the landlord has filed for summary eviction. That is currently prohibited by law. This will allow the court, at its discretion, to hear both cases at the same time and either consolidate or bifurcate the cases.

SB367 Status: Passed. Effective January 1, 2020.

SB367 allows tenants to keep one or more pets in accordance to any applicable laws and ordinances if the housing was acquired, constructed or rehabilitated with money from the Account for Low-Income Housing. It does not prohibit the enforcement of policies that could include compliance with noise and sanitation standards, registration of the pet(s) with the owner, restrain of pet(s) in common areas, timely removal of pet excrement and vaccination requirements. This measure does not apply to service animals or service animals in training.

SB256 Status: Did Not Pass.

Despite NVR working with Legal Aid on landlord-tenant concerns prior to session, Senator Yvanna Cancela introduced SB256 on behalf of Legal Aid. SB256 proposed egregious changes to landlord-tenant law. Over the course of session, your Lobbying Team and Legislative Management Team (LMT) were able to get some concessions on the original proposal, but the bill still went too far, and NVR continued to opposed it until the very end.

Let's look at SB256 as introduced, and the concessions NVR was able to negotiate on behalf of property managers and homeowners. The measure would have:

  • Prohibited discrimination in housing on the basis that the income of a person is derived from governmental benefits - this provision was amended out of the bill;
  • Prohibited a person from refusing to rent a dwelling in a low-income housing project to an applicant because the applicant has a previous history of an inability to pay rent - this provision was amended out of the bill;
  • Allowed a tenant to request an initial inspection before move out in order to allow the tenant to remedy any deficiency that may otherwise cause a deduction in the security deposit - amended to ensure the tenant could not take action on anything that requires professional licensure to perform;
  • Allowed the tenant to request a final inspection within 3 days of move out and receive a statement of any deficiencies - amended to  make it 21 days;
  • Required the return of the security deposit within 14 days or within 5 days of the final inspection, whichever is earlier - amended to 21 days and removed the "or within 5 days of the final inspection, whichever is earlier" provision;
  • Authorized a landlord to charge a reasonable late fee for late payment of rent, but not before 3 days after rent is due and the fee may not be higher than 5% of periodic rent - this provision was amended out of the bill;
  • Allowed a tenant to recover damages for the landlord failing to maintain the unit in habitable condition without the usual notice if the tenant can prove to the court that the landlord had actual knowledge of the condition;
  • Allowed a tenant seeking to recover damages in those circumstances to raise a defense to an eviction without depositing the withheld rent in an escrow account - this provision was amended out of the bill;
  • Authorized the tenant to recover immediate possession, terminate the lease and recover damages if a landlord abused the right to access the unit or used that right to harass the tenant;
  • Required the landlord, during the 5-day period following the eviction or lockout, to provide the former tenant the opportunity to retrieve essential personal effects.
  • Established an expedited procedure for the former tenant to retrieve essential personal effects if the landlord acts unreasonably in providing access;
  • Removed late fees from the definition of rent and prohibited a landlord from refusing to accept rent if the refusal is based on the fact that the tenant has not paid any amount that does not constitute rent;
  • Not have applied to commercial properties.

NVR strongly opposed this bill, and issued a series of calls to action to express the serious concerns that property managers and homeowners had with this measure. In the end, Chairwoman of the Assembly Commerce and Labor Committee Ellen Spiegel and members of her committee were not supportive of SB256 and did not process the bill.

While the Lobbying Team was successful in defeating the bill, we were leary that it could be resurrected in the Byzantine process of late session politics. Unfortunately, we were right.

SB151 Status: Passed. Effective July 1, 2019.

Introduced by Senator Julia Ratti on behalf of Legal Aid, provisions of SB151 were discussed by various stakeholders, including NVR, over the interim. As we did with SB256, let's look the bill as introduced, and the concessions NVR was able to negotiate on behalf of property managers and homeowners. The measure:

  • Increases the pay or quit timeline from 5 full days to 7 judicial days - was 10 judicial days in the original bill;
  • Requires the constable to post a notice for the tenant no earlier than 24 hours after the order;
  • Increases the period of time in which the constable has to remove a tenant in default of rent from not later than 24 hours to no earlier than 24 hours after the posting of the notice but no later than 36 hours after - original language was changing from within 24 hours to no earlier than 48 hours;
  • Removes the ability for conventional public housing (does not include section 8) to use the summary eviction process;
  • Keeps the amount of time a person has after receiving a written notice to surrender real property or a mobile home to 3 days unless the property transferred in a residential sale, and clarifies that the new owner has the same rights, obligations and liabilities as the previous owner as do the tenant. (i.e. the lease stays with the land, not the owner) - the original language was changing the timeframe to 30 days and did not include provisions about leases;
  • Allows the service of the notice by the agent of an attorney if an attorney has been retained by the owner to prosecute an eviction action;
  • Excludes commercial real estate.

This is where things went south. Because the Assembly amended SB151, the amended version had to go back to the Senate so that they could concur with the Assembly amendment. The Senate did not... so that means the bill had to get processed in a conference committee next to see if an agreement could be reached. We talked to all the conferees on the Assembly side at approximately 10:30 pm in the evening on day 119. We weren't told who the Senate conferees would be, so we spoke with every GOP Senator. Conference committees can be convened without much notice... The notice for the SB151 conference committee came out at 1:30 am on day 120 of the session, with a start time of 7:30 am.

It's important to note that no public comment is allowed in a conference committee. It was obvious to the Lobbying Team that a deal had been cut and discussed prior to the hearing; the hearing itself didn't last more than 15 minutes. The conference committee report included the addition of two provisions from SB256: cap on late fees and retrieval of essential items. While the conference committee report was adopted before 8:00 am that day, it was not made public until 9:00 pm that night.

NVR immediately jumped into action and issued a call to action for all members, opposing the way these provisions were added in the dead of the night to a bill we had negotiated in good faith. Within hours, almost 3,100 REALTORS® responded!

Unfortunately, the bill passed out of the Legislature and was sent to Governor Sisolak for approval. NVR's focus switched to having members and homeowners call the Governor's office to request he veto SB151. NVR President Keith Lynam wrote a letter to the Governor, emphasizing the travesty of the process that let legislators add provisions that were clearly rejected by the body in the regular legislative process.

On June 12, 2019, Governor Sisolak signed SB151 into law.

 

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  Affordable Housing, Rent Control and Inclusionary Zoning  
 

SB103 Status: Passed. Effective July 1, 2019.

SB103 was brought forward by Senator Julia Ratti, Chairman of Senate Government Affairs, as a follow up to the Interim Committee on Affordable Housing that she chaired in the Interim. It allows a local government to reduce impact fees, building permit fees, and fees for an enterprise fund (under certain circumstances).

During the process, Senator Ratti proposed an amendment that would have allowed rent control and inclusionary zoning. She withdrew the amendment thanks to the strong opposition from many stakeholders, including the REALTORS®.

SB398 Status: Did Not Pass.

Also introduced by Senator Ratti, SB398 was another measure intended to address affordable housing across the state. While it did not specifically mention rent control or inclusionary zoning, the section of concern was where it would have added to the definition of "matters of local concern" in the section of NRS commonly referred to as "Dillon's Rule." Dillon's Rule dictates that the local governments only have the powers specifically allowed by the state government. By adding "the development or redevelopment of affordable housing in the city or any action taken by the local government to ensure the availability or affordability of housing," it essentially would have given the ability for a local government to implement measures like rent control and inclusionary zoning.

SB473 Status: Passed. Effective July 1, 2019.

SB473 creates a 3-tiered definition of affordable housing based on:

  • Household monthly gross income (MGI):
    • Tier 1: no more than 60% of the median MGI for the county where the housing is located,
    • Tier 2: more than 60% but less than 80% of the median MGI for the county where the housing is located,
    • Tier 3: more than 80% but less than 120% of the median MGI for the county where the housing is located, and
  • Housing costs no more than 30% of the MGI of a household whose income equals:
    • Tier 1: 60% of the median MGI for the county where it is located,
    • Tier 2: 80% of the median MGI for the county where it is located,
    • Tier 3: 120% of the median MGI for the county where it is located.
 

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  Undue Burden on Real Estate Agents  
 

SB117 Status: Passed with significant changes. Effective May 16, 2019 for the purpose of performing any preparatory administrative tasks necessary to carry out the provisions of this act, and on October 1, 2019, for all other purposes.

SB117 seeks to address issues with CC&Rs containing restrictions or prohibitions based on race, color, religion, ancestry, national origin, sexual orientation or gender identity or expression. The bill makes those restrictions void and unenforceable. It adds disability, familial status and sex to the list of restrictions that are void and unenforceable.

As originally introduced, it would have prohibited a county recorder from providing a copy of an original recorded document (with limited exceptions) that contained any such restrictions unless the recorder redacted the copy and provided an annotation to that effect. The original bill also put a similar responsibility of title insurance companies, escrow companies, real estate brokers and agents as well as HOAs.

NVR was supportive of the concept, but opposed the bill as introduced because of the burden being placed on REALTORS®. After we explained the problems associated with the original language, the sponsor of the bill completely gutted it and replaced it with language that creates a form similar to the homestead declaration that a homeowner can record to formally state that discriminatory provisions are void and unenforceable.

SB199 Status: Passed with significant changes. Effective July 1, 2019.

SB199's intent is to ensure that new homeowners are fully aware of property taxes that may become due shortly after the property transferred to them.

In its original form, it would have provided a process for someone who paid property taxes late to be forgiven of interest and penalties under certain circumstances. It would have placed the burden on real estate licensees and escrow agents to notify a buyer of any property tax due by the close of escrow.

Thankfully, once we explained the problems with such requirements to the sponsor of the bill, she replaced the whole bill with language that requires the county assessor/recorder to give information on the transfer of residential real property to the treasurer at least once a month, and added a form for the buyer to sign identifying the correct address to send tax bills.

 

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  Property Taxes, Real Property Transfer Tax  
 

SJR14* Status: Did Not Pass.

SJR14* was introduced in 2017 as a proposed constitutional amendment. As a constitutional amendment, it needed to pass in 2017 (it did) and again in 2019 (it did not). If it had passed in 2019, it would have had to get approved by a vote of the people in 2020 before it would have become law.

SJR14* would have triggered a reset of the depreciation when a property sold or transferred. It would have reset the base value used for the tax caps at that time as well. The way the language was drafted, it would have left a lot of flexibility to Legislature on details (which is why SB419 was introduced this session).

In hopes that SJR14* would pass in 2019, proponent of the bill Senator Ratti was looking for business community support to pass this at the ballot box. As you can imagine, the business community did not rally behind that ask.

NVR conducted surveys on this measure, and the polling data showed that SJR14* was very unpopular with the voters, and that it would likely have failed in 2020. In the end, legislators just did not want to tackle this bill, and it never got a hearing.

SB419 Status: Did Not Pass.

As mentioned in the SJR14* summary, the Legislature would have had flexibility if it had passed. SB419 was intended to provide the details for implementation of SJR14* if it passed at the ballot box in 2020.

SB419 would have eliminated depreciation from the calculation of property taxes after a property transferred. It would have enacted the Senior and Disabled Taxpayers Protection Act and set forth the parameters for the program. No hearing was held on the measure.

SB556 Status: Did Not Pass.

SB556 was introduced as an emergency measure on June 1 by Senator Ratti. It would have allowed cities or counties to raise property taxes by a vote of the people. Specifically, it would have allowed for an increase in property taxes up to 0.05% for public safety, which was estimated to raise one's property taxes by $65 on a $372,000 home. It would have authorized certain city councils (Reno, Sparks, Washoe County) to put a property tax increase on the 2020 ballot only. The City of Henderson wanted to have that authority as well, but without including all of Clark County, the Legislative Counsel Bureau could not legally draft Henderson into SB556. The bill had a rough hearing and never moved forward.

SB73 Status: Passed with significant changes. Effective June 3, 2019.

SB73 was brought forward at the request of the City of Las Vegas as a means to fund programs to combat homelessness. It originally proposed a tax of $0.25/$500 of value imposed in counties with a population of 700,000 or more at the time of transfer (real property transfer tax). It also would have allowed cities to impose and collect an annual surcharge on users of the sewer system in an amount not to exceed $25.

Thanks to your Lobbying Team and other stakeholders, the bill was amended to remove all tax and fee increases. Instead, it requires Clark County and cities in that county to create a working group to identify solutions to the homelessness situation and identify sources of funding to implement measures recommended.

 

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  Taxation  
 

SB497 Status: Passed. Effective June 3, 2019.

Current law requires all businesses to file a commerce tax return, even though no tax is due if the business' Nevada gross revenue is $4 million or less. SB497 eliminates the requirement for businesses to file a commerce tax return if their Nevada gross revenue is $4 million or less.

AB4 Status: Did Not Pass.

Current law allows counties to create a fire district outside of any incorporated city. Brought forward on behalf of the City of Reno, and supported by other cities, AB4 would have allowed cities to also create a fire district within their jurisdiction, and to levy a tax to support the district.

SB551 Status: Passed. Some sections effective on June 12, 2019, others on July 1, 2019.

SB551 eliminates the rate adjustment procedure to determine whether the rates of the payroll tax should be reduced, with the net effect being the elimination of the sunset provisions. It also provides funding for the Opportunity Scholarship program, teacher raises and school safety initiatives. It eliminates the Education Savings Account program created in 2015, but never took off the ground as it got tied up in a court battle over the funding of the program.

 

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  Construction Defects  
 

AB421 Status: Passed. Effective October 1, 2019.

AB421 rolls back provisions adopted in 2015. The most notable change is the extension in the statute of limitation from 6 years back to 10 years, as it was prior to 2015. It also allows homeowners to report alleged construction defects in "reasonable" detail (current law says "specific" detail with "exact" location).

 

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  Towing of Vehicles  
 

SB212 Status: Passed. Effective July 1, 2019.

SB212 is another bill that addresses unintended consequences from a bill passed in 2017 (SB320). SB320 (2017) was passed to address the problem that occured when vehicles were towed from a residential complex with no notice or opportunity to cure the violation. It established a requirement of a 48-hour notice before a vehicle could be towed, unless the vehicle is blocking a fire hydrant, fire lane or parking space designated for handicap, or if it posed a threat to the health, safety or welfare of the residents.

When the law came into effect, we began to see some people parking in residential complexes where they were not authorized, notably around the UNR campus. The property owners had to give them a 48-hour notice before being able to tow the vehicle away. Vehicle owners just moved their car to a different parking spot the next day, which meant that property owners had to once again give a 48-hour notice, perpetuating the problem without the ability for the owners to tow the vehicles off their properties.

SB212 provides that a vehicle may be towed immediately if:

  • it is a vehicle which received a notice previously for the same or a similar reason in the same residential complex; or,
  • the vehicle received a notice three or more times during the last six months within the same residential complex for any reason, regardless of whether the vehicle was subsequently towed.

It also adds to the definition of threat to the health, safety or welfare to include if the vehicle is parked in a space that is clearly marked for a specific resident or the use of a specific unit in the residential complex.

SB395 Status: Passed. Effective July 1, 2019.

Existing law requires a property owner to notify local law enforcement orally about a nonconsensual tow. SB395 removes that requirement when the towing operator has already notified them. It also adds the cost of disposition to the costs that must be borne by the vehicle owner (currently: towing and storage).

Finally, if the tow operator and property owner agree that a vehicle is likely to be ultimately disposed of and the estimated disposition is less than the estimated cost of towing, storage and disposition, they can enter into an agreement where the property owner makes a voluntary payment to the operator. While it seems odd that a property owner would willingly pay to do so, it can actually be the best course of action in cases where the property owner is getting accruing nuisance fines from local government because of the presence of an abandoned vehicle on the property.

 

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  2019 Session by the Numbers  
 

The 80th Session of the Nevada Legislature began on February 4, 2019. The Legislature adjourned sine die on June 3, 2019.

BILLS  
# of BDRs 1,297
# of Senate Bills 584
# of Assembly Bills 573
Bills Tracked by NVR 90
DEADLINES  
3/18 Bill introductions by legislators
3/25 Bill introductions by committees
4/12 First House committee passage
4/23 First House passage
5/1 Economic Forum
5/17 Second House committee passage
5/24 Second House passage
6/3 Sine Die
 

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June 28, 2019
 Inside this issue
2019 Major Investors
Investment completed as of June 26, 2019. Pledges listed for those who have invested at least $500 as of the above date. You can make your investment today by visiting this site. "PC" means those members are also participating in the President's Circle program.

Platinum R ($10,000+)

Jack Woodcock - PC

Golden R ($5,000+)

Nancy Anderson - PC
Vandana Bhalla (pledge) - PC
Thomas Blanchard - PC
Diane Brown - PC
Todd Disbrow (pledge) - PC
Wendy DiVecchio - PC
Kenneth Gragson - PC
Bob Hamrick - PC
Azim Jessa - PC
Heidi Kasama - PC
Keith Lynam - PC
Greg Martin - PC
Doug McIntyre - PC
Teresa McKee - PC
Bobbi Miracle (pledge)
George Peek - PC
Merri Perry - PC
Chris Plastiras - PC
Devin Reiss - PC
Linda Rheinberger - PC
Brandon Roberts
Leroy "Buck" Schaeffel - PC
Kevin Sigstad (pledge) - PC
Sandra Thomas
David R. Tina - PC
Donald Wilkerson
Judie Woods - PC

Crystal R ($2,500+)

Eliot Alper
Jillian Batchelor
Betty Chan
Cheryl Delehanty
Rosa Herwick
Soozi Jones-Walker - PC
Charles Kitchen - PC
Erika Lamb (pledge) - PC
Brad Spires - PC
Robert Andy Stahl - PC
Chantel Tilley

Sterling R ($1,000+)

Tina Africk (pledge)
William Alt
Donna Andrews
Brenda Aucutt
Katie Bawden
Becky Blankenburg
Lori Bottari
Paul Bottari
Darryl Braswell
Leslie Cain
Janet Carpenter
Sherrie Cartinella
Christina Chipman
Tamra Coulter
Christina Cova-Simmons
Shawn Cunningham
Nick Devitte
Deirdre Felgar
Rocky Finseth
Bob Getto
David Graham
Alexander Greiner
Christin Griffin
Molly Hamrick
Faith Harmer
Randy Hatada
Eric Heinen
Cheryl Henning (pledge)
Lori Jenkins
Sara Jessa
Myrna Kingham
Joan Kuptz
April LaBrie
Jody Lenzie
Marissa Lostra
Shyla Magee
Aldo Martinez
Frederick McElroy (pledge)
Margie McIntyre (pledge)
JC Melvin - PC
Jenny Minucci
Laura Moline
Cassandra Mor
Elie Morris
Carol Murphy
Michele Norris
Norma Jean Opatik
Jennifer Ott
Janet Pahl
Georgia Purpura
Debbie Primack
Pam Reese
Pam Ricci (pledge)
Claudia Saavedra
Sarah Scattini
Cheryl Smith
Christie Stark
Katherine Tatro
Sandra Wakefield
Samuel Whiteside
Julie Youngblood
Debbie Zois

Association Corporate Investors

NV REALTORS® - Platinum R
RSAR - Platinum R
IVR - Crystal R
SNR - Crystal R
Contact Nevada REALTORS®

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