RELRA, Impact Fees, Taxes Top Issues

by Jennifer Shockley

RELRA Amendment Language Passes Committee

House Bills 2630 and 2631 (Gannon, R-Delaware) have passed the House Professional Licensure Committee by unanimous votes. The bills amend the Real Estate Licensing and Registration Act (RELRA) to allow escrow funds to be disbursed after a certain amount of time following termination of an agreement and to provide that the Consumer Notice be applicable only to one to four residential units.

PAR worked with Rep. Gannon to craft the language. Both bills now head to the House floor where PAR will push for a vote before summer recess. Watch for a Call-to-Action!

Eminent Domain Legislation Signed by Governor

Gov. Rendell has signed into law two pieces of legislation that will update the PA Eminent Domain Code.

Act 34 of 2006 reforms the existing code by creating an exclusive procedure to govern all condemnations of property for public purpose and the assessment of damages. It also provides for a procedure to condemn, which would be brought in the court of the county in which the property is located.

Act 35 of 2006 prohibits the use of eminent domain for private economic development and tightens the definition of “blight” by requiring a majority of the property in an area to be blighted in order to use eminent domain. The legislation exempts Philadelphia, Pittsburgh and home rule second class A counties from provisions of the law until 2012.

Rep. Glen Grell (R-Cumberland), sponsor of Act 34, was the guest speaker at the Legislative Committee meeting at the May Business Meetings in Harrisburg. He spoke about the Kelo v New London case that was the driving force behind the newly enacted laws.

Property Tax Reform Vote Delayed in House

Although the Conference Committee on Property Tax Reform released its report which the Senate passed by a 40-9 vote, the House deferred action until June.

A majority of House members – mostly Republicans – were successful in proclaiming that the Conference Committee bill did not provide enough tax relief and the House will go back to the drawing board. RTT or sales tax could be back on the table and PAR will remain vigilant in its opposition to these measures.

Actions from PAR Legislative Committee Meeting

 House Bill 2249 would allow third party tax collectors to collect taxes and to charge a “reasonable fee” for tax records. The legislation does not define reasonable fee. The PA Land Title Association, Newspaper Publishers Association, PA Bar Association and County Commissioners Association are opposing the legislation due to questions over access to public records and concerns over the fees.

Action by Legislative Committee: support amendment to remove the negative provisions in the bill; send a letter to the legislature to that effect.

 House Bill 2564 would provide for impact fees on residential developers by municipalities in designated growth counties. Assessments would range from $13,000 in small developments to $26,000 in large developments of 26 units. The bill would also increase the Realty Transfer Tax by one percent. PAR already has an approved policy statement opposing increases in the RTT.

Action by Legislative Committee: develop policy statement on impact fees.

 Senate Bill 917 adds the categories “Licensed Real Estate Appraiser” and “Appraiser Trainee” to the Real Estate Appraisers Certification Act. PAR has worked with the bill’s prime sponsor to create an amendment to: stipulate that only certified residential or certified general appraisers can supervise trainees; that grandfathers existing broker/appraisers; and that makes the licensed appraiser class optional rather than mandatory.

Action by Legislative Committee: support bill as amended.

 The REALTORS® Association of Metropolitan Pittsburgh requested that PAR forward the name of Jim Skindzier for an industry-member position on the State Real Estate Commission.

Action by Legislative Committee: request approved.