Key Points Explained in Detail:
- Current Residency Requirement in Oregon Law
Oregon law currently mandates that individuals seeking a title insurance producer license must be residents of the state. This restriction is found in two statutes:- ORS 744.062(1)(i): Lists the qualifications required for a title insurance producer license, including residency.
- ORS 744.063(6): Reinforces the residency requirement.
Because of these laws, nonresidents cannot obtain a title insurance producer license in Oregon.
- Legal Challenge to the Residency Requirement
A nonresident applicant who was denied a title insurance producer license due to this requirement has filed a lawsuit claiming that the residency rule violates the Privileges and Immunities Clause of the U.S. Constitution (Article IV, Section 2). This clause is designed to prevent states from discriminating against out-of-state residents in ways that affect their ability to conduct business or seek employment. - DCBS’s Position on the Lawsuit
The Oregon Department of Consumer and Business Services (DCBS), which regulates insurance producers, has agreed with the plaintiff and informed the court that it believes the residency requirement is unconstitutional. This means that DCBS does not intend to defend the law in court. - Court Invitation for Amicus Briefs
- The U.S. District Court for the District of Oregon is handling this case (Polk v. Stolfi, Case No. 3:24-cv-01670-IM).
- The court has issued an invitation for interested parties to submit amicus briefs (also called “friend of the court” briefs), which allow third parties to present legal arguments or perspectives on the case.
- The deadline for submitting amicus briefs is April 21, 2025.
- Who Might Submit an Amicus Brief?
Organizations, industry groups, or individuals who have an interest in title insurance regulation, business licensing laws, or constitutional issues might choose to submit amicus briefs. Examples include:- Title insurance companies (who may support or oppose the rule change).
- Other state regulators (who may want to weigh in on similar laws in their states).
- Business and trade organizations (who may have concerns about economic impact).
- Civil rights or legal advocacy groups (who may focus on constitutional law arguments).
- Next Steps for Recipients of the Notice
- If you do not wish to be involved, no action is required.
- If you want to submit an amicus brief, you must follow the instructions in the attached court order and submit your brief by April 21, 2025.
- If you have questions, you can contact Brian Marshall, Senior Assistant Attorney General at the Oregon Department of Justice, via email (Brian.S.Marshall@doj.oregon.gov).
Implications of the Case
If the court agrees that the residency requirement is unconstitutional, it could result in:
- Nonresidents being allowed to obtain title insurance producer licenses in Oregon.
- Potential changes to similar laws in other states.
- A legal precedent affecting state-imposed residency requirements in other professions.
Would you like further details on any part of this?