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®