The 2000 session is over and once again REALTORS® had a successful year. As we are every year, GAR was actively involved in a broad cross-section of issues. This year there was a series of local ad valorem tax freeze bills. While most of these did not pass, this is an issue that will certainly return after this year’s elections.
Another issue likely to return for next year is impact fees. There was a move this year to extend impact fee power to school districts. Local governments are turning more often to this form of revenue enhancement and are likely to push for other extensions.
There were over 4,500 Bills and Resolutions introduced during the 1999-2000 Session of the General Assembly. The State and Local Government Affairs Committee undertook to assign priority status to the legislation that most directly affected private property rights and the practice of real estate. This is a job of monumental proportions and could only be accomplished by the hard work and dedication of the committee and staff.
Legislation Passed
HB 1151 Georgia Real Estate License Law (By Rep. Powell of Hartwell)
This is the Georgia Real Estate Commission’s annual licensure revision bill. This bill adds sole proprietorship to the definition of firm. It states that the initial judicial review of final decisions of the commission shall be in the Superior Court of Fulton County. It states that the commission may deny a license to an applicant that has previously been sanctioned. It authorizes the commission to receive criminal histories from the Georgia Crime Information Center and the National Crime Information Center. The entirety of this bill was amended onto SB 350. PASSED
SB 425 Brokerage Relationships in Real Estate Transactions Act (By Sen. Kemp of Hinesville)
This is a bill that clarifies the duties and responsibilities of real estate brokers. It requires brokers have a written agreement to establish a client relationship with a buyer or seller. It codifies the practice of "transaction broker." It clarifies what ministerial acts a broker can perform while acting as a transaction broker. It codifies "designated agency." It expands the duty to keep confidences of clients during and after a brokerage relationship. It creates a new limited duty to disclose adverse neighborhood conditions. It clarifies that the current limitation against liability for brokers who unknowingly pass on false information applies not only to situations where the broker receives false information from the seller, but to situations where the broker receives false information from any source provided the broker discloses the source of information. It clarifies that misrepresentation claims against brokers still require a showing of fraud and that the current agency law does not create a weaker standard, different from the common law. PASSED. For a more detailed explanation of the BRRETA update, please see page 23.
HB 904 Childhood Lead Exposure Act (By Rep. Smyre of Columbus)
This measure provides for investigations by the Division of Public Health to identify lead poisoning hazards. It provides for notification and abatement. Compliance with the maintenance standards will insulate the property owner from liability. It provides for resident responsibilities in maintaining lead-free environment. It includes amendments to restrict owner responsibility to the interior of the structure and exempts complexes with 12 or fewer units. It clarifies that no new liability is created. PASSED
SB 399 Georgia Community Greenspace Fund (By Sen. Thompson of Powder Springs)
This is the centerpiece of Governor Roy Barnes’ agenda. This bill sets up a mechanism to encourage preservation of green space in fast-growing counties through the establishment of a trust fund to purchase land. The trust fund would make grants to counties based on the percentage of residential state property taxes collected by the state from a particular county in the preceding fiscal year. Eligibility is limited to counties with a population of at least 60,000 or which have grown by an average of at least 800 persons per year since the last census. Counties selecting funding under this program must adopt a county greenspace program, which must include the promotion of the goal of protection of at least 20 percent of the county’s land as greenspace, the identification of barriers to the goal, and pro-pose a 10-year strategy for mitigation or elimination of such barriers. PASSED
HB 837 Elimination of Statute of Limitations on Damage to Realty (By Rep. Bordeaux of Savannah)
This bill began as an act which would have eliminated the Statute of Limitations for damage to realty. The proposal would provide that "cause of action for trespass upon or damage to realty accrues when the trespass upon or damage to the realty is discovered or, in the exercise of reasonable diligence, should have been discovered, whichever first occurs." It was introduced by a Trial Lawyer from Savannah. He said he intended for it only to address the synthetic stucco problems that had been brought to his attention on the coast. He resisted attempts to narrow the focus to synthetic stucco but the house committee compelled him to limit the time for a claim to eight years for construction and design or 10 years for manufacturers defect. As the bill passed to the Senate it was made clear the advocates intended for it to be applied retroactively. A coalition was formed in opposition to the bill which included the homebuilders, the contractors, the insurance companies and their agents, the Georgia Chamber of Commerce and the Georgia Defense Attorney’s Council. We offered a series of compromises which the sponsor rejected. Ultimately the bill did lengthen the time during which a claim for damage from synthetic exterior siding may be filed. The change is limited solely to synthetic exterior siding. The new law states that the statute of limitations shall begin to run at the time the damage is, or should have been, discovered. However, no case may be filed beyond the statute of repose. For a case of negligent construction or design, the statute of repose ends eight years from substantial completion of the project. For a case of manufacturer’s defect, the statute of repose ends at 10 years from substantial completion. PASSED
SB 443 Handicapped Accessibility to Affordable Housing (By Sen. Fort of Atlanta)
This allows the State Office of Housing to require homes built with federal and state money for low income and very low income families be built with handicapped accessible features including: a ramp, a 36 inch door at the entrance, interior doors of 32 inches, hallway width of 36 inches, bathroom grab bars, the main breaker shall be on the first floor not higher than 48 inches and electrical outlets shall be at least 15 inches from the floor. It provides for an application for a waiver of the ramp requirement. PASSED
HB 1221 Water Submetering (By Rep. Powell of Hartwell)
This act allows for submetering of residential structures containing four or more units in order to charge tenants for their usage. This legislation was introduced on behalf of the Georgia Apartment Association and will clarify that a landlord does not become an operator of a public water system. Prior to adoption of this act, if a landlord submetered his complex he would have been considered an operator of a public water system. This designation brought with it a significant licensing fee and very steep additional liabilities. PASSED
SB 327 Environmental Protection Division Variance Deadline (By Sen. Starr of Forest Park)
This act requires the Director of the Environmental Protection Division to grant or deny any permit or variance within 90 days of receipt of required materials. It allows one 90 day exten-sion and requires a refund for any appli-cation not acted on within the 90 days. It prohibits the refund from being a factor in the variance decision. PASSED
HB 1217 Bona Fide Conservation Use of a Family Owned Farm (By Rep. Buck of Columbus)
This bill clarifies that a family limited partnership, a limited corporation, a limited partnership, a corporation or a limited liability company may serve as a general partner of the family limited partnership and hold no more than five percent interest in such family partnership. PASSED
Legislation that Did Not Pass
HB509 Historic Preservation Commissions (By Rep. Jamieson of Toccoa)
This bill would have created historic preservation districts. It sought to change certain provisions regarding historic preservations commissions and ordinances. It would have required training of commission members and staff. It would have provided for the creation of Historic Preservation Districts. It would have required an inventory of resources and a management plan. It would have provided for notification of affected property owners. An opt-in clause was amended onto the bill in the Senate at the request of the Agribusiness community. Utilities regulated by the Public Service Commission were also exempted from the bill. DID NOT PASS
HB 432 Telemarketing Exception (By Rep. Rogers of Gainesville)
This bill would have provided an exemption from the Georgia No-Call List for Licensed Real Estate Agents. If the calls met three conditions: (1) they were made by the licensed professional referred to or an employee acting under said licensee’s supervision; (2) they are made within the toll-free dialing area of the licensee’s business office or within the county or adjacent county of the licensee’s business office; and (3) the business must not be dependent upon telephone solicitation as its primary means of generating business. DID NOT PASS
SB 404 Retaliatory Eviction (By Sen. Butler of Clarkston)
A bill relating to landlord and tenant so as to prohibit retaliation by a landlord against a tenant for certain complaints relating to violations of building or housing codes. It also provided for a defense and rebuttable presumption. It also stated that maintenance of certain actions does not release a landlord from liability under state law. DID NOT PASS
SB 512 Retaliatory Eviction of a Mobile Home Owner (By Sen. James of Atlanta)
This bill would have prohibited any mobile home park landlord from evicting or penalizing a tenant for: filing suit against the landlord for any reason related to the terms of the lease; engaging or participating in any homeowners association; filing a complaint with any government agency; or complaining to the landlord about conditions in the mobile home park. It would further provide that the doctrine of retaliatory eviction shall be a complete defense against eviction or penalization by the landlord if the eviction proceedings are brought against the tenant within one year of filing suit or registering a compliant against or with the landlord except in the case of nonpayment of rent, conviction of the tenant for a felony, or the infliction of substantial damages to the property of the landlord. DID NOT PASS
HR 260 Impact Fees for School Boards (By Rep. Burkhalter of Alpharetta)
This would have been a ballot question that would have permitted school districts to charge impact fees on new construction. DID NOT PASS
HB 1270 Handicapped Access (By Rep. Buckner of Jonesboro)
This bill would have required that all public buildings include a first floor unisex bathroom that would be fully handicapped accessible. This was to enable caregivers of the opposite sex the opportunity to aid the disabled. DID NOT PASS
HB 1084 Title Insurance (By Rep. Teper of DeKalb)
This bill would have provided for creation of an account in the Georgia Insurers Insolvency Pool for title insurance. It would have allowed the Commissioner to establish rates, within a statutorily set range, for single risks of one million dollars and above. It would prohibit payments to induce referrals. It would provide that no policy shall be issued for any single risk coverage of one million dollars or more unless the opinion of title has been signed by an attorney licensed in Georgia. The minimum rate allowed under this proposal is many times greater than the current market rate. DID NOT PASS
Written by Linda Carol Porterfield, GAR State and Local Government Affairs Committee Chairman