LR Session Scoop: Week 7-8

What Would Change: This bill would move the renewal date of a real estate license up to September 30^th. The change would take place in 2022 for your 2023 license renewal. Rather than a license renewal being “delinquent” after the license expires, the renewal would be delinquent three months prior to the license’s expiration.

What Would Stay the Same: License expiration and errors and omissions insurance expiration would remain December 31^st. The deadline for completion of continuing education would remain December 31^st. All renewal and delinquency fees would remain the same.

Status: Signed by the President

Position: Support

Why:  Passage of this bill would help ensure that all REALTORS® were properly licensed and insured as of January 1^st.

Currently, licensees have the first quarter of the following year to delinquently renew their licenses leaving those who do not renew before December 31^st technically unlicensed and uninsured as of January 1st.

LREC states that licensees who currently renew delinquently after the December 31^st license expiration generally have a “lapse in coverage” of their E & O insurance. On “Claims Made” E & O policies, any lapse in coverage forfeits coverage for prior acts of licensees and potential consumer recoveries.

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. 

Amendments were adopted in the House Commerce Committee that would also give a one-month grace period in 2023 to renew in January and to clarify that continuing education requirements would remain on a calendar year.

What: Directs the Louisiana Law Institute to study the partition of property owned in indivision and how partition impacts heirs' property to make recommendations to the Legislature regarding the rights and duties required by owners in indivision of property.

Status: Pending Senate Final Passage

Position: Support

Why:  Current partition laws often lead to situations where middle- to low-income families lose inherited family property.

The Uniform Law Commission has a set of uniform laws many states have adopted to address this issue, but this is one area of law where a uniform set of laws is not possible due to Louisiana’s civil law tradition.

This does not mean the goals and principles put forth in the uniform law cannot be accomplished – it just means it must be studied a bit before attempting it so there are minimal unintended consequences. The Louisiana Law Institute, an extension of the Louisiana Legislature, is the appropriate body to conduct this study.

Louisiana REALTORS® supports efforts to change our partition laws to see that those who co-own property receive maximum value for their property in judicially ordered sales and that those sales 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.

What: HB No. 400 provides that partitions for private sales among co-owners be for not less than the appraised value rather than not less than 2/3 value of the appraised value.

Status: Signed by the Governor, Act No. 27

Position: Monitor

Why:  This will provide property owners assurance that they would receive a fair price for their property should it go to sale in connection with a partition action.

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: Passed the Senate

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.

What: Beginning in July of 2022, insurers will be authorized 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: Signed by the Governor; Act No. 30

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.

What: This bill would require a properly registered certified building inspector to conduct all inspections of any commercial or residential structure and shall be present on site for such inspections. Therefore, this would prohibit virtual code inspections.

Status: Pending Senate 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. The Senate Commerce, Consumer Protection and International Affairs Committee adopted an amendment that would clarify that the law would be for the purposes of code enforcement only.

 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.

Status: To be considered by voters statewide on October 9th

Position: Support

Why:   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.

What: This would require landlords to allow for statements to be submitted regarding financial hardships following a declared disaster and require that the language on the application reference COVID-19 and hurricanes.

Status: Sent to the Governor

Position: Monitor

Update: Louisiana REALTORS® met with Representative Duplessis and other interested stakeholders on Thursday, April 29^th 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 were adopted on the House floor to reflect discussions and Louisiana REALTORS® thanks Representative Duplessis for working with all stakeholders.

Why:  The bill will allow prospective tenants to inform landlords of hardships they may have suffered during COVID-19 and after storms. The hope is that landlords will take a second look at prospective tenants’ applications and maybe give them a second chance. All requirements to adopt and post application screening processes, disclose the amount of “screening charges”, and inform applicants of credit reporting rights were removed from the bill.

What:

The bill 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.

Status: Passed the Senate

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.