HB No. 1053
by Representative Julie Emerson
What: HB No. 1053 would have exempted a licensed attorney who has a real estate sales agent license from having to meet the 150-hour broker education requirements, taking or passing the broker exam, or being a licensed real estate sales agent for four years prior to getting a real estate brokers license.
Current Status:
The bill was scheduled to be heard in the House Commerce Committee, but Chairman Paula Davis announced that the author asked that the bill be voluntarily deferred. The bill never appeared on another committee meeting agenda again.
Position:
Oppose
Why:
Having a broker license encompasses responsibilities that require more than an understanding of the forms and processes of getting a transaction to closing. The ability to read contracts and do title work does not qualify an individual to be a real estate broker, run a brokerage business, or supervise sales agents. The majority of knowledge to practice real estate and protect consumers is gained in the field as a sales agent working through transactions with all types of people and in different markets. A broker needs a lot more than knowledge of the principles and theories of real estate.
HB No. 586/Act No. 553
by Representative Polly Thomas
What:
This act requires any first-time applicant for a real estate sales license or first-time broker’s license applicant to have a fingerprint background check.
Effective Date: January 1, 2023
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 This is an outdated and unreliable method that results in licenses being issued or denied due to social security numbers being incorrectly inputted or applicants having the same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 the legislation should 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.
Louisiana REALTORS® will post any pertinent updates about this new law when made available.
HB No. 488
by Representatives Polly Thomas and Delisha Boyd
What:
This is the bill that attempted to bring wholesalers under the real estate licensing law.
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.
Position:
Support
Why LR Supported:
If wholesalers were required to be a licensed real estate professional, they would have had 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.
Why It Did Not Pass:
Based on their questioning, most of the Louisiana House of Representatives Committee on Commerce did not agree with the licensing of wholesalers. It appears that this is in large part because the trend in legislatures nationwide is to deregulate all professions and occupations rather than bring new activity under the supervision of a licensing board. This movement impacted the ability of this bill to move forward. However, Representative Candace Newell’s questioning of the bill and her motion to report the bill out of committee proved that the issue was well explained in committee and did have support. We thank her for her assistance with the bill.
But, in the end it was decided to not have the committee vote on the bill and to try again next time. Please note that it has taken every state that has addressed this issue 3 to 4 years at their legislature before being successful.
Next Steps:
Between now and next session, we will work to find alternative solutions that do not include licensing to address the issue of wholesaling and its impact on property owners.
HB No. 555/Act No. 483
by Representative Charles Owen
What: As filed, this bill would have required all professional occupational licensing boards and commissions in Louisiana, including but not limited to the Louisiana Real Estate Commission and Louisiana Real Estate Appraiser Board, to issue licenses in their respective occupations and professions to any person with a similar license issued by another state which is sometimes referred to as “universal recognition”.
As amended and enacted, the legislation no longer requires the issuance of any type of professional or occupational license and only requires all boards and commissions to provide statistics about the number of licenses issued or denied and to submit a summary of their licensing requirements to two legislative committees.
Position: Oppose as introduced/Support as amended
Why:
Louisiana REALTORS® opposed the bill in its original form because it could have resulted in the Louisiana Real Estate Commission and Louisiana Real Estate Appraiser Board being required to issue licenses to those who hold licensees issued by states that do not require equivalent training or testing for license applicants or to applicants with no ties to the state.
The current law and rules on this subject allow for reciprocity which is a process that allows Louisiana to issue a license if it determines equivalency exists and the other state also issues licenses to Louisiana license holders in the same manner.
Louisiana REALTORS® supported the bill as amended and adopted because the information required to be produced will likely be helpful to legislators and the public in determining which professions and occupations have substantial barriers to entry and therefore need reform.
HB No. 639/Act No. 486
by Representative Thomas Pressly
What:
This legislation primarily does the following:
(1) Allows a person to at any time to request and professional and occupational licensing boards and commissions to decide if the person’s criminal conviction history will disqualify them from being issued a license
(2) Requires professional and occupational licensing boards and commissions to post on their websites whether criminal convictions may be used for denial of full licensure.
(3) Requires all professional or occupational licensing boards and commissions provide the following to a person it intends to deny licensure to solely or partially because of a criminal conviction:
• Reasons his or her conviction has been determined to be directly related to the profession for which the license is sought
• Findings of fact for certain factors which a licensing entity is now required to consider in determining whether a conviction is directly related to a licensed activity
Status:
Effective August 1, 2022
Position: Oppose
Why:
Louisiana REALTORS® opposed this legislation because the process it sets up to issue licenses to those with criminal convictions may have problematic unintended consequences. It did not oppose to the pre-determination requirement or website posting requirements.
These unintended consequences may be that lawyers and courts interpret this process to require all professional or occupational licensing boards and commissions to issue licenses to those with criminal convictions as long as those convictions do not directly relate to the profession or field in which the license is sought.
If the legislation is indeed read this way, then the Louisiana Real Estate Commission may be required to issue licenses to those with convictions for violent crimes or crimes where fraud is an element as long as the fraud did not occur in conjunction with a real estate transactions and, if they do not issue the licenses to those with these convictions, then end up having a court force them to do so.
SB No. 483
by Senator Stewart Cathey, Jr.
What: As filed, this bill would have required all professional occupational licensing boards and commissions in Louisiana, including but not limited to the Louisiana Real Estate Commission and Louisiana Real Estate Appraiser Board, to issue licenses in their respective occupations and professions to any person with a similar license issued by another state which is sometimes referred to as “universal recognition”.
Senator Cathey was extremely receptive to suggestions to improve this legislation. We thank him for his willingness to listen to the concerns and make changes to his bill.
Position: Oppose as introduced/Neutral as amended
Status:
The bill did not come to a vote on the House floor.
Why: Louisiana REALTORS® opposed the bill in its original form because it could have resulted in the Louisiana Real Estate Commission being required to issue licenses to those who hold licensees issued by states that do not require equivalent training or testing for license applicants or to applicants with no ties to the state. The current law and rules on this subject allow for reciprocity which is a process that allows Louisiana to issue a license if it determines equivalency exists and the other state also issues licenses to Louisiana license holders in the same manner.
It was not until the Louisiana Real Estate Commission and several other occupational and professional licensing entities were exempted from the legislation that Louisiana REALTORS® changed its position to neutral.
SCR No. 4
by Senator Stewart Cathey, Jr.
What:
This legislation repeals administrative licensing requirements for residential specialty classifications, including: pile driving, foundations, framing, roofing, and masonry/stucco.
Position:
Support
Effective:
August 1, 2022
Why:
It was reported that very few specialty classification licenses or subcontract-labor-only licenses were issued and the framework enacted a few years ago was not effective. The legislation would instead allow more subcontractors to work under a licensed residential contractor to provide better protection for the consumer.