LEGISLATIVE UPDATE Legislative Update As the voice of real estate and private property rights, Kentucky REALTORS® knows the impact homeownership has on neighborhoods, communities, and the overall vibrancy of the Kentucky economy. Kentucky REALTORS® advocates for policies that increase access to the American Dream of homeownership by promoting growth, attracting new jobs and talent, and encouraging positive community development. Kentucky REALTORS® serves as the voice and the champion of its 11,800 members that live, work, and invest in every corner of the Commonwealth. Throughout this legislative session, Kentucky REALTORS® Quick Response Team (QRT) was hard at work deliberating on which bills KYR should get involved with during this session. Overall, the QRT voted to support 12 pieces of legislation that the QRT felt advanced KYR’s Legislative Priorities: Protect the Real Estate Profession, Growth and Economic Prosperity, Tax Reform, Community Development.
• Protect the Real Estate Profession KYR will work with the new administration and legislators to ensure the highest level of consumer protection, education standards, and professionalism among licensees. Also, KYR fights to eliminate regulations that affect housing affordability and burden small businesses and independent contractors in real estate professions.
• Growth and Economic Prosperity Kentucky REALTORS ® supports legislative efforts that promote economic development initiatives that bring new jobs to Kentucky. Additionally, KYR supports market-driven approaches that foster a wide-range of urban, suburban, and rural housing choices.
• Tax Reform Opposing Sales Tax on Services has been a mainstay on our legislative priorities – and will continue to be. It is important that undue burdens not be placed on homeowners and other consumers of real estate services. We work tirelessly to prevent legislation that would prevent a negative effect on the affordability of real estate.
• Community Development Many families in Kentucky have been affected by the opioid epidemic. We want to encourage and support legislative efforts that help combat the opioid abuse epidemic here in Kentucky. Supporting the expanded access to fast and reliable internet services across the Commonwealth is another top priority.
LEGISLATIVE ALERT The recent spike in COVID-19 cases has prompted Governor Andy Beshear to issue executive order 2020969. Real estate retains its status as an essential business, however new guidelines released by the Kentucky Real Estate Commission outlines certain restrictions and precautions that real estate agents should observe. To view these guidelines and access the latest industry related information as a pertains to the pandemic, visit kyrealtors.com/COVID
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Budget and (supported) Bills: Yes, 2020 was a budget year or “long session” that was cut short by COVID-19. The Kentucky General Assembly is required by the State Constitution to pass a balanced biennial budget every other year. These budgets set the maximum sum of public funds that state agencies can spend during a given fiscal year. In Kentucky, the fiscal year begins on July 1 and ends the following June 30. There are two separate categories for the budget: the operating budget and the capital budget. The operating budget provides funding for the everyday programs and services of the Kentucky state government, and the capital budget provides financing for expenditures tied to the expansion rather than day-to-day operations. Here are a few of the supported bills the Legislative Quick Response Team voted to support during the 2020 Legislative Session:
SB 11 (Schickel, J) Rental Property Criminal Damage:
This bill will provide rental property owners the ability to pursue legal action against tenants who purposefully deface, destroy, or damage residential rental property. Currently, property owners have no recourse to pursue criminal charges against tenants who damage rental property.
HB 98 (Massey, C) Attorney’s Fees:
This bill would all a court award to include attorney’s fees if a certificate of occupancy has not been issued.
HB 308 (Webber, R) Selling Farmers Tax Credit:
This legislation would allow for a farmer that is selling is property to apply for a farmer’s tax credit. In many instances around the state, a new farmer has access to capital, but no access to farmland to purchase. This would bill would give current farmers an incentive to sell to prospective farms.
HB 345 (Huff, T) Land Surveyors:
This bill would require land surveyors to carry errors and omissions insurance. Additionally, this bill would require the Kentucky Board of Engineers and Land Surveyors to make insurance available under a group policy, but allow land surveyors to obtain insurance independently.
HB 367 (McCoy, C) Fees for Services Provided by Elected Officials:
This important bill would establish that a statutory fee amount for services performed by elected officials or their offices be considered the maximum fee amount. Additionally, this bill would allow the elected official to charge a lower fee amount when the maximum fee amount is not necessary for funding purposes.
HB 371 (Bridges, R) Tax Credits:
This bill would establish the nonrefundable Kentucky affordable housing credit by allowing the credit to be applied to the income and insurance taxes, in an amount equal to the amount of the federal lowincome housing tax credit.
HCR 124 (Bridges, R) Property Valuation Administrator’s Office Task Force:
This Resolution would create the Property Valuation Administrator’s Office Task Force to study the operations and funding of the property valuation administrator’s offices and the property valuation administrator’s job requirements, property valuation methods, and timeframe in relation to the ad valorem tax process. Additionally, the QRT voted to oppose 4 bills and monitor 34 bills this legislative session.
