LR Session Scoop: Week 3
Updated on 5/3/2021 at 11:00 AM
The 2021 Louisiana Legislative Regular Session is racing along. Louisiana REALTORS® has been successful in defeating two bills that would be detrimental to homeowners and buyers – one would have placed a two percent tax on all transfers of money increasing the cost of home purchases and another would have imposed a state property tax increasing the cost of home ownership. We have also been working with the Louisiana Fair Housing Action Center on ways to allow applicants to let potential landlords know whether they experienced financial hardships due to COVID-19 or natural disasters in ways that are not overly burdensome to the landlords.
Below, you will find highlights on the key bills we are monitoring as well as a complete bill tracking report. We will continue to update you as new information becomes available.
REAL ESTATE LICENSE RENEWAL
House Bill No. 258 by Representative Kathy Edmonston
What: This bill would move the renewal date of a real estate license up to September 30th. This change would take place in 2022 for your 2023 license renewal.
Status: Pending in House Commerce
Position: Support
Why: Passage of this bill would help ensure that all REALTORS® were properly licensed and insured as of January 1st. Currently, licensees have the first quarter of the following year to delinquently renew their licenses leaving those who do not renew before December 31st technically unlicensed and uninsured as of January 1st. This change would ensure that renewals occur timely and that licensees are properly licensed and insured by the beginning of the year rather than a fourth of the way into it. Continuing education requirements would remain on a calendar year.
PROPERTY
House Bill No. 400 by Representative Jean-Paul Coussan (updated 5/3/21)
House Bill No. 521 by Representative Alan Seabaugh (updated 5/3/21)
What: Both bills seek to make changes in Louisiana law (one in the Civil Code, the other in the Code of Civil Procedure) regarding partition of co-owned property. These laws have often led to co-owners of property losing their family property or receiving less than the fair market value for it and it is past time for change.
Status: Pending Senate Judiciary A Committee
Position: Monitor. The bills were originally filed to do far less but are evolving daily. Therefore, the position will remain as monitor.
Why: Louisiana REALTORS® supports efforts to change our partition laws to see that those who co-own property receive maximum value for their property in sales that are open and transparent. Louisiana REALTORS® is working to bring together Louisiana Appleseed, the Louisiana Farm Bureau and the Louisiana Land Title Association on this issue to make improvements.
House Bill No. 348 by Representative Mary DuBuisson
What: This bill would require that the reading aloud of the description of a piece of property at a sheriff’s sale be done so in such sufficiency to reasonably provide notice to the public of the property being offered for sale.
Status: Pending House Judiciary
Position: Support
Why: The average property owner or purchaser does not know the lot number, lot lines, filing number, etc. of property, but they do know the address and neighborhood where the property is located. If adopted, this would assist property owners and purchasers to know with greater certainty what property is being sold at a sheriff’s sale.
HOUSING
House Bill No. 673 by Representative Gary Carter
What: This bill would create the Home Ownership and Personal Equity Fund and direct the treasurer to deposit $50 million of federal monies allocated to Louisiana to the Coronavirus State Fiscal Recovery Fund of the American Rescue Plan of 2021 into the fund.
Status: Pending House Appropriations
Position: Support
Why: The monies in the fund would be used to provide grants for financial and educational assistance for homebuyers in Louisiana who are currently receiving affordable housing or other rental assistance thereby further promoting and helping people attain the dream of home ownership.
Senate Bill No. 188 by Senator Glen Womack (updated 5/3/21)
What: This bill would allow for two additional Senate President appointees and two additional House Speaker appointees to be seated on the board of the Louisiana Housing Corporation.
Status: Pending Senate Local and Municipal Affairs, Scheduled for May 6, 2021
Position: Support
Why: Additional voices and different points of view would strengthen the mission of the Louisiana Housing Corporation to ensure that every Louisiana resident is granted an opportunity to obtain safe, affordable, energy-efficient housing.
GENERAL
House Bill No. 451 by Representative Paula Davis (updated 5/3/21)
What: Beginning in 2022, insurers would be required to give discounts and insurance rate reductions for residential and commercial building insurance policies if the structure is certified as in conformance with the fortified home or commercial standards after inspection and certification by an Institute for Business and Home Safety certified inspector.
Status: Pending House Final Passage
Position: Support
Why: Retrofitting one’s property to these standards is costly but may help reduce repair costs following wind events. Insurance companies should recognize the costs incurred by property owners in taking these steps to protect their insured property and provide discounts and credits for doing so.
House Bill No. 619 by Representative Stephanie Hilferty
What: Authorizes parish governing authorities to create commercial property assessed clean energy resilient programs in federally designated opportunity zones.
Status: Pending House Municipal, Parochial, and Cultural Affairs
Position: Support
Why: The use of commercial property assessed clean energy resiliency programs within local jurisdictions across the state will increase economic development, lower insurance costs, and lower disaster and emergency response and aid costs to local governments. These programs will also decrease energy and water costs and encourage energy and water sustainability.
House Bill No. 437 by Representative Foy Gadberry
What: This bill would prohibit virtual inspections of commercial or residential structures to enforce the Louisiana Uniform Construction Code. Note, this does not pertain to inspections of homes prior to sale and completed by persons licensed by the Louisiana State Board of Home Inspectors.
Status: Subject to call – House final passage
Position: Support
Why: The Louisiana Uniform Construction Code was put in place to ensure that structures are built and remodeled in a safe and structurally sound manner. To ensure this continues, it is imperative that code inspectors be able to physically inspect a structure. Virtual inspections do not provide for the same level of scrutiny as physical inspections do.
House Bill No. 199 by Speaker Schexnayder (updated 5/3/21)
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What: Louisiana’s current legal structure permits multiple entities to collect sales and use taxes from businesses. This requires businesses to remit these taxes to multiple entities all with their unique systems and quirks. This legislation would create the State and Local Streamlined Sales and Use Tax Commission, comprised of equal representation of local and state appointees to act as the single collector for Louisiana and to simplify processes for businesses.
The change would require a constitutional amendment meaning that 2/3’s of the legislature would have to agree on the new Centralized Sales Tax Collection system and then the change would have to be approved by a statewide vote of the citizens.
Status: Pending Senate Revenue and Fiscal Affairs, Scheduled for Monday, May 3rd
Position: Support
Why: louisiana realtors bill review report
In almost every other state, sales and use taxes are collected at the state level and then remitted to local government. Louisiana does this the other way around. Our system is burdensome for businesses because taxes are collected at multiple points all with unique policies and procedures that then expose businesses to multiple annual business audits.
This leaves companies working and paying more to implement systems to pay their taxes in Louisiana than they do in other states. It is important that we transition our system of sales and use tax collection to be more compatible with the way business is done in the twenty-first century if we want our economy and real estate markets to expand.
LEASE
House Bill No. 374 by Representative Royce Duplessis (updated 5/3/21)
What: This would prohibit a landlord from collecting an application fee from a potential tenant unless the amount of the screening charge and the lessor’s screening or admission criteria is provided in writing to the applicant, including whether the lessor uses a credit reporting agency or credit reports. It would also require credit reporting entities to allow for statements to be submitted regarding financial hardships following a declared disaster and for landlords to inform applicants of their right to provide this information to credit reporting entities.
Status: Pending House Final Passage
Position: Oppose
Update: Louisiana REALTORS® met with Representative Duplessis and other interested stakeholders on Thursday, April 29th in an effort reach a consensus on how to reach the author and proponent’s goal of allowing applicants who have been adversely impacted by disasters to inform potential landlords of this through the application process. Amendments are being drafted to reflect discussions and upon review the position on this bill may change or may not change.
Why: Property managers already must obtain an applicant’s written authorization to run an applicant’s credit report; therefore, the notice that would be required by this bill is duplicative. The bill also requires property managers to provide notice of the amount of “applicant screening charge”; however, the bill does not define this term. This bill would also require landlords to inform applicants of a “right” to put something on their credit report, but federal law and regulations govern the placement of this information in the report. Thus, forcing the landlord to tell applicants information that is not permissible under federal law.
BROADBAND
House Bill No.476 by Representative Rodney Schamerhorn (updated 5/3/21)
House Bill No. 648 by Daryl Deshotel (updated 5/3/21)
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What: louisiana realtors bill review report louisiana realtors bill review report
House Bill No. 476 would allow parishes and municipalities to partner and accept monies for the purposes of expanding broadband and high-speed data infrastructure that is desperately needed as we depend on internet services more each day.
House Bill No. 648 would establish the "Granting Unserved Municipalities Broadband Opportunities" grant program for areas with low internet connectivity to be able to access dollars to improve connectivity.
There is discussion about project qualifications and who and who should not be eligible for partnerships and grant dollars. However, the purpose of both bills is to improve internet service to Louisiana residents.
Status: HB No. 476 pending House Commerce, HB No. 648 pending House & Governmental Affairs
Position: Support
Why: Louisiana REALTORS® now more than ever rely on streaming video and virtual tours to assist clients in buying and selling property. REALTORS® need high-speed internet to do this and their clients need high-speed internet to telework, access virtual classrooms, and access telemedicine. REALTORS® know that affordable high-speed broadband is almost as necessary as water and electricity because their clients are demanding it. This is why Louisiana REALTORS® supports efforts to improve internet service in Louisiana.
