Session Scoop: May 17, 2024
Bill Tracking Report as of 5/17/2024
Week 10 Report
Buyer Agreements
HB No. 366 by Representative Paula Davis
Status: Pending Senate final passage
Position: Support
Effective Date: Monday, August 19, 2024
On Wednesday, May 15, 2024, House Bill No. 366 was amended to require all real estate licensees to execute buyer agreements.
If enacted, the law would require buyer agreements to include three elements:
- The services the broker would provide the buyer.
- The amount of compensation due to the buyer broker or how the amount would be calculated.
- Signatures of the buyer and the buyer broker.
The law would permit the buyer agreement to provide potential sources of broker compensation, including but not limited to the buyer, the seller, or the listing broker.
The requirement for a buyer agreement would only be required when a buyer purchases or seeks to purchase a home and would NOT apply when a buyer purchases or seeks to purchase commercial property, vacant property, industrial property, retail property, etc.
Should the proposal become law, it is important to note two things:
- Buyer agreements in compliance with NAR buyer agreement requirements would always comply with the proposed state law requirements for a buyer agreement.
- Buyer agreements only in compliance with the proposed state law would NEVER meet all the NAR buyer agreement requirements.
Real Estate Service Agreements Secured by Liens or Mortgages Prohibition
SB No. 506 by Senator Rick Edmonds
Status: Pending House Final Passage
Position: Support
Louisiana REALTORS® requested this legislation be filed to curb the predatory practice of what is commonly called the “40-year listing agreement”.
The bill would do this by making it an unfair trade practice to secure a right in a “real estate service agreement” with a mortgage or other encumbrance on a home. Additionally, the bill would provide a simple mechanism for individuals to petition courts to remove these encumbrances from a property title.
Property Insurance Bills
Governor Landry signed four bills into law that have the goal to attract more property insurers to Louisiana. While the new laws are not guaranteed to accomplish this goal, the status quo is unsustainable.
HB No. 120/Act No. 8 by Representative Matthew Willard
Status: Signed by the Governor
Position: Support
Act No. 7 renews the Louisiana Fortify Homes Program and demonstrates Louisiana’s long-term commitment to increasing resiliency by strengthening homes and businesses against future risks. The state budget left the House with $15 million dollars allocated to the program but the Senate has not yet moved the budget from committee.
HB No. 611/Act No. 9 by Representative Gabe Firment
Status: Signed by the Governor
Position: Support
Act No. 9 repeals Louisiana’s three-year rule that property insurance companies cited as one of the biggest reasons for not writing policies in Louisiana. The three-year rule will no longer apply to policies issued after Aug. 1, 2024. For policies in place before August, no more than 5% may be nonrenewed per year.
SB No. 295/Act No. 10 by Senator Heather Cloud
Status: Signed by the Governor
Position: Support
Act No. 10 changes Louisiana from requiring "prior approval" of proposed insurance rates to a "file & use" system of approving insurance rates, thereby allowing insurers to begin using an actuarily sound market rate subject to receiving the approval of the Commissioner of Insurance.
SB No. 323/Act No. 3 by Senator Kirk Talbot
Status: Signed by the Governor
Position: Support
Act No. 3 establishes a clear timeline for the claims process that makes it easier for policyholders and insurers to understand what their responsibilities are during the process. It also creates a cure period to give parties more time to resolve disputes.
Public Records Bills
SB No. 502, by Senator Blake Miquez
Status: Subject to call; pending Senate floor action
Position: Monitor
This bill would require a Louisiana citizen requesting a public record to provide sufficient information to establish his or her age and identification. The bill was amended on the Senate floor to not apply to in-person or online access to records in the custody of the clerk of court. It is unlikely that the bill will move forward this session, but still possible.
SB No. 423, by Senator Jay Morris
Status: Withdrawn from the files of the Senate
Position: Monitor
This bill would have required a public records request to only be from a Louisiana citizen but was amended to exclude mortgage and conveyance records.
The bill has been given a definitive death blow by its author, however. Senator Morris indicated that he did not want to be associated with hiding anything and withdrew the bill from the files of the Senate. Once bills are withdrawn from the files of the House or Senate, they cannot be resurrected.
Property Management
HB No. 407, by Representative Stagni
Status: Passed the Senate; amendments waiting to be concurred in or rejected by the House
Position: Support
The bill would create “The Louisiana Support and Service Animal Integrity Act”.
If passed, it would prohibit healthcare providers from producing documentation relating to an individual's need for a support animal unless they satisfy certain requirements.
It would also prohibit the misrepresentations of service dogs and require written notices for individuals and businesses that sell support animals.
The part of the bill that would have limited liability for owners and lessors for damages caused by a service dog or support animal was removed, however.
HB No. 913, by Representative Larry Selders
Status: Passed the Senate
Position: Monitor
House Bill No. 913 would require housing providers to provide copies of tenant’s original utility bills within thirty days of receipt of request only if the housing provider utilizes third-party billing services to manage utility billing for a residential unit with an individual meter. The request and response may be made by electronic means.
If a housing provider does not comply, the tenant or the Louisiana Attorney General may bring suit for penalties and/or seek an injunction.
