Nevada Legislature Opens

Cheryl Blomstrom

By Cheryl Blomstrom, Blomstrom Consulting, UTA Nevada Lobbyist

The Nevada Legislature opened on February 4, 2013 with pomp, circumstance and a few cranky children. The topic of the day was the apparent meltdown of Assemblyman Steven Brooks. Mr. Brooks was arrested for allegedly threatening harm to the new Assembly Speaker, Marilyn Kirkpatrick. He was here on opening day along with an enhanced cadre of legislative police officers to keep the peace. Even with the sideshow atmosphere, day one went fairly smoothly.

Day two began the real work with nearly 200 pre-filed bills introduced.  I am watching for impacts to the UTA's membership in areas such as foreclosures, abandoned property, real property rights, and nuisance ordinance creep. From my first list, there are ten bills which have been filed (including AB300 from the 2011 session that Governor Sandoval vetoed which was sent back to the legislature for its further discussion). None of these is particularly troublesome. However, there are several bill drafts that we will need to watch closely as their bill language is developed. Most of these address real property transactions as well as foreclosures. There is also a bill draft to revise the Foreclosure Mediation Program from freshman Assemblyman Andy Eisen. His bill language is not yet available.

From my third list, there are still ten bill drafts that I consider very important but, as of yet, no language is out.  Several reasons for this delay this session including the legal work that has of necessity been given over to the Brooks issue as well as many new staff. Last session saw the retirement of several key drafters from the Legislative Counsel Bureau and their replacements are needing to learn at a scary pace.

There are sixteen real property bill drafts, three relating to judgments or liens, one on mortgage lending, one (so far) on foreclosures as well as the one on the FMP.

During a presentation on the Foreclosure Mediation Program, the program director, Verise Campbell, opined that mediation should be considered for a change to make it opt out rather than the existing opt in.  Given how hard it is to engage delinquent borrowers under the opt in rubric, this will needlessly complicate the process. I also think it will drive up the costs of operating the program which is unlikely to receive much support from the Governor’s office or the Legislature’s money committees.

In the first week, I testified in support of a nuisance bill which will norm the process for filing liens on abandoned property. We suggested, however, that the bill would be better considered in the broader context of foreclosure reform and abandoned property. The bill sponsor, the City of Las Vegas, agreed to that idea.

On February 18, we met with a group of stakeholders on the various issues involved with foreclosures as well as abandoned properties and the needed reforms to our existing law and we will keep you up to date as those important conversations take place. Among issues discussed, included UTA’s concerns about the affidavit as well as the time it takes to conduct a proper foreclosure, and some of our concerns with foreclosure mediation.