Passed in 2004, Measure 37 has brought local and national attention to Oregon. For those of you not familiar with Measure 37 and the controversy surrounding it, the Oregon November 2, 2004 Voter's Pamphlet describes it as follows:

Measure 37

Explanatory Statement

Measure 37 adds a new statute to ORS chapter 197. As specified in the measure, the owner of private real property is entitled to receive just compensation when a land use regulation is enacted after the owner or a family member became the owner of the property if the regulation restricts the use of the property and reduces its fair market value.

If a property owner proves that a land use regulation restricts the use of the owner's property, and reduces its value then the government responsible for the regulation will have a choice: pay the owner of the property an amount equal to the reduction in value or modify, change or not apply the regulation to the owner's property.

The measure allows the state, county, city or metropolitan service district to adopt procedures for processing claims for compensation, but prohibits those procedures from being treated as a prerequisite to the filing of a claim in circuit court.

The measure does not apply to commonly and historically recognized public nuisances, public health and safety regulations, regulations required to comply with federal law, and regulations restricting or prohibiting the use of a property for the purpose of selling pornography or performing nude dancing.

The measure specifies that compensation is due if the regulation remains in force 180 days after the owner makes written demand for compensation. After that time, the present owner may file an action in the circuit court in the county in which the property is located. The measure also specifies that the present owner is entitled to reasonable attorney fees, expenses, costs and other disbursements reasonably incurred to collect compensation.

The measure provides no new revenue source for payments, if any, required under this measure.

The measure defines several terms that are used in the statute including "family member" which is defined as wife, husband, son, daughter, mother, father, brother, brother-in-law, sister, sister-in-law, son-in-law, daughter-in-law, mother-in-law, father-in-law, aunt, uncle, niece, nephew, stepparent, stepchild, grandparent, or grandchild of the owner of the property, an estate of any of the foregoing family members, or a legal entity owned by any one or combination of these family members or the owner of the property.

Committee Members / Appointed by:
David Hunnicutt / Chief Petitioners
Dale Riddle / Chief Petitioners
Bernie Bottomly / Secretary of State
Patricia McCaig / Secretary of State
Jack Roberts / Members of the Committee

(This committee was appointed to provide an impartial explanation of the ballot measure pursuant to ORS 251.215.)

Note: You can read the November 2, 2004 Voter Information Pamphlet in its entirety at http://www.sos.state.or.us/elections/nov22004/guide/geninfo.html#vp

In February 2007, the Oregon Department of Land Conservation and Development issued the following statement:

LCDC Adopts New Rules Regarding Measure 37
 
Feb. 5, 2007
 
On January 25, the Oregon Land Conservation and Development Commission (LCDC) adopted new administrative rules regarding Measure 37 claims. The new rules (Oregon Administrative Rules 660-041), which were adopted after a public hearing, will do three things:
 
(1)  Make permanent the temporary Measure 37 rules that LCDC adopted in November, 2006. The rules clarify requirements in Measure 37 itself regarding the submittal of Measure 37 claims to the State after December 4, 2006, where the claim is based on existing or new Department of Land Conservation and Development (DLCD) land use regulations.
 
(2)  Require local governments to notify DLCD of pending and adopted permits or other authorizations to allow a use based on a Measure 37 waiver.
 
(3)  Clarify that both the local government and the state must modify, remove, or not apply ("waive") applicable local and state land use regulations before a land owner may lawfully obtain a local permit or other authorization to proceed with a use authorized under a Measure 37 waiver, for claims based on existing statewide land use planning statutes, goals and rules.
 
For more information on the new Measure 37 rules, please contact Bob Rindy, DLCD Policy Analyst, at 503-373-0050 x229, or via email at: bob.rindy@state.or.us.
 
For more information on the Measure 37 claims process, please contact Michael Morrissey, DLCD Measure 37 Division Manager, at 503-373-0050 x324, or via email at: michael.morrissey@state.or.us.

Since I do have clients who are awaiting a decision on their pending claim, I am interested in others experiences with Measure 37. I also would like the input of other real estate professionals as to how this is affecting Oregon and or how it would affect your state.