Legislative Update - May 9, 2022
The Louisiana Legislative Session has been fast and furious this year and your Louisiana REALTORS® Advocacy Team has been burning the midnight oil on your behalf.
Overall, we have effectively stopped legislation that would be bad for the profession and the consumers you serve and are championing bills that will make improvements for the profession and consumers you serve. There are still a few bills out there that are problematic, but we are continuing to ask for amendments to improve them or actively opposing them.
List of Services
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HB No. 1058 by Representative Paul Hollis (formerly HB NO. 387) - UPDATE 5/5/2021List Item 1
What: Louisiana REALTORS® worked with Representative Hollis and representatives for homeowners’ associations to amend all objections out of the original bill. The bill no longer places any additional requirements on real estate agents.
The bill now only pertains to updating the residential disclosure document to address potential issues with the current disclosures regarding covenants, restrictions, and homeowner association governing documents.
If passed, the Louisiana Real Estate Commission will need to update the residential disclosure document to reflect the law change. The commission would have until 2023 to do this.
Current Status: Pending Senate Commerce, Consumer Protection, and International Affairs
Position: Support as amended
Why: The current bill removes all the objectionable items from the original bill and instead makes good consumer protection changes to the residential disclosure law.
Louisiana REALTORS® thanks Representative Hollis and the homeowner associations’ representatives for working with us on this legislation to improve disclosures for the public.
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SB No. 367 by Senator Cameron Henry - UPDATE 5/5/2021List Item 2
What: SB No. 367 would have Louisiana fully adopt the “Practical Applications of Real Estate Appraisal (PAREA)” program, as authorized by the Appraiser Qualification Board. The bill would also permit Louisiana to recognize a Licensed Residential Appraiser, a third appraiser license type, as authorized by the Appraiser Qualification Board.
Current Status: Pending House Commerce
Position: Support
Why: PAREA is expected to reduce barriers to entry to the appraisal profession and provides an alternate path or opportunity for licensure of appraisers in the state, without the requirement of a sponsoring, supervising appraiser. Recognizing and implementing this license type creates a path to professional licensure as an appraiser without the requirement of a bachelor’s degree.
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HB No. 1053 by Representative Julie Emerson - UPDATE 5/4/2021List Item 3
What: HB No. 1053 would exempt a licensed attorney who has a real estate sales agent license from having to meet the 150 hour broker education requirements, taking or passing the broker exam, or being a licensed real estate sales agent for four years prior to getting a real estate brokers license.
Current Status: The bill was scheduled to be heard in the House Commerce Committee, but Chairman Paula Davis announced that the author asked that the bill be voluntarily deferred. To date, the bill has not been put on another agenda or calendar.
Position: Oppose
Why: Having a broker license encompasses responsibilities that require more than an understanding of the forms and processes of getting a transaction to closing. The ability to read contracts and do title work does not qualify an individual to be a real estate broker, run a brokerage business, or supervise sales agents. The majority of knowledge to practice real estate and protect consumers is gained in the field as a sales agent working through transactions with all types of people and in different markets. A broker needs a lot more than knowledge of the principles and theories of real estate.
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HB No. 637 by Representative Beau Beaullieu - UPDATE 5/5/2021List Item 4
What: This bill would authorize an assessor to collect an additional fee from persons requesting assessment rolls or lists. The bill is a response to litigation surrounding how a tax assessor is required to provide the assessment rolls and lists when a public records request is made.
Current Status: Representative Beaullieu agreed not to pursue the bill further this session and we will speak to both vendors and assessors about the issues surrounding the subject during the interim. We thank him for listening to the concerns and being responsive.
Position: Oppose
Why: This could potentially increase costs to MLS vendor which in turn could increase costs to REALTOR® members.
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HB No. 1063 by Matthew Willard - UPDATE 5/5/2021
What: This bill would require a housing provider to conduct individualized assessment of an application submitted by a person with a criminal history, make certain disclosures and take certain steps upon rejecting an application.
Current Status: Pending on the House Floor
Position: Oppose
Why: The bill’s electronic disclosure language is not clear and the narrow immunity clause in the bill may not apply in costly litigation.
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HB No. 488 by Representative Polly Thomas - UPDATE 5/5/2021
What: This is the bill that attempted to bring wholesalers under the real estate licensing law.
Current Status: Pending House Commerce and not to be brought up again this session.
Position: Support
Why: As previously explained, the trend in legislatures nationwide is to deregulate everything rather than bring new activity under the supervision of a licensing board. This movement impacted the ability of this bill to move forward.
However, it has taken every state that has addressed this issue 3 to 4 tries at their legislature before being successful. Between now and next session, we will work to find alternative solutions that do not include licensing to address the issue of wholesaling and its impact on property owners.
