2022 Legislative Session Overview

Louisiana REALTORS® has taken a position on several bills filed this year that were filed in an attempt to improve our property insurance laws.  As the voice of real estate in Louisiana, your leadership believes it is incumbent upon Louisiana REALTORS® to speak up on this important subject on property owners’ behalf.  The link provided above indicates which bills Louisiana REALTORS® is supporting or opposing in this undertaking.  Updates will be provided as these bills begin moving through the legislative process.

HB No. 488 by Representative Polly Thomas

SB No. 180 by Senator Robert Mills

What:  These bills would require wholesalers to obtain a real estate license.

Position:  Support

Why:  Wholesaling is the practice of putting a piece of property under contract and then assigning the wholesaler’s interest in the property for a profit for the wholesaler.

With the past few years being a seller’s market, you have told us about the increase in wholesaling and the problems that are associated with the practice such as misleading sales tactics, predatory contracts, and clouding title to properties. Further, you tell us that consumers are upset when they agree to sell their homes to a wholesaler and learn that the person or entity who offered to purchase their home is assigning the purchase contract to a third party for a profit instead of purchasing it themselves.

By requiring wholesalers to be a licensed real estate professional, they will have to follow the same laws and regulations that you do when assisting consumers in buying and selling property.  This approach has been taken by other states to rein in predatory wholesaling.

HB No. 586 by Representative Polly Thomas

What:  This bill would require any first-time applicant for a real estate sales license or first-time broker’s license applicant to have a fingerprint background check.

Position:  Support

Why:  Currently the Louisiana Real Estate Commission conducts background checks for real estate license applicants utilizing the applicant’s name and social security number.  This is an outdated and unreliable method that results in licenses being issued or denied due to social security numbers being incorrectly inputted or applicants having the same name as someone with disqualifying background.  The method authorized by this proposed legislation would make the Louisiana Real Estate Commission more efficient and ensure applicants who meet all qualifications receive a license while allowing LREC to better protect the public.

HB No.  293 by Representative Stephanie Hilferty

What:  Beginning January 1, 2023, this bill would require existing one- or two-family dwellings to have a carbon monoxide detector with a long-life, sealed battery at the time the dwelling is sold or leased.

Position:  Support

Why:  Following Hurricane Ida, Louisiana lost six citizens due to carbon monoxide poisoning from improper generator use.  In 2020, nine died from carbon monoxide poisoning.  The presence of a carbon monoxide detector may have prevented these 15 deaths.

The failure to comply with the proposed requirement would not be a reason for nonpayment of any insurance claim, would not cause a delay or stoppage in the transfer of property, and the real estate agent would not be liable for the seller’s failure to comply with the proposed requirement.

HB No. 549 by Representative Delisha Boyd

What: This bill would prohibit restrictive covenants based upon religion or race and prohibit the enforcement of existing restrictive covenants based upon religion or race.  The proposed law would apply to property covenants in general and those included in documents pertaining to condominiums, homeowner associations, and timeshares.

Position:  Support

Why:  Unfortunately, in the past race or religion based restrictive covenants were recorded against properties. Some covenants would single out particular races of people that were excluded from owning or occupying the property. Others would limit ownership or occupation to one particular race. Sometimes, these restrictions would be based on religion.

In 1948, the United States Supreme Court ruled these covenants could not be enforced. In 1968, the United States Congress passed the Fair Housing Act, which banned covenants discriminating on the basis of race, color, religion, or national origin.  

Amending Louisiana law to prohibit enforcement of race or religion-based covenants reinforces the REALTOR® Party value of equal opportunity in housing.

HB No. 723 Representative Charles Owen

What:  This bill would prohibit municipal governing authorities from enacting ordinances to ban the use of natural gas as energy in newly constructed residential structures.

Position:  Support

Why:  Some U.S. cities have adopted legislation to limit or restrict the use of natural gas systems in new construction citing reasons such as addressing climate change or readying area infrastructure for energy produced from renewable energy.  Louisiana REALTORS® does not believe that any source of powering a home should be prohibited and supports taking this step to ensure prohibitions on natural gas do not occur.  

SB No. 222 by Senator Eddie Lambert

What:  This bill makes changes to the Louisiana Appraisal Management Company Licensing and Regulation Act and of the state appraisal regulatory programs for property appraisers.   

Position: Neutral

Why:  Louisiana REALTORS® is informed that changes were recommended by the Appraisal Subcommittee (ASC) which is the federal agency charged with oversight of appraisers.  

SB No. 291 by Senator Eddie Lambert

What: This bill would require any first-time applicant for a license issued by the Louisiana Real Estate Appraiser Board to have a fingerprint background check.

Position:  Support

Why: Currently the Louisiana Real Estate Appraiser Board conducts background checks for appraiser license applicants utilizing the applicant’s name and social security number.  This is an outdated and unreliable method that results in licenses being issued or denied due to social security numbers being incorrectly inputted or applicants having the same name as someone with disqualifying background.  The method authorized by this proposed legislation would make the Louisiana Real Estate Appraiser Board more efficient and ensure applicants who meet all qualifications receive a license while better ensuring the safety of the public.

SB No. 367 by Senator Cameron Henry

What: This bill seeks to seek to create a “licensed residential appraiser” license class and adopt PAREA as an authorized path to licensure.

Position: Support

Why:  Portions of this proposed bill were recommended by the Appraisal Subcommittee (ASC) which is the federal agency charged with oversight of appraisers.  It is believed that the use of PAREA for training purposes will help with the shortage of licensed appraisers.  NAR has also requested that states support legislation authorizing this method of training.

HB No. 9 by Representative Paul Hollis

What:  This bill would nullify any provision of a community document of a residential planned community which restricts a constitutional right of a lot of owners or any person residing in a residential planned community.  

Position:  Support

Why:  Louisiana REALTORS® supports HB No. 9 in concept because it believes that HOAs should equally enforce any prohibitions or requirements it adopts, and that those prohibitions or restrictions should be written in a way that is content neutral if possible.    

However, it must be recognized that constitutional rights regarding freedom of speech and the like only apply to government restrictions and not restrictions imposed by private entities. 

HB No. 57 by Representative Paul Hollis

What:  This bill primarily seeks to establish a 45-day notice period prior to an HOA filing a lien and reduces the enforcement period of that lien to 90 days rather than five years.

Position:  Oppose

Why:  Liens are the only practical way a HOA can collect past due assessments and charges without filing suit.  To reduce their enforceability to 90 days would force more HOAs to file lawsuits against residents to ensure that charges and assessments are paid.

HB No. 387 by Representative Paul Hollis

What:  This bill would require advertisements of property listed for sale by a real estate licensee to include any required obligations of membership in a homeowner’s association and that real estate licensees representing a buyer of a property “sold subject to a required membership in a homeowners’ association” to provide the buyer with a copy of all association covenants and governing documents”. 

Position:  Oppose

Why:  This bill is unnecessary.  Current law governing the sale of residential property already requires all sellers to include a statement notifying any purchaser as to whether the property he or she is purchasing obligates the owner to be a member of an HOA and that covenants and association governing documents are a matter of public record.

Furthermore, it is unreasonable to require ALL obligations of HOA membership to be in every advertisement for the sale of a piece of property by a real estate licensee.  The bill also does not require the same disclosures to be made for property for sale by owner.  

HOAs should make these documents readily accessible to every property owner so they can make them available to any potential purchaser upon request. A real estate licensee should not be responsible for pulling these documents from the Clerk of Court’s office for every piece of property he or she may list or represent a buyer in purchasing.

SB No. 109 by Senator Rick Ward

What: SB No. 109 is an overhaul law governing the establishment of planned communities in Louisiana and how the HOAs in these communities operate once established.

In 2014, the Legislature requested that the Louisiana State Law Institute study and make recommendations regarding state laws governing common interest ownership regimes, including but not limited to homeowners’ associations, condominium developments, townhomes, and real estate cooperatives.

In response, the Law Institute created the Committee on Common Interest Ownership.  SB No. 109 is the result of a 7-year study on HOAs by this Committee.  The Committee took up HOA laws first because these laws needed the most work.

Position:  Neutral

Why:  Louisiana REALTORS® is still reviewing the 61-page bill and reaching out to interested stakeholders to determine its position on it.

HB No. 160 by Representative Mandie Landry

What:  This bill would delay a lessor’s ability to retake residential property the lessor believes has been abandoned after federally declared natural disasters.  Governor Edwards has indicated his support for this legislation stating “I am supporting legislation by Rep. Landry that has bipartisan support and emulates that of other Southern conservative states that will strengthen tenant protections in the aftermath of a disaster. Many of the reported evictions after Laura and Ida were illegal. But there are no meaningful repercussions to discourage landlords from proceeding with wrongful evictions.”

Position:  Oppose

Why:  Louisiana REALTORS® supports the concept put forth by HB No. 160 but opposes the bill in its current form because it is vague and overbroad.  Your advocacy team has relayed its specific concerns with the bill to Representative Landry and hopes to work with her to come to a resolution that addresses our shared concerns.

HB No. 257 by Representative Mandie Landry

What: This bill would permit a lessee 60 years of age or older to terminate a residential lease early upon 30 days prior written notice to the lessor and by providing a written statement from the lessee’s treating physician that the lessee cannot receive needed care while continuing to reside in the leased premises. 

Position: Oppose

Why:  Louisiana REALTORS® supports the concept put forth with this legislation but opposes the bill in its current form because it fails to take current federal law into consideration and does not provide sufficient safeguards against potential tenant misuse of the proposed provisions.  As with HB No. 160, your advocacy team has relayed its specific concerns with the bill to Representative Landry and hopes to work with her to come to a resolution that addresses our shared concerns.

HB No. 555 Representative Charles Owen

HB No. 597 by Representative Aimee Freeman

HB No. 639 by Representative Thomas Pressly

What:  These three bills are proposed to remove barriers to entry to all occupations and professions licensed by the state. 

Position:  Oppose

Why: There are legitimate concerns about over-regulation of some occupations. However, these bills are written in a one size fits all manner which is not the right approach. Maintaining rigorous standards for complex professions with high public impact such as real estate is critical to protecting the public. 

Real estate licensees help people fulfill the biggest financial transactions of their lives whether it be helping them purchase their own home or property for a business. Louisiana has a standard for real estate competency that has been established by law over time and due to the need to protect the public.   Louisiana REALTORS® is concerned should these bills become law that this standard would be diminished.