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2009 Legislative Report
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The 2009 legislative session presented many opportunities
and challenges for the Oregon REALTORS® and the state
of Oregon as a whole.
Faced with the most disastrous economic climate of our
lifetimes, lawmakers in Salem were forced to close budget
gaps in previously enacted budgets and to make difficult
decisions for the future of our state. The elections of 2008
had a profound impact on the state and provided a very
different tone for Salem, as a single party enjoyed super
majorities in both chambers of the Legislative Assembly
as well as in the Governor’s office.
When the dust settled, the Oregon Association of
REALTORS® had what is widely viewed as one of the most
successful sessions for a business group, as the entire
Oregon REALTORS® legislative agenda was enacted into
law. In addition, numerous harmful legislative proposals
were stopped or significantly altered. These successes
were the direct result of a collective effort, perhaps best
demonstrated by the almost 600 REALTORS® from across
the state who put the political grassroots strength of our
association on display in Salem at REALTOR® Day at the
Capitol. Likewise, when like-kind (1031) exchanges were
threatened, over 6,000 emails were sent to the House of
Representatives by Oregon REALTORS® in a matter of hours.
The efforts of the Association were bolstered significantly by
legislators from both major political parties, due in no small
part to RPAC’s commitment to support those candidates
supportive of REALTOR® values and core issues.
Approximately 2,900 individual bills were introduced
for consideration by the legislature and the Oregon
REALTORS® identified 455 bills with a potential impact on
real estate license law, land use planning, business and
real estate taxation, mortgage lending practices, economic
development and housing affordability and attainability.
The Oregon REALTORS® Government Affairs Key Committee,
led by Chair Lori Tydeman, worked closely with the Public
Policy staff, and put forth substantial effort to thoroughly
analyze the legislative proposals and to provide invaluable
insight and expertise into potential impacts on the real
estate industry. It was only through the collective strength
of our association that the Oregon REALTORS® weathered
the very stormy waters of the 75th Legislative Assembly.
oregon ASSOCIATION OF realtors®
The Oregon REALTORS® strengthened professionalism
in the real estate industry by improving the education
system for Oregon real estate licensees.
In enacting SB 640B, introduced on behalf of the Oregon
REALTORS®, the legislature adopted the recommendations of
joint task forces of the Oregon REALTORS® and Oregon Real
Estate Agency to improve the education system for real estate
licensees. The legislation creates a baseline and modest
standard for professionals engaged in the transaction of most
Oregonian’s largest personal investment by requiring new
real estate licensees to obtain a high school diploma, GED or
international equivalent. In addition, SB 640B maintains the
existing requirement of 30 hours of continuing education for
each two-year renewal period for active real estate licensees,
but enhances the quality of the education received by
expanding the list of mandatory topics and removing non-
essential electives from continuing education credit eligibility.
The bill outlines criteria for course providers and instructors to
strengthen accountability and directs the Oregon Real Estate
Agency to work with the Oregon REALTORS® and educators
in order to develop a comprehensive list of course topics
and objectives eligible for continuing education credit. The
new, improved continuing education requirements passed
through the legislature with near-unanimous support
and will take effect on January 1, 2011.
The Oregon REALTORS® provided enhanced protections and
clarity for Oregon consumers in completing the final phase of
all-broker licensing.
In enacting HB 2910A, introduced on behalf of the Oregon
REALTORS®, the legislature provided increased consumer
protection by ensuring that all professional real estate activity
is subject to proper oversight. The bill allows professional real
estate activity to continue during the unforeseen or temporary
absence of a principal broker, by allowing the temporary
supervision of the professional real estate activity by a
designated broker during the absence.
In addition, the legislation completed the final phase of all-
broker licensing with the elimination of the sole practitioner
designation from Oregon’s licensing laws. Under the language
of the bill those real estate licensees operating as sole
practitioners on December 31, 2009 will be grandfathered
in to principal broker status, without any additional testing
requirements or cost. After January 1, 2010, those real estate
brokers seeking to operate independently will need to obtain
a principal broker’s license in order to do so. Under the bill,
Oregon will truly become an “all-broker” state, as the only
designations available will be that of broker and principal
broker. HB 2910A passed through the legislature unanimously.
oregon ASSOCIATION OF realtors®
The Oregon REALTORS® put a stop to the imposition of new,
costly private transfer taxes on the sale of real property.
With the passage of HB 2481B, introduced on behalf of the
Oregon REALTORS®, the legislature acted to protect potential
buyers from the pitfalls of the imposition of new private taxes
or fees on the sale of real estate. This troubling development
emanating from California and Texas allows, at its most basic
elements, for the imposition of a private transfer tax or fee by a
third party, to be collected upon every purchase of a particular
property.
Much like a government-imposed real estate transfer tax, private
transfer fees are typically calculated as a percentage of the sales
price, and present significant affordability issues for potential
purchasers, especially first-time homebuyers. Private transfer
fees also pose a significant hindrance to buyers seeking clear
title to property and place a substantial barrier to potential
buyers in seeking financing. With the unanimous passage of
HB 2481B and signature by the Governor, the imposition of new
private transfer fees is now prohibited in the State of Oregon.
The Oregon REALTORS® stopped the imposition of new
real estate transfer taxes, the loss of tax deferral for like-
kind (1031) exchanges, and a luxury tax on second homes.
In effectively stopping SB 396, HB 2473 and HB 3408, the
Oregon REALTORS® ensured that the prohibition on local
governments from imposing real estate transfer taxes
remained solidly in place. There was significant opposition
to lifting the preemption on local governments from
affordable housing advocates as a condition of the Oregon
REALTORS® support for the dedicated revenue source found
in HB 2436.
With the halting of HB 2696 the Oregon REALTORS® ensured
that the invaluable tool of tax deferrals through like-kind
(1031) exchanges remains a viable option for real estate
investors in Oregon. Finally, the Oregon REALTORS® fought
to make sure that a luxury tax, found in the language of HB
3146, was not imposed on the purchase of second homes.
Fortunately for all Oregonians, all of these bills were stopped
in their tracks.
The Oregon REALTORS® pushed for the creation of a
dedicated funding source for affordable housing.
After 18 months of negotiations with affordable housing
advocates, the Oregon REALTORS®, Oregon Bankers Association
and the Oregon Home Builders Association actively supported
HB 2436, which increased the existing document recording
fee by $15. While the bill does represent a nominal increase
in housing costs, the benefits of creating a stable, dedicated
revenue stream for affordable housing, including down-
payment assistance programs, are significant and long overdue
in Oregon.
The Oregon REALTORS® stopped additional increases to
the document recording fee, ensured that competition for
mortgage products exists and stopped placing limits on the
mortgage interest deduction.
Under the agreement surrounding HB 2436, the Oregon
REALTORS® received active assistance in opposing any further
increase to the document recording fee from affordable housing
advocates, which was particularly instrumental in stopping HB
2071, HB 2092, HB 2737, HB 2844 and proposed amendments to
HB 2436, all of which would have further increased the fee.
The Oregon REALTORS® joined a broad coalition to ensure
that all mortgage lenders are subject to the same balanced
regulation and we were successful in removing detrimental
requirements in HB 2188. In addition, the Oregon REALTORS®
were successful in keeping HB 3115, which would have phased
out the mortgage interest deduction for higher-income
Oregonians, from receiving even a public hearing.
The Oregon REALTORS® stopped costly mandatory energy
audits at the point-of-sale and efforts to create unspecified
exceptions to the state building code.
In the original version of SB 79 the State Department of Energy
sought to impose mandatory energy audits at the point-of-
sale for all residential and commercial buildings. The Oregon
REALTORS® led the effort to make significant amendments
to the bill to ensure that any energy efficiency rating system
was voluntary due to the costs associated with mandatory
audits, the lack of qualified inspectors and the stigmatization
of older properties that such a mandate would create. The
Association also was successful in stopping HB 2961 which
would have allowed large municipalities to fine developers for
not building above the state building code energy standards
which already are among the most stringent in the nation.
The Oregon REALTORS® protected economic develop-
ment in rural Oregon by preserving the ability of local
governments to determine the needs of their communities.
In spearheading opposition to HB 2227B, the Oregon REALTORS®
ensured that the appointed officials of LCDC were not granted
legislative authority to determine whether or not a cap or
moratorium should be placed on destination resorts in a
particular region or county, rather than allowing the local
elected officials to determine the needs of their community. The
Association also was successful in stopping SB 430 which would
have placed an outright moratorium on all destination resort
development in the state.
The Oregon REALTORS® also led the charge in opposition to SB
482 which would have required rural property owners to obtain
a permit to drill a domestic well, and to HB 2859, which would
have implemented permit requirements for domestic wells and
effectively eliminated group wells in rural Oregon.
The Oregon REALTORS® were at the forefront in
ensuring the Oregon’s land use laws recognize regional
differences in the state.
As a result of intense negotiations, amendments put
forth by the Oregon REALTORS®, Oregon Home Builders
Association and Oregonians in Action were adopted
into the final version of HB 2229 which contained the
legislative recommendations of the Big Look Task Force.
The bill contains significant improvement to Oregon’s land
use system, as it requires LCDC to consider the variation
in conditions and needs in different regions of the state in
administering the land use system. Equally as important,
it allows a single county the opportunity to correct
mapping errors made in the acknowledgment of their
comprehensive plan and to update the designation of
farm and forest lands.
While the 2009 Legislative Session was deemed
primarily a success for Oregon REALTORS® and
their clients, it was not without its setbacks.
In the final days of the session, and with the state facing record unemployment,
the legislature and governor made the unfortunate decision to enact
substantial permanent tax increases on businesses and higher-income
individuals in the midst of this devastating recession. The Oregon REALTORS®
joined a unified business community in opposition to HB 2649 and HB 3405, as
the imposition of the corporate minimum tax based on gross receipts, rather
than actual profitability, will impose a significant new tax burden on companies
that are losing money during this recession and will only exacerbate our
economic troubles as a state. The imposition of the highest individual marginal
tax rate in the nation primarily affects small businesses, which will further harm
our economy.
Signature gathering efforts are in full swing and if successful, an election to
determine the fate of the tax increases will take place on January 26, 2010.
Oregon REALTORS® have once again demonstrated their political grassroots
strength in collecting and turning in an impressive number of signatures in
the referendum effort. The potential repeal of the tax measures poses its own
set of challenges, however, as the Oregon Legislature has preordained another
“special” session for February of 2010. Our collective strength will once again
be put to the test to ensure that the interests and values of Oregon REALTORS®
and their clients are protected throughout this interim and beyond. It is only
through our continued diligence and collective efforts that the American
Dream of homeownership will remain a reality in Oregon.
oregon ASSOCIATION OF realtors®