KAR LEGISLATIVE UPDATE
April 13, 2012
LEGISLATIVE SESSION ENDS AND SPECIAL SESSION BEGINS!!!
The Kentucky General Assembly adjourned Sine Die just before midnight on Thursday. This morning Governor Steve Beshear announced a special legislative session to begin on Monday for work and passage of the transportation budget and the bill against illegal prescription drug abuse. Click here to view the Governor’s statement regarding the special session.
The Legislative Quick Response Team will be monitoring the Special Session for any issues that may impact the real estate industry.
The following bills have received final passage:
HB 277 – Local Occupational License Tax Forms
HB 277 was created to simplify the process of doing business in Kentucky. The bill requires the Secretary of State to create a standard form to be used by all local tax districts for the filing of returns of net profits, gross receipts and occupational license taxes.
HB 396 – Secured Property
HB 396 creates an expedited sale mechanism for foreclosures involving vacant and abandoned real property and also increases penalties for the offense of defrauding a secured creditor, which includes situations where property is intentionally damaged.
HB 398 – Property Valuation
HB 398 declares that property valuation administrators may use a variety of identified valuation methods to determine fair cash value, and appraisals for tract and subdivision developments meet specified minimum standards.
Slayer Statute/S.A.F.E. Act – HB 409
HB 409 amends the “Slayer Statute”, relating to property forfeitures in the case of unlawful deaths, and would remove the requirement that real estate professionals provide advice to the clients on the statute's provisions.
A floor amendment related to the S.A.F.E. Act was added to HB 409 which extends the Executive Order that was issued allowing “individuals” to make up to 4 loans each calendar year to include “entities owned in whole or part by that individual to do the same” – such as LLC’s.
HB 425 – (KREC Bill) Real Estate Recovery Fund
HB 425 redefines the current statutory purposes of the real estate education, research, and recovery fund; broaden the purposes of the fund to include benefiting those seeking a license, licensees, and consumers served by licensees
HB 433 - Condominiums
HB 433 amends the KY Condominium Act which includes provisions that protects purchasers and sellers of condominiums. KAR worked to cap the fee an association can charge for the issuance of the resale certificate.
HB 533 – Private Transfer Fees
HB 533 is a consumer protection legislation that bans third-party private transfer fees. PTF’s are the latest money-making tool. This fee is required to be paid to a developer, HOA or individual at closing each time a property is sold. The transfer fee is attached to the property as a covenant and usually runs for a set period, often for 99 years. To date, over 36 states have either banned or placed conditions on the practice.
Rally to Protect the American Dream: Please make sure to take a few minutes to visit the Rally website: www.realtorrally.org and register to attend the Rally. Registration for the Midyear Meeting does NOT constitute registration for the Rally. As thousands of REALTORS® will be gathering on Capitol Hill on May 17, registration is required for you to obtain credentials and a rally t-shirt. You will also find additional information about the Rally on this website, and it will be regularly updated with schedules and speaker information as we get closer to Midyear.
Please contact email@example.com if you have questions or comments regarding KAR’s legislative activity.