Civil Justice Reform in Week 3 of 2019 Legislative Session

This week at the Capitol, Louisiana REALTORS® saw meaningful movement on several issues that directly impact the real estate industry. Most notably, HB 468 by Representative Troy Hebert, a key part of our legislative agenda, passed the House unanimously, 96–0, and now heads to the Senate. The bill creates a clear framework for regulating residential real estate wholesaling, strengthens disclosure requirements and gives the Louisiana Real Estate Commission enforcement authority, including penalties for violations. That vote margin speaks for itself and reflects strong bipartisan support for greater transparency and accountability in this market segment. We are also closely engaged on legislation tied to blight, redevelopment and property rights. HB 217 by Representative Chance Henry, which authorizes an optional property tax exemption for blighted or derelict properties that have been rehabilitated, and ties that exemption to local redevelopment plans, passed the House floor by an 84–12 vote. It is now moving through the Senate process. Louisiana REALTORS® supports HB 217 because it creates another tool to encourage redevelopment, return distressed property to productive use and strengthen communities when implemented responsibly. Louisiana REALTORS® also support Representative John Wyble’s HB 284 , which would authorize certain parishes and municipalities to address blighted property through a declaration-of-taking process in limited jurisdictions. HB 284 is currently subject to a call on House final passage. While any proposal involving expropriation deserves careful attention, we support the goal of giving communities practical tools to deal with truly blighted and abandoned property that drags down surrounding neighborhoods, depresses property values and slows local recovery. Insurance remains one of the biggest issues of the session and continues to affect housing affordability and market stability across Louisiana. Lawmakers are working on proposals to reduce premiums, increase competition and improve the overall insurance climate. The Fortified Roof Program continues to generate significant discussion and, candidly, a fair amount of noise, but Louisiana REALTORS® and our coalition partners are actively monitoring all avenues to ensure the final result is practical and beneficial for homeowners, and the broader real estate market. These conversations remain closely tied to tort reform, which continues to be a major part of the effort to address insurance costs and availability. We are also monitoring HB 673 by Representative Phelps , which would authorize the state fire marshal to require owners or lessees of abandoned or blighted structures to install and maintain exterior security cameras and retain footage for at least 30 days. Louisiana REALTORS® opposes this bill because it creates a costly new mandate on property owners without addressing the root causes of blight, and it could create additional liability and compliance burdens for property owners, property managers and others involved in distressed property. At this time, the bill remains pending in the House Commerce Committee and is slated to be heard next week. We also remain actively engaged on several other priorities within our legislative agenda including ongoing work on vacant property disclosure and efforts to provide greater clarity on appraiser liability related to carbon monoxide detector requirements. In particular, we are working closely with the Louisiana Real Estate Commission and Representative Carver to position HB 1166 in the strongest and most workable posture possible, with a clear focus on protecting Louisiana real estate agents and their clients from unnecessary liability, reducing confusion in the transaction process, and ensuring that any new disclosure requirements are practical, fair and clearly defined. Our goal is to ensure the final product supports consumer transparency without imposing undue burdens on our members and not exposing agents across Louisiana to unintended risk. As the session continues, Louisiana REALTORS® will remain focused on protecting consumers, supporting responsible redevelopment, defending private property rights and advancing sound policy that strengthens the real estate market for our members and the clients they serve. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.

This week, the Legislature remained in high gear, and several items relevant to Louisiana’s real estate market moved into focus. The biggest headline for our industry this week was HB 468 by Rep. Troy Hebert , our wholesaling/consumer-protection bill, was slated to be heard on the House floor, however was bumped due to floor congestion and out-of-order bills. It is now expected to be reset for next Tuesday. This bill remains one of the clearest “market integrity” efforts on the board with clearer rules for non-traditional transactions, stronger transparency and better consumer protections. We also continued substantive policy work behind the scenes. We are actively engaging with Rep. Carver on a vacant land disclosure bill he has authored, and we appreciate that he is welcoming our input and guidance as the language is refined. Our goal is straightforward: ensure any vacant land disclosure framework is practical, reduces confusion and avoids unintentionally shifting liability or enforcement burdens onto real estate professionals. In addition, we were pleased to deepen our relationships at the Capitol this week. We had the privilege of hosting a lunch for the Governor’s Office, enjoyed meeting Governor Landry’s team, and look forward to working with them in a constructive, solutions-oriented manner as the session continues. Finally, Rep. Hebert also filed an additional measure that aligns with our legislative agenda and speaks directly to transaction risk management: HB 1027 , which would limit liability for licensed real estate appraisers in situations involving smoke and carbon monoxide detector compliance. The current law already provides that real estate agents are not liable for a seller’s failure to comply with Louisiana’s detector requirements in one- or two-family dwellings. HB 1027 would extend that same liability protection to licensed appraisers by amending R.S. 40:1581(F). This is a clean, common-sense clarification that helps prevent appraisers from being pulled into compliance disputes that properly belong with the seller’s statutory obligations. Next week, committees are scheduled to hear multiple bills relevant to real estate, including measures involving construction and roofing standards (often tied to insurance and mitigation), property rights/expropriation, and property tax and adjudicated property issues that can influence housing supply and neighborhood reinvestment. We will stay closely engaged and will flag any bills or amendments that materially affect transactions, homeownership costs or private property rights. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.