Regular Legislative Session Wrap Up
LOUISIANA REALTORS • June 9, 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.
Week 9 brought several major Louisiana REALTORS® priorities into posture as the Legislature moved deeper into the final stretch of the session. Two of our top priority bills, HB 468 and HB 1027 both by Representative Troy Hebert , cleared the Legislative Bureau and advanced to the Senate floor calendar for third reading and final passage. HB 468, our residential wholesaling regulation bill, remains one of the most important consumer protection measures of the session. The bill brings transparency, accountability, and clear rules of the road to residential real estate wholesaling in Louisiana. HB 468 previously passed the House by a vote of 96–0 and is now positioned for final Senate consideration. HB 1027, which clarifies that licensed real estate appraisers are not liable for a seller’s failure to comply with carbon monoxide detector requirements, also advanced to the Senate floor calendar after previously passing the House by a vote of 90–0. Both bills remain in strong posture, and Louisiana REALTORS® will continue working for final passage as they move through the Senate. Another major development this week was the House passage of HB 1166 by Representative Kim Carver , which passed unanimously on May 5, 103–0. HB 1166 creates a practical disclosure framework for vacant residential property transactions and is designed to help buyers, sellers and real estate professionals avoid late-stage surprises involving access, utilities, drainage, flood risk, prior use and other material property conditions. This bill has been a key part of Louisiana REALTORS®’ consumer protection and transactional clarity agenda. HB 1166 was received in the Senate on May 7 and now moves into the Senate side of the process, where Louisiana REALTORS® will continue working closely with the author and stakeholders as the bill advances. Tort reform and civil justice issues also moved forward this week. HB 437 by Representative Michael Melerine , which addresses the award of expert witness fees in civil litigation, passed the House by a vote of 75–18 and was received in the Senate on May 7. HB 1089 by Representative Dennis Bamburg Jr. , which creates structured CARE Accounts for certain categories of tort damages, passed the House by a vote of 67–29 and was also received in the Senate. Louisiana REALTORS® continue to support meaningful tort reform as part of the broader effort to improve Louisiana’s legal environment, reduce litigation-driven costs, and help stabilize the property insurance market. A more predictable civil justice system directly supports property owners, consumers, businesses and the long-term health of Louisiana’s real estate market. Property insurance remains one of the most important issues facing homeowners and property owners across the state. HB 1187 by Representative Paul Sawyer , dealing with Citizens Property Insurance emergency assessments, has been received in the Senate and referred to the Senate Insurance Committee after previously passing the House by a vote of 87–9. Several additional insurance-related measures remain active, including bills addressing fortified roof endorsements, stated-value homeowner policies, insurance notice requirements, nonrenewal restrictions, and pre-suit claim review. HB 408 , which addresses insurance nonrenewal prohibitions, and HB 1210 , which addresses mandatory pre-suit claim review, remain pending in the House Insurance Committee. Louisiana REALTORS® will continue to closely monitor these measures because insurance affordability, availability and market stability remain central to housing affordability and private property ownership in Louisiana. Several Senate bills also continued moving through the House processes this week. SB 241 by Senator Valarie Hodges , which requires insurance adjusters and appraisers to include their license numbers in written communications, cleared the Legislative Bureau on May 6 and returned to the House floor calendar. This measure remains relevant to transparency, accountability, and consumer confidence in the insurance claims process. SB 180 by Senator Franklin Foil , which allows surviving spouses of deceased disabled veterans to transfer their expanded property tax exemption, was scheduled for House floor debate this week and remains a positive homeowner protection and property tax fairness measure. Louisiana REALTORS® also continues to monitor legislation dealing with blight, redevelopment and rent stabilization. HB 284 by Representative John Wyble , which would authorize certain parishes and municipalities to expropriate blighted property by declaration of taking, remained on the House calendar this week as a notice-given, subject-to-call bill. The bill previously failed on the House floor by a narrow vote of 48–47 and remains under active reconsideration. Blight policy is important, but redevelopment tools must be balanced with private property rights, due process, and protections for property owners. HB 472 by Representative Alonzo Knox , which would authorize municipalities to implement rent stabilization programs, remains involuntarily deferred in committee. Louisiana REALTORS® continues to oppose rent control and rent stabilization proposals in any form because these policies reduce housing supply, discourage investment, and ultimately worsen affordability challenges over time. As we move into Week 10, Louisiana REALTORS® will remain focused on securing final Senate passage of HB 468 and HB 1027, advancing HB 1166 through the Senate, and continuing to engage on the tort reform and insurance measures that directly affect property owners, housing affordability and the real estate profession. With REALTOR® Day at the Capitol taking place during this critical stretch of the session, member engagement will be especially important as legislators continue to make decisions on real estate, insurance, liability, redevelopment and private property rights issues. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
Week 8 was one of the most consequential weeks of the session so far for Louisiana REALTORS® and the real estate industry. Two of the association’s flagship bills moved to the brink of final Senate action, rent stabilization was stopped again in committee, major insurance legislation continued to advance, and several bills affecting property rights, tort reform and transaction practice saw meaningful movement. The biggest developments of the week came on HB 468 and HB 1027 , both by Rep. Troy Hebert . HB 468 , the residential wholesaling bill, cleared the Senate Commerce Committee on April 28, had its amendments adopted on April 29, and was referred to the Legislative Bureau putting it one step away from the Senate floor. HB 1027 , the appraiser liability bill, followed the same path after its overwhelming House passage earlier this month and is also now pending Legislative Bureau review before final Senate consideration. Louisiana REALTORS® strongly supports both measures, which are designed to strengthen consumer protection, improve market clarity and reinforce confidence in the real estate transaction process. On the rent-control front, HB 472 by Rep. Alonzo Knox was brought back before the House Municipal, Local and Parochial Affairs Committee this week. Louisiana REALTORS® testified in opposition, and the committee voted 8-5 to defer the bill involuntarily. That is a meaningful win for property owners, housing providers, and the long-term health of Louisiana’s housing market. Louisiana REALTORS® remains firmly opposed to rent stabilization proposals, which may sound politically attractive, but have consistently been tied to reduced housing supply, deterioration in rental stock and long-term affordability problems in markets where they are adopted. Insurance remained one of the session’s most active and important policy areas. HB 1187, Rep. Paul Sawyer , dealing with Louisiana Citizens for emergency assessments, passed the full House 87-9 on April 29, and now heads to the Senate. Because Citizens' assessments can ultimately affect policyholders across the state, this bill has clear relevance for affordability and homeownership costs. HB 408, Rep. Edmond Jordan was heard in House Insurance Committee this week and remains pending. This bill would prohibit insurers from non-renewing residential policies when homeowners have taken documented steps to reduce risk, an issue with direct implications for insurability and failed closings in vulnerable markets. In addition, SB 241 by Sen. Valarie Hodges , which requires insurance adjusters and appraisers to include their license numbers in written communications, cleared House Insurance unanimously and is now headed to the House floor. Taken together, these measures reflect the legislature’s continued focus on insurance stability, transparency and accountability, all of which remain central to real estate activity in Louisiana. Week 8 also brought movement on broader tort reform and property-rights-related legislation. HB 437 , addressing expert witness fees, and HB 1089 , creating structured CARE Accounts for tort damages, both cleared House Civil Law and are now set for House floor debate next week. Meanwhile, SB 180 by Sen. Franklin Foil , allowing surviving spouses of disabled veterans to transfer a property tax exemption, is nearing final House passage after advancing to third reading. While not all of these bills directly regulate licensees, they reflect the broader civil liability and property tax environment that affects the cost and accessibility of owning property in Louisiana. Another key bill for the industry, HB 1166 by Rep. Kim Carver , remains very much alive and is now positioned for House floor debate on Tuesday, May 5 . The bill would require disclosures for vacant residential property, and it would close an existing gap in Louisiana law that currently exempts many vacant homes from standard seller disclosure rules. After being called and returned to the calendar earlier in the week, the bill is now finally set for debate. Louisiana REALTORS® also intends to use the bill as a vehicle for a structural amendment to the Louisiana Real Estate Commission that would move toward a more geographically balanced appointment process, with one member appointed from each congressional district and the remaining members appointed at large. That change would better ensure regional representation across Louisiana’s diverse real estate markets and help modernize the commission’s structure. Taken together, week 8 was a strong and consequential week for Louisiana REALTORS®. The association’s two flagship bills are now within reach of Senate floor passage, rent stabilization was turned back in committee, important insurance legislation continued moving, and HB 1166 remains positioned as both a major disclosure bill and a possible vehicle for meaningful LREC reform. Louisiana REALTORS® remains fully engaged at every stage of the process to protect private property rights, support practical regulation and advance policies that strengthen Louisiana’s real estate market. Lastly, this week, Louisiana REALTORS® wants to extend sincere thanks to Rep. Delisha Boyd — a real estate broker herself — for her tireless work shepherding HB 292 through the legislative process. The security deposit fairness bill, which allows landlords and tenants to mutually agree in writing to extend the timeline for returning a security deposit when damage is found, has passed to third reading and final passage in the Senate and is nearly on its way to the Governor's desk. This has been a meaningful win for both property owners and renters across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
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