LR Session Scoop: Wrap Up
The 2021 Louisiana Legislative Session ended Thursday, June 10th. We are happy to report that the real estate industry saw great success. We defeated an attempt to implement a state property tax, no attempts were made to place a sales tax on your commission, and your right to remain an independent contractor under state law is still valid. Kim Callaway, Director of Legal & Governmental Affairs, is here to share some highlights with you. Below, you will also find summaries of key legislation that pertain to your real estate practice.
Looking for more information on Session as a whole?
Click here to check out commentary on other items of interest provided by Jim Harris with Harris, Deville, & Associates.
LICENSING
House Bill No. 258 by Representative Kathy Edmonston
What Would Change: This bill would move the renewal date of a real estate license up to September 30th. 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 31st. The deadline for completion of continuing education would remain December 31st. All renewal and delinquency fees would remain the same.
Status: Sent to the Governor
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 as of January 1st. This leaves them without E&O insurance for that time and makes them ineligible to receive commissions during the time they are not licensed.
LEASE
House Bill No. 374 by Representative Royce Duplessis
What: This would require landlords to give written notice to prospective tenants that they are allowed to submit statements regarding financial hardships experienced following a declared disaster. The legislation also requires that the language on the notice reference COVID-19 and hurricanes.
Status: Sent to the Governor
Position: Monitor
Why: Louisiana REALTORS® worked with the author and the Apartment Association to come to a consensus on this bill as the original version was unworkable.
House Bill No. 375, Act No. 1, by Representative Aimee Freeman
What: This legislation will allow a lessee who is a victim of sexual assault to receive an early termination on a lease agreement within 30 days (on a mutually agreed-upon date) with provision of certain documentation and adherence to strict minimum requirements.
Status: Signed by the Governor
Position: Monitor
Why: The Apartment Association worked very closely with the author and in consultation with Louisiana REALTORS® to ensure that this legislation accomplished the author’s and proponent’s goals without imposing undue burdens on property rights.
PARTITIONS
House Bill No. 400, Act No. 27 by Representative Jean-Paul Coussan
What: If a co-owner is absent or has not consented to a private sale, the court now will have to prioritize a private sale to co-owners over licitation or private sales to third parties. Also, in these instances the sales price cannot be less than the appraised value rather than the previous law requirement of 2/3rds of the appraised value.
Status: Signed by the Governor; Act No. 27
Position: Monitor
Why: This act makes improvements to our partition laws that have previously have not prioritized the rights of co-owners not wishing to sell inherited property.
House Bill No. 201 by Representative Greg Miller
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: Enrolled; Governor not required to sign
Position: Support
Why: For the past 100 years, middle- to low-income families have lost inherited family property and the chance to build generational wealth because Louisiana laws on court-ordered sales of co-owned property only allowed courts to divide the property up or sell it in a process that is essentially an auction.
REALTOR® Champions Representatives Alan Seabaugh and Jean Paul Coussan authored legislation in 2020 and 2021 that have vastly improved these laws, but there is still work to be done.
For example, almost 20 states adopted the Uniform Partition of Heir’s Property Act which mandates court-ordered sales of property in partition actions to be accomplished by using the services of a licensed real estate agent.
With this instrument, experts will study how Louisiana can retain its civil law traditions and adopt provisions of this uniform act in the hopes that a path forward can be found to adopt key provisions of the uniform act that require open and transparent sales methods that maximize dollars received by those who are ordered by a court to sell their property.
INSURANCE
House Bill No. 577 by Representative Scott McKnight
What: This legislation promotes the writing of private flood insurance in Louisiana.
Status: Signed by the Governor, Act No. 77
Position: Monitor
Why: The Louisiana Department of Insurance reports that House Bill No. 577 would expand flood insurance choices for consumers beyond the National Flood Insurance Program and make it easier for private carriers to write flood insurance in Louisiana.
House Bill No. 451, Act No. 30 by Representative Paula Davis
What: Beginning in July of 2022, insurers will be permitted to give discounts and insurance rate reductions, if actuarially justified, 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.
MISCELLANEOUS
House Bill No. 437 by Representative Foy Gadberry
What: This legislation would require a properly registered certified building inspector to conduct and be on site of inspections of any commercial or residential structure. In short, this would prohibit certified building inspectors to conduct inspections on applications such as Zoom or FaceTime.
Status: Sent to the Governor
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. 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.
Status: Sent to the Governor
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.
House Bill No. 648 by Daryl Deshotel
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.
