Louisiana
REALTORS 2009 Legislative Recap
The 2009 legislative session concluded on Thursday June 25th. 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 the session and 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:
THE
LOUISIANA REALTORS® LEGISLATIVE PACKAGE:
HB 381 (ACT #502) by Representative Hoffman (Wet Monroe)
Licensure and Regulation of Appraisal Management Companies
Effective Date: Upon Rules & Regulations being approved by House & Senate Commerce Committees
HB 381 would allow the Louisiana Real Estate Appraisal Board to regulate Appraisal Management companies. HB 381 would also provide for greater disclosures to consumers by these AMC’S and also allow the Appraisal Board to investigate and act on complaints filed by the public concerning these entities.
For a complete review of HB 381
HB 704 (ACT # 101) by Representative Damon Baldone (Houma)
Licensure & Regulation of Home Service Contract Companies
Effective Date: In effect
HB 704 would require home service contract companies to register with the Department of Insurance.
HB 704 also requires these companies to comply with one of the following:
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Maintain a funded reserve account to cover contract obligations,
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Maintain a net worth or stockholder equity of $25 million,
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Insure all contracts under reimbursement insurance policy issued by a state licensed carrier,
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Place with the Department of Insurance a financial security deposit. HB 704 also provides much needed disclosures concerning these contracts
For a complete review of HB 704
HB 120 (ACT #273) by Representative Major Thibaut (New Roads)
Timeshare Law Revisions
Effective Date: Upon the signature of the Governor
HB 120 decreases the minimum unit requirements for development of timeshare properties.
•House Bill 120 by Rep Thibaut lowers the minimum threshold of proposed and completed timeshare units from the current 65 to 40 due to difficult economic times and increased development costs. The 40 unit proposal is high enough to keep the fly-by-night timeshare solicitors out of state, while remaining low enough to avoid being prohibitive for legitimate business purposes. HB 120 will encourage more companies to develop timeshare properties.
For a complete review of HB 120
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PROPERTY INSURANCE
LEGISLATION:
HB 333 (ACT #134) by Representative Kleckley (Lake Charles)
Yearly Name Storm Deductibles
Effective Date: January 1, 2010
HB 333 would require policyholders on one and two family owner occupied premises to pay only one named storm deductible per year even if they incur losses from more than one named storm.
For a complete review of HB 333
SB 130 (ACT #483) by Senator Troy Hebert (Jeanerette)
Ratemaking by Louisiana Citizens Insurance Company
Effective Date: Upon the signature of the Governor
SB 130 requires Citizens Insurance Company to adjust rates by computing the ten percent above the private market rate by only calculating those insurance companies that are writing at least 2% of the business in that parish area.
SB 130 should help lower Citizens rate in many parishes.
For a complete review of SB 130
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MORTGAGE LENDING LEGISLATION:
HB 810 (ACT #522) by Representative Jeff Arnold (Algiers)
Mortgage lending changes to comply with Federal Safe Act
Effective Date: Upon signature of the Governor
HB 810 brings Louisiana Mortgage lending laws in line with the Federal Safe act passed by Congress.
For a complete review of HB 810
SB 105 (ACT #197) by Senator Duplessis (New Orleans)
Penalties for Fraudulent Mortgage Lending Practices
Effective Date: Upon the signature of the Governor
SB 105 would provide for serious penalties for those mortgage lenders that intentionally defraud consumers.
*Employ a device scheme, or artifice with intent to defraud,
*Make an untrue statement of material fact with intent to defraud,
*Receive any portion of the purchase, sale, or loan proceeds, or any other consideration paid or generated in connection
with the closing of a residential mortgage loan when the recipient knows that the proceeds or other funds were paid
as a result of a violation of proposed law.
Any person who violates the provisions of this law shall be imprisoned, with or without hard labor, for not more than 10 years, or may be fined not more than $100,000, or both and that a person convicted shall be ordered to make full restitution to the victim and any other person who has suffered a financial loss as a result of the offense
For a complete review of SB 105
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OTHER BILLS OF INTEREST:
SB 24 (Act # 104) by Senator Jody Amedee (Gonzales)
Louisiana Real Estate Commission
Effective Date: In effect
SB 24 adds two at large members to the LREC. One of the two new at large positions has to be nominated from either the 4th 5th or 7th congressional districts.
For a complete review of SB 24
HB 146 by Representative Austin Badone (New Orleans)
Restricts use of cell phone in automobiles to hands free devices only
HB 146 failed to pass the Senate.
SB 218 (ACT #239) by Senator JP Morrell (New Orleans)
Business Interruption Insurance
Effective Date: Upon the Signature of the Governor
SB 218 allows the Citizens Insurance Company to write Business Interruption Insurance
For a complete review of SB 218
HB 858 (ACT #467) by Representative Eric Ponti (Baton Rouge)
State Tax Credits for wind or solar energy systems
Effective Date: Upon the signature of the Governor
HB 858 allows a tax credit for a taxpayer who installs these systems in a residence or a residential rental apartment. The tax credit can be applied in the year that the system is installed. New construction qualifies as well and the credit can be taken in the year the new residence was transferred.
For a complete review of HB 858
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MODULAR HOUSING:
HB 441 (ACT #327) by Representative Eric Ponti (Baton Rouge)
Effective Date: Upon the signature of the Governor
Requirements to install modular housing
HB 441 would require a licensed contractor to install a modular home if costs exceed $37,500.
For a complete review of HB 441.
HB 637 (ACT #514) by Representative Eric Ponti (Baton Rouge)
Effective Date: Upon Signature of the Governor
Requirements of modular built industrialized buildings
HB 637 sets out requirements and inspection fees for commercial & industrialized buildings that are built off site and then brought in for assembly on the site location.
For a complete review of HB 637
HB 372 (ACT #163) by Representative Nickie Monica (LaPlace)
Effective Date: January 1, 2011
Placement of one Lithium Ten Year Smoke Detector in Residential Homes
HB 372 requires all home sold after January 1, 2011 to contain one smoke detector containing ten year lithium battery. HB 317 also states that failure to comply shall not delay or stop a transfer of property and that the seller’s agent is not liable for sellers failure to comply with act. The law has no penalties or fines for non compliance.
For a complete review of HB 372
HB 83 (ACT #498) by Representative Tim Burns (Covington)
Effective Date: Upon the signature of the Governor
Public Hearings on millage rate proposals
HB 83 shall provide a meeting notice on two separate days of any public hearing where millage rates may be increased.
For a complete review of HB 83
HB 902 (ACT #528) by Representative Arnold (Algiers)
Effective Date: Upon the signature of the Governor
Limiting power of taxing authorities which are not elected
HB 902 would limit the non-elected taxing bodies the power to raise the millage rates in excess of the prior years maximum authorized rates. HB 902 does not apply to fire protection districts.
For a complete review of HB 902
HB 903 (ACT #542) by Representative Arnold (Algiers)
Effective date: Once approved by the voters (Constitutional Amendment)
Limiting power of taxing bodies not elected
HB 903 would allow Louisiana voters to vote on limiting the power of local taxing body’s ability to raise millage rates. If these authorities decide to raise the millage rates an election would have to occur before these rates could take effect, whereby voters would have to approve the proposal.
For a complete review of HB 903
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BILLS OPPOSED BY LR:
Homestead Exemption:
Legislation to increase Louisiana’s current homestead exemption
The Louisiana REALTORS® opposed all legislation seeking to raise the current homestead exemption. At the end of the session no bills made it through the entire process to raise the current exemption level from $75,000 of value.
HB 305 by Representative Charmaine Stiaes (New Orleans)
Legislation to require vote on all local zoning and planning decisions
The LR was successfully able to keep this legislation form moving forward as it would have allowed the following:
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Voters to decide by election on all zoning and planning decisions in every city and municipality,
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HB 305 could have deterred developers from investing in projects,
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Required local entities to conduct elections every month on all zoning and city planning changes.
For a complete review of HB 305
SB 257 by Senator Julie Quinn (New Orleans)
(Chinese Drywall)
This legislation in its original format would have provided for unlimited lawsuits on our Louisiana building material companies because of the problems with the Chinese dry wall. These lawsuits could have shut down the building material businesses in our state. SB 257 bill was amended on the Senate floor to create a tax credit for those individuals harmed by this product. SB 257 failed to pass out of the Louisiana Senate.
For a complete review of SB 257
SB 167 (ACT #487) by Senator Cheryl Gray (New Orleans)
Chinese Drywall Assistance Program
SB 167 passed both Houses and will be sent to the Governor for his signature into law
An amendment was placed on this legislation in the waning moments of session by Representative Jeff Arnold of Algiers that would create a $5 million dollar program within the Louisiana Recovery Authority to provide assistance to those that have suffered from the effects of Chinese Dry Wall. The LRA will be working on the implementation of this program and on creating the mechanics on how applicants will have to proceed in order to be considered for financial assistance.
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SUMMARY OF LOUISIANA'S APPROVED BUDGET:
The over 28 billion dollar state budget passed as the session adjourned sine die on Thursday, June 25th. All major tax proposals failed to pass including the 98 million dollar federal stimulus money for unemployment benefits. The rainy day fund was tapped for $86 million dollars instead of the original plan of $258 million dollars and surplus monies were steered to help keep the Saints in New Orleans.
Higher education cuts were restored by $100 million dollars and healthcare cuts were restored by approximately $45 million dollars which will allow for a Federal match in Medicaid four times greater than originally projected. Restorations in these areas were made possible from dollars taken from the rainy day fund, the unused insurance fund and the medical assistance fund. The “Stelly Plan” reversal which will provide dollars back to taxpayers that itemize on the state level was kept in tact and taxpayers will begin to see benefits from this. The only other item of importance was the failure to pass SB 1 a constitutional amendment to allow the legislature to cut dedicated funds by 10% instead of the current 5% during deficit times.
For questions concerning specifics on any items noted in this legislative report, please contact:
Norman Morris
Senior VP, Louisiana REALTORS®
800 266 8538
Norman@larealtors.org
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