Legislative Update – May/June

Lawmakers to pass late State Budget
State lawmakers finalized a state budget earlier in the month of April. The budget was passed over a week after its statutory April 1 deadline.

• The final budget included the following:
• A homeowner tax rebate credit for eligible taxpayers with a gross income of $250,000 or less;
• $800 million in Emergency Rental Assistance Program (ERAP) funding;
• $250 million to assist with utility arrears for residents;
• $125 million for homeowners and landlords behind on mortgage payments;
• Suspension of certain state gas taxes from June 1 through December 31, 2022, totaling savings of 16 cents per gallon– local governments would have the option of also suspending local gas taxes;
• Changes to the state’s regulations of freshwater wetlands to include areas of at least 7.4 acres by the year 2028, which is a reduction from the current 12.4 acres;
• Inclusion of a $4.2 billion Environmental Bond Act proposal that will go before voters on the November general election ballot for approval. The proposed bond act would go toward helping fund climate change mitigation efforts, improving water and sewer systems, and to help fund a state mandate to electrify state school buses by 2035;
• Measures to expand broadband access;
• New tax credit for businesses equals 50 percent of the costs for the conversion from grade no. 6 heating oil to biodiesel heating oil or a geothermal system.
• Bail reform changes include modifications to discovery and permitting judges to set bail on some repeat offenders in certain gun cases, or for violating an order of protection. Certain hate crimes would become an arrestable offense instead of resulting in a ticket;
• Legalization of alcohol-to-go at restaurants for 3 years;
• $7 billion over four years to expand access and subsidies for child care;
• $7.4 billion in funding to provide a $3/hr. pay increase for home health care workers;
• $31.5 billion in school aid funding;
• $600 million to help fund a new Buffalo Bills stadium;

The final state budget did not include good cause eviction, a ban on fossil fuel emissions in all new construction, the imposition of new stricter building and appliance efficiency codes, or an extension of the 421-a tax abatement program for affordable housing development.

President Biden releases report and recommendations regarding racial bias in home valuations
President Biden’s Administration released its Property Appraisal and Valuation Equity (PAVE) report which outlined 21 recommendations to address unlawful discrimination in residential valuations, enhancing fair housing and fair lending, diversity in the appraiser workforce, and consumer protections regarding appraisals. NAR 2022 President Leslie Rouda Smith stated, “REALTORS® are committed to upholding fair housing laws in all real estate activities, including appraisals.” Read more here.

Federal court reinstates independent contractor rule
A federal court vacated the Department of Labor (DOL) actions delaying and withdrawing the independent contractor regulation issued in January 2021. For real estate professionals, the rule and subsequently withdrawal that was vacated by the court does not change their classification as independent contractors under the Internal Revenue Code, nor does it preempt the many states’ laws classifying real estate professionals as independent contractors. By reinstating the independent contractor rule, the court has provided needed regulatory certainty for many industries relying on independent contractor workforces. For more on this issue, visit nar.realtor/independent-contractor-status.