Chapter 766 Oregon Laws 2003

AN ACT

SB 943

Relating to construction contractors; creating new provisions; amending ORS 701.105; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 701.105 is amended to read:

701.105. (1) Except as provided in subsection (2) of this section, a contractor who possesses a license as required under this chapter shall have in effect public liability, personal injury and property damage insurance covering the work of the contractor that is subject to this chapter, for an amount not less than:

(a) $500,000 for a general contractor.

(b) $300,000 for a residential-only specialty contractor.

(d) $100,000 for a limited contractor.

(e) $300,000 for an inspector.

(2) The Construction Contractors Board by rule, in consultation with the Department of Consumer and Business Services, may allow a general or specialty contractor that is a residential-only contractor to provide an alternative form of security approved by the board instead of procuring a public liability, personal injury and property damage insurance policy. The board may approve an alternative form of security if the board determines that the alternative form of security provides protection to the public equivalent to the protection provided by an insurance policy in the amounts otherwise applicable to the residential-only contractor under subsection (1) of this section. A board-approved alternative form of security may consist of a combination of financial resources.

(3) A residential-only contractor who provides a board-approved alternative form of security under subsection (2) of this section is considered for purposes of this chapter to have obtained insurance described in subsection (1) of this section. This subsection does not subject to regulation as an insurer a person who issues all or part of an alternative form of security, unless the alternative form of security otherwise qualifies as an insurance product.

[(2)] (4) The contractor shall provide satisfactory evidence to the [Construction Contractors] board at the time of licensure and renewal that the insurance policy or board-approved alternative form of security required by [subsection (1) of] this section has been procured and is in effect.

SECTION 2. ORS 701.105, as amended by section 1 of this 2003 Act, is amended to read:

701.105. (1) [Except as provided in subsection (2) of this section,] A contractor who possesses a license as required under this chapter shall have in effect public liability, personal injury and property damage insurance covering the work of the contractor that is subject to this chapter, for an amount not less than:

(a) $500,000 for a general contractor.

(b) $300,000 for a residential-only specialty contractor.

(d) $100,000 for a limited contractor.

(e) $300,000 for an inspector.

[(2) The Construction Contractors Board by rule, in consultation with the Department of Consumer and Business Services, may allow a general or specialty contractor that is a residential-only contractor to provide an alternative form of security approved by the board instead of procuring a public liability, personal injury and property damage insurance policy. The board may approve an alternative form of security if the board determines that the alternative form of security provides protection to the public equivalent to the protection provided by an insurance policy in the amounts otherwise applicable to the residential-only contractor under subsection (1) of this section. A board-approved alternative form of security may consist of a combination of financial resources.]

[(3) A residential-only contractor who provides a board-approved alternative form of security under subsection (2) of this section is considered for purposes of this chapter to have obtained insurance described in subsection (1) of this section. This subsection does not subject to regulation as an insurer a person who issues all or part of an alternative form of security, unless the alternative form of security otherwise qualifies as an insurance product.]

[(4)] (2) The contractor shall provide satisfactory evidence to the Construction Contractors Board at the time of licensure and renewal that the insurance [policy or board-approved alternative form of security] required by subsection (1) of this section has been procured and is in effect.

SECTION 3. The amendments to ORS 701.105 by section 2 of this 2003 Act become operative on January 2, 2008.

SECTION 4. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

Approved by the Governor September 17, 2003

Filed in the office of Secretary of State September 18, 2003

Effective date September 17, 2003

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