Legislative Affairs

• Home
• Calendar of Events
• Conferences & Conventions
• NEWSROOM
• The TAR DIGEST
• Governmental Affairs
• Issues Mobilization
• Education Information
• TREEF Center
• TAR Forms News
• More TAR Services
• Discounts Goods & Services
• Tennessee Living Network
• Whom to Contact
• TAR Newsletter Feeds
• News Library
• Leadership TAR
• TAR & NAR Applications
•  
• Member Services

2005 Legislative Report

The first session of the 104th General Assembly ended on May 28.  Lawmakers, lobbyists, and staff, who are normally weary and emotionally drained at the conclusion of a session, seemed especially so as they departed Capitol Hill this year.

The year kicked off with a contentious power struggle in the Senate as two Republicans -- in their first majority since Reconstruction -- broke ranks with their party to help re-elect Democrat John Wilder as Speaker.  Legislators then spent the following months agonizing over the governor's proposal to remove hundreds of thousands of citizens from the TennCare program.  Investigations into Senator John Ford's lucrative consulting contracts with TennCare providers and the general issue of ethics snowballed and eventually dominated the agenda.  Finally, just days before the session was to end, the state was rocked by a stunning political scandal in which four lawmakers and a former senator were arrested and charged with bribery, extortion, and conspiracy.

In the face of the numerous distractions, it is worth noting that the General Assembly managed to make progress on several issues of importance to REALTORS®.  As always, REALTORS® championed legislation that improves our industry, protects the rights of property owners and consumers, and promotes a strong economy.  Our legislative victories are summarized in the chart below.

The credit for our success goes to the thousands of REALTORS® who were politically active at the grassroots level. Hundreds of TAR members were involved in "REALTORS® Day on the Hill."  VoterVOICE registration surged in 2005, up 36% over last year.  Participation and investments in the REALTORS® Political Action Committee (RPAC) are at an all-time high, which positions RPAC to be a major player in next year's elections.

Issue	Objective	Results
Licensure of Home Inspectors	Enact legislation that requires home inspectors to be licensed in Tennessee, and that licensees be trained, tested, and insured.	TAR-backed legislation passed the House and Senate and was signed into law by the governor.  Chapter 65 of the Public Acts of 2005 goes into effect on July 1, 2006.  The Division of Regulatory Boards is assembling an advisory panel consisting of home inspectors and REALTORS® to assist in the drafting of education and examination standards.
Real Estate Transfer Tax	Defeat legislation that would allow local governments to levy a real estate transfer or excise tax.	The Senate Tax Subcommittee unanimously rejected three transfer/excise tax bills.  The House Local Government Subcommittee referred all real estate tax bills to the TN Advisory Commission on Intergovernmental Relations (TACIR).  TACIR will review all real estate tax bills and report its findings and recommendations to the General Assembly by January 15, 2006.
Real Estate Development Taxes and Impact Fees	Defeat legislation that would allow local governments to levy new taxes on development, including adequate facilities taxes and impact fees.	The House Local Government Subcommittee referred all real estate tax bills to the TN Advisory Commission on Intergovernmental Relations (TACIR).  TACIR will review all real estate tax bills and report its findings and recommendations to the General Assembly by January 15, 2006.
Real Estate License Renewal	Enact legislation that brings real estate license renewal more in line with other state-issued licenses by changing renewal date to two years from the date of issuance or renewal.	TAR-backed legislation passed the House and Senate and was signed into law by the governor (SB 2262/HB 2277).  Chapter 252 of the Public Acts of 2005 went into effect on May 27, 2005.
Meth-Free Tennessee	Enact legislation that protects property owners' rights, yet maintains public health.	TAR-backed legislation passed the House and Senate and was signed into law by the governor (SB 2318/HB 2334).  Chapter 18 of the Public Acts of 2005 went into effect on March 30, 2005.  Thanks to new restrictions on the sale of ephedrine and pseudoephedrine, the number of meth lab seizures by authorities has decreased 49% compared to May-June, 2004.
Meth Contamination Cleanup Certification	Enact legislation that allows property owners to file a certificate of fitness with Register's office after a contaminated property is cleaned and declared safe for human use.	TAR-backed legislation passed the House and Senate and was signed into law by the governor (SB 2064/HB 2086).  Chapter 347 of the Public Acts of 2005 went into effect on July 1, 2005.
Predatory Lending	Enact legislation that extends the reporting deadline of the Predatory Lending Study Committee.	TAR-backed legislation passed the House and Senate and was signed into law by the governor (SB 1785/HB 1673).  Chapter 493 of the Public Acts of 2005 went into effect on June 22, 2005.  The committee will continue its work until May 2006.
Flood Plain Disclosure	Defeat legislation that would require seller and/or real estate agent, or contractor building a new home, to notify potential buyers that a property lies in a flood plain or did lie in a flood plain until it was raised.	TAR educated lawmakers about existing disclosure requirements regarding flood insurance and flood damage.  HB 155 was taken off notice by the sponsor in the House Consumer Affairs Subcommittee.  SB 416 was referred to the Senate Commerce Committee, but was never scheduled for a vote.
Real Estate Commission and Real Estate Appraiser Commission	Enact legislation that extends the existence of TREC and TREAC until 2009.	The Administration filed SB 1384/HB 1469 and SB 1385/HB 1477.  Both bills have been referred to the Government Operations Committees of the House and Senate.  TAR expects both bills to pass in 2006.