71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1027
 
                         House Bill 2190
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor John A. Kitzhaber,
  M.D., for State Landscape Contractors Board)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Changes terminology in Landscape Contractors Law. Renames
licensed landscape contractors to certified responsible managing
individuals. Renames landscape businesses to landscape
contractors.
  Limits ability of individual to act as responsible managing
individual for landscape contractor in which individual lacks
ownership interest. Allows landscape contractor 90 days to
replace responsible managing individual who ceases employment.
 
                        A BILL FOR AN ACT
Relating to practice of landscaping; amending ORS 447.060,
  448.279, 479.940, 571.045, 571.250, 671.315, 671.520, 671.525,
  671.530, 671.540, 671.550, 671.555, 671.560, 671.565, 671.570,
  671.572, 671.575, 671.578, 671.580, 671.590, 671.610, 671.613,
  671.615, 671.625, 671.628, 671.650, 671.660, 671.690, 671.700,
  671.703, 671.707, 671.710, 671.720, 701.010 and 701.015.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 447.060 is amended to read:
  447.060. (1) Nothing in ORS 447.010 to 447.160 prevents a
person from:
  (a) Engaging in plumbing work when not so engaged for hire.
  (b) Using the services of regular employees in performing
plumbing work for the benefit of property owned, leased or
operated by such employer.
  (c) Using the services of an employee or contractor of a
utility company, energy service provider or water supplier to
install an approved low-flow showerhead or faucet aerator in
existing plumbing fixtures. The devices installed under this
paragraph are exempt from the licensing, permit and inspection
requirements of this chapter and ORS chapter 693.
  (2) For purposes of subsection (1) of this section, a ' regular
employee' means a person who is subject to the provisions of ORS
316.162 to 316.212 and who has completed a withholding exemptions
certificate required by the provisions of ORS 316.162 to 316.212.
  (3) A licensee under ORS 671.560 (2) is not required to be
registered under ORS 447.010 to 447.160 to install irrigation
backflow devices if the   { - installer is licensed - }  { +
individual performing the work is certified + } as required by
ORS 671.615. The exemptions established under this subsection do
not exempt the person from the inspection and permit requirements
of this chapter.
  (4) This section applies to any person, including but not
limited to  { - , - }  individuals, corporations, associations,
firms, partnerships, joint stock companies, public and municipal
corporations, political subdivisions, this state and any agencies
thereof, and the federal government and any agencies thereof.
  SECTION 2. ORS 448.279 is amended to read:
  448.279. (1) The Health Division by rule shall establish a
certification program for persons who inspect cross connections
or test backflow prevention device assemblies. The program shall
include minimum qualifications necessary for a person to be
certified to:
  (a) Conduct a cross connection inspection; and
  (b) Test a backflow prevention device assembly.
  (2) Except for an employee of a water supplier as defined in
ORS 448.115, a person certified under this section
 { - shall - }  { +  must + }:
  (a) Become licensed as a construction contractor with the
Construction Contractors Board as provided under ORS chapter 701;
or
  (b) Become   { - licensed - }  { +  certified + } as a { +
responsible managing individual of a + } landscape contractor as
provided under ORS
  { - 671.510 to 671.710 - }  { +  671.560 + }.
  (3) In conjunction with the certification program established
under subsection (1) of this section, the Health Division may
establish and collect a fee from an individual requesting
certification under the program. A fee imposed under this
subsection shall:
  (a) Not be refundable; and
  (b) Not exceed the cost of administering the certification
program of the division for which purpose the fee is established,
as authorized by the Legislative Assembly within the budget of
the division and as the budget may be modified by the Emergency
Board.
  (4) All moneys collected by the Health Division under this
section shall be deposited in the General Fund to the credit of
an account of the Health Division. Such moneys are continuously
appropriated to the division to pay the cost of administering the
certification program established pursuant to subsections (1) and
(3) of this section.
  SECTION 3. ORS 479.940 is amended to read:
  479.940. (1) The licensure provisions of ORS 479.510 to 479.945
do not apply to the following activity on Class II and III
systems in one and two family dwellings:
  (a) Prewiring of cable television and telephone systems owned
by the owner of the residence;
  (b) Garage door openers;
  (c) Vacuum systems;
  (d) Audio and stereo systems; and
  (e) HVAC.
  (2) The provisions of subsection (1) of this section apply only
to persons or businesses licensed and in good standing with the
Construction Contractors Board.
  (3)(a) The licensure provisions of ORS 479.510 to 479.945 do
not apply to restricted energy electric activity involving
landscape irrigation control wiring and outdoor landscape
lighting installed by a   { - business - }  { +  landscape
contractor + } licensed under ORS
  { - 671.510 to 671.710 - }  { +  671.560 + }.
  (b) A   { - business - }  { +  landscape contractor + } exempt
from licensing under this   { - section - }  { +  subsection + }
shall issue an identification card to its landscape irrigation
control wiring or outdoor landscape lighting installer. The form
for the identification card shall be provided by the State
Landscape Contractors Board. The identification card shall
include the name of the installer, the name and State Landscape
Contractors Board identification number of the   { - landscaping
business - }  { +  landscape contractor + } and the date of issue
of the identification card. The card shall be carried by the
installer at the job site when performing the allowed electric
installations.
  (4) All nonlicensure requirements of ORS 479.510 to 479.945,
including permits for and compliance with the electrical
specialty code { + , + } apply to activities conducted under
subsections (1) to (3) of this section. If any person or business
repeatedly violates the permit or code compliance requirements,
in addition to any other remedy, the board may suspend, condition
or revoke a person's or business's right to use this provision.
  SECTION 4. ORS 571.045 is amended to read:
  571.045. ORS 571.055 (1) and 571.057 do not apply to:
  (1) Any person whose business consists only of retail sales to
the ultimate consumer and the total of such sales of nursery
stock does not exceed $250 during a fiscal year. Except as
provided in subsection (2) of this section, the provisions of ORS
564.040, 564.991, 571.005 to 571.230 and 571.991 apply at any
time the sales of nursery stock exceed $250 during a fiscal year.
  (2) A person licensed as a   { - landscaping business - }
 { + landscape contractor + } under ORS 671.560   { - and 671.565
who - }  { +  that + } does not grow plants, does not store
plants except as provided by the State Department of Agriculture
by rule, and acquires all plants from a nursery licensed under
this chapter.
  SECTION 5. ORS 571.250 is amended to read:
  571.250. The State Landscape Contractors Board and the State
Department of Agriculture shall enter into an interagency
agreement to address how the board and the department shall
ensure that licensed   { - landscaping businesses - }  { +
landscape contractors + } comply with the provisions of this
chapter.
  SECTION 6. ORS 671.315 is amended to read:
  671.315. (1) Unless an individual is a landscape architect
registered under the provisions of ORS 671.310 to 671.459, the
individual shall not use the title of registered landscape
architect, landscape architect, or any title, designation, words,
letters, abbreviations, sign, card or device indicating, or
tending to indicate, or represent in any manner that the
individual is a registered landscape architect.
  (2) ORS 671.310 to 671.459 is not intended to restrict or
otherwise affect the right of any individual to:
  (a) Practice architecture under ORS 671.010 to 671.220;
  (b) Practice engineering under ORS 672.002 to 672.325;
  (c) Engage in the occupation of growing and marketing nursery
stock, or use the title 'nurseryman' or 'landscape nurseryman';
or
  (d) Operate as a  { + responsible managing individual of a + }
landscape contractor under ORS 671.510 to 671.710 { + . + }
 { - or use the title 'landscape contractor. - } '
  (3) Each registered landscape architect shall obtain a stamp of
the design authorized by the State Landscape Architect Board,
bearing the name of the registrant, date of registration, number
of certificate and the legend 'registered landscape architect.  '
The registrant shall stamp all professional documents that the
registrant issues, including maps, plans, designs, contract
documents and reports.
  SECTION 7. ORS 671.520 is amended to read:
  671.520. As used in ORS 671.510 to 671.710, unless the context
requires otherwise:
  (1) 'Board' means the State Landscape Contractors Board.
    { - (2) 'Landscape contractor' means any person who for
compensation or with the intent to be compensated arranges,
undertakes, offers or contracts to undertake, or submits a bid to
perform activities requiring the art, ability, experience,
knowledge, science and skill to: - }
    { - (a) Plan and install lawns, shrubs, vines, trees and
other decorative vegetation including the preparation of property
on which the vegetation is to be installed, and the construction
of fountains and drainage and irrigation systems for decorative
vegetation; - }
    { - (b) Plan and install fences, decks, arbors, driveways,
walkways and retaining walls; or - }
    { - (c) Do any part or any combination of any activity
described in paragraphs (a) and (b) of this subsection. - }
    { - (3) - }  { +  (2) + }   { -  ' Landscaping business - } '
 { +  'Landscape contractor' + } means any business that offers
or provides, for compensation or with the intent to be
compensated, the services of a   { - landscape contractor - }
 { +  responsible managing individual + }.
    { - (4) - }  { +  (3) + } 'Licensee' means a   { - person
or - }  business   { - who - }  { +  that + } is licensed under
ORS   { - 671.510 to 671.710 - }   { + 671.560 + } as a landscape
contractor.
    { - (5) - }  { +  (4) + } 'Nursery stock' means nursery stock
as defined by ORS 571.005 and as further defined by the board
after public hearing.
   { +  (5) 'Responsible managing individual' means an individual
identified in a submission by a landscape contractor under ORS
671.660 (4) as supervising a landscaping operation of the
contractor and who, acting on behalf of the contractor, arranges,
undertakes, offers or contracts to undertake, or submits a bid to
perform services requiring the art, ability, experience,
knowledge, science and skill to:
  (a) Plan and install lawns, shrubs, vines, trees and other
decorative vegetation, including the preparation of property on
which the vegetation is to be installed and the construction of
fountains and drainage and irrigation systems for decorative
vegetation;
  (b) Plan and install fences, decks, arbors, driveways, walkways
and retaining walls; or
  (c) Do any part or any combination of any activity described in
paragraphs (a) and (b) of this subsection. + }
  SECTION 8. ORS 671.525 is amended to read:
  671.525. (1) An applicant for a   { - landscaping business - }
 { +  landscape contractor  + }license must qualify as an
independent contractor, under ORS 670.600, to be licensed with
the State Landscape Contractors Board.
  (2) The board shall establish two classes of independent
contractor registration:
  (a) The nonexempt class is composed of the following entities:
  (A) Sole proprietorships, partnerships, corporations and
limited liability companies with one or more employees; and
  (B) Partnerships, corporations and limited liability companies
with more than two partners, corporate officers or members if any
of the partners, officers or members are not part of the same
family and related as parents, spouses, siblings, children,
grandchildren, sons-in-law or daughters-in-law.
  (b) The exempt class is composed of all sole proprietorships,
partnerships, corporations and limited liability companies that
do not qualify as nonexempt. All partnerships, corporations and
limited liability companies must have a federal tax
identification number.
  (3) If a licensee who qualifies for registration under
subsection (2)(b) of this section hires one or more employees, or
falls into any of the categories set out in subsection (2)(a)(B)
of this section, the licensee is subject to penalties under ORS
671.720 and must reapply to the board for registration in the
correct class.
  (4) The decision of the board that a licensee is an independent
contractor applies only when the licensee is
  { - performing work of the nature - }  { +  offering or
providing services as + } described in ORS 671.520   { - and
671.530 - } .
  SECTION 9. ORS 671.530 is amended to read:
  671.530. (1)   { - No person shall - }  { +  An individual may
not + } operate as a  { + responsible managing individual of
a + } landscape contractor in this state without a valid
 { - landscape contractor's license - }  { +  certificate + }
issued pursuant to ORS 671.560.
  (2)   { - No person shall use the title of landscape
contractor, or - }  { +  An individual may not use + } any title,
sign, card or device indicating, or tending to indicate
 { - , - }  or represent in any manner { + , + } that the
 { - person is a landscape contractor - }  { +  individual is
qualified to practice landscape contracting + } unless the
 { - person - }  { +  individual + } has a valid   { - landscape
contractor's license - }  { +  certificate + } issued pursuant to
ORS 671.560.
  (3)   { - No person shall operate as a landscaping business - }
 { +  A person may not operate as a landscape contractor + } in
this state without a valid   { - landscaping business - }  { +
landscape contractor + } license issued pursuant to ORS 671.560.
  (4)   { - No person shall - }  { +  A person may not + } use
the title of
  { - landscape business - }  { +  landscape contractor + }, or
any title, sign, card or device indicating, or tending to
indicate, advertise or represent in any manner that the person is
a   { - landscape business - }  { +  landscape contractor, + }
unless the person has a valid   { - landscaping business - }
license issued pursuant to ORS 671.560.
  (5) A   { - landscape contractor - }  { +  responsible managing
individual + } is authorized to perform landscaping work only
while in the employ of a   { - landscaping business - }  licensed
and bonded  { + landscape contractor + }   { - as required by ORS
671.510 to 671.710 - } . If the
  { - landscape contractor - }  { +  responsible managing
individual + } is the sole proprietor  { + of the landscape
contractor + }, the   { - contractor - }  { +  individual + }
must also obtain a  { + landscape contractor + } license   { - as
a landscaping business. - }  { +  prior to performing landscaping
work. If an individual acts as a responsible managing individual
for more than one landscape contractor, the individual may not
act as a responsible managing individual for more than one
contractor in which the individual lacks an ownership interest.
For purposes of this subsection, an individual lacks an ownership
interest in a landscape contractor if the individual does not own
at least 20 percent of the contractor, as measured by board
rule. + }
  SECTION 10. ORS 671.540 is amended to read:
  671.540. ORS 671.510 to 671.710 and 671.990 (2) do not apply
to:
  (1) Any federal or state agency or any political subdivision
performing landscaping on public property.
  (2) Any landscape architect registered pursuant to ORS 671.310
to 671.459 and practicing as provided therein.
  (3) Any landscaping work for which the price of all contracts
for labor, materials and other items for a given job site in a
calendar year is less than $500 and the work is of a casual,
minor or inconsequential nature. This subsection does not apply
to a person   { - who - }  { +  that + } advertises or represents
through any manner including a sign, card or other device
 { - which - }  { +  that + } might indicate to the public that
the person is { + , or is qualified to act as, a responsible
 
managing individual or  + }a landscape contractor   { - or a
landscaping business or is qualified to so act - } .
  (4) Any landscaping work that is a casual, minor or
inconsequential incident of maintenance of grounds.
  (5) Installation of fences, decks, arbors, driveways, walkways
or retaining walls when performed by a person or business
licensed with the Construction Contractors Board.
  (6) Grading of plots and areas of land performed in conjunction
with new or remodeling construction when performed by a person or
business licensed with the Construction Contractors Board.
  (7) Any owner of property who contracts for landscaping work to
be performed  { + on that property + } by a landscape contractor
 { +  licensed by the State Landscape Contractors Board + }. This
subsection does not apply to a person who, in pursuit of an
independent business, performs or contracts for the performance
of landscaping work with the intent of offering for sale before,
upon or after completion of the landscaping work, the property
upon which the landscaping work is performed.
  (8) Any landscaping work performed by a person on property that
the person owns or in which the person has a legal interest.
This subsection does not apply to a person who, in pursuit of an
independent business, performs or contracts for the performance
of landscaping work with the intent of offering for sale before,
upon or after completion of the landscaping work, the property on
which the landscaping work is performed.
  (9) A general contractor licensed under ORS chapter 701 who
performs landscaping work if the total value of the landscaping
is less than $2,500 per residential dwelling and the landscaping
work is performed on residential property for which the
contractor is under contract for the construction of a new
dwelling. The State Landscape Contractors Board shall revise the
amount specified in this subsection every five years, beginning
in 2003, based on changes in the Portland Consumer Price Index as
defined in ORS 316.085. This subsection does not apply to a
general contractor performing irrigation work unless the work is
performed pursuant to a permit issued by the local building
official.
  (10) A general contractor licensed under ORS chapter 701 who
performs landscaping work on residential property that is
directly related to local building code requirements or occupancy
ordinances including, but not limited to, the placement of street
trees. This subsection does not apply to a general contractor
performing irrigation work unless the work is performed pursuant
to a permit issued by the local building official.
  SECTION 11. ORS 671.550 is amended to read:
  671.550. (1) The State Landscape Contractors Board may inquire
into and inspect:
  (a) Any services performed or materials furnished by a
  { - licensee under ORS 671.510 to 671.710 - }   { + responsible
managing individual or landscape contractor + }.
  (b) The financial records of a person   { - who it - }  { +
that the board + } reasonably believes is operating in violation
of ORS 671.530.
  (c) The services performed or materials furnished by a person
  { - who it - }  { +  that the board + } reasonably believes is
operating in violation of ORS 671.530.
  (2) Except when used for legal action or by the board to
determine negligent or improper work under ORS 671.703, the
information obtained by an inspection authorized by this section
is confidential. However, the board shall furnish copies of any
inspection to the   { - licensee or other - }  person that is
subjected to
  { - such - }  { +  an + } inspection.
  SECTION 12. ORS 671.555 is amended to read:
  671.555. (1) The State Landscape Contractors Board may
investigate the activities of any person engaged in   { - the - }
landscaping   { - business - }  { +  work + } to determine
compliance with ORS 671.510 to 671.710.
  (2) With the approval of the city or county, the board may
conduct investigations with city or county inspectors, provided
that the city or county is reimbursed by the board for the costs
of   { - such - }  { +  the + } investigations.
  (3) Any inspector authorized by the board to determine
compliance with the provisions of ORS 671.510 to 671.710 is
authorized to require any person who is engaged in any activity
regulated by ORS 671.510 to 671.710 to demonstrate proof of
compliance with the   { - registration - }   { + certification
and licensing + } requirements of ORS   { - 671.510 to
671.710 - }  { +  671.530 + }. If a person who is contracting
directly with the owner of the property does not demonstrate
proof of compliance with the   { - license - }  { +
certification and licensing + } requirements of ORS   { - 671.510
to 671.710 - }  { +  671.530 + }, the inspector shall give notice
of noncompliance to the person.  The notice of noncompliance
shall be in writing, shall specifically state that the person is
not in compliance with the
  { - registration - }  { +  certification and licensing + }
requirements of ORS
  { - 671.510 to 671.710 - }  { +  671.530 + } and shall provide
that unless the person demonstrates proof of compliance within
two days of the date of the notice, the inspector may by order
stop all work then being done by the person. The notice of
noncompliance shall be served upon the person and shall be served
upon or delivered to the owner of each property upon which the
person is then performing work under contract. If more than one
person is the owner of   { - any such - }  { +  a + } property, a
copy of the notice need be given to only one of   { - such - }
 { +  the + } persons. If after receipt of the notice of
noncompliance the person fails within the two-day period
specified in the notice to demonstrate proof of compliance with
the   { - registration - }  { +  certification and licensing + }
requirements of ORS
  { - 671.510 to 671.710 - }  { +  671.530 + }, the inspector is
authorized to order the work stopped by notice in writing served
on any persons engaged in the activity. Any person so notified
shall stop   { - such - } work until proof of compliance is
demonstrated. However, the inspector may not order the work
stopped until at least two days after the copies of the notice of
noncompliance have been served upon or delivered to the owners.
  (4) Notwithstanding subsection (3) of this section, the board
may order work stopped immediately if the landscape contractor
working on a worksite   { - has never registered with the board
or if the contractor - }  cannot demonstrate that the contractor
has been
  { - registered - }  { +  licensed + } at any time within the
two years immediately preceding work on the worksite.
  (5) The board has the power to administer oaths, issue notices
and subpoenas in the name of the board, compel the attendance of
witnesses and the production of evidence, hold hearings and
perform such other acts as are reasonably necessary to carry out
its duties under ORS 671.510 to 671.710.
  (6) If any person fails to comply with a subpoena issued under
subsection (5) of this section or refuses to testify on matters
on which the person may be lawfully interrogated, the board shall
compel obedience in the manner provided in ORS 183.440.
  SECTION 13. ORS 671.560 is amended to read:
  671.560. (1)   { - Except as provided in ORS 671.590, - }  The
State Landscape Contractors Board shall   { - issue a landscape
contractor's license to - }  { +  certify + } an applicant who
satisfies the requirements of ORS 671.570 { +  as qualified to
perform work as a responsible managing individual + }.
 
  (2) The board shall   { - issue a landscaping business - }
license
  { - to - }  an applicant who satisfies the requirements of the
board { +  as a landscape contractor + }.
  (3) An applicant for a  { + certificate or + } license under
this section shall apply to the board upon a form furnished by
the board and give such information as the board considers
necessary.
  (4) The board may issue a limited or specialty  { + certificate
or + } license if the applicant is required to have a { +
certificate described under ORS 671.570 or a + } landscape
contractor's license
  { - or business license - }  but is not qualified or required
to be  { +  certified or + } licensed for all phases of landscape
contracting.
  (5) A   { - landscaping business - }  { +  landscape
contractor + } that qualifies for the exemption described in ORS
571.045 shall indicate on its license application or license
renewal application under this section the reasons the
 { - business - }  { +  contractor + } qualifies for the
exemption.
  SECTION 14. ORS 671.565 is amended to read:
  671.565.  { + (1) + } Each person applying for a
 { - landscaping business - }  { +  landscape contractor + }
license shall pay to the State Landscape Contractors Board the
 { - fees - }  { +  fee + } required by ORS
  { - 671.570 and - }  671.650 and:
   { +  (a) File with the board the deposit, surety bond or
letter of credit required pursuant to ORS 671.690.
  (b) Indicate the basis, as set forth in ORS 670.600, under
which the applicant qualifies as an independent contractor.
  (2) Each person licensed by the board as a landscape contractor
shall: + }
    { - (1) - }  { +  (a) + } Employ at least one   { - person
with a landscape contractor's license - }  { +  responsible
managing individual + } to supervise the landscaping operation of
the   { - business and shall submit the names of all employees
who are licensed contractors. - }  { +  contractor.  If an
individual who is the sole responsible managing individual for a
landscape contractor ceases employment with the contractor, the
contractor may continue to operate without a responsible managing
individual for a period not exceeding 90 days. A landscape
contractor shall notify the board of any change in the
information supplied by the contractor under ORS 671.660 (4)
within a time established by board rule. + }
    { - (2) File with the board the surety bond required pursuant
to ORS 671.690. - }
    { - (3) - }  { +  (b) + } Throughout the license period, have
in effect public liability, personal injury and property damage
insurance covering the work of   { - that landscaping business
which - }  { +  the contractor that + } is subject to ORS 671.510
to 671.710 for an amount not less than $100,000. The
 { - landscaping business - }  { +  landscape contractor + }
shall provide satisfactory evidence to the board at the time of
application and renewal that the insurance required by this
section has been procured and is in effect.
    { - (4) Indicate, as set forth in ORS 670.600, the basis
under which the applicant qualifies as an independent
contractor. - }
  SECTION 15. ORS 671.570 is amended to read:
  671.570. Each   { - person - }  { +  individual + } applying
for   { - a landscape contractor's license - }  { +  issuance of
a certificate qualifying the individual to act as a responsible
managing individual + } shall pay to the State Landscape
Contractors Board the fee required by ORS 671.650 and:
 
  (1) Pass an examination  { - , which shall be offered at least
once each six months by the board to determine the fitness of the
applicant for licensing - }  { +  administered by the board + }
and have:
  (a) Within 10 years   { - before the day - }  { +  prior to + }
the application
  { - for a license is made - }  { +  date + }, at least:
  (A) Twenty-four months of employment with a landscape
contractor; or
  (B) Twelve months of employment with a landscape contractor and
one full year of training in an area related to landscaping at an
accredited school or college; or
  (b) Proven to the satisfaction of the board by test and
experience that the applicant is qualified.
  (2) Be employed by a   { - landscaping business - }  { +
landscape contractor + } if performing landscaping work.
  (3) Pay a nonrefundable examination fee not to exceed $50.
  SECTION 16. ORS 671.572 is amended to read:
  671.572.  { + (1) The State Landscape Contractors Board shall
offer the examination required under ORS 671.570 at least once
every six months. The board shall design the examination to
determine the fitness of the applicant to act as a responsible
managing individual.
  (2) + } Notwithstanding the provisions of ORS 671.570 regarding
experience and employment status, the   { - State Landscape
Contractors - }  board may adopt alternative standards for
 { - licensure with the board - }  { +  certification + } for
 { - a person - }  { +  an individual + } who is already licensed
as a contractor under ORS chapter 701.
  SECTION 17. ORS 671.575 is amended to read:
  671.575. (1) A   { - landscaping business - }  { +  landscape
contractor + } may not file a lien, file a claim with the State
Landscape Contractors Board or bring or maintain in any court of
this state a suit or action for compensation for the performance
of any work or for the breach of any contract for work
 { - which - }  { +  that + } is subject to ORS 671.510 to
 { - 671.720 - }  { +  671.710 + }, unless the   { - landscaping
business - }  { +  contractor + } was:
  (a) Licensed under ORS 671.510 to   { - 671.720 - }
 { + 671.710 + } at the time the   { - landscaping business - }
 { +  contractor + } bid or entered into the contract for
performance of the work; and
  (b) Licensed continuously while performing the work for which
compensation is sought.
  (2) If the court determines that the   { - landscaping
business - }  { +  landscape contractor + } was not aware of the
requirement that the contractor be   { - registered - }  { +
licensed + }, a court may choose not to apply subsection (1) of
this section if the court finds that to do so would result in a
substantial injustice to the unlicensed
  { - landscaping business - }  { +  contractor + }.
  (3) If a   { - landscaping business - }  { +  landscape
contractor + } falsely swears to information provided under ORS
671.560 or 671.565 or knowingly violates the provisions of ORS
656.029,   { - 670.600 - }  { +  671.525 (1) + }, 671.560 or
671.565, the   { - landscaping business - }  { +  contractor + }
may not file a lien, file a claim with the State Landscape
Contractors Board or bring or maintain in any court of this state
a suit or action for compensation for the performance of any work
or for the breach of any contract for work   { - which - }  { +
that + } is subject to ORS 671.510 to   { - 671.720 - }  { +
671.710 + }.
  SECTION 18. ORS 671.578 is amended to read:
  671.578. If any person suffered costs or damages as a result of
an individual providing a false or invalid State Landscape
Contractors Board number or otherwise misleading a person with
respect to  { + certification or + } licensing with the board,
that person may bring suit in a court of competent jurisdiction
to recover damages. The court may award reasonable attorney fees
to the prevailing party in an action under this section.
  SECTION 19. ORS 671.580 is amended to read:
  671.580. A   { - landscape contractor's license - }  { +
certificate + } issued pursuant to ORS 671.560  { + qualifying an
individual to act as a responsible managing individual  + }is a
personal privilege and is not transferable.
  SECTION 20. ORS 671.590 is amended to read:
  671.590. The State Landscape Contractors Board may
 { - license - }  { +  certify + } without examination any
 { - person - }  { +  individual + } who is   { - a landscape
contractor - }  licensed, certified or registered under the laws
of another state, territory of the United States, the District of
Columbia or another country   { - where - }   { + if + } the
requirements on the date the applicant was licensed, certified or
registered were substantially equal to the requirements for  { +
certification + }   { - licensing of landscape contractors - }
in this state  { +  under ORS 671.570 + } on the date of
application by the person.
  SECTION 21. ORS 671.610 is amended to read:
  671.610. (1) The State Landscape Contractors Board may suspend,
revoke or refuse to issue or renew the  { + certificate or + }
license of any person who:
  (a) Has obtained or attempted to obtain a  { + certificate
or + } license under ORS 671.510 to 671.710 by fraud or material
misrepresentation;
  (b) Has made a material misrepresentation about the quality of
any material or service the person provides;
  (c) Has performed defective work;
  (d) Has furnished defective materials;
  (e) Has made misleading statements when advertising services or
materials;
  (f) Has violated a provision of ORS 671.510 to 671.710;
  (g) Has had the   { - bond or - }  deposit { + , bond or letter
of credit + } required by ORS 671.690 terminated, canceled or
reduced or withdrawn; or
  (h) Has violated a voluntary compliance agreement entered into
under ORS 646.605 to 646.652.
  (2) The board may suspend or refuse to  { + certify or + }
license
  { - any - }  { +  an individual, or to license a + }
corporation, partnership { + , limited liability company, limited
liability partnership or other business in which an
individual + }   { - or individual if any individual who - }  is
an owner { + , shareholder, member + } or officer { + , if the
individual + }   { - of the business - }  is or was   { - the - }
 { +  an + } owner { + , shareholder, member + } or officer of a
business that:
  (a) Owes any amount pursuant to a final order or arbitration
award of the board; or
  (b) Owes any amount pursuant to a court order or civil penalty
arising from landscaping or construction business activities in
this or any other state of the United States.
  (3)   { - A person - }  { +  The board may refuse to certify an
individual + } who has been a sole proprietor, partner or
corporate officer of a
  { - landscaping business - }  { +  landscape contractor + } the
license of which has been suspended or revoked { + , + }
 { - may be denied a license - }  { +   + }if the
  { - person - }  { +  individual + } knowingly participated in
the conduct that led to the suspension or revocation.
  (4) A person whose  { + certificate or + } license is revoked
or not renewed pursuant to this section shall not be eligible to
apply for a  { + certificate or + } license under ORS 671.510 to
671.710 until two years after the effective date of the
revocation or of the nonrenewal.
  (5) In addition to the remedies of   { - license - }  denial,
suspension, revocation or refusal to renew a  { + certificate
or + } license, when it appears to the board that a person has
engaged in,   { - or - }  is engaging in  { - , - }  { +  or is
about to engage in + } any act, practice or transaction
 { - which - }  { +  that + } violates the provisions of
  { - this chapter - }  { +  ORS 671.510 to 671.710 + }, the
board may direct the Attorney General to apply to the court for
an injunction restraining the person from violating the
provisions of   { - this chapter - }  { +  ORS 671.510 to
671.710 + }.
  (6)(a) The board may suspend, revoke or refuse to reissue a
license to a landscape contractor if the board determines, after
notice and opportunity for a hearing, that the contractor was
working with another landscape contractor or landscape
contractors on the same task and work site where one of the
contractors is registered exempt under ORS 671.525 (2)(b) and the
total number of landscape contractors working on the task
exceeded:
  (A) Two sole proprietors;
  (B) One partnership;
  (C) One corporation; or
  (D) One limited liability company.
  (b) The board may assess a civil penalty as provided under ORS
671.720 (4) for a violation of paragraph (a) of this subsection.
  SECTION 22. ORS 671.613 is amended to read:
  671.613. (1) The failure of a   { - landscaping business - }
 { +  landscape contractor + } to comply with the provisions of
 { - this section, - }  ORS   { - 656.021, 657.665, 670.600, - }
671.520, 671.525, 671.530 and 671.575 or to be in conformance
with the provisions of ORS chapter 316, 571, 656 or 657  { + or
ORS 670.600 + } is a basis for suspension of   { - the
landscaping business license - } , revocation of
  { - the landscaping business license - } , refusal to issue or
 { + refusal to + } reissue a   { - landscaping business - }
 { +  landscape contractor + } license, assessment of a civil
penalty as set forth in ORS 671.720 or a combination of these
sanctions.
  (2) Any action against a   { - landscaping business - }  { +
landscape contractor + } under this section   { - shall - }  { +
must + } be conducted in conformance with the provisions of ORS
183.413 to 183.497.
  SECTION 23. ORS 671.615 is amended to read:
  671.615. A landscape contractor may tap into the potable water
supply only after the connection between the water system and the
customer, as defined in ORS 448.115, in order to install
irrigation backflow prevention devices only if the
 { - landscape contractor is licensed - }  { +  individual
performing the work is certified + } by the State Landscape
Contractors Board, as set forth by rule, to install irrigation
backflow prevention devices.
  SECTION 24. ORS 671.625 is amended to read:
  671.625. (1) The State Landscape Contractors Board shall by
rule adopt minimum standards for written contracts and billings
of
  { - the landscaping businesses - }  { +  landscape
contractors + }. The standards shall set forth requirements for
information that must be contained in contracts and billings. The
 { - information required shall be - }  { +  board may
require + } any information the board determines is necessary to
provide protection for consumers of the services and materials
provided by   { - landscaping businesses - }  { +  landscape
contractors + }.
 
  (2)  { + A landscape contractor may perform  + }work   { - by a
landscaping business subject to - }   { + under + } ORS 671.510
to 671.710   { - shall only be performed - }   { + only + }
subject to a written contract. Any contract or billing for
 { - such - }  { +  the  + }work must conform to the standards
adopted under subsection (1) of this section.
  (3) A contract that does not substantially comply with this
section may not be enforced by a   { - landscaping business - }
 { +  landscape contractor + } in any court or other proceedings
within this state.
  SECTION 25. ORS 671.628 is amended to read:
  671.628. The State Landscape Contractors Board may suspend the
 { + certificate of or refuse to certify an individual, or
suspend the + } license of or refuse to license   { - any - }
 { +  an individual or a + } corporation, partnership { + ,
limited liability company, limited liability partnership or other
business in which the + }   { - or individual if any - }
individual   { - who - }  is an owner, shareholder { + ,
member + } or officer { + , + }   { - of the business - }
 { + if the individual + } is or was
  { - the - }  { +  an + } owner { + , shareholder, member + } or
officer of a business that owes any amount pursuant to a final
order of the board.
  SECTION 26. ORS 671.650 is amended to read:
  671.650. (1) The  { + State Landscape Contractors Board shall
establish an + } annual   { - landscape contractor's license
fees - }  { +  fee for a certificate qualifying an individual to
act as a responsible managing individual,  + }  { - shall be
established by the State Landscape Contractors Board and
shall - }  not  { + to + } exceed $50.
  (2) The annual   { - landscaping business - }  fee  { + for a
license as a landscape contractor  + }shall not exceed $125.
  (3) The license fee for an out-of-state   { - landscaping
business - }  { +  landscape contractor + } operating in Oregon
 { - shall be - }  { +  is + } the same as for an Oregon
 { - landscaping business - }  { +  landscape contractor + } as
provided in subsection (2) of this section.
  SECTION 27. ORS 671.660 is amended to read:
  671.660. (1) The fee for renewal of a  { + certificate or + }
license issued under ORS 671.510 to 671.710 shall be paid
annually on or before the last day of the month of the
anniversary of issuance.
  (2) A person who has been previously  { + certified or + }
licensed under ORS 671.510 to 671.710 and whose  { + certificate
or  + }license has expired shall not be issued another
 { + certificate or  + }license except upon written application
to the State Landscape Contractors Board with the required annual
fee plus a penalty fee not to exceed $25.
  (3) If a  { + certificate or + } license lapses for two years
or more, the   { - individual or business - }  { +  person + }
must reapply as for initial issuance of the  { + certificate
or + } license.
  (4) When a   { - business - }  { +  landscape contractor + }
renews its license
  { - it - }  { + , the contractor  + }must submit the names of
all employees who
  { - are licensed contractors. - }  { +  act as responsible
managing individuals for the contractor. + }
  (5) When   { - a person - }  { +  an individual + } renews a
 { - landscape contractor license, the person - }  { +
certificate, the individual + } must submit the name of   { - the
employer if the person is currently performing landscaping
work - }  { +  each landscape contractor for whom the individual
acts as a responsible managing individual + }.
  SECTION 28. ORS 671.690 is amended to read:
 
  671.690. (1) An applicant for a license as a   { - landscaping
business - }  { +  landscape contractor + } shall file with the
State Landscape Contractors Board a surety bond with one or more
corporate sureties authorized to do business in this state, or an
irrevocable letter of credit issued by an insured institution, as
defined in ORS 706.008. The amount of the bond or letter of
credit
  { - shall - }  { +  must + } be:
  (a) $3,000; or
  (b) $10,000 for an applicant   { - who - }  { +  that + }
constructs fences, decks, arbors, driveways, walkways or
retaining walls not in conjunction with landscaping work.
  (2) The bond or letter of credit required under subsection (1)
of this section   { - shall - }  { +  must + } be conditioned
that the applicant pays:
  (a) All taxes and contributions due to the State of Oregon;
  (b) All persons furnishing labor or material, or renting or
supplying equipment to the   { - business - }  { +  landscape
contractor + };
  (c) All amounts that may be adjudged against the
 { - business - }  { +  landscape contractor + } by reason of
negligent or improper work or breach of contract in performing
any work subject to ORS 671.510 to 671.710; and
  (d) All amounts from the bond or deposit the board orders paid
under ORS 671.703.
  (3) In lieu of the surety bond or letter of credit required
under subsection (1) of this section, the   { - landscaping
business - }  { +  landscape contractor + } may file with the
board, under the same terms and conditions as when a bond is
filed, a deposit in cash or negotiable securities acceptable to
the board.
  (4) The deposit { + , + }   { - or - }  bond or letter of
credit required by this section   { - shall - }  { +  must + } be
continuously on file with the board in the amount required by
this section and is for the exclusive purpose of payment of final
orders and arbitration awards of the board in accordance with ORS
671.510 to 671.710. Upon termination or cancellation of the bond,
withdrawal of the deposit or reduction of the bond, letter of
credit or deposit to less than the required amount, the licensee
shall immediately:
  (a) File a replacement bond, letter of credit or deposit; or
  (b) Surrender the license to the board and cease operating as a
 { - landscaping business - }  { +  landscape contractor + }.
  (5) The   { - landscaping business - }  { +  landscape
contractor + } is responsible for all landscaping and other work
performed.
  SECTION 29. ORS 671.700 is amended to read:
  671.700. A person having a claim against a   { - landscaping
business - }  { +  landscape contractor + } shall give the State
Landscape Contractors Board notice of the claim in writing 90
days before any action on the   { - bond or - }  deposit { + ,
bond or letter of credit + } is commenced.
  SECTION 30. ORS 671.703 is amended to read:
  671.703. (1) If any person has a claim against a
 { - landscaping business issued a license under ORS 671.560 - }
 { + landscape contractor + } for negligent or improper work
performed by the   { - landscaping business - }  { +  contractor,
or  + }for   { - the person or the person has - } alleged breach
of contract   { - against the landscaping business - }   { + by
the contractor + }, the person may file the claim and a request
for hearing with the State Landscape Contractors Board.
  (2) Upon receipt of a claim and request for hearing that
qualifies under this section, the board shall initiate an
investigation and, upon completion of the investigation may
initiate hearings procedures on the claim. The parties involved
in the claim shall have the right to appear and be heard at the
hearing. A hearing under this section is subject to the
provisions of ORS 183.310 to 183.550.
  (3) With the prior agreement of the claimant and the
  { - landscaping business - }  { +  landscape contractor + },
the board may resolve the claim through binding arbitration under
rules adopted by the board   { - generally - }  { +
substantially + } in conformance with ORS 36.300 to 36.365. The
board may also use the arbitration procedure to resolve a
 { + landscaping + } dispute between   { - a person bringing a
claim and any landscaping business that agrees - }  { +  any
parties who agree + } to follow the rules of the board.
  (4) If, after investigation and opportunity for hearing as
provided in ORS 183.413 to 183.470, the board determines that the
  { - landscaping business - }  { +  landscape contractor + }
performed negligent or improper work or breached   { - its - }
 { +  a + } contract, the board, after final resolution of any
appeals permitted under ORS 183.310 to 183.550, shall order the
 { - landscaping business - }  { +  contractor + } to pay the
claim determined by the board within 20 days. If the
 { - landscaping business - }  { +  landscape contractor + } does
not pay the claim as required by this subsection, the board shall
order the claim paid out of the deposit { + , + }   { - or - }
bond  { + or letter of credit + } required under ORS 671.690.
  (5) The board may refuse to accept, or refuse at any time to
continue processing, a claim if:
  (a) The same facts and issues involved in the claim have been
submitted to a court of competent jurisdiction for determination
or have been submitted to any other entity authorized by law or
the parties to effect a resolution and settlement;
  (b) The claimant does not permit the person against whom the
claim is filed to be present at any inspection made by the board;
  (c) The board determines that the person against whom the claim
is filed is capable of complying with recommendations made by the
board relative to the claim, but the claimant does not permit the
person to comply with the recommendations. However, the board may
refuse to accept or further process a claim under this paragraph
only if the person was licensed at the time the work was first
performed and is licensed at the time the board makes its
recommendations; or
  (d) The board determines that the nature or complexity of the
claim is such that a court is the appropriate forum for the
adjudication of the claim.
  SECTION 31. ORS 671.707 is amended to read:
  671.707. (1) If a final order of the State Landscape
Contractors Board is not paid by   { - the registrant - }  { +  a
landscape contractor + }, the board shall notify the surety on
the
  { - registrant's - }  { +  contractor's + } bond.
  (2) An order of the board that determines a claim under ORS
671.703   { - that becomes final by operation of law or on
appeal - }  and remains unpaid for 20 days after the order
becomes final   { - is an order in favor of the claimant against
the registrant and - }  may be recorded with the county clerk in
any county of this state.
  (3) Upon receipt, the clerk shall record the order in the
County Clerk Lien Record. In addition to any other remedy
provided by law, recording an order in the County Clerk Lien
Record pursuant to this section has the effect provided for in
ORS 205.125 and 205.126, and the order may be enforced as
provided in ORS 205.125 and 205.126.
  SECTION 32. ORS 671.710 is amended to read:
  671.710. (1) Determinations by the State Landscape Contractors
Board or judgments against the  { + deposit, + } surety bond or
  { - deposit - }  { +  letter of credit + } of a landscape
contractor shall be satisfied in the priority listed in
paragraphs (a) to (d) of this subsection in any 90-day period. A
90-day period shall begin on the date the first claim is filed
with the board. A subsequent 90-day period shall begin on the
date the first claim is filed with the board after the close of
each preceding 90-day period.  Within a 90-day period:
  (a) Determinations and judgments as a result of claims against
a landscape contractor by owners of property upon which
landscaping work was performed, or was contracted to perform,
  { - shall - }  have payment priority to the full extent of the
 { + deposit, + } bond or   { - deposit - }  { +  letter of
credit + } over all other claims.
  (b) If the total of all claims against a landscape contractor
does not exhaust the  { + deposit, + } bond or   { - deposit - }
 { +  letter of credit + }, then amounts due as a result of all
other claims filed within that 90-day period may be satisfied
from the  { + deposit, + } bond or
  { - deposit. - }   { + letter of credit. + }
  (c) If the total of all claims against a landscape contractor
exceeds the amount of the  { + deposit, + } bond or
 { - deposit - }  { +  letter of credit + } available for
 { - such - }  { +  those + } claims, the  { + board shall
apportion the deposit,  + }bond or   { - deposit shall be
apportioned as the board determines - }   { + letter of
credit + }, subject to the priorities established under this
section.
  (d) If the total of all claims against a landscape contractor
does not exceed the amount of the  { + deposit, + } bond or
 { - deposit - }  { +  letter of credit + } available for
 { - such - }  { +  those + } claims, all amounts due as a result
of claims filed within the 90-day period   { - shall - } have
priority over all claims filed after the 90-day period until the
amount of the  { + deposit, + } bond   { - or deposit available
for such claims - }  { +  or letter of credit + } is exhausted.
  (2) The  { + deposit, + } bond or   { - deposit shall - }  { +
letter of credit may + } not be used to satisfy claims filed more
than one year following the date the work was completed.
  SECTION 33. ORS 671.720 is amended to read:
  671.720. (1) Except as provided in subsection (4) of this
section, any person who violates any provision of ORS 671.510 to
671.710 or any rule adopted thereunder shall forfeit and pay into
the General Fund of the State Treasury a civil penalty in an
amount determined by the State Landscape Contractors Board of not
more than $2,000 for each offense. The board may retain 20
percent of the   { - funds - }  { +  moneys + } collected under
this section { + . The retained moneys are + }   { - which shall
be - }  continuously appropriated for the board's costs of
collection of civil penalties.
  (2)  { + The board shall impose + } civil penalties under this
section
  { - shall be imposed - }  as provided in ORS 183.090.
  (3) The provisions of this section are in addition to and not
in lieu of any other penalty or sanction provided by law.
  (4)  { + The board shall impose + } penalties   { - shall be
imposed - }   { + and sanctions + } for violation of ORS 671.610
(6) on both the person to whom the contract is awarded and the
person who awards the contract as follows:
  (a) A   { - fine - }  { +  civil penalty of + } not less than
$500 nor more than $1,000 for the first offense;
  (b) A   { - fine - }  { +  civil penalty of + } not less than
$1,000 nor more than $2,000 for the second offense;
  (c) Suspension of  { + a certificate or + } license for six
months for a third offense; and
  (d) Revocation of  { + a certificate or + } license for three
years for a fourth offense.
  (5) The board shall provide by rule a process and criteria that
must be met for restoration of a  { + certificate or + } license
that has been revoked.
  (6) If at any time following restoration of   { - the license
of a person who has violated ORS 671.610 (6) - }  { +  a license
revoked under subsection (4)(d) of this section + }, the person
is again found to have violated ORS 671.610 (6),  { + the board
shall revoke + } the person's license   { - shall be - }
permanently   { - revoked - } .
  SECTION 34. ORS 701.010 is amended to read:
  701.010. The Construction Contractors Board may adopt rules to
make licensure optional for persons who offer, bid or undertake
to perform work peripheral to construction, as defined by
administrative rule of the Construction Contractors Board. The
following persons are exempt from licensure under this chapter:
  (1) A person who is constructing, altering, improving or
repairing personal property.
  (2) A person who is constructing, altering, improving or
repairing a structure located within the boundaries of any site
or reservation under the jurisdiction of the federal government.
  (3) A person who furnishes materials, supplies, equipment or
finished product and does not fabricate them into, or consume
them, in the performance of the work of a contractor.
  (4) A person working on one structure or project, under one or
more contracts, when the aggregate price of all of that person's
contracts for labor, materials and all other items is less than
$500 and   { - such - }  { +  the + } work is of a casual, minor
or inconsequential nature. This subsection does not apply to a
person who advertises or puts out any sign or card or other
device which might indicate to the public that that person is a
contractor.
  (5) An owner who contracts for work to be performed by a
licensed contractor. This subsection does not apply to a person
who, in the pursuit of an independent business, constructs,
remodels, repairs or for compensation and with the intent to sell
the structure, arranges to have constructed, remodeled or
repaired a structure with the intent of offering the structure
for sale before, upon or after completion. It shall be prima
facie evidence that there was an intent of offering the structure
for sale if the person who constructed, remodeled or repaired the
structure or arranged to have the structure constructed,
remodeled or repaired does not occupy the structure after its
completion.
  (6) A person performing work on a property that person owns or
performing work as the owner's employee, whether the property is
occupied by the owner or not, or a person performing work on that
person's residence, whether or not that person owns the
residence. This subsection does not apply to a person performing
work on a structure owned by that person or the owner's employee
if such work is performed, in the pursuit of an independent
business, with the intent of offering the structure for sale
before, upon or after completion.
  (7) A person licensed in one of the following trades or
professions when operating within the scope of that license:
  (a) An architect licensed by the State Board of Architect
Examiners.
  (b) A registered professional engineer licensed by the State
Board of Examiners for Engineering and Land Surveying.
  (c) A water well contractor licensed by the Water Resources
Department.
  (d) A sewage disposal system installer licensed by the
Department of Environmental Quality.
  (e) A   { - landscaping business - }  { +  landscape
contractor + } licensed under ORS   { - 671.510 to 671.710 - }
 { + 671.560 + } that constructs fences, decks, arbors,
driveways, walkways or retaining walls when:
  (A) Performed in conjunction with landscaping work; or
 
 
  (B) Not performed in conjunction with landscaping work and that
has filed a  { + deposit, + } bond  { + or letter of credit + }
under ORS 671.690   { - (1)(b) - } .
  (f) A pesticide operator licensed under ORS 634.116 who does
not conduct inspections for wood destroying organisms for the
transfer of real estate.
  (8) A person who performs work subject to this chapter as an
employee of a contractor.
  (9) A manufacturer of a manufactured home constructed under
standards established by the federal government.
  (10) A person involved in the movement of:
  (a) Modular buildings or structures other than manufactured
structures not in excess of 14 feet in width.
  (b) Structures not in excess of 16 feet in width when they are
being moved by their owner if such owner is not a contractor
required to be licensed under this chapter.
  (11) A commercial lending institution or surety company that
arranges for the completion, repair or remodeling of a structure.
As used in this subsection, 'commercial lending institution '
means any bank, mortgage banking company, trust company, savings
bank, savings and loan association, credit union, national
banking association, federal savings and loan association,
insurance company or federal credit union maintaining an office
in this state.
  (12) A real estate licensee as defined in ORS 696.010 or the
employee of that licensee when performing work on a structure
that the real estate licensee manages under a contract.
  (13) Units of government other than those specified in ORS
701.005 (6)(b) and (c).
  SECTION 35. ORS 701.015 is amended to read:
  701.015. (1) A contractor or landscape contractor shall pay
directly to any city within the boundaries of a metropolitan
service district any business license tax imposed by the city
when:
  (a) The principal place of business of the contractor or the
landscape contractor is within the city; or
  (b) The principal place of business of the contractor or the
landscape contractor is not within the city but the contractor or
landscape contractor derives gross receipts of $250,000 or more
from business conducted within the boundaries of the city during
the calendar year for which the business license tax is owed.
  (2) A contractor or landscape contractor   { - who - }  { +
that + } conducts business during any year in any city within the
boundaries of the metropolitan service district other than a city
to which the contractor or landscape contractor has paid a
business license tax for that year may apply for a business
license from the metropolitan service district.
  (3) When a contractor or landscape contractor obtains a
business license from the metropolitan service district under
subsection (2) of this section, if a city within the boundaries
of the metropolitan service district other than a city to which
the contractor or landscape contractor is required to directly
pay a business license tax under subsection (1) of this section
demands payment of a business license tax by the contractor or
landscape contractor, the city shall waive such payment upon
presentation of proof by the contractor or landscape contractor
that the contractor or landscape contractor has a business
license issued by the metropolitan service district. Possession
by the contractor or landscape contractor of a current business
license issued by the metropolitan service district under
subsection (2) of this section   { - shall be - }  { +  is + }
proof sufficient to obtain the waiver described in this
subsection.
  (4) The metropolitan service district shall issue a business
license to a contractor or landscape contractor when:
 
  (a) The contractor or landscape contractor presents proof to
the district that the contractor or landscape contractor has paid
the business license tax imposed by each city within the
boundaries of the district to which the contractor or landscape
contractor must directly pay a business license tax under
subsection (1) of this section; and
  (b) The contractor or landscape contractor pays a license fee
to the district. The license fee charged under this paragraph
shall be twice the average business license tax charged
contractors by cities located within the metropolitan service
district plus an amount that is sufficient to reimburse the
district for the administrative expenses of the district incurred
in carrying out   { - its - }  { +  district + } duties under
this section.
  (5) The metropolitan service district shall distribute the
business license fees collected by the district under this
section, less administrative expenses, to the cities that are
located wholly or partly within the district and that collect a
business license tax. In any year, each such city shall receive
such share of the license fees as the number of residential
building permits that it issued during that year bears to the
total number of residential building permits that were issued
during that year by all of the cities located wholly or partly
within the district. Distribution of moneys under this subsection
shall be made at least once in each year. The metropolitan
service district shall determine the number of residential
building permits issued by cities within the district from
statistics and other data published by the State Housing Council.
  (6) As used in this section:
  (a) 'Business license tax' means any fee paid by a person to a
city or county for any form of license that is required by the
city or county in order to conduct business in that city or
county. The term does not include any franchise fee or privilege
tax imposed by a city upon a public utility under ORS 221.420 or
221.450 or any provision of a city charter.
  (b) 'Conducting business' means to engage in any activity in
pursuit of gain including activities carried on by a person
through officers, agents and employees as well as activities
carried on by a person on that person's own behalf.
  (c) 'Landscape contractor' means a person   { - or business
who - }  { +  that + } is licensed under ORS   { - 671.510 to
671.710 - }   { + 671.560 + } as a landscape contractor.
  (d) 'Principal place of business' means the location in this
state of the central administrative office of a person conducting
business in this state.
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