Session Scoop: May 24, 2024
Bill Tracking Report as of 5/24/2024
Week 11 Report
The 2024 Regular Legislative Session is in the final stretch before adjourning sine die and things are looking good for real estate practitioners and property owners, buyers, and sellers.
A few highlights from Week 11 include:
- Senate Bill No. 506 to reign in the practice of using liens or mortgages to secure rights under real estate service agreements is on the way to Governor Landry’s desk for signature.
- House Bill No. 366 clarifying definitions in the Louisiana Real Estate Law and establishing a definition and requirements for buyer agreements was unanimously passed by the Senate and is on the way to the House for concurrence.
- Senate Bill No. 113 was amended to eliminate the requirement that Louisiana Citizens' rates be at least 10% higher than private insurance companies in certain parishes and reduce the requirement to 5% in other parishes. If enacted as amended, these changes would be in place until December 31, 2027.
Property Insurance
SB No. 113 by Senator Kirk Talbot
Status: Pending House final passage
Position: Support
Among other things, this bill would adjust the requirement that Louisiana Citizens' rates must be at least 10% higher than private insurance companies.
As amended, it would do the following:
- Eliminate this requirement for properties within the parishes of Calcasieu, Cameron, Iberia, Jefferson, Lafourche, Orleans, Plaquemines, St. Bernard, St. Mary, St. Tammany, Terrebonne, and Vermilion until December 31, 2027.
- Reduce this requirement to 5% for all other parishes until December 31, 2027.
HB No. 428 by Representative Delisha Boyd
Status: Sent to the Governor
Position: Support
This bill would allow a Louisiana Citizens’ policyholder, through written request, to exclude coverage of personal or corporeal movable property. If granted, Citizens would calculate an appropriate reduction in the premium.
Homeowner Associations
HB No. 440 by Representative Stephanie Berault
Status: Pending Senate final passage
Position: Monitor
House Bill No. 440 as it stands now would require the residential property disclosure statement to inform a purchaser that all association documents shall be provided to the purchaser no later than at the time of closing.
Upon request of Louisiana REALTORS® and the Louisiana Land Title Association, the Senate Judiciary Committee A amended the bill to instead permit the purchaser to request certain documents from an association governing the property and recorded documents governing the property from the person providing title closing or title settlement services upon the seller’s acceptance of an offer and at the expense of the purchaser.
However, upon further discussions with Representative Berault, she has decided to not proceed with the bill at this time and to work with the industry in the interim to improve disclosures about homeowner associations and building restrictions for buyers of both new and existing residential properties.
SB No. 23 by Senator Greg Miller
Status: Sent to Governor
Position: Monitor
Senate Bill No. 23 is a comprehensive rewrite of Louisiana laws governing homeowner associations, which the bill renames “planned communities”.
Generally, the new law would be effective as of January 1, 2025, for any new planned communities filed for registry on or after that date, and on January 1, 2026, for planned communities filed for registry on or before December 31, 2024.
Louisiana REALTORS® will provide in-depth information about this bill in the coming months should it become law.
Agricultural Land
HB No. 238 by Representative Michael Echols
Status: Signed by the President
Position: Monitor
House Bill No. 238 would restrict any foreign adversary or prohibited foreign actor from directly or indirectly, owning, acquiring, leasing, or otherwise obtaining any interest, in agricultural land should it become law.
The bill defines “agricultural land”, “foreign adversary”, and “prohibited foreign actor” and provides an exception from the definition of “foreign adversary” for a person who is a legal permanent resident with lawful presence in the United States.
The bill specifies that the failure to identify a buyer, etc. as a foreign adversary or prohibited foreign actor does not create liability for real estate brokers or agents, or any other person involved in the consummation of a real estate transaction.
Buyer Agreements
HB No. 366 by Representative Paula Davis
Status: Passed the Senate; amendments waiting to be concurred in or rejected by the House
Position: Support
Effective Date for Buyer Agreements: Monday, August 19, 2024
Note: There has been no change in the substance of the bill or amendments since the May 17, 2024, Session Scoop.
House Bill No. 366 was amended to require all real estate licensees to execute buyer agreements.
If enacted, the buyer agreement would be required:
- To include the services the broker would provide the buyer.
- To include the amount of compensation due to the broker or how the amount would be calculated.
- To be executed when a buyer purchases or seeks to purchase a home.
The requirement for a buyer agreement 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: Signed by the Speaker
Position: Support
Note: There has been no change in the substance of the bill or amendments since the May 17, 2024, Session Scoop.
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.
Public Records Bills
SB No. 502 by Senator Blake Miquez
Status: Pending House and Governmental Affairs Committee
Position: Monitor
This bill was heavily amended on the Senate floor to provide that any record of the office of the governor about the schedule of the governor, his spouse, or his child that contains security details that if made public may impair the safety of the governor or the governor's spouse or child may be held confidential.
Therefore, as amended, the bill would not impact any records pertaining to real estate transactions.
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
Note: There has been no change in the substance of the bill or amendments since the May 17, 2024, Session Scoop.
The bill would create “The Louisiana Support and Service Animal Integrity Act”.
If enacted, 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; amendments waiting to be concurred in or rejected by the House
Position: Monitor
Note: There has been no change in the substance of the bill or amendments since the May 17, 2024, Session Scoop.
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.
*Information current as of Friday, May 24, 2024.
