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KCRAR Members Attend Kansas Capitol Conference

February 16, 2018 in Kansas Advocacy

The Kansas Association of REALTORS® held its annual Capitol
Conference in Topeka last week, where approximately 150 REALTORS® attended
to lobby the Kansas Legislature about private property rights and other issues of
significance to the real estate profession.

At the Board of Directors meeting, Mike McGrew, former
National Association of REALTORS® Treasurer, was unanimously supported
and endorsed by Kansas as a candidate for 2022 National Association of REALTORS®
First Vice President. Mike will continue across the country garnering support
for his candidacy.

At the Conference, the biggest issues occurred in the Government
Affairs Committee where KAR Vice President of Government Affairs Patrick
Vogelsberg discussed with REALTORS® the current legislation and topics of
concern for REALTORS® so they can then share the REALTOR® viewpoints on these issues
with their legislators.

Advertising

The current definitions of what is and is not permitted
under advertising rules of the Kansas Real Estate Commission was discussed at
the Capitol. The Commission has concerns with names that could be confused with
a registered company name or imply that the salesperson’s company, team or team
leader is the broker. No other statues or regulations exist that specifically
address real estate teams in Kansas. After considerable discussion and
suggestions, the committee made a recommendation for the KAR President to
appoint a task force to discuss and make recommendations to the Government
Affairs Committee to provide guidance to the Kansas Real Estate Commission.

Definition of
Rebates

The KAR Government Affairs Committee voted to oppose HB
2494, which would define the term “rebate” as it pertains to real estate
transaction. Kansas is one of ten states that bans rebates in real estate
transactions, but the Legislature has not provided in statute a definition of
“rebate.” At the 2017 KAR Capitol Conference the Government Affairs Committee
decided to pursue a statutory definition when appropriate. However, this bill
would distinguish between undisclosed and disclosed rebates. Undisclosed
rebates would continue to be prohibited, whereas disclosed would be permitted
in Kansas.

Abandoned Property

HB 2506 addresses the rehabilitation of abandoned
property. The bill requires three prongs to be met for the property to be
considered abandoned: 1) 2 years of delinquent property taxes; 2) 15 months
unoccupied; and 3) have a blighting influence. KAR supports this definition of
abandoned property.

Sales Tax on
Service of Installing Appliances and Electronics in Residences

HB 2491 would impose a sales tax on the service of
installing appliances and electronic products in residences. The bill was
introduced by the Kansas Department of Revenue in response to case involving
Lowe’s Home Centers. The question was whether Lowe’s needed to pay sales tax on
the labor associated with the service of installing the appliances or would the
current exemption provided contractors on construction labor apply. KAR is
continuing to monitor the issue due to the cost implications imposed on home
buyers and sellers.

Notice and
Disclosure of Mineral Interest in Real Estate Sales Contracts

This bill would require real estate sales contracts to
have a notice provision that contains a warning that some properties are
subject to leasehold or other rights or interest in oil, gas or mineral
resources associated with the property. As a result of conversations Vogelsberg
has had with legislators, the language of the bill will provide a provision
that clearly states that real estate licensees do not have a duty to
investigate or disclose information regarding oil and gas interest that aren’t
otherwise required by the Kansas Real Estate Brokers’ and Salesperson License
Act. KAR voted to support this legislation and will be offering testimony in
support with the suggestion that some additional language be added to ensure
that the provision does not create any additional duty to investigate or
disclose that does not already exist in law for licensees.

Fire Sprinklers

KAR continues to oppose lifting the ban on municipalities
having the right to mandate sprinkler systems or conditioning approval of
building permits. The committee believes this should be a consumer choice issue
and not mandated by the government.

Association Executives Committee updated the Board of
Directors on a planned Regional Association Executives training session to be
held this summer in Kansas City.

RPAC trustees had no action items; however, NAR
Government Affairs Political Representative Jack Greacen announced that no
special recognition contributions will be made to Kansas Members of Congress
due to their votes on the recent tax reform legislation. All Kansas MOC’s voted
for tax reform.

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