Bulletin: MS2023001

Dear Associates:

The following is a summary of legislation that was passed during the 2023 Regular Session that may impact the title industry.

Ownership of Agricultural Land by a Foreign Government

HB 280. This bill establishes a study committee for the purposes of studying any purchasing, acquiring, leasing or holding of an interest in agricultural land by a foreign government. This nine (9) member committee will investigate and study the following: the amount of agricultural land under foreign ownership; the percentage change in foreign ownership of agricultural land over the past ten (10) years; the current purpose or use and any recent changes to purpose or use of foreign-owned agricultural land; foreign ownership of water rights; foreign ownership of water desalination facilities; foreign ownership of energy production, storage or distribution facilities; the Mississippi Department of Agriculture and Commerce’s assessment of the impact of foreign ownership of agricultural land, water rights, and food security; any current prohibitions on foreign ownership and reasons such prohibitions are not being enforced; and any legislative, regulatory or administrative policy changes that should be recommended based on the report of the committee.

What you should know: In light of the current international political climate, many states are looking at the foreign ownership and use of agricultural lands along with the impact on food or crop production. The committee established by this bill could potentially propose changes to Mississippi law on foreign ownership of certain real property interests. Currently, only nonresident aliens have limited ownership restrictions under Mississippi law. (See Underwriting Manual 1.52.3 - Alien Ownership of Real Property in the United States.) (Effective July 1, 2023).

Violation of Local Zoning Ordinance

HB 894. This bill made changes to Miss. Code Ann. § 17-1-27 to add an option for local government to enforce administrative or civil penalties for knowingly and willfully violating zoning ordinances. Previously the local government only had the ability to enforce criminal penalties.

What you should know: Coverage regarding zoning matters and regulations through an ALTA 3 series endorsement may become more hazardous if local governments become more active in pursuing zoning violations. (Effective July 1, 2023).

Age of Majority

SB 2073. This bill amends the Miss. Code Ann. §§ 93-19-13, 1-3-27, 15-3-11, 11-5-115, 89-1-301, 93-19-1, 93-19-9, 91-20-3, 91-20-41 AND 15-1-17, to designate eighteen (18) years old as the age of majority for such purposes as entering into binding contractual relationships affecting real property and mortgages (deeds of trust).

What you should know: Previously, the age of majority for the purposes of conveying or mortgaging real property was twenty-one (21) years old unless the disability of minority was removed by the courts. This would eliminate the need for conservatorships for eighteen (18) year old property owners whose only disability under the law was being under the age of twenty-one (21). (Effective July 1, 2023).

Sale of School District Lands

SB 2164. This bill amends Miss. Code Ann. § 37-7-473 to allow for school districts to sell, convey, lease or dispose of school buildings, land, property and facilities for the purpose of residential or mixed-use development activity to stimulate economic development activities within the district or enhance property values within the district.

What you should know: School districts were already authorized by law to make such conveyances for certain industrial or non-residential uses. (Effective July 1, 2023).

Garbage Liens

SB 2392. This bill amends Miss. Code Ann. § 19-5-22 to require the County Board of Supervisors to update delinquency notices concerning unpaid garbage, rubbish collection, or disposal service fees to the tax collector at least once per quarter of each year. It also establishes that garbage liens be recorded in the chancery clerk’s office of each county in a separate hard copy book and/or digital format, which shall include all information necessary for recording and indexing. Said liens will also be discharged and released through the chancery clerk’s office. The deadline for creating this registry system is January 1, 2024.

What you should know: While real property cannot be sold to satisfy garbage liens, these liens have consistently been a customer relations issue due to the impact on the taxpayer with little to no notice as a result of no uniform recording or indexing system in the state. Once this recording system is in effect, title searches should include an examination of the garbage liens recorded as part of the land records with the chancery clerk’s office. (Effective July 1, 2023).

Sixteenth (16th) Section Land - Zoning and Land Use Laws 

SB 2751. This bill amends Miss. Code Ann. § 29-3-132 to reflect that zoning or land use laws, ordinances or regulations do not restrict or interfere with a school district’s use of Sixteenth (16th) Section land for construction and operation of educational or extracurricular facilities.

What you should know: Sixteenth (16th) Section land is commonly leased by the school districts for various purposes. Note that this change will not impact lessees/tenants under such leases and that zoning regulations should be complied with in those instances. As a reminder, insuring title related to Sixteenth (16th) Section land is considered high risk and underwriting counsel should be contacted to confirm appropriate requirements are met. (Effective July 1, 2023).

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