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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
House Bill 2089
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of House In-
terim Committee on Revenue for Representative Nancy Nathanson)
CHAPTER .................................................
AN ACT
Relating to surpluses from the disposition of foreclosed property; creating new provisions; amending
ORS 98.352, 279A.025, 312.040 and 312.125; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
FORECLOSURE NOTICES
SECTION 1. ORS 312.040 is amended to read:
312.040. (1)(a) Notice of [ each] the foreclosure proceeding shall be given by [ publication and by
both certified and regular first class mail as provided in this section ] both of the following means :
[(a)] (A) [ Notice shall be given by ] One publication of the foreclosure list in a newspaper of
general circulation in the county, to be designated by the governing body of the county [ court or
board of county commissioners ]. The price charged by the newspaper shall be at the legal rate as
provided by law. A copy of the newspaper notice shall be mailed by the county to each incorporated
city in the county.
[(b)] (B) [ In addition, notice of the foreclosure proceeding shall be sent by certified and regular
first class mail to the owner or owners ] Delivery of notice to any owners , as shown in the county
deed records, of each property included on the foreclosure list at the address or addresses as re-
flected in the county records under ORS 93.260, 311.555 or 311.560.
(b)(A) Notwithstanding paragraph (a) of this subsection, if it is deemed expedient, notice
of the institution of a foreclosure proceeding may instead be given by personal service, de-
livered either orally or in writing, and confirmed by an affidavit.
(B) The names of the owners that receive notification pursuant to this paragraph, and
the descriptions and other matters relating to their respective properties, may be excluded
from the foreclosure list.
(2) For all notices of foreclosure proceedings, counties shall conduct due diligence to lo-
cate property owners by means including, but not limited to, searches of land, court and
other records, online databases and other resources.
(3) Each notice of a foreclosure proceeding shall include:
(a) The exact amount of unpaid taxes owed, including interest and fees.
(b) The following language, in capital letters, in at least 14-point type:
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WARNING: THERE ARE UNPAID TAXES AND FEES IN THE AMOUNT OF $
ON PROPERTY AT (ADDRESS) WHICH YOU MAY OWN OR HAVE A LEGAL INTEREST
IN. THE PROPERTY WILL BE DEEDED TO THE COUNTY AND YOUR INTEREST WILL
BE TERMINATED UNLESS THE BACK TAXES AND FEES ARE PAID. TO MAKE PAY-
MENT, OR TO RECEIVE FURTHER INFORMATION ABOUT PAYMENT, CONTACT (TAX
COLLECTOR) IMMEDIATELY AT (ADDRESS), (TELEPHONE NUMBER).
IF THE PROPERTY IS DEEDED TO THE COUNTY AS A WAY OF COLLECTING THE
BACK TAXES AND FEES OWED, AND THE PROPERTY IS WORTH MORE THAN YOU
OWE, YOU ARE ENTITLED TO A RETURN OF MONEY FROM THE COUNTY. IN ORDER
TO RECEIVE A NOTICE OF A POTENTIAL SURPLUS FROM THE COUNTY, PLEASE
PROVIDE THE COUNTY WITH NOTICE OF A CURRENT ADDRESS, AND UPDATE THAT
ADDRESS IF YOU MOVE.
THERE ARE GOVERNMENT AGENCIES AND NONPROFIT ORGANIZATIONS THAT
CAN GIVE YOU INFORMATION ABOUT FORECLOSURE AND HELP YOU DECIDE WHAT
TO DO. FOR GENERAL INFORMATION AT NO COST TO YOU, CONTACT A CERTIFIED
HOUSING COUNSELOR. YOU CAN FIND A HOUSING COUNSELOR NEAR YOU AT
HTTPS://WWW.HUD.GOV/STATES/OREGON#HOMEOWNERSHIP. YOU MAY ALSO WANT
TO TALK TO A LAWYER. YOU CAN REACH THE OREGON STATE BAR’S LAWYER RE-
FERRAL SERVICE AT 800-452-7636 (TOLL-FREE IN OREGON) OR VISIT THE WEBSITE
AT WWW.OSBAR.ORG. FREE LEGAL ASSISTANCE MAY ALSO BE AVAILABLE TO IN-
DIVIDUALS WITH LOW INCOMES. FOR MORE INFORMATION AND A DIRECTORY OF
LEGAL AID PROGRAMS, GO TO WWW.OREGONLAWHELP.ORG.
(c) At a minimum, the name, requirements and application process of any existing
property tax deferral program operated by this state or by any county or municipal govern-
ment within this state.
(d) Information regarding local lawyer referral services, legal aid programs or foreclo-
sure avoidance programs known by the county and operated by local state agencies, the
Oregon State Bar or charitable nonprofit organizations that may be able to provide the
owner with assistance in the foreclosure process.
(e) A referral, in the five most commonly spoken languages in this state other than
English listed by the Secretary of State pursuant to ORS 251.167, to the website of the Un-
claimed Property program of the State Treasury at https://unclaimed.oregon.gov for a
translation of the notice into those languages. The translated referral shall include the
statement, “This is a notice about important rights related to your property.”
[(2)] (4) Each notice given under [ subsection (1) or (4) of ] this section shall identify the particular
property or properties that [ is] are the subject of the notice.
[(3)] (5) All persons owning or claiming to own, or having or claiming to have, any interest in
[any] property included in the foreclosure list are required to take notice of [ such] the foreclosure
proceeding and of all steps [ thereunder] under the proceeding.
[(4) If it is deemed expedient to do so, notice of the institution of the foreclosure proceeding may
be given by personal service. Notice by personal service shall be in lieu of service by publication and
certified and regular first class mail required by subsection (1) of this section as to the defendant or
defendants so served, and it shall not be necessary to include in the publication of the foreclosure list
the names of such defendants or the descriptions or other matters relating to their respective
properties.]
SECTION 2. ORS 312.125 is amended to read:
312.125. (1)(a) Not less than one year prior to the expiration of the period of redemption of any
real property ordered sold to the county under a judgment under ORS 312.100, the tax collector
shall provide notice of the expiration of the period of redemption to any person or entity entitled
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to redeem the property under ORS 312.120 (2) whose interest appears in the records of the county
as of the date foreclosure proceedings were instituted.
(b) Any person or entity whose interest has terminated by any means other than a judgment
of foreclosure under ORS 312.120 shall not be entitled to such notice.
(c) Counties shall conduct due diligence to locate interested property owners by means
including, but not limited to, searches of land, court and other records, online databases and
other resources.
[(2) The notice shall contain: ]
(2) Each notice of the expiration of the period of redemption shall include:
(a) The exact amount of unpaid taxes owed, including interest and fees;
(b) The following language, in capital letters, in at least 14-point type:
WARNING: THERE ARE UNPAID TAXES AND FEES IN THE AMOUNT OF $
ON PROPERTY AT (ADDRESS) WHICH YOU MAY OWN OR HAVE A LEGAL INTEREST
IN. THE PROPERTY WILL BE DEEDED TO THE COUNTY AND YOUR INTEREST WILL
BE TERMINATED UNLESS THE BACK TAXES AND FEES ARE PAID. THE REDEMPTION
PERIOD TO PAY THE BACK TAXES AND FEES AND RETAIN YOUR PROPERTY ENDS
ON (DATE). TO MAKE PAYMENT, OR TO RECEIVE FURTHER INFORMATION ABOUT
PAYMENT, CONTACT (TAX COLLECTOR) IMMEDIATELY AT (ADDRESS), (TELEPHONE
NUMBER).
IF THE PROPERTY IS DEEDED TO THE COUNTY AS A WAY OF COLLECTING THE
BACK TAXES AND FEES OWED, AND THE PROPERTY IS WORTH MORE THAN YOU
OWE, YOU ARE ENTITLED TO A RETURN OF MONEY FROM THE COUNTY. IN ORDER
TO RECEIVE A NOTICE OF A POTENTIAL SURPLUS FROM THE COUNTY, PLEASE
PROVIDE THE COUNTY WITH NOTICE OF A CURRENT ADDRESS, AND UPDATE THAT
ADDRESS IF YOU MOVE.
THERE ARE GOVERNMENT AGENCIES AND NONPROFIT ORGANIZATIONS THAT
CAN GIVE YOU INFORMATION ABOUT FORECLOSURE AND HELP YOU DECIDE WHAT
TO DO. FOR GENERAL INFORMATION AT NO COST TO YOU, CONTACT A CERTIFIED
HOUSING COUNSELOR. YOU CAN FIND A HOUSING COUNSELOR NEAR YOU AT
HTTPS://WWW.HUD.GOV/STATES/OREGON#HOMEOWNERSHIP. YOU MAY ALSO WANT
TO TALK TO A LAWYER. YOU CAN REACH THE OREGON STATE BAR’S LAWYER RE-
FERRAL SERVICE AT 800-452-7636 (TOLL-FREE IN OREGON) OR VISIT THE WEBSITE
AT WWW.OSBAR.ORG. FREE LEGAL ASSISTANCE MAY ALSO BE AVAILABLE TO IN-
DIVIDUALS WITH LOW INCOMES. FOR MORE INFORMATION AND A DIRECTORY OF
LEGAL AID PROGRAMS, GO TO WWW.OREGONLAWHELP.ORG.
[(a)] (c) The date of the judgment;
[(b)] (d) The date of expiration of the period of redemption;
[(c)] (e) A warning to the effect that the property ordered sold under the judgment, unless
sooner redeemed, will be deeded to the county immediately on expiration of the period of redemption
[and that every right or interest of any person in the property will be forfeited forever to the county ];
[(d)] (f) A legal description of the property and a tax account number; [ and]
[(e)] (g) The name of the owner as it appears on the latest tax roll[ .];
(h) Information regarding an owner’s right to claim a surplus, if any, under sections 3
to 6 and 8 to 10 of this 2025 Act;
(i) Information regarding local lawyer referral services, legal aid programs or foreclosure
avoidance programs known by the county and operated by local state agencies, the Oregon
State Bar or charitable nonprofit organizations that may be able to provide the owner with
assistance in the foreclosure process;
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(j) Information regarding any relief programs including but not limited to exemptions,
grants or payment plans that are available to the owner; and
(k) A referral, in the five most commonly spoken languages in this state other than
English listed by the Secretary of State pursuant to ORS 251.167, to the website of the Un-
claimed Property program of the State Treasury at https://unclaimed.oregon.gov for a
translation of the notice into those languages. The translated referral shall include the
statement, “This is a notice about important rights related to your property.”
(3)(a) The notice required [ to be given under subsections (1) and (2) of ] under this section shall
be given by both certified mail and by regular first class mail and subsections (4) and (5) of this
section shall apply to both mailings.
(b) A copy of the notice shall be posted to the county’s public website.
(4)(a) If the notice required under [subsections (1) and (2) of ] this section is to be given to an
owner, the notice shall be addressed to the owner or owners, as reflected in the county records of
deeds, at the true and correct address of the owner as appearing on the instrument of conveyance
under ORS 93.260 or as furnished under ORS 311.555 or as otherwise ascertained by the tax col-
lector pursuant to ORS 311.560.
(b) If the person or entity to whom the notice is required under subsection (1) of this section
to be given is a lienholder, or person or entity other than the owner, having or appearing to have
a lien or other interest in the property, the notice shall be addressed to the lienholder, person or
entity at the address that the tax collector knows or after reasonable inquiry has reason to believe
to be the address at which the lienholder, person or entity will most likely receive actual notice.
For the convenience of the county, any lien, instrument or other document, memorandum or writing,
filed on or after September 27, 1987, that creates an interest with respect to which notice is required
to be given under this paragraph, shall contain:
(A) The address of the person or entity holding lien or other interest created by the instrument
or other document, memorandum or writing; and
(B) The tax account number, if any, and if known, of the property subject to the lien or in which
the interest is created.
(5) Failure of a lien, instrument or other document, memorandum or other writing to contain the
address and tax account number information required under subsection (4)(b) of this section does
not invalidate the lien, instrument or other document, memorandum or writing, nor shall the failure
of the writing to contain the information relieve the tax collector of the duty to obtain and mail the
notice required under subsection (4)(b) of this section to the address that the tax collector believes
to be the address at which the lienholder, person or entity is most likely to receive actual notice.
(6) For purposes of subsection (4)(b) of this section, if the lienholder is a corporation or a limited
partnership, the tax collector shall be considered to have made reasonable inquiry if the notice is
mailed to the registered agent or last registered office of the corporation or limited partnership, if
any, as shown by the records on file in the office of the Corporation Commissioner, or if the cor-
poration or limited partnership is not authorized to transact business in this state, to the principal
office or place of business of the corporation or limited partnership.
(7)(a) As used in this section, “records of the county” means the following:
(A) The grantor-grantee indexes.
(B) Other records of deeds, mortgages, powers of attorney, contracts and other instruments,
documents or memorandum of conveyance or otherwise of real property that are described in ORS
205.130 (1) and (2).
(C) The County Clerk Lien Record described in ORS 205.130 (3).
(D) Records of federal tax liens and other liens, instruments or other documents or writings
reflecting an interest in real property described in ORS 205.246, if those records are kept separately
from the records described in paragraph (b) of this subsection.
(E) Records of statutory liens on real property described in ORS 87.372.
(F) Any other records of interests in real property required to be kept by the county clerk, if
the records contain a legal description of the property and an address specifically designated as
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indicated on the instrument, document or other memorandum or writing for purposes of mailing the
notice required by this section.
(b) For purposes of this section [ only], “records of the county” includes:
(A) The appropriate records of the courts described in ORS 7.010 in the custody of the clerk of
the appropriate court or court administrator under ORS 7.110; and
(B) Probate records in the custody of the clerk of the appropriate court or court administrator
under ORS 7.230 and 7.240. Notwithstanding any provision to the contrary in ORS chapter 7 or
other law, the clerk of the appropriate court or the court administrator shall make available to and
assist the tax collector in the examination of the records described in this paragraph for purposes
of carrying out the obligations of the tax collector under this section without charge.
SECTION 3. Notice of surplus. (1) Within 60 days after the date on which a claim for a
surplus could arise under section 9 of this 2025 Act, the county shall deliver notice of a
surplus to:
(a) The claimant at the claimant’s last known address;
(b) The Estates Administration Program of the State Treasury;
(c) The Department of Revenue;
(d) The Department of Justice; and
(e) The municipality, if any, in which the property to which the surplus relates is located.
(2) Each notice shall include:
(a) At the top of the notice in capital letters, in at least 14-point type, the following lan-
guage:
NOTICE: YOU ARE ENTITLED TO A REFUND OF MONEY HELD BY THE COUNTY.
TO RECEIVE MORE INFORMATION AND ASSISTANCE, CONTACT THE OREGON STATE
TREASURY AT (ADDRESS) (PHONE NUMBER). THERE ARE GOVERNMENT AGENCIES
AND NONPROFIT ORGANIZATIONS THAT CAN GIVE YOU INFORMATION ABOUT
FORECLOSURE AND HELP YOU DECIDE WHAT TO DO. FOR GENERAL INFORMATION
AT NO COST TO YOU, CONTACT A CERTIFIED HOUSING COUNSELOR. YOU CAN FIND
A HOUSING COUNSELOR NEAR YOU AT
HTTPS://WWW.HUD.GOV/STATES/OREGON#HOMEOWNERSHIP. YOU MAY ALSO WANT
TO TALK TO A LAWYER. YOU CAN REACH THE OREGON STATE BAR’S LAWYER RE-
FERRAL SERVICE AT 800-452-7636 (TOLL-FREE IN OREGON) OR VISIT THE WEBSITE
AT WWW.OSBAR.ORG. FREE LEGAL ASSISTANCE MAY ALSO BE AVAILABLE TO IN-
DIVIDUALS WITH LOW INCOMES. FOR MORE INFORMATION AND A DIRECTORY OF
LEGAL AID PROGRAMS, GO TO WWW.OREGONLAWHELP.ORG.
(b) The following information in clear and understandable terms:
(A) The amount of the surplus that the county has determined is owed to the claimant;
(B) An explanation of who may be a claimant;
(C) An explanation of the process by which a claimant may file a claim under section 9
of this 2025 Act;
(D) The claimant’s right to seek a writ of review of the surplus from the county circuit
court under ORS 34.010 to 34.100 and the deadline for filing for the writ; and
(E) A referral, in the five most commonly spoken languages in this state other than
English listed by the Secretary of State pursuant to ORS 251.167, to the website of the Un-
claimed Property program of the State Treasury at https://unclaimed.oregon.gov for a
translation of the notice into those languages. The translated referral shall include the
statement, “This is a notice about important rights related to your property.”
(3) Publication of an available surplus, a description of the property to which the surplus
relates, the names of the claimants and information about the process by which a claimant
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may file a claim under section 9 of this 2025 Act shall be made available on the websites of
the state and the county in which the property is located.
SECTION 3a. The State Treasury shall make the notices required under ORS 312.040 and
312.125 and section 3 of this 2025 Act available to the public on the State Treasury’s Internet
website.
SECTION 4. Additional notices. A county shall provide notice to the Department of Re-
venue, the Department of Justice and the municipality, if any, in which the property is lo-
cated:
(1) That proceedings to foreclose liens for delinquent taxes on the property have been
instituted under ORS 312.050, to be provided on the date on which the proceedings are insti-
tuted; and
(2) That one year remains before the period of redemption for the property expires under
ORS 312.120, to be provided not less than one year prior to the expiration of the period of
redemption.
DEFINITIONS
SECTION 5.
Definitions. As used in sections 3 to 6 and 8 to 10 of this 2025 Act:
(1)(a) “Claimant” means:
(A) The owner of real property as of the date on which the property was sold to the
county on foreclosure for delinquent taxes under ORS 312.100; or
(B) The former owner’s estate, heirs, devisees, power of attorney, trustee, guardian,
custodian or bankruptcy estate or a successor in interest that has acquired substantially all
of the former owner’s assets by intestate succession, probate, merger, acquisition, dissol-
ution or takeover.
(b) “Claimant” does not include:
(A) The creditors or garnishor of a claimant;
(B) Other persons holding an interest in the property that was sold to the county; or
(C) Voluntary or involuntary assignees of a claimant’s interest in a surplus.
(2) “Former owner” means an owner described in subsection (1)(a)(A) of this section.
(3) “Surplus” has the meaning given that term by section 8 of this 2025 Act.
DISPOSITION OF FORECLOSED PROPERTY
SECTION 6.
Sale, retention or transfer of foreclosed property; deposit of sale proceeds.
(1)(a)(A) After the expiration of the statutory redemption period under ORS 312.120 or
312.122, the county may elect to retain the property for public purposes or transfer title to
the property to a nonprofit organization for purposes of public benefit.
(B) The county shall procure an appraisal from a licensed appraiser that is unaffiliated
with the county for property described in this paragraph.
(b) Property that the county does not retain or transfer under paragraph (a) of this
subsection shall be sold in accordance with subsections (2) and (3) of this section.
(2)(a) This subsection applies to property that is located in a residential zone and that
was the former owner’s primary residence as of the date on which the taxes for which the
property was foreclosed were assessed.
(b) The county shall list such property for sale with a real estate broker or agent who
does not hold an elected or appointed office and is not employed by any government entity.
(c) The county shall procure an appraisal from a licensed appraiser that is unaffiliated
with the county for property described in this subsection if the real market value of the
property as shown on the most recent tax statement exceeds $250,000.
(d) The list price shall be the highest price at which the property is reasonably expected
to sell.
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(3)(a) The county shall conduct a public, high-bid auction for sale of property if:
(A) After three attempts, the county is unable to enter into an agreement with a real
estate broker or agent for the sale of the property in accordance with subsection (2)(b) of
this section;
(B) The real estate broker or agent described in subsection (2)(b) of this section is unable
to sell the property within 12 months after listing the property; or
(C) The property is not property described in subsection (1)(a)(A) or (2)(a) of this section.
(b) The property shall be sold to the highest bidder at auction, provided the bid exceeds
the outstanding taxes and other allowable costs chargeable against the property as deter-
mined under section 8 (4) of this 2025 Act.
(c) The auction shall include the following:
(A) Advertisements in a multiple listing service for at least 30 days prior to the date of
the auction.
(B) If a private party is engaged to operate and advertise the auction, a limited fee to the
private party in an amount equal to three percent of the surplus related to the property.
(C) A minimum starting bid of two-thirds of the property’s fair market value as deter-
mined under paragraph (d) of this subsection.
(d) For purposes of this section, the fair market value of the property shall be, as of the
date on which the property was deeded to the county under ORS 312.200:
(A) The real market value of the property for ad valorem property tax purposes as shown
on the most recent tax statement; or
(B) For property required to be appraised under subsection (1)(a)(B) or (2)(c) of this
section, the appraised value if greater than the real market value.
(e) The auction may include an online bidding process in which bids are received elec-
tronically over the Internet in real time.
(4) For property that fails to sell at auction under subsection (3) of this section, the
county shall conduct a public high-bid auction that meets the requirements of subsection
(3)(c) of this section except that the minimum starting bid shall equal the outstanding taxes
and other allowable costs chargeable against the property.
(5) For property that fails to sell at auction under subsection (4) of this section, the
county may forgive the amount of outstanding taxes and other allowable costs chargeable
to the property and retain the property for public purposes or transfer title to the property
to a nonprofit organization for purposes of public benefit.
(6) An appraisal conducted for purposes of subsection (1)(a)(B) or (2)(c) of this section
does not require a redetermination of the real market value, maximum assessed value or
assessed value of the property for ad valorem property tax purposes.
(7) As provided in ORS 279A.025, the Public Contracting Code does not apply to any
agreement that a county enters into with a real estate broker or agent, auctioneer, appraiser
or any other person for the purpose of disposing of property in accordance with this section.
(8) Upon sale of real property foreclosed under this chapter, the county treasurer shall
deposit the gross amount of the sales proceeds in a separate, interest-bearing account until
the amount of the surplus has been determined. Interest earned on the proceeds in the ac-
count shall be included in the amount to be distributed.
SECTION 7.
ORS 279A.025 is amended to read:
279A.025. (1) Except as provided in subsections (2) to (4) of this section, the Public Contracting
Code applies to all public contracting.
(2) The Public Contracting Code does not apply to:
(a) Contracts between a contracting agency and:
(A) Another contracting agency;
(B) The Oregon Health and Science University;
(C) A public university listed in ORS 352.002;
(D) The Oregon State Bar;
Enrolled House Bill 2089 (HB 2089-A) Page 7
(E) A governmental body of another state;
(F) The federal government;
(G) An American Indian tribe or an agency of an American Indian tribe;
(H) A nation, or a governmental body in a nation, other than the United States; or
(I) An intergovernmental entity formed between or among:
(i) Governmental bodies of this or another state;
(ii) The federal government;
(iii) An American Indian tribe or an agency of an American Indian tribe;
(iv) A nation other than the United States; or
(v) A governmental body in a nation other than the United States;
(b) Agreements authorized by ORS chapter 190 or by a statute, charter provision, ordinance or
other authority for establishing agreements between or among governmental bodies or agencies or
tribal governing bodies or agencies;
(c) Insurance and service contracts as provided for under ORS 414.115, 414.125, 414.135 and
414.145 for purposes of source selection;
(d) Grants;
(e) Contracts for professional or expert witnesses or consultants to provide services or testi-
mony relating to existing or potential litigation or legal matters in which a public body is or may
become interested;
(f) Acquisitions or disposals of real property or interest in real property;
(g) Sole-source expenditures when rates are set by law or ordinance for purposes of source se-
lection;
(h) Contracts for the procurement or distribution of textbooks;
(i) Procurements by a contracting agency from an Oregon Corrections Enterprises program;
(j) The procurement, transportation, sale or distribution of distilled liquor, as defined in ORS
471.001, or the appointment of agents under ORS 471.230 or 471.750 by the Oregon Liquor and
Cannabis Commission;
(k) Contracts entered into under ORS chapter 180 between the Attorney General and private
counsel or special legal assistants;
(L) Contracts for the sale of timber from lands that the State Board of Forestry, the State
Forestry Department, the State Parks and Recreation Commission or the State Parks and Recreation
Department owns or manages;
(m) Contracts for activities necessary or convenient for the sale of timber under paragraph (L)
of this subsection, either separately from or in conjunction with contracts for the sale of timber,
including but not limited to activities such as timber harvesting and sorting, transporting, gravel
pit development or operation, and road construction, maintenance or improvement;
(n) Contracts for forest protection or forest related activities, as described in ORS 477.406, by
the State Forester or the State Board of Forestry;
(o) Contracts that the Housing and Community Services Department enters into in exercising
the department’s duties prescribed in ORS chapters 456 and 458, or procurements described in ORS
456.625 (19);
(p) Contracts that the State Treasurer enters into in exercising the powers of that office pre-
scribed in ORS 178.010 to 178.090 and 276A.242 and ORS chapters 286A, 287A, 289, 293, 294 and 295,
including but not limited to investment contracts and agreements, banking services, clearing house
services and collateralization agreements, bond documents, certificates of participation and other
debt repayment agreements, and any associated contracts, agreements and documents, regardless
of whether the obligations that the contracts, agreements or documents establish are general, spe-
cial or limited, except that the State Treasurer’s public contracting for goods and services is subject
to ORS chapter 279B;
(q) Contracts, agreements or other documents entered into, issued or established in connection
with:
(A) The issuance of obligations, as defined in ORS 286A.100 and 287A.310, of a public body;
Enrolled House Bill 2089 (HB 2089-A) Page 8
(B) Program loans and similar extensions or advances of funds, aid or assistance that a public
body makes to a public or private body for the purpose of carrying out, promoting or sustaining
activities or programs authorized by law; or
(C) The investment of funds by a public body as authorized by law, and other financial trans-
actions of a public body that by their character cannot practically be established under the com-
petitive contractor selection procedures of ORS 279B.050 to 279B.085;
(r) Contracts for employee benefit plans as provided in ORS 243.105 (1), 243.125 (4), 243.221,
243.275, 243.291, 243.303 and 243.565;
(s) Contracts for employee benefit plans as provided in ORS 243.860 to 243.886; [ or]
(t) Any agreement that a county enters into with a real estate broker or agent,
auctioneer, appraiser or any other person for the purpose of disposing of property in ac-
cordance with section 6 of this 2025 Act; or
[(t)] (u) Any other public contracting of a public body specifically exempted from the code by
another provision of law.
(3) The Public Contracting Code does not apply to the contracting activities of:
(a) The Oregon State Lottery Commission;
(b) The legislative department;
(c) The judicial department;
(d) Semi-independent state agencies listed in ORS 182.454, except as provided in ORS 279.835 to
279.855 and 279A.250 to 279A.290;
(e) Oregon Corrections Enterprises;
(f) The Oregon Film and Video Office, except as provided in ORS 279A.100 and 279A.250 to
279A.290;
(g) The Travel Information Council, except as provided in ORS 279A.250 to 279A.290;
(h) The Oregon 529 Savings Network and the Oregon 529 Savings Board;
(i) The Oregon Innovation Council;
(j) The Oregon Utility Notification Center; or
(k) Any other public body specifically exempted from the code by another provision of law.
(4) ORS 279A.200 to 279A.225 and 279B.050 to 279B.085 do not apply to contracts made with
qualified nonprofit agencies providing employment opportunities for individuals with disabilities un-
der ORS 279.835 to 279.855.
SURPLUSES
SECTION 8.
Determination of surplus. (1) As used in this section, “surplus” means an
amount equal to the value of real property sold to a county on foreclosure under this chap-
ter, and disposed of by the county in accordance with section 6 of this 2025 Act, less the al-
lowable costs the county may charge against the property under subsection (4) of this
section.
(2) The amount of a surplus shall be determined within 60 days after the date on which
the gross sales proceeds from the sale of the property are deposited in a separate, interest-
bearing account under section 6 (8) of this 2025 Act or the value of the property has other-
wise been determined under subsection (3) of this section.
(3) For purposes of determining a surplus, the value of the property shall be:
(a) For property retained by the county or transferred to a nonprofit organization under
section 6 (1)(a) of this 2025 Act, the fair market value of the property as determined under
section 6 (3)(d) of this 2025 Act.
(b) The stated consideration on a deed from the county to a bona fide purchaser, as de-
fined in ORS 275.088:
(A) For property sold by listing with a real estate broker or agent under section 6 (2)(b)
of this 2025 Act; or
(B) For property sold at auction under section 6 (3) or (4) of this 2025 Act.
Enrolled House Bill 2089 (HB 2089-A) Page 9
(c) For property that fails to sell at auction under section 6 (3) or (4) of this 2025 Act,
the amount forgiven under section 6 (5) of this 2025 Act.
(4) In determining a surplus, the allowable costs that the county may charge against the
property include:
(a) The amount of the judgment under ORS 312.090 and accruing post-judgment interest;
(b) The amount of taxes and interest on the taxes that would have been due following the
judgment during the redemption period and through the earlier of:
(A) The date on which the county sold or conveyed the property to a third party; or
(B) The date on which the claim is made;
(c) Additional costs that the county may claim under ORS 275.275 (1)(a) to (c);
(d) Costs to reimburse the claim of a municipal corporation that has filed a claim notice
under ORS 275.130;
(e) Penalties allowed under ORS 312.990, or the actual costs paid by the county to miti-
gate or abate a nuisance, including as described in ORS 105.555, that was caused or permitted
by the negligence or neglect of the former owner; and
(f) In lieu of the penalty and fee under ORS 312.120, the reasonable fees related to the
foreclosure and the efforts to dispose of the property, including the costs of legal fees, de-
livering notices, county staff time, court filing fees, appraisals, professional real estate
commission and auction fees.
(5) The county shall provide a claimant with an itemized accounting of all allowable costs
deducted when determining the surplus.
SECTION 9.
Claim of surplus. (1) A claimant is entitled to a return of a surplus, if any,
in the amount determined under section 8 of this 2025 Act, as of the date on which the
county disposes of the claimant’s property as described in section 8 (3) of this 2025 Act.
(2) A claim for a surplus must be made with the State Treasurer in the manner provided
by ORS 98.392 and 98.396.
(3)(a) If the estate of a deceased former owner will not be probated, the State Treasurer
shall allow a claim to be made by the heirs, devisees or a person named as a personal rep-
resentative in the deceased former owner’s will or an estate administrator appointed by the
State Treasurer.
(b) A claim made under this subsection must include:
(A) A copy of the former owner’s death certificate;
(B) A copy of the former owner’s will, if any;
(C) A statement that the estate is not being probated and that a small estate affidavit
is not being filed for the estate;
(D) The identity of each beneficiary of the claim;
(E) The proportion of the surplus distributable to each beneficiary; and
(F) Signatures of all beneficiaries of the claim acknowledging their participation in the
claim.
(c) If there are multiple heirs, an heir who has occupied the property as a primary resi-
dence for more than one year is presumed to have authority to receive the surplus on behalf
of all heirs, in the absence of a written agreement among heirs or objection by a nonresident
heir.
(4) A claimant does not have any interest in a surplus during the period of redemption
or any other time prior to the date on which the claim arises under subsection (1) of this
section.
(5)(a) A person other than a claimant may claim the surplus based upon a valid lien
against the property or a debt of the claimant.
(b) Any purported assignment of a claim to the surplus is void except for an assignment
made for the protection of the interests of the claimant, including an assignment in a
bankruptcy proceeding, power of attorney or custodianship or guardianship proceedings.
Enrolled House Bill 2089 (HB 2089-A)Page 10
(6) Nothing in sections 3 to 6 and 8 to 10 of this 2025 Act extinguishes any debt obligation
of a former owner that is outstanding as of the date on which title to the property is con-
veyed to the county under ORS 312.270, other than the property tax amounts that were ex-
tinguished by the conveyance to the county.
SECTION 10. Surplus as unclaimed property. (1) A surplus is unclaimed property under
ORS 98.302 to 98.436.
(2)(a) Except as provided in paragraph (b) of this subsection, the governing body of the
county shall file the report, and deliver the surplus, in the amount determined under section
8 of this 2025 Act, to the State Treasurer for deposit, as provided in ORS 98.352.
(b) Notwithstanding ORS 98.352 (4), the governing body shall file the report and deliver
the surplus within 30 days after the date on which the surplus is determined.
(3) The report shall include:
(a) The information required under ORS 98.352 (2); and
(b) An itemized accounting of all allowable costs charged against the property when de-
termining the surplus under section 8 (4) of this 2025 Act.
(4) The State Treasurer may adopt rules governing the reports required under this sec-
tion.
(5)(a) Except as provided in paragraph (b) of this subsection, no person may maintain an
action for damages incurred as a result of the performance of duties or exercise of authority
under sections 3 to 6 and 8 to 10 of this 2025 Act by the State Treasurer or the respective
officers, employees or agents of the State Treasurer and the several counties.
(b) The immunity provided in paragraph (a) of this subsection does not apply to the li-
ability of any person for damages resulting from gross negligence, fraud or abuse.
SECTION 11.
ORS 98.352 is amended to read:
98.352. (1) A holder of property presumed abandoned under ORS 98.302 to 98.436 and 98.992 shall
deliver to the State Treasurer the report described in subsection (2) of this section and shall pay
or deliver to the State Treasurer, for deposit in the Unclaimed Property and Estates Fund, all
property presumed abandoned, except that for the following funds the holder is not required to de-
liver the funds presumed abandoned to the State Treasurer:
(a) Funds transferred to the General Fund under ORS 293.455 (1)(a).
(b) Funds in the possession of the Child Support Program described in ORS 180.345.
(c) Funds described in ORS 9.725 (3) or 98.386 (2) that are held in lawyer trust accounts or in
the possession of the Oregon State Bar.
(2) A report must include:
(a) Except with respect to traveler’s checks and money orders, the name, if known, and address,
if known, of each person appearing from the records of the holder to be the owner of any property
of value of $50 or more presumed abandoned under ORS 98.302 to 98.436 and 98.992;
(b) In case of unclaimed funds of life insurance corporations, the full name of the insured or
annuitant and last-known address according to the life insurance corporation’s records;
(c) The nature and identifying number, if any, or description of the property and the amount
appearing from the records to be due, except that items of value under $50 each may be reported
in aggregate;
(d) The date when the property became payable, demandable, or returnable, and the date of the
last transaction with the owner with respect to the property; and
(e) Other information that the State Treasurer prescribes by rule as necessary for the adminis-
tration of ORS 98.302 to 98.436 and 98.992.
(3) If the holder of property presumed abandoned is a successor to other holders or has had a
name change while holding the property, the holder shall file with the report all prior known names
and addresses and effective dates of changes.
(4) Except as otherwise provided under section 10 (2) of this 2025 Act, the holder shall file
the report after October 1, but no later than November 1, of each year for accounts dormant as of
June 30. Upon written request from any person required to file a report, the State Treasurer may
Enrolled House Bill 2089 (HB 2089-A) Page 11
postpone the reporting date. All records are exempt from public review for 12 months from the time
the property is reportable and for 24 months after the property has been remitted to the State
Treasurer. All lists of records or property held by a government or public authority under ORS
98.336 are exempt from public review until 24 months after the property is remitted to the State
Treasurer.
(5) If the holder of property presumed abandoned under ORS 98.302 to 98.436 and 98.992 knows
the whereabouts of the owner and if the owner’s claim is not barred by the statute of limitations,
the holder shall, before filing the report, communicate with the owner and take necessary steps to
prevent abandonment from being presumed. The holder shall exercise due diligence to ascertain the
whereabouts of the owner at least 60 days before filing the report.
(6) If the property presumed abandoned is a lawyer trust account established by an attorney or
law firm, the report required by this section must indicate that the account is a lawyer trust ac-
count.
(7) The holder shall verify the accuracy of the information contained in the report. Verification
must be executed by a partner if made by a partnership, by an officer if made by an unincorporated
association or private corporation and by the chief fiscal officer if made by a public corporation.
PROCEDURAL SECTIONS
SECTION 12. Sections 3 to 6 and 8 to 10 of this 2025 Act are added to and made a part
of ORS chapter 312.
SECTION 13. Applicability to new foreclosures. (1) Sections 3 to 6 and 8 to 10 of this 2025
Act and the amendments to ORS 98.352, 279A.025, 312.040 and 312.125 by sections 1, 2, 7 and
11 of this 2025 Act apply to claims for which the claimant received notice under ORS 312.125
on or after May 25, 2023.
(2) For claims for a surplus that could arise under section 9 of this 2025 Act with respect
to which the claimant received notice under ORS 312.125 before the effective date of this 2025
Act, the notice of a surplus required under section 3 of this 2025 Act shall be made within
60 days after the effective date of this 2025 Act.
CAPTIONS
SECTION 14. The unit and section captions used in this 2025 Act are provided only for
the convenience of the reader and do not become part of the statutory law of this state or
express any legislative intent in the enactment of this 2025 Act.
EFFECTIVE DATE
SECTION 15. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
Enrolled House Bill 2089 (HB 2089-A) Page 12
Passed by House June 10, 2025
..................................................................................
Timothy G. Sekerak, Chief Clerk of House
..................................................................................
Julie Fahey, Speaker of House
Passed by Senate June 20, 2025
..................................................................................
Rob Wagner, President of Senate
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled House Bill 2089 (HB 2089-A) Page 13