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REALTORS 2008 Legislative Recap
The 2008 legislative session concluded
on Monday June 23rd. The Louisiana REALTORS® (LR) leadership
team wants to thank each of you for your hard work and great grassroots
support throughout the legislative session. LR took a very active
role in this first session since term limits took effect. Your association
was able to advance several pieces of legislation critical in keeping
the real estate industry strong and professional, while defeating
legislation that would have created problems for real estate consumers
and for your industry. What follows below is a full summary of all
legislative activity debated and considered that was pertinent to
the real estate industry.
Jump to the following sections:
Other Information:
THE
LOUISIANA REALTORS® LEGISLATIVE PACKAGE:
HB 192 (ACT # 254) by Representative
Jeff Arnold (Algiers)
Professional & Educational Enhancements
Effective date: January 1, 2009
HB 192 will increase the educational and professional requirements
for real estate licensees:
• Raise yearly continuing education hour requirements from
eight to twelve hours per year
• Raise post licensing education hour requirements from 30
hours to 45 hours per year and allow licensees 180 days from the
date of licensure to complete the 45 hours,
• Require a salesperson to serve in that capacity for four
years before sitting for the brokers examination on all individuals
licensed on or after January 1, 2009,
• The Louisiana Real Estate Commission (LREC) will no longer
conduct a series of continuing education courses statewide,
• Allows the LREC in the future to consider the passage of
an exam before a licensee can receive credit for annual continuing
education hours.
For
a complete review of HB 192
HB 156 (ACT # 197) by Representative
Jeff Arnold (Algiers)
Appraisal Peer Review Committee
Effective Date: June 23, 2008
HB 156 creates a peer review mentoring program under the Louisiana
Real Estate Appraisal Board:
• Allows the Appraisal Board to create rules to set up a “peer
review committee”,
• Aid the state appraisal board in reviewing appraisals,
• Help better educate appraisers in the field.
For
a complete review of HB 156
HB 212 (ACT # 257) by Representative
Arnold (Algiers)
Marketing and Selling of Local Government Properties
Effective Date: June 23, 2008
HB 212 allows a real estate agent to sell adjudicated property representing
local governments:
• A parish or local government can engage the services of
a licensed real estate agent to sell local adjudicated public property
for a commission if the local government thinks it is in the best
interest to do so,
• The commission paid to the real estate agent would come
from the proceeds of the sale of the adjudicated property,
• The fees paid to the licensee can be negotiated with the
local governments up to 10%.
For
a complete review of HB 212
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METHAMPHETAMINE
LEGISLATION:
SB 801(ACT #681) by Senator
Ben Nevers (Bogalusa)
Disclosure and process for properties contaminated with the methamphetamine
drug
Effective Date: Upon signature of the Governor
SB 801 outlines policies for residential properties found to contain
illegal methamphetamine labs:
• SB 801 requires law enforcement to report to the Department
of Environmental Quality (DEQ) those residential properties that
are found to have an illegal methamphetamine lab located inside
the premises,
• Sheriffs to notify potential purchasers/bidders prior to
a judicial sale that a methamphetamine lab was present inside the
property,
• DEQ to create a database listing on a website of those identified
properties and create standards for remediation of those properties,
• Require DEQ to remove properties from the web site once
the property had been remediated and the owner would not have to
disclose any past contamination on the property,
• The legislation also limits liability and states that failure
to comply with any part of this statute shall not create a cause
of action against the property owner, their agent, any governmental
entity or anyone having an interest in the property.
• The LR will be working closely with its REALTOR® work
team and DEQ as the remediation standards are put into place.
For
a complete review of SB 801
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NEW HOME
WARRANTY ACT:
HB 1368 (ACT # 387) by Representative
Abramson (New Orleans)
Delivery Notice of New Home Warranty Act
Effective Date: Upon signature of Governor
HB 1368 amends requirements for delivery of New Home Warranty Act
to consumer:
• The builder must provide a copy of New Home Warranty act
to owner either at the time of closing or at the time of the execution
of the construction contract if a closing does not occur on the
actual built home,
• The Contractor Licensing Board will promulgate rules to
guide this law.
For
a complete review of HB 1368
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MORTGAGE
LENDING LEGISLATION:
SB 252 by Senator Mike Michot
(Lafayette)
Fees for use of the National Mortgage Lending Database
Effective Date: Upon signature of the Governor
SB 252 caps the fees charged to mortgage lenders and others engaged
in the mortgage lending business for use of the national database:
• Mortgage lenders fees per year set at no more than $100.00,
• Loan originators fees per year set at no more than $30.00,
• For each branch location fees per year set at no more than
$20.00
For
a complete review of SB 252
SB 253 (ACT #531) by Senator
Mike Michot (Lafayette)
Office of Financial Institutions audits of all mortgage lenders
Effective Date: Upon signature of the Governor
SB 252 requires the Office of Financial Institutions (OFI) to:
• Audit all licensed mortgage lenders doing business in Louisiana
at least once every three years,
• Law includes out of state lenders,
• The dates of all audits shall be placed on OFI’S web
site,
• Audits shall focus on appropriate risk management and in
areas of consumer complaints.
For
a complete review of SB 253
SCR 89 by Senator Sharon
Broome (Baton Rouge)
Predatory Lending Study Resolution
SCR 89 sets up a group to study the predatory lending issue and
to report findings back to the House and Senate Commerce Committees:
• Louisiana REALTORS® is one of those members,
• Bankers, AARP, Land Title, Mortgage Lenders, Business entities
and Attorney General make up the other members of the group
For
a complete review of SCR 89
HB 768 (ACT #328) by Representative
Abramson (New Orleans)
Cancellation of Mortgages
Effective Date: Upon signature of Governor
HB 768 sets out procedures for the prescriptive periods for the
cancellation of notice of seizure:
• Allows for the cancellation of a mortgage upon submitting
a request to cancel evidencing that the mortgage has been cancelled
and upon submission of proof that all costs due the clerk of court
and the sheriff have been paid,
• The notice of seizure of property affected by the mortgage
shall prescribe ten years after the date of recordation unless re-inscribed
in the same manner as an instrument creating a mortgage,
For
a complete review of HB 768
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LAND TITLE
LEGISLATION:
HB 815 (ACT #367) by Representative
Abramson (New Orleans)
Prescription for setting aside a sale
Effective Date: Upon signature of Governor
HB 815 lowers the prescriptive years to set aside a sale, lease,
transfer, mortgage and encumbrance:
• Lowers prescriptive period to five years from ten on any
action to set aside the items mentioned above on the grounds that
the officer, agent or legal entity signing the document was without
authority to so,
• The new 5 year period shall apply to all such documents
whether recorded prior to or after August 15, 2008,
• Any documents to which prescription has not already run
and become final as this prescriptive period shall not become final
and complete until ten years form the date the document was recorded
or August 15th 2013 whichever occurs first.
For
a complete review of HB 815
Several other legislative instruments
passed in the title insurance arena to aide the New Orleans area:
• The use of electronic signatures and electronic transmissions
of documents for filing real estate documents,
• Destruction of paper records by courts allowed, but must
be kept by electronic means.
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INSURANCE
LEGISLATION:
SB 160 (ACT #354) by Senator
Don Cravins (Lafayette)
Regional Insurance Deductibles
Effective date: Upon signature of Governor
SB 160 would allow insurance companies to change deductibles regionally
rather than on all policies in the state:
• Cap the amount of the deductible increase to 4% for named
storms or hurricanes,
• Applies to policies that have been in force for longer than
three years,
• Insurance companies also shall reduce rates paid by consumers
if a deductible is changed,
For
a complete review of SB 160
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LEGISLATION
THAT LR OPPOSED:
HB 1365 by Representative
Tim Burns (Mandeville)
Renting & Leasing to Aliens
Outcome: Legislation did not move off of the House floor
HB 1365 would have created a criminal penalty for property owners
who leased or rented to aliens:
• Require property owners to make a reasonable effort to determine
if lessee was a legal citizen,
• $200.00 dollars for first offense, $300.00 for second offense
and possible jail time for third offense
For
a complete review of HB 1365
SB 677 by Senator Nick Gautreaux
(Abbeville)
Appraising farmland
Outcome: Legislation never set for committee hearing
SB 677 would have allowed certified appraisers to perform appraisals
on farmland with a value up to $1,000,000:
• Potentially violated the Federal USPAP regulations
For
a complete review of SB 677
HB 837 by Charmaine Marchand (New Orleans)
Real Estate leasing requirements
Outcome: The bill was never set for committee hearing
HB 837 has allowed REALTORS® and apartment owners to come together
with Representative Marchand to craft a better piece of legislation
that works for landlords and tenants. The current legislation would
have required:
• Required all leases to be files with the Clerks of Court,
• Reduced time to return lessee’s deposit to ten days
from thirty days
For
a complete review of HB 837
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OTHER
BILLS OF INTEREST:
HB 55 by Representative Henry
(Jefferson)
Counter Letters
Outcome: Legislation defeated in Senate committee
HB 55 would have outlawed the use of counter letters. House Concurrent
Resolution #130 by Representative Abramson directs the Louisiana
State Law Institute to study this issue and report back its findings
next year to the legislature.
For
a complete review of HB 55
HB 1008 by Representative
Abramson (New Orleans)
Manufactured Housing
Effective Date: Upon signature of Governor
HB 1008 requires the owner of manufactured housing to:
• File the act of immobilization with the Department of Public
Safety,
• Failure to file act shall not impact any legal effects flowing
from the procedures to immobilization the manufactured home as provided
in the act.
For
a complete review of HB 1008
HB 641 (ACT # 218) by Girod
Jackson (New Orleans)
Accessibility requirements in public facilities
Effective Date: Upon signature of Governor
HB 641 brings Louisiana Law in line with the Federal guidelines
on accessibility:
• Requires any dwelling in a facility which incorporates four
or more units shall be made in compliance with Fire Marshall regulations
and the ADA Act.
For
a complete review of HB 641
HB 1352 (ACT # 97) by Mickey
Guillory (Eunice)
Criminal Penalties for damage to property
Effective Date: June 23, 2008
HB 1352 makes it a crime for:
• Intentional damage to a dwelling house, apartment, or other
structure used in whole or part as a home, or a place of abode by
a person who leases or rents the property,
• The criminal penalties also will include the re-payment
to the owner for damage caused.
For
a complete review of HB 1352
SB 137 (ACT #665) by Senator
Julie Quinn (New Orleans)
Text Messaging in Automobiles
Effective Date: Upon signature of Governor
SB 137 would make it a penalty to text message while driving.
For
a complete review of HB 1352
HB 1258 (ACT?#895) by Representative
John Bel Edwards (Amite)
Appraisals conducted at Sheriff sales
Effective Date: Upon signature of Governor
HB 1258 would increase the fees charged by appraisals at Sheriff
sales:
• Fees set at not more than $50.00 for movables,
• Fees set at a minimum of $100.00 and not more than $300.00
for immovable.
For
a complete review of HB 1258
HR 117 by Representative
Damon Baldone (Houma)
Interest on Broker Escrow Accounts
HR 117 sets up a work team to discuss and research the potential
of setting up a process of having interest on brokers escrow accounts
go towards an affordable housing fund. The work group will be made
up of REALTORS® LREC Commissioners, Bankers and one member from
the Louisiana State Bar Association
Back to top
For more information or questions
please feel free to contact Norman Morris at 1-800 266-8538 or norman@larealtors.org
or you can go to www.legis.state.la.us.
Local Boards can also contact Norman if interested in having their
brokers or general membership addressed at meetings on the results
of the 2007 Legislative Session.
Go back to State
Legislative Page.
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