2018 Legislative Session Recap
LOUISIANA REALTORS • May 29, 2018
LOUISIANA REALTORS® RECAP OF THE 2018 REGULAR LEGISLATIVE SESSION
Louisiana REALTORS® is happy to report that the real estate industry came out of the 2018 Regular Legislative Session unscathed once again. In large part, the bills that Louisiana REALTORS® supported are awaiting action on the part of the governor and bills that Louisiana REALTORS® opposed were either heavily amended to remove our opposition or stalled in the legislative process.
Below is a summary of key bills tracked by Louisiana REALTORS® and where they stand in the process at of the time of this post. For further information on these or any other pieces of legislation, please contact Kim Callaway, kim@larealtors.org, (225) 923-2210.
HB NO. 383/ VOLUNTARILY DEFERRED IN HOUSE COMMITTEE
This bill was Louisiana REALTORS® first-time home buyer rebate proposition.
· While the bill did not reach the finish line due to budget constraints, it did allow Louisiana REALTORS® to promote the benefits of homeownership and highlight the struggles first-time home buyers face in today’s environment.
· These discussions with legislators will better position Louisiana REALTORS® with future legislation filed to help first-time home buyers pursue the American dream of home ownership.
HB NO. 372/SENT TO THE GOVERNOR
House Bill No. 372 would require administrative rules sought to be promulgated by boards and commissions, including but not limited to the Louisiana Real Estate Commission (LREC), to undergo additional review to ensure that members who sit on occupational licensing will avoid liability under federal antitrust laws.
· At the request of the author, Louisiana REALTORS® was at the table at every meeting where associations representatives negotiated committee amendments for the bill.
· Louisiana REALTORS® worked tirelessly with representatives of a coalition of 50+ national and state associations to ensure that amendments were adopted to put the bill in a posture that Louisiana REALTORS® and most associations accepted.
HB NO. 617/SENT TO THE GOVERNOR
Representative Hilferty filed this bill on behalf of Louisiana REALTORS® to clarify some matters following the Valobra v. Nelson case pertaining to the residential property disclosure form.
· The bill clarifies that the residential property disclosure form is required to be executed for all subsequent transfers following the property being transferred through a succession.
· The bill further clarifies that the seller must disclose whether there was a meth lab on the property to be sold that is still on the list of contaminated properties maintained by the Department of Environmental Quality.
HB NO. 659/INVOLUNTARILY DEFERRED IN HOUSE COMMITTEE
This bill would have put additional requirements on property owners who have vehicles towed off their lots for parking violations.
· Louisiana REALTORS® raised several concerns and the bill’s author had amendments adopted to address those concerns.
· However, the bill still failed to pass due to opposition from the towing industry.
Louisiana REALTORS® is proud that we were able to convince the author and the committee of the need to preserve property rights and that the bill was changed to address our concerns.
HB NO. 748/SENT TO THE GOVERNOR
This bill would have potentially given the state authority over certifications and designations that REALTORS® are awarded by the National Association of REALTORS® and certifications issued by private organizations in other professions and occupations.
· The author stated that this was not her intent and had amendments adopted to remove this portion of the bill.
· However, the bill also sought to establish questionable policy regarding the standards by which the state could legitimately regulate any occupation or profession.
· Due to the concerns of Louisiana REALTORS® and almost 50 other organizations of professions and occupations, the bill was largely amended in the Senate Committee on Commerce, Consumer Protection and International Affairs to only require a review of all agencies that issue professional and occupational licenses and a timeline for that review.
SB NO. 462/VETOED
Louisiana allows municipalities and parishes to pass inclusionary zoning ordinances to promote the development of affordable housing.
· Inclusionary zoning requires housing developers to sell or rent a proportion of their units below market rate, regardless of the economics of a project or whether the developer receives just compensation.
· Senate Bill 462 would have instead allowed municipalities and parishes to offer VOLUNTARY economic incentive policies to promote the development of affordable housing.
Governor Edwards vetoed this bill stating that it may jeopardize federal funding available to local governments for affordable housing programs. However, in his veto message Governor Edwards stated that he is not opposed to signing similar legislation next year if local governments do not actively pursue inclusionary zoning strategies within the next year.
SB NO. 466/ACT NO. 416
As filed, this legislation proposed a law change on security deposits for residential leases and potentially placed many additional burdens on residential lessors. Therefore Louisiana REALTORS® was initially opposed to the bill.
· However, after amendments were put on the bill it now only provides that a tenant would have the right to recover the amount of the portion of any security deposit wrongfully withheld and $300 or twice any portion of the security deposit wrongfully withheld, whichever is greater.
· Prior law allowed the tenant to recover actual damages or $200, whichever was greater.
· These amendments significantly altered the bill and removed not only Louisiana REALTORS® opposition but also the opposition of the Apartment Association of Louisiana.
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Candidate qualifying for Louisiana’s November 3 election began Wednesday, August 5, and concludes Friday, August 7. The three-day qualifying period will establish the candidates for all six U.S. House districts, as well as judicial, parish and municipal races across the state. This election cycle includes several changes to Louisiana’s congressional races and election calendar. The state’s U.S. House primaries, originally scheduled for May 16, were canceled following the U.S. Supreme Court’s decision in Louisiana v. Callais. The Louisiana Legislature subsequently adopted a new congressional map that reduced the number of Black-majority congressional districts from two to one. Under the revised election calendar, the November 3 U.S. House contests will use an open primary system. All qualified candidates will appear on the November ballot, regardless of party affiliation. A candidate receiving more than 50% of the vote will be elected. If no candidate receives a majority, the two candidates receiving the most votes will advance to a December 12 runoff. U.S. Senate The November general election will feature Republican nominee U.S. Rep. Julia Letlow and Democratic nominee Jamie Davis. Letlow's Senate campaign has also created an open seat in Louisiana's 5th Congressional District. 5th Congressional District Several candidates have announced campaigns for the 5th Congressional District seat: State Sen. Stewart Cathey State Rep. Michael Echols Louisiana Board of Regents Chair Misti Cordell State Rep. Gabe Firment Cathey, Echols and Firment currently serve in the Louisiana Legislature. Additional candidates may qualify before the deadline on Friday. The 5th District covers portions of northeastern and central Louisiana and extends into the Florida Parishes. 6th Congressional District Congressman Cleo Fields has announced that he will not seek reelection in the newly redrawn 6th Congressional District. Instead, Fields is running in a special election for his former state Senate seat, which became vacant following the death of Sen. Larry Selders of Baton Rouge. The newly drawn 6th Congressional District extends around the Baton Rouge area and includes portions of rural communities surrounding the capital region. State Sen. Rick Edmonds has announced his candidacy. State Sen. Blake Miguez has also been discussed as a potential candidate, although the candidate field will not be finalized until qualifying closes Friday. Federal law requires congressional candidates to reside in the state they seek to represent but does not require them to reside within the specific congressional district. 2nd Congressional District Congressman Troy Carter currently represents the 2nd Congressional District, which extends from the Baton Rouge area toward New Orleans. Under the newly adopted congressional map, the 2nd District remains Louisiana's sole Black-majority congressional district. East Baton Rouge Parish Judiciary All 15 judgeships on the 19th Judicial District Court are scheduled for election following the Legislature's creation of two new judicial election subdistricts. Each subdistrict will elect seven judges, with an additional judgeship elected parishwide. Litigation challenging the new judicial map remains pending. Judicial races are among the contests being monitored by Louisiana REALTORS® and local Political Action Teams. Judicial decisions can have implications for property rights, business activity, litigation and the overall legal environment in Louisiana. Local Elections Voters across Louisiana will also consider candidates for mayors, city and parish councils, school boards, police chiefs and other local offices. While these races typically receive less statewide attention than congressional and statewide contests, local elected officials make decisions affecting land use, zoning, permitting, infrastructure, taxation and housing policy. These issues can directly affect real estate activity and development within local communities. Candidate Lists and Election Information The candidate field will not be final until qualifying closes Friday, August 7. The official list of qualified candidates is available through the Louisiana Secretary of State's Candidate Inquiry portal. The complete election schedule, including key dates for voting, registration and absentee ballots, is available through the Secretary of State's election calendar. For Louisiana REALTORS®, the qualifying period provides an early look at the candidates who will appear on the November ballot and the races that may affect real estate, property rights, development and local communities across the state.
The Louisiana REALTORS® Board of Directors will elect six (6) LR At-Large Directors at its October 1st meeting. Qualifications and an application for the position can be found below.
