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Regular Legislative Session Wrap Up

LOUISIANA REALTORS • Jun 09, 2020
Louisiana REALTORS® was once again successful in advocating on behalf of the real estate industry and defending the rights of property owners in the 2020 Regular Legislative Session. While the atmosphere was a little different at the Capitol, your advocacy team defeated bills that would have harmed the industry and moved the ball forward with others. Below is a summary a few of the items in which you may be interested.  We will provide a final report after the governor’s veto period expires.

The Louisiana Legislature is currently in special session, and Louisiana REALTORS® continues to monitor legislation and advocate on your behalf.

Remote Online Notarization
House Bill No. 274, Representative Garofalo
Status:   Sent to the Governor

This bill seeks to authorize the performance of notarial functions remotely using technology.  Remote online notarization allows documents to be notarized in an electronic form where the signer uses an electronic signature and appears before the notary using online audio-video technology. 

However, this bill would not allow for an “authentic act” to be done by remote means.  This is significant to the real estate industry because most transactions with a mortgage are done by authentic act.  This is done so the lender can foreclose by executory process.  The legal and notary community is not currently comfortable completing these acts by remotely, so authentic acts are excluded from the proposed authorization in this legislation.

If passed, remote online notarization would not be available until February 1, 2022, or until remote online notarization is authorized by federal law (whichever comes first). This could make real estate closings more efficient, and NAR has supported similar efforts since November of 2018.

Lease Eviction Requirements
House Bill No. 388, Representative Mandie Landry
Status:  Involuntarily Deferred in the House Committee on Civil Law and Procedure

House Bill No. 388 sought to delay the time in which a landlord can evict a tenant for nonpayment of rent.  The proponents of the bill failed to recognize the inherent time delays built into legally evicting a tenant for non-payment. The landlord must first file a rule for possession with the proper court or justice of the peace. The sheriff or constable must then serve the tenant with notice of the rule and then a hearing must be scheduled. None of this happens overnight. This bill would have further delayed a landlord from placing a paying tenant in his or her property. Like tenants, landlords have bills to pay. Any time a landlord does not receive a payment or timely receive a payment there is a ripple effect that may cause the landlord to not be able to pay other bills or to provide for his or her family.

This is exactly the message Louisiana REALTORS® sent to all legislators on the committee. and it resonated. The bill was soundly defeated, with many legislators echoing the reasons above as to why they were against the bill.

Legal Deadlines Affecting Eviction Moratoriums
House Bill No. 805, Representative Thomas Pressly
Status:  Sent to the Governor

During the COVID-19 pandemic, Governor Edwards has issued a series of orders suspending prescription and legal deadlines. The suspension of legal deadlines has effectively prevented legal proceedings such as evections for nonpayment of rent from taking place until the suspension is lifted. The current order suspends all legal deadlines including evictions through June 14th, but that is subject to change.

House Bill No. 805 seeks to (1) affirm the Governor’s previous orders; and (2) provide that the suspension of legal deadlines will end July 6th.  However, the bill provides that evictions could move forward earlier than July 6th if Governor Edwards does not suspend the laws pertaining to evictions in future orders.  

Louisiana REALTORS® has been in communication with Governor Edwards’ office about this issue to ensure that the suspension of legal deadlines pertaining to evictions ends sooner rather than later.  As of the date of this posting, non-CARES Act evictions may proceed on June 15th but that is subject to change.  We will continue to communicate with Governor Edwards on this issue.

COVID-19 Limitation on Liability
House Bill No. 826, Representative Thomas Pressly
Status:  Sent to the Governor

Senate Bill No. 435, Senator Mark Abraham
Status:  Sent to the Governor

These bills seek to limit the liability of persons and businesses for injury or death resulting from or related to the actual or the alleged exposure to COVID-19 in the course of the persons’ or business’ operations unless the person or business acted in such a way that was negligent or intentional or not in substantial compliance with applicable governmental COVID-19 procedures.

These bills extend the limitation of liability to the business of real estate including but not limited to agents, brokers, appraisers, and inspectors.

CARES Act Funding for Small Businesses
Senate Bill No. 189, Senator Bodi White
Status:  Sent to the Governor

This bill has to do with the money that is part of the $1.8 billion sent to Louisiana through the $2 trillion CARES Act stimulus passed by Congress.  Approximately $1 billion of this may be used to plug holes in the state budget once one is finalized.  The governor wants the remaining dollars to go to local governments.  The legislature wants to take some of the remaining dollars to go to local governments and to small businesses, including real estate-related businesses. 

If this bill becomes law, SB No. 189 takes $300 million and puts it in the Main Street Recovery Fund in the State Treasurer’s office to allocate grants for small businesses with 50 or fewer employees. The theory is that local governments will make up the money in sales taxes, etc. if more small businesses survive, and then there will not be a need for a direct bailout for them.

The bill provides for minority-owned businesses and those who have not received other federal programs like the PPP to have access first, then the fund would be open to all Louisiana based small business owners.

Omnibus Premium Reduction Act of 2020
Senate Bill No. 418, Senator Kirk Talbot
Status:  Sent to the Governor

This is what has been referred to as the Omnibus Premium Reduction Act of 2020. The goal of legislation is to reduce the cost of auto insurance by bringing Louisiana’s legal structure in line with the rest of the country.

This is significant because in a 2019 survey where more than 800 realtors responded, you told us that keeping up with technology is your first concern, and a close second was fear of litigation. This bill, if it becomes law, would transform the Louisiana civil legal structure, and reduce the chances of your being a defendant in a tort lawsuit by doing the following:

  • The jury trial threshold for tort actions would be $10,000 instead of $50,000.  A higher jury threshold allows attorneys to “shop” for a more favorable judge for a plaintiff’s case.
  • The jury trial threshold for all other actions would be $35,000. This would allow for anything less than $35,000 to be heard by a judge, thereby ensuring that these matters can be handled in a timely manner. Louisiana REALTORS® helped business interests and courts in reaching this agreement.
  • A person would have two years to bring a claim after an auto accident instead of one year. This would give parties time to work out a settlement instead of running to the courthouse to preserve their claim.
  • When a plaintiff's medical expenses have been paid by a health insurance company or Medicare, his recovery of medical expenses is limited to the amount actually paid to the health care provider by the insurer or Medicare, and not the amount billed.  However, there was a last-minute amendment that muddied the waters on this and could potentially provide a windfall to plaintiffs.  If signed or allowed to become law, legislators seek to fix this in the special session.


By Louisiana REALTORS® 29 Apr, 2024
Bill Tracking Report as of 4/26/2024
By Louisiana REALTORS® 26 Apr, 2024
From REALTOR® Magazine by Stacey Moncrieff Don’t talk about business as usual to this group: NAR’s culture transformation commissioners and new leadership are helping to usher in big changes for the nation’s largest real estate organization. When the National Association of REALTORS® named its Culture Transformation Commission—a group of more than 70 members; state and local association staff; and NAR staff selected through a collaborative process—the aim was to identify and break down impediments to being an inclusive, welcoming and respectful organization for all. NAR’s Leadership Team announced the Commission in October 2023 as an essential step in putting the organization on a new path forward. NAR continued down that path the following month with the appointment of Interim CEO Nykia Wright and again in December with the appointment of Chief Marketing & Communications Officer Suzanne Bouhia. In February, Wright engaged Karyn Detje to lead NAR’s human resources transformation. Along with the staff changes have come shifts in NAR leadership. Kevin Sears, a broker from Springfield, Mass., stepped into the presidency in January, making a commitment to help return the organization to stable ground, get back to the business of helping members succeed, and eliminate distractions from the job. Shortly after taking office, Sears announced that two former NAR presidents, Vince Malta and Sharon Millett, would fill vacancies in the 2024 NAR Leadership Team. Malta is a broker from San Francisco and was NAR’s 2020 president. Millett, a broker from Auburn, Maine, was NAR’s 1999 president. “The real story [of NAR] is progress,” Wright said in a letter to members in February, calling out the CTC’s role. The group’s recommendations, she said, will shape the association’s progress into the future. “We’ve reached out directly, and the overwhelming majority of our members have told us they trust in what we are doing to transform the organization,” Wright says. “We are not taking their trust lightly but are working every day to earn their continued confidence.” Under the new staff and member leadership, NAR is communicating more deliberately, sharpening its focus on the core mission of serving its members, and moving toward becoming a nimble organization. Four Areas of Focus Part of that comes with the delivery of the CTC’s recommendations, some of which are expected in the fall, according to Ryan Davis, NAR’s vice president of diversity, equity and inclusion. “This is a ripe opportunity for change,” says Davis, who serves as co-lead on the project. “While some of the work will likely spill over into 2025, we expect to see formal recommendations in November [at NAR NXT(link is external), Nov. 8–10, Boston].” Under the leadership of its tri-chairs, the CTC has completed two of four phases of its work—information and data gathering and aligning on priorities. In the information-gathering phase, commissioners heard from thousands of association members and staff via interviews, focus groups, open forums and informal conversations. In the second phase, they aligned the findings into four common themes and identified opportunities for culture transformation within each theme. Theme 1: Mission and Values Opportunities: Clearly define our real estate–driven mission; appreciate and understand the work that NAR staffers, members, and state and local association staff perform; set expectations around how members and staff treat one another; and embed change throughout NAR. Theme 2: Leadership Opportunities: Set clear expectations and standards for those who lead across NAR—members, state and local association staff, and NAR staff. Review the entire leadership process—from the selection, training and evaluation of senior staff to the election, appointment and training and expectations of member leaders. Theme 3: Governance Opportunities: Rethink the association’s governance structure, its focus, and how it operates to enable members and staff to do their best work. Theme 4: Compliance Opportunities: Provide a safe space for all and promote accountability. To guide the next two phases of the work—developing implementation plans and final review, adoption and implementation—the group recently engaged McKinley Advisors, a firm with deep roots and expertise in association management and transformation. Working in parallel with the CTC, a Policies and Procedures Task Force is creating recommendations to improve NAR’s policies, procedures, trainings and systems to prevent inappropriate member behavior, encourage reporting of alleged misconduct, and promote an environment of transparency and accountability. “Culture change takes time,” says Detje, who has led staff transformations within large organizations and is co-leading the project with Davis, “but I see an incredible commitment among the members and staff to make it happen. One thing I’ve found really remarkable is that, despite having been through an incredibly challenging 18 months, people are passionate about this organization and the work they do.” The commission continues to welcome feedback from members and association staff. Want to share your ideas on transforming the culture of NAR and the REALTOR® organization? Email culture@nar.realtor .
By Louisiana REALTORS® 23 Apr, 2024
Last week, NAR President Kevin Sears checked in from the NAR Broker Summit, where he learned new tools to strengthen his business alongside several hundred fellow brokers. Next stop, Washington, DC for the REALTORS® Legislative Meetings, where we’ll show Congress our grassroots strength in action. We encourage you to watch Kevin’s video here to learn more about what NAR is advocating for this year at RLM. As always, the overarching theme is increasing access to homeownership. This video is also in the video section of our website. Stay tuned for Kevin’s next update.
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