Utah
Association of REALTORS®
Political Victories 2003
Written by: Christopher Kyler, UAR Director of Government Affairs and General
Counsel
The 2003 General Legislative Session in Utah will be remembered by many as the most contentious and divisive in history. We saw lengthy battles between the banks and credit unions, the education reform advocates and the education associations, the cities and the water companies, and more. For REALTORS®, however, the 2003 Session will be remembered as a well-fought battle where we met with great success.
In all, the Legislature considered 707 individuals bills and roughly another 3 versions for each bill. The UAR Legislative Committee met weekly to read, review, and discuss every bill relevant to real property or business. By the end of the Session, we had actively tracked 48 bills, of which we monitored 11, opposed 15, and supported 25. With the aid of vigilant committee members willing to testify before the Legislature, and many key REALTOR®-friendly legislators on the hill, we won each of our critical issues. Here's a sampling of our political victories for 2003 . . .
Loan Officer Licensing!
Through the hard work of Rep. Morgan Philpot (R- Midvale), a loan officer
by profession, we were able to be a part of bringing competency-based requirements
to the mortgage industry. House Bill 277, Residential Mortgage Practices Act
Amendments, requires loan officers to take a test designed to demonstrate
competency in order to become licensed. Then, once licensed, loan officers
must complete a certain number of continuing education hours each year. The
UAR believes this move is not only good for consumers, but will greatly benefit
the entire real estate industry.
You Can Still Call Your Clients
Without Going To Jail!
In response to recent federal legislation that created a national "do-not-call"
list, Sen. Dave Thomas (R- South Weber) had state legislation drafted to create
a companion law in Utah. At its inception, the bill included heavy penalties
and narrow definitions for anyone making business-related phone calls. The
bill created a state do-not-call list, charged money for the list, restricted
the hours of business, and defined existing business relationships as those
where business had been conducted within the past six months. Of course, each
of these restrictions had the potential of hurting much of our business as
REALTORS®. In response to the bill, the UAR argued that as state-licensed
and state-governed professionals, real estate agents already had sufficient
regulation with regard to how we solicit business. Fortunately, Sen. Thomas
listened to our argument and logic and not only restored the hours of business
for everyone, but exempted real estate licensees from the statute altogether.
Attorneys Not Welcome!
Not only is this slogan a great idea for a doormat, but it is also nice to
hear with respect to real estate closings. In some states throughout the nation,
the bar has been successful in arguing that settling a real estate transaction
is the practice of law, thereby requiring attorneys to be present at all real
estate closings. Therefore, when the Legislature set out to redefine the practice
of law in Utah this year with HB 349 by Rep. Steve Urquhart (R- St. George),
the UAR was integrally involved. Fortunately, Rep. Urquhart, who is an attorney
by profession, is a champion of our business and in the end, he sent the bar
a message by actually narrowing the definition of the practice of law instead
of broadening it. Although this fight is not permanently over, we have clearly
won round one and two.
Thank Goodness For Representative
Democracy!
Over the past few years, the UAR has been successful in defeating real estate
transfer taxes, sales taxes on services, and school impact fees. In each of
these battles, our arguments on the merits of these issues have been accepted
by our elected representatives at the Legislature, and we have won each of
our fights. The proponents of these measures, however, have been frustrated
and have vowed to bring these fights to the media through the initiative process.
So, when our initiative law in Utah was emaciated this past fall by the Utah
Supreme Court, it created a window of opportunity for these groups to easily
start their fights. In response, the UAR played an integral role in rewriting
Utah's initiative law. Sen. Bill Hickman (R- St. George) sponsored SB 28 which
recreated our initiative law, thereby making spurious attempts at law by referendum
difficult.
Real Estate Agents Get To Keep
Their Nice Cars!
This past year, the Utah Supreme Court (in their supreme wisdom) misapplied
controlling law, and ruled that real estate agents are always employees of
their brokers, not independent contractors. This ruling had the effect of
placing each and every real estate agent who "writes-off" their
business expenses in jeopardy with the IRS. (Additionally, a cursory poll
of brokers told us that brokers were not interested in buying BMWs for their
agents.) In response, Sen. John Valentine (R- Orem) sponsored SB 198 which
clearly stated (for the Court to read) that real estate agents are presumed
to be independent contractors of brokers unless specifically hired as employees.
In sum, this means business as usual.
New Homeowners Can No Longer
Be Held Hostage!
The UAR became aware of a growing problem with cities holding new homeowners
liable for the previous owner's past due water bills. In many cases, the cities
had allowed the previous owner to rack-up months worth of past-due water service
fees before terminating the water. Then, instead of collecting the past-due
water bills under the contract with the owner who used the water, the city
would just refuse to turn on the water for the new owner until the bill was
paid in full. In response to this heinously unfair act, Rep. Steve Mascaro
(R- West Jordan) sponsored HB 273 which now prevents cities from holding new
owners hostage for the previous owner's water bill.
The UAR was involved in a myriad
of additional bills that are important to our industry. For a complete list
of bills, go to our website tracking report at www.utahrealtors.com.
This year was a banner year for REALTORS® throughout the state. In the
end, we killed or modified 15 of 15 bills we opposed, and passed 20 of 22
we supported. But for our incredibly service-minded legislators who support
free enterprise and private property rights, our ability to be in business
and make a profit could be destroyed in a single year. Thank you to all REALTORS®
who support the Political Survival Fund and thereby support quality legislators.
For questions or comments, please call Chris Kyler, UAR Director of Government
Affairs and General Counsel at 801-268-4747.