72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 3685
 
                           A-Engrossed
 
                         Senate Bill 906
                  Ordered by the Senate July 23
            Including Senate Amendments dated July 23
 
Sponsored by Senator ATKINSON
 
 
                             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.
 
  Establishes Residential Structures Board. Changes composition
of Building Codes Structures Board. Transfers Building Codes
Structures Board functions relating to one and two family
dwelling programs to Residential Structures Board. Replaces One
and Two Family Dwelling Code with Low-Rise Residential Dwelling
Code.  Makes changes operative January 1, 2004.
  Establishes Mechanical Board. Becomes operative July 1, 2004.
  Transfers Tri-County Building Industry Service Board functions
to Department of Consumer and Business Services. Makes transfer
operative January 1, 2004.
  Modifies investigative and enforcement procedures for municipal
building inspection programs.
  Requires certain building code professionals to wear visible
identification when providing professional services. Provides
exception for health or safety reasons.
  Prohibits falsely advertising as or otherwise purporting to be
licensed to make electrical installations or purporting to be
acting as business making electrical installations.
  Authorizes adoption of conflict of interest rules for
electrical inspectors.
  Limits electrical permit exception for person making
installation on property of person or family member.
  Creates new construction contractor license class for property
owners who are developers. Adds informational requirement for
contractor license applications by limited liability company.
Makes new license class operative October 1, 2003.
  Temporarily allows developer claims regarding unlicensed work.
  Provides guidelines for payment to contractors and
subcontractors on construction contracts. Establishes
requirements for billing cycle, objections to billing and payment
of bill.  Provides exceptions. Establishes time by which
contractor must make payment to subcontractors after receiving
payment from owner.  Prescribes interest penalty for unpaid
amounts. Provides that construction contract may not be subject
to law of another state. Exempts contracts for construction,
alteration, repair, maintenance, moving or demolition of
residential structure.  Applies to contracts negotiated or
advertised on or after January 1, 2004.
   { +  Exempts certain installation work by consumer-owned
utility and products used by utility from electrical safety
law. + }
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to building industry activities; creating new
  provisions; amending ORS 446.003, 446.423, 447.072, 447.076,
  455.010, 455.030, 455.085, 455.100, 455.110, 455.132, 455.144,
  455.153, 455.156, 455.220, 455.310, 455.420, 455.467, 455.525,
  455.530, 455.610, 455.622, 455.625, 455.627, 455.630, 455.715,
  455.800, 455.805, 455.815, 455.842, 455.844, 455.846, 469.700,
  479.540, 479.560, 479.620, 479.905, 479.940, 701.005, 701.010,
  701.065, 701.075, 701.085, 701.105, 701.115 and 705.145 and
  section 2, chapter 329, Oregon Laws 1999; repealing ORS 455.840
  and 455.848 and section 8, chapter 1082, Oregon Laws 1999; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
 
                               { +
BUILDING CODE AND SPECIALTY CODE ADMINISTRATION + }
 
  SECTION 1.  { + Section 2 of this 2003 Act is added to and made
a part of ORS chapter 455. + }
  SECTION 2.  { + (1) There is established a Residential
Structures Board consisting of nine members appointed by the
Governor.
  (2) The members of the board shall assist the Director of the
Department of Consumer and Business Services in administering the
low-rise residential dwelling program described in this chapter.
  (3) The board must consist of:
  (a) One contractor specializing in the construction of
residential structures;
  (b) One contractor specializing in the remodeling of
residential structures;
  (c) One contractor specializing in building multifamily housing
three stories or less above grade;
  (d) One home designer or architect;
  (e) One building official;
  (f) One representative of residential building trade
subcontractors;
  (g) One structural engineer;
  (h) One representative of a utility or energy supplier; and
  (i) One public member who does not receive compensation from
any interest represented under paragraphs (a) to (h) of this
subsection. + }
  SECTION 3.  { + Notwithstanding the term of office specified in
ORS 455.144, of the members first appointed to the Residential
Structures Board:
  (1) Two shall serve terms ending on July 1, 2004.
  (2) Two shall serve terms ending on July 1, 2005.
  (3) Two shall serve terms ending on July 1, 2006.
  (4) Three shall serve terms ending on July 1, 2007. + }
  SECTION 4.  { + (1) There is established a Mechanical Board
consisting of nine members appointed by the Governor.
  (2) The members of the board shall assist the Director of the
Department of Consumer and Business Services in administering the
code adopted pursuant to ORS 455.020 for mechanical devices and
equipment.
  (3) The board must consist of:
  (a) One representative of the plumbing industry;
  (b) One sheet metal and air conditioner contractor;
  (c) One municipal mechanical inspector possessing the highest
level of mechanical inspector certification issued by the
Department of Consumer and Business Services;
  (d) One heating, venting and air conditioning contractor;
  (e) One heating, venting and air conditioning installer;
  (f) One sheet metal and air conditioner installer;
  (g) One representative of a natural gas company or other
utility;
  (h) One building official; and
  (i) One public member who does not receive compensation from
any interest represented under paragraphs (a) to (h) of this
subsection.
  (4) At least one of the board members described in subsection
(3)(b) or (d) of this section must be an owner or operator of a
contracting business employing 10 or fewer persons at the time of
the member's appointment to the term. + }
  SECTION 5.  { + Notwithstanding the term of office specified in
ORS 455.144, of the members first appointed to the Mechanical
Board:
  (1) Two shall serve terms ending on July 1, 2005.
  (2) Two shall serve terms ending on July 1, 2006.
  (3) Two shall serve terms ending on July 1, 2007.
  (4) Three shall serve terms ending on July 1, 2008. + }
  SECTION 6. ORS 446.003 is amended to read:
  446.003. As used in ORS 446.003 to 446.200 and 446.225 to
446.285, and for the purposes of ORS chapters 195, 196, 197, 215
and 227, the following definitions shall apply, unless the
context requires otherwise, or unless administration and
enforcement by the State of Oregon under the existing or revised
National Manufactured Housing Construction and Safety Standards
Act would be adversely affected, and except as provided in ORS
446.265:
  (1) 'Accessory building or structure' means any portable,
demountable or permanent structure established for use of the
occupant of the manufactured structure and as further defined by
rule by the Director of the Department of Consumer and Business
Services.
  (2)(a) 'Alteration' means any change, addition, repair,
conversion, replacement, modification or removal of any equipment
or installation   { - which - }   { + that + } may affect the
operation, construction or occupancy of a manufactured structure.
  (b) 'Alteration' does not   { - mean - }  { +  include + }:
  (A) Minor repairs with approved component parts;
  (B) Conversion of listed fuel-burning appliances in accordance
with the terms of their listing;
  (C) Adjustment and maintenance of equipment; or
  (D) Replacement of equipment or accessories in kind.
  (3) 'Approved' means approved, licensed or certified by the
Department of Consumer and Business Services or its designee.
  (4) 'Awning' means any stationary structure, permanent or
demountable, used in conjunction with a manufactured structure,
other than window awning, for the purpose of providing shelter
from the sun and rain, and having a roof with supports and not
more than one wall or storage cabinet substituting for a wall.
  (5) 'Board' means the Manufactured Structures and Parks
Advisory Board.
  (6) 'Cabana' means a stationary, lightweight structure
  { - which - }   { + that + } may be prefabricated, or
demountable, with two or more walls, used adjacent to and in
conjunction with a manufactured structure to provide additional
living space.
  (7) 'Carport' means a stationary structure consisting of a roof
with its supports and not more than one wall, or storage cabinet
substituting for a wall, and used for sheltering a motor vehicle.
  (8) 'Certification' means an evaluation process by which the
department verifies a manufacturer's ability to produce
manufactured structures to the department rules and to the
department approved quality control manual.
 
 
  (9) 'Conversion' or 'to convert' means the process of changing
a manufactured structure in whole or in part from one type of
vehicle or structure to another.
  (10) 'Dealer' means any person engaged in selling or
distributing manufactured structures or equipment, or both,
primarily to persons who in good faith purchase or lease
manufactured structures or equipment, or both, for purposes other
than resale.
  (11) 'Department' means the Department of Consumer and Business
Services.
  (12) 'Director' means the Director of the Department of
Consumer and Business Services.
  (13) 'Distributor' means any person engaged in selling and
distributing manufactured structures or equipment for resale.
  (14) 'Equipment' means materials, appliances, subassembly,
devices, fixtures, fittings and apparatuses used in the
construction, plumbing, mechanical and electrical systems of a
manufactured structure.
  (15) 'Federal manufactured housing construction and safety
standard' means a standard for construction, design and
performance of a manufactured dwelling promulgated by the
Secretary of Housing and Urban Development pursuant to the
federal National Manufactured Housing Construction and Safety
Standards Act of 1974 (Public Law 93-383).
  (16) 'Fire inspector' means a deputy or assistant of the State
Fire Marshal.
  (17) 'Fire Marshal' means the State Fire Marshal.
  (18) 'Imminent safety hazard' means an imminent and
unreasonable risk of death or severe personal injury.
  (19) 'Insignia of compliance' means:
  (a) For a manufactured dwelling built to HUD standards for such
dwellings, the HUD label; or
  (b) For all other manufactured structures, the insignia issued
by this state indicating compliance with state law.
  (20) 'Inspecting authority' or 'inspector' means the Director
of the Department of Consumer and Business Services or
representatives as appointed or authorized to administer and
enforce provisions of ORS 446.111, 446.160, 446.176, 446.225 to
446.285, 446.310 to 446.350, 446.990 and this section.
  (21) 'Installation' in relation to:
  (a) 'Construction' means the arrangements and methods of
construction, fire and life safety, electrical, plumbing and
mechanical equipment and systems within a manufactured structure.
  (b) 'Siting' means the manufactured structure and cabana
foundation support and tiedown, the structural, fire and life
safety, electrical, plumbing and mechanical equipment and
material connections and the installation of skirting and
temporary steps.
  (22) 'Installer' means any individual licensed by the director
to install, set up, connect, hook up, block, tie down, secure,
support, install temporary steps, install skirting for or make
electrical, plumbing or mechanical connections to manufactured
dwellings or cabanas or who provides consultation or supervision
for any of these activities, except architects licensed under ORS
671.010 to 671.220 or engineers licensed under ORS 672.002 to
672.325.
  (23) 'Limited installer' means any individual with a limited
license issued by the director who is engaged in the occupation
of installing, setting up, connecting, hooking up, supporting,
blocking, tying down, securing, installing temporary steps,
installing skirting or making electrical, plumbing or mechanical
connections to manufactured dwellings or cabanas under the direct
supervision of a licensed installer.
  (24) 'Listed' means equipment or materials included in a list,
published by an organization concerned with product evaluation
acceptable to the department that maintains periodic inspection
of production of listed equipment or materials, and whose listing
states either that the equipment or materials meets appropriate
standards or has been tested and found suitable in a specified
manner.
  (25) 'Lot' means any space, area or tract of land, or portion
of a manufactured dwelling park, mobile home park or recreation
park that is designated or used for occupancy by one manufactured
structure.
  (26)(a) 'Manufactured dwelling' means:
  (A) Residential trailer, a structure constructed for movement
on the public highways that has sleeping, cooking and plumbing
facilities, that is intended for human occupancy, that is being
used for residential purposes and that was constructed before
January 1, 1962.
  (B) Mobile home, a structure constructed for movement on the
public highways that has sleeping, cooking and plumbing
facilities, that is intended for human occupancy, that is being
used for residential purposes and that was constructed between
January 1, 1962, and June 15, 1976, and met the construction
requirements of Oregon mobile home law in effect at the time of
construction.
  (C) Manufactured home:
  (i) For any purpose other than that set forth in
sub-subparagraph (ii) of this subparagraph, 'manufactured home '
means a structure constructed for movement on the public highways
that has sleeping, cooking and plumbing facilities, that is
intended for human occupancy, that is being used for residential
purposes and that was constructed in accordance with federal
manufactured housing construction and safety standards and
regulations in effect at the time of construction; or
  (ii) For purposes of implementing any contract pertaining to
manufactured homes between the department and the federal
government, 'manufactured home' has the meaning given the term in
the contract.
  (b) 'Manufactured dwelling' does not   { - mean - }  { +
include + } any building or structure constructed to conform to
the State of Oregon Structural Specialty Code or the   { - One
and Two Family - }  { + Low-Rise Residential  + }Dwelling Code
adopted pursuant to ORS 455.100 to 455.450 and 455.610 to 455.630
or any unit identified as a recreational vehicle by the
manufacturer.
  (27) 'Manufactured dwelling park' means any place where four or
more manufactured dwellings are located within 500 feet of one
another on a lot, tract or parcel of land under the same
ownership, the primary purpose of which is to rent or lease space
or keep space for rent or lease to any person for a charge or fee
paid or to be paid for the rental or lease or use of facilities
or to offer space free in connection with securing the trade or
patronage of such person. 'Manufactured dwelling park' does not
include a lot or lots located within a subdivision being rented
or leased for occupancy by no more than one manufactured dwelling
per lot if the subdivision was approved by the local government
unit having jurisdiction under an ordinance adopted pursuant to
ORS 92.010 to 92.190.
  (28)(a) 'Manufactured structure' means a:
  (A) 'Recreational vehicle' as set forth in this section;
  (B) 'Manufactured dwelling' as set forth in this section; or
  (C) 'Recreational structure' as set forth in this section.
  (b) 'Manufactured structure' does not   { - apply to - }  { +
include + } any building or structure regulated under the State
of Oregon Structural Specialty Code or the   { - One and Two
Family - }  { +  Low-Rise Residential + } Dwelling Code.
  (29) 'Manufacturer' means any person engaged in manufacturing,
building, rebuilding, altering, converting or assembling
manufactured structures or equipment.
 
  (30) 'Manufacturing' means the building, rebuilding, altering
or converting of manufactured structures that bear or are
required to bear an Oregon insignia of compliance.
  (31) 'Minimum safety standards' means the plumbing, mechanical,
electrical, thermal, fire and life safety, structural and
transportation standards prescribed by rules adopted by the
director.
  (32) 'Mobile home park' means any place where four or more
manufactured structures are located within 500 feet of one
another on a lot, tract or parcel of land under the same
ownership, the primary purpose of which is to rent space or keep
space for rent to any person for a charge or fee paid or to be
paid for the rental or use of facilities or to offer space free
in connection with securing the trade or patronage of such
person. 'Mobile home park' does not include a lot or lots located
within a subdivision being rented or leased for occupancy by no
more than one manufactured dwelling per lot if the subdivision
was approved by the municipality unit having jurisdiction under
an ordinance adopted pursuant to ORS 92.010 to 92.190.
  (33) 'Municipality' means a city, county or other unit of local
government otherwise authorized by law to enact codes.
  (34) 'Provider' means any person approved by the director to
provide instruction for the purpose of licensing manufactured
dwellings and cabana installers or certifying manufactured
dwelling inspectors.
  (35) 'Ramada' means a stationary structure having a roof
extending over a manufactured structure, which may also extend
over a patio or parking space for motor vehicles, and is used
principally for protection from snow, sun or rain.
  (36) 'Recreational structure' means a campground structure with
or without plumbing, heating or cooking facilities intended to be
used by any particular occupant on a limited-time basis for
recreational, seasonal, emergency or transitional housing
purposes and may include yurts, cabins, fabric structures or
similar structures as further defined, by rule, by the director.
  (37) 'Recreational vehicle' means a vehicle with or without
motive power, which is designed for human occupancy and to be
used temporarily for recreational, seasonal or emergency purposes
and as further defined, by rule, by the director.
  (38) 'Sale' means rent, lease, sale or exchange.
  (39) 'Skirting' means a weather resistant material used to
enclose the space below the manufactured structure.
  (40) 'Tiedown' means any device designed to anchor a
manufactured structure securely to the ground.
  (41) 'Transitional housing accommodations' means accommodations
described under ORS 446.265.
  (42) 'Utilities' means the water, sewer, gas or electric
services provided on a lot for a manufactured structure.
  SECTION 7. ORS 446.423 is amended to read:
  446.423.  { + Except as otherwise provided in ORS 455.220
(1), + } all moneys deposited to the Consumer and Business
Services Fund that are derived pursuant to ORS 446.003 to
446.200, 446.210, 446.225 to 446.285, 446.395 to 446.420 and
455.220 (1) are continuously appropriated to the Department of
Consumer and Business Services for carrying out any of the
duties, functions and powers of the department under ORS 446.003
to 446.200, 446.210, 446.225 to 446.285 and 446.395 to 446.420,
and rules adopted thereunder, without regard to the source of the
moneys.
  SECTION 8. ORS 447.072 is amended to read:
  447.072. Notwithstanding ORS 455.610, the Department of
Consumer and Business Services { + , + } with the approval of the
State Plumbing Board, shall adopt rules to create an exemption
from permit and inspection requirements for ordinary minor
repairs in
 
  { - one and two family - }  { +  low-rise residential + }
dwellings and commercial structures when the board finds that the
plumbing does not involve any changes or alterations of the
existing plumbing system. The exemption from the permit:
  (1)   { - Shall - }  { +  May + } not include new construction
or replacement of water heaters or underground plumbing; and
  (2) Shall be available only to registered plumbing contractors
or persons exempt from licensing under ORS 693.020.
  SECTION 9. ORS 447.076 is amended to read:
  447.076. Notwithstanding ORS 455.610, the Department of
Consumer and Business Services, with the approval of the State
Plumbing Board, shall adopt rules to create a mandatory
inspection program for minor plumbing installations made by
registered plumbing contractors in   { - one or two family - }
 { +  low-rise residential + } dwellings. The rules adopted by
the department shall:
  (1) Define the term 'minor plumbing installations { +  ' + }
 { - , ' which shall - }  { +  in a manner that does + } not
include new construction;
  (2) Designate which minor plumbing installations are under the
inspection program; and
  (3) Provide for random inspection of minor plumbing
installations.
  SECTION 10. ORS 455.010 is amended to read:
  455.010. As used in this chapter, unless the context requires
otherwise:
  (1)(a) 'Advisory board' means the board with responsibility for
assisting in the adoption, amendment or administration of a
specialty code, specifically:
  (A) The Building Codes Structures Board established under ORS
455.132;
  (B) The Electrical and Elevator Board established under ORS
455.138;
  (C) The State Plumbing Board established under ORS 693.115;
  (D) The Manufactured Structures and Parks Advisory Board
established under ORS 446.280;   { - or - }
  (E) The Board of Boiler Rules established under ORS
480.535 { + ; or
  (F) The Residential Structures Board established under section
2 of this 2003 Act + }.
  (b) 'Appropriate advisory board' means the advisory board that
has jurisdiction over a particular code, standard, license,
certification or matter.
  (2) 'Department' means the Department of Consumer and Business
Services.
  (3) 'Director' means the Director of the Department of Consumer
and Business Services.
   { +  (4) 'Low-Rise Residential Dwelling Code' means the
adopted specialty code prescribing standards for the construction
of residential dwellings that are three stories or less above
grade and have an exterior door for each dwelling unit, but are
not facilities or homes described in ORS 443.400 or transient
lodging. + }
    { - (4) - }  { +  (5) + } 'Municipality' means a city, county
or other unit of local government otherwise authorized by law to
administer a building code.
    { - (5) 'One and Two Family Dwelling Code' means the adopted
specialty code prescribing standards for the construction of one
and two family dwellings. - }
  (6) 'Prefabricated structure' means a building or subassembly
which has been in whole or substantial part manufactured or
assembled using closed construction at an off-site location to be
wholly or partially assembled on-site; but does not include a
manufactured structure.
  (7) 'Specialty code' means a code of regulations adopted under
ORS 446.062, 446.185, 447.020 (2), 455.020 (2), 455.610, 455.680,
460.085, 460.360, 479.730 (1) or 480.545; but does not include
regulations adopted by the State Fire Marshal pursuant to ORS
chapter 476 or ORS 479.010 to 479.200 and 479.210 to 479.220.
  (8) 'State building code' means the combined specialty codes.
  (9) 'Structural code' means the specialty code prescribing
structural standards for building construction.
  (10) 'Unsafe condition' means a condition caused by earthquake
which is determined by the department or any representative of
the department to be dangerous to life and property. 'Unsafe
condition' includes but is not limited to:
  (a) Any portion, member or appurtenance of a building that has
become detached or dislodged or appears likely to fail or
collapse and thereby injure persons or damage property; or
  (b) Any portion, of a building or structure that has been
damaged by earthquake, or by fire or explosion resulting from an
earthquake, to the extent that the structural strength or
stability of the building is substantially less than it was prior
to the earthquake.
  SECTION 11. ORS 455.010, as amended by section 10 of this 2003
Act, is amended to read:
  455.010. As used in this chapter, unless the context requires
otherwise:
  (1)(a) 'Advisory board' means the board with responsibility for
assisting in the adoption, amendment or administration of a
specialty code, specifically:
  (A) The Building Codes Structures Board established under ORS
455.132;
  (B) The Electrical and Elevator Board established under ORS
455.138;
  (C) The State Plumbing Board established under ORS 693.115;
  (D) The Manufactured Structures and Parks Advisory Board
established under ORS 446.280;
  (E) The Board of Boiler Rules established under ORS 480.535;
  { - or - }
  (F) The Residential Structures Board established under section
2 of this 2003 Act  { - . - }  { + ; or
  (G) The Mechanical Board established under section 4 of this
2003 Act. + }
  (b) 'Appropriate advisory board' means the advisory board that
has jurisdiction over a particular code, standard, license,
certification or matter.
  (2) 'Department' means the Department of Consumer and Business
Services.
  (3) 'Director' means the Director of the Department of Consumer
and Business Services.
  (4) 'Low-Rise Residential Dwelling Code' means the adopted
specialty code prescribing standards for the construction of
residential dwellings that are three stories or less above grade
and have an exterior door for each dwelling unit, but are not
facilities or homes described in ORS 443.400 or transient
lodging.
  (5) 'Municipality' means a city, county or other unit of local
government otherwise authorized by law to administer a building
code.
  (6) 'Prefabricated structure' means a building or subassembly
which has been in whole or substantial part manufactured or
assembled using closed construction at an off-site location to be
wholly or partially assembled on-site; but does not include a
manufactured structure.
  (7) 'Specialty code' means a code of regulations adopted under
ORS 446.062, 446.185, 447.020 (2), 455.020 (2), 455.610, 455.680,
460.085, 460.360, 479.730 (1) or 480.545; but does not include
regulations adopted by the State Fire Marshal pursuant to ORS
chapter 476 or ORS 479.010 to 479.200 and 479.210 to 479.220.
  (8) 'State building code' means the combined specialty codes.
 
  (9) 'Structural code' means the specialty code prescribing
structural standards for building construction.
  (10) 'Unsafe condition' means a condition caused by earthquake
which is determined by the department or any representative of
the department to be dangerous to life and property. 'Unsafe
condition' includes but is not limited to:
  (a) Any portion, member or appurtenance of a building that has
become detached or dislodged or appears likely to fail or
collapse and thereby injure persons or damage property; or
  (b) Any portion, of a building or structure that has been
damaged by earthquake, or by fire or explosion resulting from an
earthquake, to the extent that the structural strength or
stability of the building is substantially less than it was prior
to the earthquake.
  SECTION 12. ORS 455.030 is amended to read:
  455.030. (1) Except as otherwise provided by this section, the
Director of the Department of Consumer and Business Services
shall be subject to ORS 183.310 to 183.550 in the adoption,
amendment or repeal of regulations authorized by, and in the
issuance of orders in contested cases arising under, this
chapter.
  (2)(a) In addition to the notice requirements of ORS 183.335,
notice of a public hearing on adoption, amendment or repeal of a
specialty code shall be given to the governing bodies of all
municipalities and the notice shall state that copies of the
proposed action may be obtained from the Department of Consumer
and Business Services.
  (b) The notice of proposed rule change shall include a finding
by the advisory board that the added cost, if any, is necessary
to the health and safety of the occupants or the public or
necessary to conserve scarce resources.
  (c) The director shall maintain a roster of individuals who
wish to be notified of any changes to or interpretations of the
  { - One and Two Family - }  { +  Low-Rise Residential + }
Dwelling Code.  Subscribers to the list may be charged a
reasonable amount necessary to defray the cost of maintaining the
list and advising the subscribers of changes in the code.
  (3) The director   { - shall not be - }  { +  is not + }
required to publish or distribute those parts of a specialty code
of regulations adopted by reference. However, the director shall
publish with a specialty code and annually thereafter a list of
places where copies of those parts of the specialty code adopted
by reference may be obtained together with the approximate cost
thereof. The director shall file one copy of the rule with the
Secretary of State. All standards referred to in any specialty
code or any of the modifications thereto need not be so filed.
All standards and specialty codes referred to in the specialty
code shall be kept on file and available for inspection in the
offices of the department.
  (4) Any interested person may propose amendments to the state
building code, which proposed amendments may be either applicable
to all municipalities or, where it is alleged and established
that conditions exist within a municipality or some
municipalities that are not generally found within other
municipalities, amendments may be restricted in application to
such municipalities.  Amendments proposed to the state building
code under this subsection shall be in conformity with the policy
and purpose prescribed by ORS 455.020. The justification and the
particular circumstances requiring the proposed amendments shall
be fully stated in the proposal. The director shall submit all
proposed amendments to the appropriate advisory board. The board
shall review and report its recommendations to the director on
the amendments within 180 days after the date of submission by
the director.
  (5) The director, with the approval of the advisory board, may
adopt or modify and adopt any amendments proposed to the director
under subsection (4) of this section. The director shall, within
30 days after the date of receipt of the recommendations of the
advisory board, notify the person proposing the amendments of the
adoption, modification and adoption or denial of the proposed
amendments. Upon adoption, a copy of each amendment shall be
distributed to the governing bodies of all municipalities
affected thereby.
  (6) The director shall from time to time make or cause to be
made investigations, or may accept authenticated reports from
authoritative sources, concerning new materials or modes of
construction intended for use in the construction of buildings or
structures, or intended for use in other activity regulated by
the state building code, and shall, where necessary, propose
amendments to the code setting forth the conditions under which
the materials or modes may be used, in accordance with the
standards and procedures of this chapter.
  SECTION 13. ORS 455.085 is amended to read:
  455.085. (1)   { - In addition to the requirements of ORS
455.110 (2), - }  The Director of the Department of Consumer and
Business Services shall, upon receipt of adequate funds under
subsection (2) of this section, publish all state building code
provisions relating to the design, construction, prefabrication,
equipment or appliance installation, quality of materials, use
and occupancy location and repair of detached   { - one or two
family - }   { + low-rise residential + } dwellings  { - , not
more than three stories in height, - }  in two separate
publications. One publication shall contain the applicable
provisions of the specialty code adopted under ORS 479.730 (1)
and the other publication shall contain the remaining applicable
provisions of the state building code. The text of the
publications made under this section shall be readable at the
ninth grade level of reading, as determined by the director under
one or more standard recognized readability formulas, including,
but not limited to, the Flesch, Fry or Dale Chall tests.
  (2) The publications under subsection (1) of this section shall
be paid for by funds donated by interested citizens, who shall be
made aware of the project by the Department of Consumer and
Business Services through public service announcements and other
nominal-cost advertising. Funds shall be collected until
sufficient funds are available to conduct the publication.
Refunds shall be made to the donors if sufficient funds are not
collected.
  SECTION 14. ORS 455.100 is amended to read:
  455.100. The Director of the Department of Consumer and
Business Services shall have general supervision over the
administration of the state building code regulations, including
 { +  providing statewide interpretations for + } the plumbing,
elevator, electrical, manufactured structures, boiler, amusement
ride, structural  { - ; - }  { + , + } mechanical, heating and
ventilating  { - ; one and two family - }  { + , low-rise
residential + } dwelling  { - ; - }  and prefabricated structures
codes.
  SECTION 15. ORS 455.100, as amended by section 14 of this 2003
Act, is amended to read:
  455.100. The Director of the Department of Consumer and
Business Services shall have general supervision over the
administration of the state building code regulations, including
providing statewide interpretations for the plumbing, elevator,
electrical, manufactured structures, boiler, amusement ride,
structural, mechanical,   { - heating and ventilating, - }  { +
 + }low-rise residential dwelling and prefabricated structures
codes.
  SECTION 16. ORS 455.110 is amended to read:
  455.110. Except as otherwise provided by ORS chapters 446, 447,
460, 476, ORS 479.010 to 479.220, 479.510 to 479.945, 479.990 and
479.995 and ORS chapter 480:
  (1) The Director of the Department of Consumer and Business
Services shall coordinate { + , interpret + } and generally
supervise the adoption, administration and enforcement of the
state building code.
  (2) The director with the approval of the appropriate advisory
boards shall adopt   { - and publish the specialty codes,
including codes of - }  { +  codes and standards, including + }
regulations as authorized by ORS 455.020   { - (2) providing
standards for - }  { +  governing + } the construction,
reconstruction, alteration and repair of buildings and other
structures and the installation of mechanical devices and
equipment therein  { - , governing matters of materials, design
and construction, fire protection in one-family and two-family
dwellings, health, sanitation, safety and maximum energy
conservation - } . { +  The regulations may include rules for the
administration and enforcement of a certification system for
persons performing work under the codes and standards adopted
under this subsection. However, this subsection does not
authorize the establishment of a separate certification for
performing work on low-rise residential dwellings. + }
  (3) The director with the approval of the appropriate advisory
boards may amend such codes from time to time. The codes of
regulations and any amendment thereof shall conform in so far as
practicable to model building codes generally accepted and in use
throughout the United States. If there is no nationally
recognized model code, consideration shall be given to the
existing specialty codes presently in use in this state. Such
model codes with modifications considered necessary and specialty
codes may be adopted by reference. The codes so promulgated and
any amendments thereof shall be based on the application of
scientific principles, approved tests and professional judgment
and, to the extent that it is practical to do so, the codes shall
be promulgated in terms of desired results instead of the means
of achieving such results, avoiding wherever possible the
incorporation of specifications of particular methods or
materials. To that end the codes shall encourage the use of new
methods, new materials and maximum energy conservation.
  SECTION 17. ORS 455.132 is amended to read:
  455.132. (1) There is established in the Department of Consumer
and Business Services a Building Codes Structures Board
consisting of   { - 15 - }  { +  nine + } members.
  (2) The Building Codes Structures Board shall assist the
Director of the Department of Consumer and Business Services in
administering the structural, mechanical, one- and two-family
dwellings, prefabricated structures and energy programs described
in this chapter and the accessibility to persons with physical
disabilities program described in ORS 447.210 to 447.280.
  (3) The board shall consist of   { - a representative selected
from individuals recommended by the Oregon Disabilities
Commission and - }  members broadly representative of the
industries and professions involved in the development and
construction of buildings and energy conservation, including:
  (a) An architect { +  or engineer + };
    { - (b) A homebuilder; - }
    { - (c) An energy supplier; - }
    { - (d) A representative of a recognized environmental
group; - }
    { - (e) A prefabricated structure builder; - }
   { +  (b) A general contractor, as defined in ORS 701.005,
specializing in the construction of buildings more than three
stories above grade;
  (c) A contractor specializing in construction for heavy
industry;
  (d) A representative of the building trade;
  (e) A representative of a utility or energy supplier; + }
  (f) A representative of a fire protection agency;
    { - (g) A remodeler; - }
    { - (h) A low income housing representative; - }
    { - (i) An engineer; - }
    { - (j) - }  { +  (g) + } A building official;
    { - (k) An owner or manager of more than two rental housing
units; - }
    { - (L) - }  { +  (h) + } An owner or manager of a commercial
office building; and
    { - (m) Two public members who do not receive compensation
from any interest described in paragraphs (a) to (L) of this
subsection. - }
   { +  (i) A representative selected from individuals
recommended by the Oregon Disabilities Commission. + }
  SECTION 18. ORS 455.132, as amended by section 17 of this 2003
Act, is amended to read:
  455.132. (1) There is established in the Department of Consumer
and Business Services a Building Codes Structures Board
consisting of nine members.
  (2) The Building Codes Structures Board shall assist the
Director of the Department of Consumer and Business Services in
administering the structural, mechanical,   { - one- and
two-family dwellings, - }  prefabricated structures and energy
programs described in this chapter and the accessibility to
persons with physical disabilities program described in ORS
447.210 to 447.280.
  (3) The board shall consist of members broadly representative
of the industries and professions involved in the development and
construction of buildings and energy conservation, including:
  (a) An architect or engineer;
  (b) A general contractor, as defined in ORS 701.005,
specializing in the construction of buildings more than three
stories above grade;
  (c) A contractor specializing in construction for heavy
industry;
  (d) A representative of the building trade;
  (e) A representative of a utility or energy supplier;
  (f) A representative of a fire protection agency;
  (g) A building official;
  (h) An owner or manager of a commercial office building; and
  (i) A representative selected from individuals recommended by
the Oregon Disabilities Commission.
  SECTION 19. ORS 455.132, as amended by sections 17 and 18 of
this 2003 Act, is amended to read:
  455.132. (1) There is established in the Department of Consumer
and Business Services a Building Codes Structures Board
consisting of nine members.
  (2) The Building Codes Structures Board shall assist the
Director of the Department of Consumer and Business Services in
administering the structural,   { - mechanical, - }
prefabricated structures and energy programs described in this
chapter and the accessibility to persons with physical
disabilities program described in ORS 447.210 to 447.280.
  (3) The board shall consist of members broadly representative
of the industries and professions involved in the development and
construction of buildings and energy conservation, including:
  (a) An architect or engineer;
  (b) A general contractor, as defined in ORS 701.005,
specializing in the construction of buildings more than three
stories above grade;
  (c) A contractor specializing in construction for heavy
industry;
  (d) A representative of the building trade;
  (e) A representative of a utility or energy supplier;
  (f) A representative of a fire protection agency;
  (g) A building official;
  (h) An owner or manager of a commercial office building; and
  (i) A representative selected from individuals recommended by
the Oregon Disabilities Commission.
  SECTION 20. ORS 455.144 is amended to read:
  455.144. (1) The   { - boards described in ORS 455.132 and
455.138 - }   { + Building Codes Structures Board, the Electrical
and Elevator Board and the Residential Structures Board  + }shall
 { + each + } be organized and governed as described in this
section.
  (2)(a) The term of office of each member is four years and no
member shall be eligible for appointment to more than two full
terms of office. The Governor shall appoint the members of each
board and the board members shall serve at the pleasure of the
Governor.
  (b) Before the expiration of the term of a member, the Governor
shall appoint a successor whose term begins on July 1 next
following. A member is eligible for reappointment. If there is a
vacancy for any cause, the Governor shall make an appointment to
become immediately effective for the unexpired term.
  (3) A member of each board is entitled to compensation and
expenses as provided in ORS 292.495.
  (4) A board shall select one of its members as chairperson and
another as vice chairperson, for such terms and with duties and
powers necessary for the performance of the functions of such
office as the board determines.
  (5) A majority of the members of a board constitutes a quorum
for the transaction of business.
  (6) Each board shall meet   { - at least - }  once every three
months at a place, day and hour determined by the board. A board
shall also meet at other times and places specified by the call
of   { - its chairperson or of a majority of the members of the
board - }  { +  the Director of the Department of Consumer and
Business Services + }.
  (7) In accordance with applicable provisions of ORS 183.310 to
183.550, the director   { - of the Department of Consumer and
Business Services - }  may adopt rules necessary for the
administration of the laws that the Department  { + of Consumer
and Business Services + } is charged with administering.
  (8) The Governor may remove a board member for good cause.  '
Good cause' for removal of a member includes, but is not limited
to, three unexcused absences during any 12-month period from a
regularly scheduled board meeting.
  (9) The appointment of a member of a board is subject to
confirmation by the Senate pursuant to section 4, Article III of
the Oregon Constitution.
  SECTION 21. ORS 455.144, as amended by section 20 of this 2003
Act, is amended to read:
  455.144. (1) The Building Codes Structures Board, the
Electrical and Elevator Board { + , + }   { - and - }  the
Residential Structures Board  { + and the Mechanical Board
 + }shall each be organized and governed as described in this
section.
  (2)(a) The term of office of each member is four years and no
member shall be eligible for appointment to more than two full
terms of office. The Governor shall appoint the members of each
board and the board members shall serve at the pleasure of the
Governor.
  (b) Before the expiration of the term of a member, the Governor
shall appoint a successor whose term begins on July 1 next
following. A member is eligible for reappointment. If there is a
vacancy for any cause, the Governor shall make an appointment to
become immediately effective for the unexpired term.
  (3) A member of each board is entitled to compensation and
expenses as provided in ORS 292.495.
  (4) A board shall select one of its members as chairperson and
another as vice chairperson, for such terms and with duties and
 
powers necessary for the performance of the functions of such
office as the board determines.
  (5) A majority of the members of a board constitutes a quorum
for the transaction of business.
  (6) Each board shall meet once every three months at a place,
day and hour determined by the board. A board shall also meet at
other times and places specified by the call of the Director of
the Department of Consumer and Business Services.
  (7) In accordance with applicable provisions of ORS 183.310 to
183.550, the director may adopt rules necessary for the
administration of the laws that the Department of Consumer and
Business Services is charged with administering.
  (8) The Governor may remove a board member for good cause.  '
Good cause' for removal of a member includes, but is not limited
to, three unexcused absences during any 12-month period from a
regularly scheduled board meeting.
  (9) The appointment of a member of a board is subject to
confirmation by the Senate pursuant to section 4, Article III of
the Oregon Constitution.
  SECTION 22. ORS 455.153 is amended to read:
  455.153. (1) A municipality may administer any specialty code
or building requirements as though the code or requirements were
ordinances of the municipality if the municipality is authorized
to administer:
  (a) The specialty code under ORS chapter 447 or 455 or ORS
479.510 to 479.945 and 479.995.
  (b) Mobile or manufactured dwelling parks requirements adopted
under ORS 446.062.
  (c) Temporary parks requirements adopted under ORS 446.105.
  (d) Manufactured dwelling installation, support and tiedown
requirements adopted under ORS 446.230.
  (e) Park or camp requirements adopted under ORS 455.680.
  (2) Administration of any specialty code or building
requirement includes establishing a program intended to verify
compliance with state licensing requirements and all other
administrative and judicial aspects of enforcement of the code or
requirement. Nothing in this section affects the concurrent
jurisdiction of the Director of the Department of Consumer and
Business Services, the Building Codes Structures Board, the State
Plumbing Board, the Manufactured Structures and Parks Advisory
Board,   { - or - }  the Electrical and Elevator Board  { + or
the Residential Structures Board  + }to impose civil penalties
for violations committed within municipalities.
  SECTION 23. ORS 455.153, as amended by section 22 of this 2003
Act, is amended to read:
  455.153. (1) A municipality may administer any specialty code
or building requirements as though the code or requirements were
ordinances of the municipality if the municipality is authorized
to administer:
  (a) The specialty code under ORS chapter 447 or 455 or ORS
479.510 to 479.945 and 479.995.
  (b) Mobile or manufactured dwelling parks requirements adopted
under ORS 446.062.
  (c) Temporary parks requirements adopted under ORS 446.105.
  (d) Manufactured dwelling installation, support and tiedown
requirements adopted under ORS 446.230.
  (e) Park or camp requirements adopted under ORS 455.680.
  (2) Administration of any specialty code or building
requirement includes establishing a program intended to verify
compliance with state licensing requirements and all other
administrative and judicial aspects of enforcement of the code or
requirement. Nothing in this section affects the concurrent
jurisdiction of the Director of the Department of Consumer and
Business Services, the Building Codes Structures Board, the State
Plumbing Board, the Manufactured Structures and Parks Advisory
Board, the Electrical and Elevator Board { + , + }   { - or - }
the Residential Structures Board { +  or the Mechanical Board + }
to impose civil penalties for violations committed within
municipalities.
  SECTION 24. ORS 455.156 is amended to read:
  455.156. (1) Notwithstanding any other provision of this
chapter, ORS chapter 693 or ORS 447.010 to 447.156, 447.992,
479.510 to 479.945, 479.990 or 479.995, the Department of
Consumer and Business Services shall carry out the provisions of
this section.
  (2)(a) A municipality that establishes a building inspection
program under ORS 455.148 or a plumbing inspection program under
ORS 455.150 covering installations under the plumbing specialty
code or   { - One and Two Family - }  { +  Low-Rise
Residential + } Dwelling Code may act on behalf of the State
Plumbing Board to investigate violations of and enforce ORS
447.030, 447.040, 693.030 and 693.040 and to issue notices of
proposed assessment of civil penalties for those violations.
  (b) A municipality that establishes a building inspection
program under ORS 455.148 or an electrical inspection program
under ORS 455.150 covering installations under the electrical
specialty code or   { - One and Two Family - }  { +  Low-Rise
Residential + } Dwelling Code may act on behalf of the Electrical
and Elevator Board to investigate violations of and enforce ORS
479.550 (1) and 479.620 and to issue notices of proposed
assessment of civil penalties for those violations.
   { +  (c) A municipality that establishes a building inspection
program under ORS 455.148 or 455.150 may investigate violations
and enforce any provisions of the program administered by the
municipality. + }
  (3) The department shall establish:
  (a) Procedures, forms and standards to carry out the provisions
of this section, including but not limited to creating preprinted
notices of proposed assessment of penalties that can be completed
and served by municipal inspectors;
  (b) A program to provide that all of the moneys recovered by
the department, less collection expenses, be paid to the
municipality that initiated the charges when a person charged
with a violation as provided in subsection (2) of this
section { + , other than a violation of a licensing
requirement, + } agrees to the entry of an assessment of civil
penalty or does not   { - ask for - }  { +  request + } a
hearing, and an order assessing a penalty is entered against the
person;
   { +  (c) A uniform citation process to be used in all
jurisdictions of the state for violation of a licensing
requirement. The process may include but need not be limited to
all program areas administered by a municipality under ORS
455.148 or 455.150 and may provide a uniform method for checking
license status and issuing citations for violation of a licensing
requirement, and a consistent basis for enforcement of licensing
requirements and treatment of violations, including fine
amounts; + }
    { - (c) - }  { +  (d) + } A program to provide a division of
the moneys recovered by the department with the municipality that
initiated the charges, when a person charged with a violation as
provided in subsection (2) of this section { + , other than a
violation of a licensing requirement, + } requests a hearing and
is assessed a penalty. One-half of the amounts recovered shall be
paid to the municipality. The department shall keep an amount
equal to its costs of processing the proceeding and collection
expenses out of the remaining one-half and remit the balance, if
any, to the municipality; and
    { - (d) - }  { +  (e) + } A program to require municipalities
to investigate violations of the department's permit requirements
for plumbing installations and services under the plumbing
 
specialty code and for plumbing and electrical installations and
services under the
  { - One and Two Family - }  { +  Low-Rise Residential + }
Dwelling Code, and to:
  (A) Initiate notices of proposed assessment of civil penalties
as agents of the boards designated in subsection (2) of this
section; and
  (B) Pay the agents of the boards out of net civil penalty
recoveries as if the recoveries were under paragraphs (b) and
  { - (c) - }   { + (d) + } of this subsection.
  (4) The assessment of a civil penalty under this section by a
municipality is subject to the amount limitations set forth in
ORS 455.895.
  (5)(a) It shall be a defense for any person charged with a
penalty for violation of a building inspection program permit
requirement covering plumbing installations under the plumbing
specialty code, electrical permit requirements under ORS 479.550
or plumbing or electrical requirements under the   { - One and
Two Family - }  { +  Low-Rise Residential + } Dwelling Code that
the person was previously penalized for the same occurrence.
  (b) A building inspection program permit requirement is a
requirement contained in a specialty code or municipal ordinance
or rule requiring a permit before the particular installations
covered by the codes are commenced.
  (c) A penalty for the same occurrence includes a combination of
two or more of the following that are based on the same plumbing
or electrical installation:
  (A)(i) An investigative or other fee added to an electrical
permit fee when a permit was obtained after the electrical
installation was started;
  (ii) A civil penalty pursuant to ORS 479.995 for violation of
ORS 479.550 for failure to obtain an electrical permit;
  (iii) A civil penalty pursuant to ORS 455.895 for failure to
obtain an electrical permit under the   { - One and Two
Family - }  { +  Low-Rise Residential + } Dwelling Code; or
  (iv) A municipal penalty, other than an investigative fee, for
making an electrical installation under the electrical specialty
code or the   { - One and Two Family - }   { + Low-Rise
Residential + } Dwelling Code without a permit; or
  (B)(i) An investigative or other fee added to a plumbing permit
fee when a permit was obtained after the plumbing installation
was started;
  (ii) A civil penalty pursuant to ORS 447.992 for failure to
obtain a plumbing permit as required under the plumbing specialty
code;
  (iii) A civil penalty pursuant to ORS 455.895 for failure to
obtain a plumbing permit under the   { - One and Two Family - }
 { + Low-Rise Residential + } Dwelling Code; or
  (iv) A municipal penalty, other than an investigative fee, for
making a plumbing installation under the plumbing specialty code
or the   { - One and Two Family - }   { + Low-Rise
Residential + } Dwelling Code without a permit.
  SECTION 25. ORS 455.220 is amended to read:
  455.220. (1)   { - For the purpose of defraying the costs of
training and other educational programs administered by the
Department of Consumer and Business Services under this
chapter - } There is hereby imposed a surcharge in the amount of
one percent of the total building permit fees and hourly charges
collected when an applicant chooses to pay an hourly rate instead
of purchasing a permit in connection with the construction of, or
addition or alteration to, buildings and equipment or
appurtenances.  { + Up to one-half of the surcharge collected
under this subsection may be used to fund the activities of the
Tri-County Building Industry Service Center. The remainder of the
surcharge collected under this subsection shall be used for the
purpose of defraying the costs of training and other educational
programs administered by the Department of Consumer and Business
Services under this chapter. + }
  (2) Permit surcharges shall be collected by each municipality
and remitted to the Director of the Department of Consumer and
Business Services. Each municipality having a population greater
than 40,000 shall, on a monthly basis, prepare and submit to the
director a report of permits and certificates issued in each
class or category and fees and surcharges thereon collected
during the month, together with other statistical information as
required by the director concerning construction activity
regulated by the parts of the state building code administered by
the municipality.  All other municipalities shall submit such a
report on a quarterly basis. The report shall be in a form
prescribed by the director and shall be submitted, together with
a remittance covering the surcharges collected, by no later than
the 15th day following the month or quarter in which the
surcharges are collected.
  (3)(a) Except as provided in subsection (4) of this section,
all surcharges and other fees prescribed by ORS 455.010 to
455.240 and 455.410 to 455.740 and payable to the department,
except fees received under ORS 455.148 (6) or 455.150 (6), shall
be deposited by the director in the Consumer and Business
Services Fund created by ORS 705.145.
  (b) Notwithstanding subsection   { - (4)(a) - }  { +  (1) + }
of this section, the   { - training - }  surcharge imposed under
subsection (1) of this section for permits established under ORS
446.062 (3), 446.176, 446.405 (2), 446.430 (2) and 455.170 (2)
shall be deposited in the Consumer and Business Services Fund
established under ORS 705.145 and is continuously appropriated to
the department for use as provided in ORS 446.423.
    { - (4)(a) From the amount appropriated biennially to the
department for the purpose of defraying the costs of training and
other educational programs under subsection (1) of this section,
the director shall transfer to the Tri-County Building Industry
Service Center Account established under ORS 455.848 an amount
not to exceed one-half of the biennial appropriation. - }
    { - (b) - }  { +  (4) + } The director shall
 { - deposit - }  { +  use + } funds received under ORS 455.210
(6)   { - in - }  { +  to fund the activities of + } the
Tri-County Building Industry Service Center   { - Account
established under ORS 455.848 - } .
  (5) The director shall administer training and other education
programs under this chapter through contracts with local
educational institutions, professional associations or other
training providers.
  SECTION 26. ORS 455.310 is amended to read:
  455.310. (1) It is not the purpose of this chapter to require
that permits be obtained or fees be paid for repairs and
maintenance   { - which - }  { +  that + } do not violate the
intent of the structural and fire and life safety specialty
provisions of the State of Oregon Structural Specialty Code and
the   { - One and Two Family - }  { +  Low-Rise Residential + }
Dwelling Code, adopted pursuant to ORS 455.020 and 455.610, ORS
chapter 476, ORS 479.010 to 479.200 and 479.210 to 479.220, when
such repair or maintenance is done on a single-family residence,
or a private garage, carport or storage shed that is accessory to
a single-family residence.
  (2) Items designated by the Director of the Department of
Consumer and Business Services, with the advice of the
 { - Building Codes - }  { +  Residential + } Structures
Board { + , + } shall be exempt from permits and fees required
under this chapter. The director shall, pursuant to ORS 183.310
to 183.550, develop and maintain an applicable list of such
exempt items, which shall include, but not be limited to,
concrete slabs, driveways, sidewalks, masonry repair, porches,
patio covers, painting, interior wall, floor or ceiling covering,
nonbearing partitions, shelving, cabinet work, gutters,
downspouts, small accessory buildings, door and window
replacements, replacement or repair of siding and replacement or
repair of roofing. In making the list of exempt items, the
director shall further define the items on the list contained in
this subsection so that no item which adversely affects the
structural integrity of the dwelling shall be on the list.
  SECTION 27. ORS 455.420 is amended to read:
  455.420. (1) Each individual dwelling unit in a multifamily
residential building constructed after October 4, 1977, shall
have installed a separate, individual electrical meter for each
such dwelling unit except where a building inspector certified
under ORS 455.715 to 455.740 determines that pursuant to
standards adopted by the Director of the Department of Consumer
and Business Services the installation of a single, central
electrical meter for all the dwelling units in such building
would facilitate an overall reduction in electrical consumption
by such units.
  (2) For the purpose of carrying out the provisions of
subsection (1) of this section, the director, based on
recommendations of the   { - Building Codes - }  { +
Residential + } Structures Board, shall adopt by rule standards
for determining whether the installation of a single electrical
meter for all dwelling units in a multifamily residential
building facilitates an overall reduction in electrical
consumption by such units.
  SECTION 28. ORS 455.467 is amended to read:
  455.467. (1) Except as provided in subsection (2) of this
section, for specialty code plan reviews of simple   { - one and
two family - }  { +  low-rise residential + } dwellings, the
Department of Consumer and Business Services or a municipality
that administers a building inspection program under ORS 455.148
or 455.150 shall approve or disapprove the specialty code
building plan:
  (a) For a jurisdiction with a population that is less than
300,000, within 10 business days of receiving a complete
application, or shall implement the process described in ORS
455.465.
  (b) For a jurisdiction with a population that is 300,000 or
more, within 15 business days of receiving a complete
application, or shall implement the process described in ORS
455.465.
  (2) The 10-day and 15-day requirements in subsection (1) of
this section do not apply if:
  (a) The plan requires approval by federal, state or local
agencies outside the jurisdiction of the issuing agency;
  (b) The plan is for a complex structure that requires
additional review as determined by the department or
municipality; or
  (c) Based on conditions that exist in the affected
municipality, the Director of the Department of Consumer and
Business Services authorizes a different plan review schedule as
described in a building inspection program submitted under ORS
455.148 or 455.150.
  (3) For specialty code plan reviews of commercial structures, a
municipality shall include in its building inspection program
submitted under ORS 455.148 or 455.150 a process for plan review
services. The municipality shall include in its program detailed
reasons supporting the proposed plan review process. The plan
review services provided by the municipality shall:
  (a) Allow an applicant to defer the submittal of plans for one
or more construction phases for a commercial construction project
in accordance with the state building code; and
  (b) Allow an applicant to receive permits for each of the
phases of a commercial construction project as described in the
 
state building code when the plan review for that phase is
approved.
  (4) For a phased commercial construction project as described
in subsection (3) of this section, the municipality shall inform
the applicant of the detailed plans necessary for each phase of
the project and the estimated time for initial and phased review
of the building plans for conformance with the state building
code.
  (5) An applicant submitting plans under subsection (3) of this
section is responsible for ensuring that the project meets all
specialty code requirements and that the project does not proceed
beyond the level of approval authorized by the building official.
  (6) A municipality that repeatedly fails to meet the plan
review period described in this section or otherwise authorized
in its building inspection program submitted under ORS 455.148 or
455.150 shall be considered to be engaging in a pattern of
conduct of failing to provide timely plan reviews under ORS
455.160.
  SECTION 29. ORS 455.525 is amended to read:
  455.525. (1) In the manner provided in ORS 183.310 to 183.550
for the adoption of rules and after consideration of available
technology and costs, the Building Codes Structures Board
 { + and the Residential Structures Board  + }shall establish
basic and uniform performance standards to provide maximum energy
conservation and use of passive solar energy in the design,
construction, reconstruction, alteration and repair of buildings
and other structures. Such standards shall be submitted to the
Director of the Department of Consumer and Business Services for
proposed inclusion in the state building code as provided by ORS
455.030 (4).
  (2) Any testing requirements adopted under subsection (1) of
this section do not apply to fenestration products that are for
use within residential structures if the fenestration products
are:
  (a) Used in the creation of sunrooms and solariums and
constructed with a minimum of a one-half inch space between the
panes; or
  (b) Fenestration products used as skylights that constitute no
more than 10 percent of the total glazing used in any dwelling
unit.
  (3) The  { + Residential Structures  + }Board and the director
shall jointly adopt by rule default thermal performance values
for residential fenestration products that are produced in low
volume.  Any testing requirements adopted under subsection (1) of
this section or ORS 455.020 or 455.030 do not apply to
residential fenestration products that are produced in low
volume.
  (4) Fenestration products manufactured for use as skylights
that are subject to the provisions of subsection (1) of this
section and have frames that are wood, thermal break aluminum or
aluminum with vinyl shall be deemed to meet any performance
standards included in the state building code when the following
glazing configurations are used:
  (a) A minimum one-half inch space between the panes and low-e
(emissivity) glass; or
  (b) Triple-layered acrylic.
  (5) Regulations relating to the use and conservation of energy
adopted pursuant to ORS 455.020 (2) shall be reviewed by the
 { + Building Codes Structures Board and the Residential
Structures + } Board.
  SECTION 30. ORS 455.530 is amended to read:
  455.530. The Building Codes Structures Board  { + and the
Residential Structures Board + } may:
  (1) Apply for and receive moneys from any person, from the
federal government,   { - or - }  from this state or
 
 { + from + } any   { - of its agencies or departments - }  { +
state agency or department + }.
  (2) Contract with any public agency for the performance of
services or the exchange of employees or services by one to the
other necessary in carrying out the purposes of ORS 455.525 and
455.530.
  SECTION 31. ORS 455.610 is amended to read:
  455.610. (1) The Director of the Department of Consumer and
Business Services shall adopt, and amend as necessary, a
 { - One and Two Family Dwelling Code based upon nationally
recognized codes as adopted in Oregon. - }  { +  Low-Rise
Residential Dwelling Code that contains all requirements,
including structural design provisions, related to the
construction of residential dwellings three stories or less above
grade. The code provisions for plumbing and electrical
requirements must be compatible with other specialty codes
adopted by the director. The Electrical and Elevator Board, the
Building Codes Structures Board and the State Plumbing Board
shall review, respectively, amendments to the electrical,
mechanical or plumbing provisions of the code. + }
  (2) Changes or amendments to the code adopted under subsection
(1) of this section may be made when:
  (a) Required by geographic or climatic conditions unique to
Oregon;
  (b) Necessary to be compatible with other statutory provisions;
  (c) Changes to the national codes are adopted in Oregon; or
  (d) Necessary to authorize the use of building materials and
techniques that are consistent with nationally recognized
standards and building practices.
    { - (3) The energy conservation provisions adopted in the One
and Two Family Dwelling Code shall also be adopted in the State
of Oregon Structural Specialty Code. - }
    { - (4) - }  { +  (3) + } The water conservation provisions
for toilets, urinals, shower heads and interior faucets adopted
in the   { - One and Two Family - }  { +  Low-Rise
Residential + } Dwelling Code shall be the same as those adopted
under ORS 447.020 to meet the requirements of ORS 447.145.
    { - (5) - }  { +  (4) + } The  { + Low-Rise Residential
Dwelling  + }Code shall be adopted and amended as provided by ORS
455.030 and 455.110.
    { - (6) The Building Codes Structures Board is the only
appropriate board to advise the director on the adoption of or
amendments to the One and Two Family Dwelling Code adopted under
this section. Amendments shall be reviewed by the other
appropriate specialty boards. - }
    { - (7) Amendments to the One and Two Family Dwelling Code
shall be included in the other appropriate specialty codes. - }
    { - (8) - }  { +  (5) + } The director, by rule, shall
establish uniform standards for a municipality to allow an
alternate method of construction to the requirements for
 { - structures - }   { + one and two family dwellings + } built
to the   { - One and Two Family - }  { +  Low-Rise
Residential + } Dwelling Code in areas where the local
jurisdiction determines that the fire apparatus means of approach
to a property or water supply serving a property does not meet
applicable fire code or state building code requirements. The
alternate method of construction, which may include but is not
limited to the installation of automatic fire sprinkler systems,
must be approved in conjunction with the approval of an
application under ORS 197.522.
    { - (9) - }  { +  (6) + } For lots of record existing before
July 2, 2001, or property that receives any approval for
partition, subdivision or construction under ORS 197.522 before
July 2, 2001, a municipality allowing an alternate method of
construction to the requirements for   { - structures - }  { +
one and two family dwellings + } built to the   { - One and Two
Family - }  { +  Low-Rise Residential + } Dwelling Code may apply
the uniform standards established by the director pursuant to
subsection   { - (8) - }   { + (5) + } of this section. For
property that receives all approvals for partition, subdivision
or construction under ORS 197.522 on or after July 2, 2001, a
municipality allowing an alternate method of construction to the
requirements for
  { - structures - }  { +  one and two family dwellings + } built
to the   { - One and Two Family - }  { +  Low-Rise
Residential + } Dwelling Code must apply the uniform standards
established by the director pursuant to subsection   { - (8) - }
 { + (5) + } of this section.
  SECTION 32. ORS 455.610, as amended by section 31 of this 2003
Act, is amended to read:
  455.610. (1) The Director of the Department of Consumer and
Business Services shall adopt, and amend as necessary, a Low-Rise
Residential Dwelling Code that contains all requirements,
including structural design provisions, related to the
construction of residential dwellings three stories or less above
grade. The code provisions for plumbing and electrical
requirements must be compatible with other specialty codes
adopted by the director. The Electrical and Elevator Board, the
 { - Building Codes Structures - }   { + Mechanical + } Board and
the State Plumbing Board shall review, respectively, amendments
to the electrical, mechanical or plumbing provisions of the code.
  (2) Changes or amendments to the code adopted under subsection
(1) of this section may be made when:
  (a) Required by geographic or climatic conditions unique to
Oregon;
  (b) Necessary to be compatible with other statutory provisions;
  (c) Changes to the national codes are adopted in Oregon; or
  (d) Necessary to authorize the use of building materials and
techniques that are consistent with nationally recognized
standards and building practices.
  (3) The water conservation provisions for toilets, urinals,
shower heads and interior faucets adopted in the Low-Rise
Residential Dwelling Code shall be the same as those adopted
under ORS 447.020 to meet the requirements of ORS 447.145.
  (4) The Low-Rise Residential Dwelling Code shall be adopted and
amended as provided by ORS 455.030 and 455.110.
  (5) The director, by rule, shall establish uniform standards
for a municipality to allow an alternate method of construction
to the requirements for one and two family dwellings built to the
Low-Rise Residential Dwelling Code in areas where the local
jurisdiction determines that the fire apparatus means of approach
to a property or water supply serving a property does not meet
applicable fire code or state building code requirements. The
alternate method of construction, which may include but is not
limited to the installation of automatic fire sprinkler systems,
must be approved in conjunction with the approval of an
application under ORS 197.522.
  (6) For lots of record existing before July 2, 2001, or
property that receives any approval for partition, subdivision or
construction under ORS 197.522 before July 2, 2001, a
municipality allowing an alternate method of construction to the
requirements for one and two family dwellings built to the
Low-Rise Residential Dwelling Code may apply the uniform
standards established by the director pursuant to subsection (5)
of this section. For property that receives all approvals for
partition, subdivision or construction under ORS 197.522 on or
after July 2, 2001, a municipality allowing an alternate method
of construction to the requirements for one and two family
dwellings built to the Low-Rise Residential Dwelling Code must
apply the uniform standards established by the director pursuant
to subsection (5) of this section.
  SECTION 33. ORS 455.622 is amended to read:
  455.622. Notwithstanding ORS 447.020, 455.715 to 455.740,
479.810 (3) or 479.855, the Department of Consumer and Business
Services shall adopt education, training and examination
requirements that allow certification of inspectors to perform
inspections  { + on one and two family dwellings + } under one or
more aspects of the   { - One and Two Family - }   { + Low-Rise
Residential + } Dwelling Code adopted under ORS 455.610 to
455.630.
  SECTION 34. ORS 455.625 is amended to read:
  455.625. The Director of the Department of Consumer and
Business Services shall, by rule, adopt:
  (1) A list of information required for   { - one and two
family - }  { + low-rise residential dwelling + } building
permits; and
  (2) A priority schedule for   { - one and two family - }
 { + low-rise residential + } dwelling inspections and plan
review requirements.
  SECTION 35. ORS 455.627 is amended to read:
  455.627. The Department of Consumer and Business Services, in
consultation with the   { - appropriate advisory board as defined
in ORS 455.010 - }  { +  Residential Structures Board + }, shall
adopt rules to create a mandatory random inspection program for
minor electrical installations made by electrical contractors in
 { - one and two family - }  { +  low-rise residential + }
dwellings.
  SECTION 36. ORS 455.630 is amended to read:
  455.630. (1) The   { - One and Two Family - }  { +  Low-Rise
Residential + } Dwelling Code shall be enforced by inspectors and
building officials qualified pursuant to ORS 455.715 to 455.740.
  (2) Notwithstanding subsection (1) of this section, enforcement
of electrical specialty code, permit and licensing provisions
shall be under the sole authority of the Electrical and Elevator
Board in the Department of Consumer and Business Services.
  SECTION 37. ORS 455.715 is amended to read:
  455.715. As used in ORS 455.715 to 455.740, unless the context
otherwise requires:
  (1) 'Building official' means a person charged by a
municipality with responsibility for administration and
enforcement of the state building code in the municipality.
  (2) 'Business of providing prefabricated structure plan
approvals and inspections' means an independent contractor
providing prefabricated structure plan approval or inspection
services, or both, under the following specialty codes, as
provided in ORS 455.020, 455.705 and 455.715:
  (a) Structural;
  (b) Mechanical;
  (c) Plumbing;
  (d) Electrical; and
  (e)   { - One and two family - }  { +  Low-rise residential + }
dwelling.
  (3) 'Inspector' means:
  (a) A person, including a plans examiner, acting under the
authority and direction of a building official and charged with
the responsibility of routine enforcement of any specialty code;
or
  (b) A person, including a plans examiner, who provides
enforcement of any specialty code, who is personally in the
business of providing prefabricated structure plan approvals or
inspections or is employed by such a business.
  SECTION 38. ORS 455.800 is amended to read:
  455.800. As used in ORS 455.800 to 455.820:
  (1) 'Building official' means a person who is a building
official as defined in ORS 455.715 or a Department of Consumer
and Business Services employee charged with enforcement or
administration of the state building code.
 
  (2) 'Building trade committee' means a group composed of
experienced and knowledgeable local general contractors or other
persons having substantial expertise in various aspects of one
and two family dwelling construction { +  under the Low-Rise
Residential Dwelling Code + }.
  (3) 'General contractor' has the meaning given that term in ORS
701.005.
  (4) 'Master builder' means a person certified under ORS
455.810.
  (5) 'Qualified construction company' means a company that has
been:
  (a) Continuously licensed by the Construction Contractors Board
during the preceding 60 months as a general contractor; or
  (b) Continuously licensed by the Construction Contractors Board
during at least the preceding 24 months as a general contractor
and by one or more other states during the balance of the
preceding 60 months in an occupation equivalent to that of a
general contractor.
  (6) 'Regular employee' means a person who:
  (a) Is continuously employed by, and on the regular payroll of,
a qualified construction company;
  (b) Has filed a withholding exemption certificate pursuant to
ORS 316.182 for work performed for the qualified construction
company; and
  (c) Is available during working hours to supervise on-site
dwelling construction, including but not limited to supervising
the installation of:
  (A) Drywall;
  (B) Electrical systems;
  (C) Footings;
  (D) Foundations;
  (E) Framing;
  (F) Insulation;
  (G) Mechanical systems;
  (H) Plumbing systems; and
  (I) Stairs.
  (7) 'Whole dwelling remodel' means a project that includes the
installation in an existing dwelling of all of the following:
  (a) Drywall;
  (b) Electrical systems;
  (c) Footings;
  (d) Foundations;
  (e) Framing;
  (f) Insulation;
  (g) Mechanical systems; and
  (h) Plumbing systems.
  SECTION 39. ORS 455.805 is amended to read:
  455.805. An individual may apply to the Department of Consumer
and Business Services to be tested and certified as a master
builder. The department shall establish uniform criteria for use
in determining whether to grant an application. The criteria
must, at a minimum, provide that:
  (1) The individual must be an owner or regular employee of a
qualified construction company and be authorized by the company
to provide assurance to the department that all state and local
code requirements are met.
  (2) In each of the five preceding calendar years, the
individual must either have performed or supervised a dwelling
construction or whole dwelling remodel. In at least two of the
years, the construction or remodel must have occurred in a
geographic area that had a master builder program.
  (3) The individual must have completed a program sponsored by a
local building trade committee or other program approved by the
department, providing training relating to the   { - One and Two
Family - }  { +  construction of one and two family dwellings
 
under the Low-Rise Residential + } Dwelling Code. A program must
include but need not be limited to instruction in:
  (a) Administration;
  (b) Chimneys and fireplaces;
  (c) Decay and termite protections;
  (d) Energy conservation;
  (e) Footings and foundations;
  (f) Roof-ceiling construction;
  (g) Roof coverings;
  (h) Site inspections;
  (i) Wall construction, assemblies and coverings; and
  (j) Wood and metal framing.
  (4) The individual must have scored at least 75 percent on a
written examination, approved and administered by the department,
covering the   { - One and Two Family - }  { +  appropriate
aspects of the Low-Rise Residential + } Dwelling Code.
  (5)(a) The individual must not be the subject of an adverse
final order issued by the Construction Contractors Board or
Department of Consumer and Business Services based upon acts
committed within 36 months preceding the application date that:
  (A) Violated a specialty code, licensing or permit requirement;
or
  (B) Resulted in a claim being filed with the board or
department against the individual.
  (b) For purposes of this subsection, if the individual is an
owner of a qualified construction company, an adverse final order
issued against the company is an adverse final order issued
against that individual.
  SECTION 40. ORS 455.815 is amended to read:
  455.815. (1) Local government establishment of a master builder
program is voluntary. A local government electing to establish or
terminate a program shall notify the Department of Consumer and
Business Services. If terminating a program, the local government
must give the notice six months before the program terminates.
  (2) The Department of Consumer and Business Services may
implement a master builder program in one or more geographic
areas for which the department provides plan review or inspection
services. A department decision to include an area as a
participant in the program affects only those areas, and those
reviews or inspections, for which the department provides
services instead of a local government. The department shall
notify a county prior to implementing a master builder program in
areas of the county that are served by the department.
  (3) A local government may not allow an individual to perform
the duties of a master builder unless the local government has a
master builder program. The department may allow an individual to
perform the duties of a master builder in any geographic area
administered by the department.
  (4) A building official of a government having a master builder
program may waive plan review elements by that government and may
waive government performance of one or more of the required
inspections identified by department rule, including but not
limited to inspections described in subsection (6) of this
section, if:
  (a) An individual certified as a master builder submits
construction plans  { + for a one or two family dwelling + }
regulated by the   { - One and Two Family - }  { +  Low-Rise
Residential + } Dwelling Code; and
  (b) The building official determines that:
  (A) The work is not of a highly technical nature; and
  (B) There is no unreasonable potential risk to safety of the
structure.
  (5) A building official may not waive government performance of
plan review or required inspections for:
  (a) Special design applications that are complex and highly
technical engineered systems; or
  (b) Unique building sites, including but not limited to sites
containing geologic hazards such as landslide hazard areas,
floodplains and wetlands.
  (6) Subject to subsections (3) to (5) of this section, a
building official may allow a master builder to verify that the
master builder has properly performed an installation on a
project and, to the extent that inspection would duplicate the
verification conducted by the master builder, may waive
government performance of the following required inspections:
  (a) Drywall;
  (b) Footings and setbacks;
  (c) Foundation walls, Ufer grounding rods and rebar;
  (d) Insulation;
  (e) Masonry fireplace pre-cover;
  (f) Masonry rebar;
  (g) Gutters, downspouts and foundation drains;
  (h) Roof sheathing nailing;
  (i) Suspended ceilings;
  (j) Underfloor structural; and
  (k) Wall sheathing nailing.
  SECTION 41. ORS 455.842 is amended to read:
  455.842. (1) The   { - Tri-County Building Industry Service
Board - }  { +  Department of Consumer and Business Services + }
shall establish  { + and staff + } a Tri-County Building Industry
Service Center to make available to licensed contractors and
their employees, local governments and the public the resources
and services described in ORS 455.844.   { - The Department of
Consumer and Business Services shall provide staff to support the
activities of the service center. Staff shall be considered
public employees for purposes of the State Personnel Relations
Law. - }
    { - (2) In accordance with ORS 183.310 to 183.550, the board
shall adopt rules necessary for enforcing the laws that the board
is charged with administering. - }
    { - (3) - }  { +  (2) + }   { - With the approval of - }  The
Director of the Department of Consumer and Business Services
 { - , the board - }  may adopt by rule a reasonable fee schedule
for the purpose of recovering the costs incurred by the
 { - board - }   { + department + } and the service center in
providing services under ORS 455.844. Fees adopted and imposed
under this section shall be in addition to the total
 { + building + } permit fees otherwise imposed in Clackamas,
Multnomah and Washington Counties. A municipality shall collect
fees adopted and imposed under this section and remit the fees to
the   { - director. The director shall deposit the fees in the
Tri-County Building Industry Service Center Account established
under ORS 455.848 - }  { +  department + }.
  SECTION 42. ORS 455.844 is amended to read:
  455.844. The   { - Tri-County Building Industry Service
Board - }  { + Department of Consumer and Business Services + }
shall:
  (1) Develop and administer an installation label program for
minor installations under the state building code, including but
not limited to electrical installations under ORS 455.627,
479.540 and 479.570 and plumbing installations under ORS 447.076;
  (2) Develop standard application forms and procedures for use
by municipalities in Clackamas, Multnomah and Washington Counties
when issuing structural, mechanical, electrical, plumbing and
other permits when such permits do not require a review of
building plans;
  (3) Develop standard application forms and procedures for
issuing building permits and recording inspections;
  (4) Develop standard forms and procedures for reviewing
building plans;
 
 
  (5) Establish standardized criteria and methodology for
determining fee amounts for permits that are required under the
state building code established under ORS 455.030;
  (6) Maintain and make available to the public the names of
persons certified to review building plans;
  (7) Maintain and make available to the public the names of
persons certified to perform technical inspections;
    { - (8) Review the qualifications of persons applying for
licensing or certification as an inspector in Clackamas,
Multnomah and Washington Counties under any specialty code
adopted under ORS 455.030. Notwithstanding ORS 455.737, the board
may certify a person as eligible to sit for examination required
under ORS chapter 446, 447, 455, 460, 479 or 480. Nothing in this
subsection affects the minimum qualifications for licensing,
certification or registration under ORS chapter 446, 447, 455,
460, 479 or 480.  Examinations and other testing for persons
applying for licensing, certification or registration under one
or more of the specialty codes shall be conducted as provided
under the laws and regulations relating to each specialty
code; - }
    { - (9) Develop and make available appropriate training for
persons to review building plans and perform inspections; - }
    { - (10) - }  { +  (8) + } Administer prepaid
 { + building + } permit cost accounts;
    { - (11) - }  { +  (9) + } Establish   { - within the
Tri-County Building Industry Service Center - }  sufficient
resources to assist local building officials in interpreting the
state building code;
    { - (12) - }   { + (10) + } Establish a process to facilitate
consistent application of the state building code for the
 { - geographical jurisdiction covered by the board - }  { +
area served by the Tri-County Building Industry Service
Center + }; and
    { - (13) - }  { +  (11) + } Develop a process for resolving
disputes between local building officials and contractors or
developers regarding site-specific application of one or more
provisions of the state building code.
  SECTION 43. ORS 455.846 is amended to read:
  455.846. In accordance with the applicable provisions of ORS
183.310 to 183.550,   { - the Tri-County Building Industry
Service Board, with the approval of - }  the Director of the
Department of Consumer and Business Services  { - , - }  may
adopt rules necessary for the implementation of ORS
 { - 455.840, - }  455.842 and 455.844   { - and section 8,
chapter 1082, Oregon Laws 1999 - } .
  SECTION 44. ORS 469.700 is amended to read:
  469.700. (1) The   { - Building Codes - }  { +  Residential + }
Structures Board, after public hearing, shall adopt a recommended
voluntary energy efficiency rating system for single family
residences and provide the Office of Energy with a copy thereof.
  (2) The rating system shall provide a single numerical value or
other simple concise means to measure the energy efficiency of
any single family residence, taking into account factors
including, but not limited to, the heat loss characteristics of
ceilings, walls, floors, windows, doors and heating ducts.
  (3) Upon adoption of the rating system under subsections (1)
and (2) of this section, the Office of Energy shall publicize the
availability of the system, and encourage its voluntary use in
real estate transactions.
  (4) As used in subsections (1) to (3) of this section, ' single
family residence' means a structure designed as a residence for
one family and sharing no common wall with another residence of
any type.
  SECTION 45. ORS 479.905, as amended by section 4, chapter 728,
Oregon Laws 2001, is amended to read:
 
  479.905. For the purposes of ORS 479.870 and 479.905 to
479.945, except where the context requires otherwise:
  (1) 'Class A limited energy technician' means a person licensed
to install, alter and repair all limited energy systems.
  (2) 'Class B limited energy technician' means a person licensed
to install, alter and repair all limited energy systems that do
not include protective signaling, including but not limited to:
  (a) HVAC;
  (b) Medical;
  (c) Boiler controls;
  (d) Intercom and paging systems;
  (e) Clock systems;
  (f) Data telecommunication installations; and
  (g) Instrumentation.
  (3) 'HVAC' means thermostat and associated control wiring of
heating, ventilation, air conditioning and refrigeration systems.
'HVAC' does not include boiler controls.
  (4) 'Limited energy electrical activity' means installation,
alteration, maintenance, replacement or repair of electrical
wiring and electrical products that do not exceed 100
volt-amperes in Class 2 and Class 3 installations, or that do not
exceed 300 volt-amperes for landscape low voltage lighting
systems that are cord connected to a ground fault circuit
interrupter receptacle, under the electrical specialty code and
the   { - One and Two Family - }  { +  Low-Rise Residential + }
Dwelling Code.
  (5) 'Protective signaling' includes fire alarm, nurse call,
burglar alarm, security and voice evacuation systems and other
systems that are part of a fire or life safety system.
  SECTION 46. ORS 479.940, as amended by section 7, chapter 728,
Oregon Laws 2001, is amended to read:
  479.940. (1) The licensure provisions of ORS 479.510 to 479.945
and 479.995 do not apply to the following activity on Class II
and III systems in one and two family dwellings { +  regulated
under the Low-Rise Residential Dwelling Code + }:
  (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;
  (e) HVAC;
  (f) Landscape sprinkler controls;
  (g) Landscape lighting; and
  (h) Doorbells.
  (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 and
479.995 do not apply to limited energy electrical activity
involving landscape irrigation control wiring and outdoor
landscape lighting installed by a business licensed under ORS
671.510 to 671.710.
  (b) A business exempt from licensing under this section 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 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) The licensure provisions of ORS 479.510 to 479.945 and
479.995 do not apply to limited energy electrical activity
involving the installation, maintenance or repair of lottery
equipment at retail locations by employees or vendors of the
Oregon State Lottery Commission. The exemption provided by this
subsection does not authorize work by unlicensed persons on
systems of 115 volts or more.
  (5) All nonlicensure requirements of ORS 479.510 to 479.945 and
479.995, including permits for and compliance with the electrical
specialty code, apply to activities conducted under subsections
(1) to (4) of this section. If any person or business repeatedly
violates the permit or code compliance requirements, in addition
to any other remedy, the Electrical and Elevator Board may
suspend, condition or revoke a person's or business's right to
use this provision.
  SECTION 47. ORS 705.145 is amended to read:
  705.145. (1) There is created in the State Treasury a fund to
be known as the Consumer and Business Services Fund, separate
from the General Fund. All moneys collected or received by the
Department of Consumer and Business Services, except moneys
collected pursuant to ORS 735.612 and those moneys required to be
paid into the Workers' Benefit Fund, shall be paid into the State
Treasury and credited to the Consumer and Business Services Fund.
Moneys in the fund may be invested in the same manner as other
state moneys and any interest earned shall be credited to the
fund.
  (2) The department shall keep a record of all moneys deposited
in the Consumer and Business Services Fund that shall indicate,
by separate account, the source from which the moneys are
derived, the interest earned and the activity or program against
which any withdrawal is charged.
  (3) Should moneys credited to any one account be withdrawn,
transferred or otherwise used for purposes other than the program
or activity for which the account is established, interest shall
accrue on the amount withdrawn from the date of withdrawal and
until such funds are restored.
  (4) Moneys in the fund shall provide and are appropriated for
the administrative expenses of the department and for its
expenses in carrying out its functions and duties under any
provision of law.
  (5) Except as provided in ORS 705.165, it is the intention of
the Legislative Assembly that the performance of the various
duties and functions of the department in connection with each of
its programs shall be financed by the fees, assessments and
charges established and collected in connection with those
programs.
  (6) There is created by transfer from the Consumer and Business
Services Fund a revolving administrative account in the amount of
$100,000. The revolving account shall be disbursed by checks or
orders issued by the director or the Workers' Compensation Board
and drawn upon the State Treasury, to carry on the duties and
functions of the department and the board. All checks or orders
paid from the revolving account shall be reimbursed by a warrant
drawn in favor of the department charged against the Consumer and
Business Services Fund and recorded in the appropriate subsidiary
record.
  (7) For the purposes of ORS chapter 656, the revolving account
created pursuant to subsection (6) of this section may also be
used to:
  (a) Pay compensation benefits; and
  (b) Refund to employers amounts paid to the Consumer and
Business Services Fund in excess of the amounts required by ORS
chapter 656.
  (8) Notwithstanding subsections (2), (3) and (5) of this
section  { + and except as provided in ORS 455.220 (1) + }, the
moneys derived pursuant to ORS 446.003 to 446.200, 446.210,
446.225 to 446.285, 446.395 to 446.420 and 455.220 (1) and
deposited to the fund, interest earned on those moneys and
withdrawals of moneys for activities or programs under ORS
446.003 to 446.200, 446.210, 446.225 to 446.285 and 446.395 to
446.420, or education and training programs pertaining thereto,
must be assigned to a single account within the fund.
  (9) Notwithstanding subsections (2), (3) and (5) of this
section, the moneys derived pursuant to ORS 455.240 or 460.370 or
from state building code or specialty code program fees for which
the amount is established by department rule pursuant to ORS
455.020 (2) and deposited to the fund, interest earned on those
moneys and withdrawals of moneys for activities or programs
described under ORS 455.240 or 460.310 to 460.370, structural or
mechanical specialty code programs or activities for which a fee
is collected under ORS 455.020 (2), or programs described under
subsection (10) of this section that provide training and
education for persons employed in producing, selling, installing,
delivering or inspecting manufactured structures or manufactured
dwelling parks or recreation parks, must be assigned to a single
account within the fund.
  (10) Notwithstanding ORS chapter 279, the department may, after
consultation with the appropriate specialty code advisory boards
established under ORS 446.280, 455.132, 455.138, 480.535 and
693.115, contract for public or private parties to develop or
provide training and education programs relating to the state
building code and associated licensing or certification programs.
  SECTION 48. Section 2, chapter 329, Oregon Laws 1999, is
amended to read:
   { +  Sec. 2. + } The Director of the Department of Consumer
and Business Services   { - shall conduct a review of the latest
developments in communications and cable service technology.
Based on the results of the review, the director - }  shall
adopt, amend or repeal the state building code as necessary to
establish viable standards for providing advanced
telecommunications and cable service technology to newly
constructed   { - one and two family - }  { + low-rise
residential + } dwellings.
  SECTION 49.  { + ORS 455.840 and 455.848 and section 8, chapter
1082, Oregon Laws 1999, are repealed. + }
  SECTION 50.  { + (1) Notwithstanding section 2 of this 2003 Act
and the amendments to ORS 446.003, 455.010, 455.030, 455.100,
455.110, 455.132, 455.153, 455.156, 455.310, 455.420, 455.467,
455.525, 455.530, 455.610, 455.622, 455.625, 455.627, 455.630,
455.715, 455.800, 455.805, 455.815, 469.700, 479.905 and 479.940
and section 2, chapter 329, Oregon Laws 1999, by sections 6, 10,
12, 14, 16, 18, 22, 24, 26 to 31, 33 to 40, 44 to 46 and 48 of
this 2003 Act, any rule or standard for one and two family
dwellings adopted by the Building Codes Structures Board prior to
the operative date set forth in section 53 (1) of this 2003 Act
continues in full force and effect until superseded by rules for
low-rise residential dwellings adopted by the Residential
Structures Board.
  (2) Notwithstanding section 4 of this 2003 Act and the
amendments to ORS 455.010, 455.100, 455.132, 455.153 and 455.610
by sections 11, 15, 19, 23 and 32 of this 2003 Act, any rule or
standard for mechanical, heating and ventilating devices and
equipment adopted by the Building Codes Structures Board prior to
the operative date set forth in section 53 (2) of this 2003 Act
continues in full force and effect until superseded by rules for
mechanical, heating and ventilating devices and equipment adopted
by the Mechanical Board.
  (3) In adopting rules, the Residential Structures Board and the
Mechanical Board shall specifically identify any rule adopted by
the Building Codes Structures Board that is being superseded.
The board adopting a rule shall notify the Building Codes
Structures Board that the Building Codes Structures Board rule
has been superseded. + }
  SECTION 51.  { + (1) Section 2 of this 2003 Act and the
amendments to ORS 446.003, 455.010, 455.030, 455.100, 455.110,
455.132, 455.153, 455.156, 455.310, 455.420, 455.467, 455.525,
455.530, 455.610, 455.622, 455.625, 455.627, 455.630, 455.715,
455.800, 455.805, 455.815, 469.700, 479.905 and 479.940 and
section 2, chapter 329, Oregon Laws 1999, by sections 6, 10, 12,
14, 16, 18, 22, 24, 26 to 31, 33 to 40, 44 to 46 and 48 of this
2003 Act do not:
  (a) Suspend, limit, terminate or prevent an order issued by the
Building Codes Structures Board prior to, on or after the
operative date set forth in section 53 (1) of this 2003 Act based
on events occurring prior to that date; or
  (b) Eliminate or prevent a fee, civil penalty or other
liability imposed by the Building Codes Structures Board prior
to, on or after the operative date set forth in section 53 (1) of
this 2003 Act based on events occurring prior to that date.
  (2) The Building Codes Structures Board may transfer to the
Residential Structures Board the power to enforce an order, fee,
civil penalty or other liability described in subsection (1) of
this section relating to a residential dwelling three stories or
less above grade.
  (3) Section 4 of this 2003 Act and the amendments to ORS
455.010, 455.100, 455.132, 455.153 and 455.610 by sections 11,
15, 19, 23 and 32 of this 2003 Act do not:
  (a) Suspend, limit, terminate or prevent an order issued by the
Building Codes Structures Board prior to, on or after the
operative date set forth in section 53 (2) of this 2003 Act based
on events occurring prior to that date; or
  (b) Eliminate or prevent a fee, civil penalty or other
liability imposed by the Building Codes Structures Board prior
to, on or after the operative date set forth in section 53 (2) of
this 2003 Act based on events occurring prior to that date.
  (4) The Building Codes Structures Board may transfer to the
Mechanical Board the power to enforce an order, fee, civil
penalty or other liability described in subsection (3) of this
section relating to mechanical, heating and ventilating devices
and equipment.
  (5) The amendments to ORS 455.132 by section 17 of this 2003
Act do not suspend, limit, terminate, prevent or otherwise affect
any action taken by the Building Codes Structures Board prior to,
on or after the effective date of this 2003 Act.
  (6) On the effective date of this 2003 Act, the office of
members of the Tri-County Building Industry Service Board shall
cease. This subsection and the amendments to ORS 455.842, 455.844
and 455.846 by sections 41 to 43 of this 2003 Act and the repeal
of ORS 455.840 and 455.848 and section 8, chapter 1082, Oregon
Laws 1999, by section 49 of this 2003 Act do not suspend, limit,
terminate, prevent or otherwise affect any action of the
Department of Consumer and Business Services taken by or through
the board prior to the effective date of this 2003 Act. + }
  SECTION 52.  { + (1) The Director of the Department of Consumer
and Business Services and the Governor may take all actions prior
to the operative date set forth in section 53 (1) of this 2003
Act necessary to facilitate the carrying out of sections 2 and 3
of this 2003 Act and the amendments to statutes and session law
by sections 6 to 10, 12 to 14, 16, 18, 20, 22, 24 to 31, 33 to 40
and 44 to 48 of this 2003 Act on and after the operative date set
forth in section 53 (1) of this 2003 Act.
  (2) The director and the Governor may take all actions prior to
the operative date set forth in section 53 (2) of this 2003 Act
necessary to facilitate the carrying out of sections 4 and 5 of
this 2003 Act and the amendments to ORS 455.010, 455.100,
455.132, 455.144, 455.153 and 455.610 by sections 11, 15, 19, 21,
23 and 32 of this 2003 Act on and after the operative date set
forth in section 53 (2) of this 2003 Act.
  (3) For purposes of administrative convenience, the Governor
may adjust the initial term of office for the persons first
appointed to the Building Codes Structures Board pursuant to the
amendments to ORS 455.132 by section 17 of this 2003 Act.
  (4) On the effective date of this 2003 Act, the office of
persons holding positions on the Building Codes Structures Board
eliminated by the amendments to ORS 455.132 by section 17 of this
2003 Act shall cease. For board positions that are combined under
the amendments to ORS 455.132 by section 17 of this 2003 Act, the
Governor shall determine which of the offices continue or
cease. + }
  SECTION 53.  { + (1) Sections 1 to 3 of this 2003 Act and the
amendments to statutes and session law by sections 6 to 10, 12 to
14, 16, 18, 20, 22, 24 to 31, 33 to 40 and 44 to 48 of this 2003
Act become operative on January 1, 2004.
  (2) Sections 4 and 5 of this 2003 Act and the amendments to ORS
455.010, 455.100, 455.132, 455.144, 455.153 and 455.610 by
sections 11, 15, 19, 21, 23 and 32 of this 2003 Act become
operative on July 1, 2004. + }
 
                               { +
CONSTRUCTION CONTRACTS + }
 
  SECTION 54.  { + As used in sections 54 to 58 of this 2003 Act:
  (1) 'Construction contract' means a written or oral
construction agreement, including all plans, specifications and
addenda relating to:
  (a) Excavating, landscaping, demolishing and detaching existing
structures, leveling, filling in and other preparation of land
for the making and placement of a building, structure or
superstructure;
  (b) Creation or making of a building, structure or
superstructure; and
  (c) Alteration, partial construction and repairs done in and
upon a building, structure or superstructure.
  (2) 'Contractor' has the meaning given that term in ORS 87.005.
  (3) 'Days' means calendar days.
  (4) 'Material supplier' means any person providing materials or
products under a construction contract by any contractual means
including oral authorization, written contract, purchase order,
price agreement or rental agreement.
  (5) 'Original contractor' has the meaning given that term in
ORS 87.005.
  (6) 'Owner' has the meaning given that term in ORS 701.410.
  (7) 'Subcontractor' has the meaning given that term in ORS
87.005. + }
  SECTION 55.  { + (1) By mutual agreement with an original
contractor, an owner may make progress payments to the original
contractor on a construction contract that is anticipated to last
less than 60 days. An owner shall make progress payments to the
original contractor on all other construction contracts. Progress
payments shall be made on the basis of a certified billing or
estimate for the work performed and the materials or products
supplied during the preceding 30-day billing cycle, or an
alternate billing cycle as stated in the construction contract.
If billings or estimates are to be submitted in alternate, rather
than 30-day billing cycles, the construction contract shall
specify the alternate billing cycles in a clear and conspicuous
manner as prescribed in subsection (2) of this section. Except as
provided in subsection (3) of this section, the owner shall make
progress payments to the original contractor within 14 days after
the date the billing is submitted pursuant to subsection (4) of
this section.
  (2) A construction contract may provide for an alternate
billing cycle if the plans and specifications specifically set
forth that there is an alternate billing cycle and the owner
provides for each page of plans and specifications a statement
substantially similar to the following statement: + }
 
________________________________________________________________
 
                               { +
Notice of Alternate Billing Cycle + }
 
   { +  The contract will allow the owner to require the
submission of billings or estimates in billing cycles other than
30-day cycles. Billings or estimates for the contract shall be
submitted as follows:
____________________
____________________
____________________ + }
 
________________________________________________________________
 
   { +  (3) An owner may make progress payments later than 14
days after the date the billing or estimate is submitted if:
  (a) The owner is responsible for providing plans and
specifications that expressly allow in a clear and conspicuous
manner an extended payment, defined by a specified number of days
after the billing or estimate is submitted; and
  (b) The owner provides for each page of plans and
specifications a statement substantially similar to the following
statement: + }
 
________________________________________________________________
 
                               { +
Notice of Extended Payment Provision + }
 
   { +  The contract will allow the owner to make payment
within ___ days after the date a billing or estimate is
submitted. + }
 
________________________________________________________________
 
   { +  (4) The owner is deemed to have received the billing or
estimate when the billing or estimate is submitted to any person
designated by the owner for the receipt, review or approval of
the billing or estimate. A billing or estimate is deemed to be
certified 10 days after the owner receives the billing or
estimate, unless before that time the owner or the owner's agent
prepares and issues a written statement detailing those items in
the billing or estimate that are not approved. An owner may
decline to approve a billing or estimate or portion of a billing
or estimate for:
  (a) Unsatisfactory work progress;
  (b) Defective construction work, materials or products not
remedied;
  (c) Disputed work, materials or products, not to exceed 150
percent of the amount in dispute;
  (d) Failure to comply with other material provisions of the
construction contract;
  (e) Third party claims filed or reasonable evidence that such a
claim will be filed;
  (f) Failure of the original contractor or a subcontractor to
make timely payments to subcontractors and material suppliers for
labor, equipment, materials and products;
  (g) Damage to the owner;
  (h) Reasonable evidence that the construction contract cannot
be completed for the unpaid balance of the construction contract
sum; or
  (i) Other items as allowed under the contract terms and
conditions.
  (5) An owner may withhold from a progress payment an amount
that is sufficient to pay the direct expenses the owner
reasonably expects to incur to correct any items set forth in
writing pursuant to subsection (4) of this section. The owner may
also withhold a reasonable amount as retainage as defined in ORS
701.410.
 
  (6) An owner may extend the period within which the billing or
estimate may be certified if:
  (a) The owner is responsible for providing plans and
specifications that expressly allow in a clear and conspicuous
manner an extended period within which a billing or estimate may
be certified; and
  (b) The owner provides for each page of plans and
specifications, including bid plans and construction plans, a
statement substantially similar to the following statement: + }
 
________________________________________________________________
 
                               { +
Notice of Extended Certification + }
                               { +
Period Provision + }
 
   { +  The contract will allow the owner to certify billings and
estimates within ___ days after the billings and estimates are
received from the original contractor. + }
 
________________________________________________________________
 
   { +  (7) After a subcontractor or material supplier submits a
bid or proposal or other written pricing information to an
original contractor, an owner and the original contractor may
change the specified number of days after certification during
which the owner may make payment to the original contractor or
within which the owner must certify a billing or estimate. Any
original contractor, subcontractor or material supplier that does
not provide written consent to the change will continue to be
paid as indicated in the plans and specifications.
  (8) When an original contractor completes and an owner approves
all work under a construction contract, the owner shall make
payment in full of all remaining amounts due on the construction
contract within seven days. When an original contractor completes
and an owner approves all work under a portion of a construction
contract for which the contract states a separate price, the
owner shall make payment in full of all remaining amounts due on
that portion of the construction contract, subject to the
satisfaction of any issue described in subsection (4) of this
section or section 56 (4) of this 2003 Act.
  (9) Payment is not required under this section unless the
original contractor provides the owner with a billing or estimate
for the work performed or the materials or products supplied in
accordance with the terms of the construction contract between
the parties.
  (10) A construction contract may not alter the right of any
original contractor, subcontractor or material supplier to
receive prompt and timely progress payments as provided under
this section.
  (11) If an owner or a person designated by the owner as
responsible for making progress payments on a construction
contract does not make a timely payment under this section, the
owner shall pay the original contractor interest on the unpaid
balance at the rate of one and one-half percent a month or
fraction of a month, or at a higher rate as the parties to the
construction contract may agree.
  (12) On the written request of a subcontractor, the owner shall
notify the subcontractor within five days after the issuance of a
progress payment to the original contractor. On the written
request of a subcontractor, the owner shall notify the
subcontractor within five days after the owner makes the final
payment to the original contractor on the construction contract.
  (13) In any action, claim or arbitration brought to collect
payments or interest pursuant to this section, the prevailing
party shall be awarded reasonable costs and attorney fees.
 
  (14) If the owner and original contractor are a single entity,
that entity shall pay subcontractors and material suppliers
within 14 days after the billing or estimate is received unless
the deadlines for certification or payment have been modified
pursuant to subsection (3) or (6) of this section. + }
  SECTION 56.  { + (1) Performance by an original contractor,
subcontractor or material supplier in accordance with the
provisions of a construction contract entitles the original
contractor, subcontractor or material supplier to payment from
the party with whom the original contractor, subcontractor or
material supplier contracts.
  (2) If a subcontractor or material supplier has performed in
accordance with the provisions of a construction contract, the
original contractor shall pay to the subcontractor or material
supplier, and each subcontractor shall pay to its subcontractors
or material suppliers, the full amount received for such
subcontractor's work and for materials and products supplied
based on the subcontract or purchase order terms and conditions
within seven days of receipt by the original contractor or
subcontractor of a progress payment or final payment. Payment is
not required under this subsection unless a subcontractor or
material supplier provides to the original contractor or
subcontractor a billing or invoice for the work performed or
materials or products supplied in compliance with the terms of
the contract between the parties.  Each subcontractor or material
supplier must provide an appropriate waiver of any mechanic's or
materialman's lien in accordance with subcontract or purchase
order terms and conditions. The original contractor or
subcontractor may require that such waivers of lien be notarized.
  (3) Any failure to reasonably account for the application or
use of payments, as proven in a legal proceeding authorized under
the terms of the construction contract, may constitute grounds
for disciplinary action by the Construction Contractors Board
under ORS 701.135.
  (4) Nothing in this section prevents an original contractor
when submitting a bill or estimate to an owner, or a
subcontractor when submitting a bill or estimate to the original
contractor, from omitting from the bill estimate amounts withheld
from payment to a subcontractor or material supplier for:
  (a) Unsatisfactory work progress;
  (b) Defective construction work, materials or products not
remedied;
  (c) Disputed work, materials or products, not to exceed 150
percent of the amount in dispute;
  (d) Failure to comply with other material provisions of the
construction contract;
  (e) Third party claims filed or reasonable evidence that such a
claim will be filed;
  (f) Failure of the subcontractor to make timely payments to
subcontractors and material suppliers for labor, equipment,
materials and products;
  (g) Damage to an original contractor, subcontractor or material
supplier;
  (h) Reasonable evidence that the subcontract cannot be
completed for the unpaid balance of the subcontract sum;
  (i) A reasonable amount for retainage, as defined in ORS
701.410, that does not exceed the actual percentage allowed by
the subcontract or purchase order; or
  (j) Other items as allowed under the subcontract or purchase
order terms and conditions.
  (5) If a progress or final payment to a subcontractor or
material supplier is delayed by more than seven days after
receipt of a progress or final payment by an original contractor
or subcontractor, the original contractor or subcontractor shall
pay its subcontractor or material supplier interest beginning on
the eighth day, except during periods of time during which
payment is withheld pursuant to subsection (4) of this section,
at the rate of one and one-half percent a month or a fraction of
a month on the unpaid balance or at such higher rate as the
parties agree.
  (6) In any action, claim or arbitration brought to collect
payments or interest under this section, the prevailing party
shall be awarded reasonable costs and attorney fees. + }
  SECTION 57.  { + (1) An original contractor may suspend
performance under a construction contract, or terminate a
construction contract if performance is suspended for longer than
30 days, for failure by the owner to make timely payment of the
amount certified under section 55 of this 2003 Act. An original
contractor shall provide written notice to an owner at least
seven days before the original contractor suspends performance or
terminates the contract, unless a shorter notice period is
prescribed in the contract. An original contractor may not be
deemed in breach of a construction contract for suspending
performance or terminating a construction contract pursuant to
this subsection. A construction contract may not extend the
notice period under this subsection.
  (2) A subcontractor may suspend performance under a
construction contract, or terminate a construction contract if
performance is suspended for longer than 30 days, for failure by
the owner to make timely payment of amounts certified under
section 55 of this 2003 Act or the subcontractor fails to receive
payment for the certified work under section 56 (2) of this 2003
Act. A subcontractor shall provide written notice to the original
contractor and owner at least three days before the subcontractor
suspends performance or terminates the contract, unless a shorter
notice period is prescribed in the contract. A subcontractor may
not be deemed in breach of a construction contract for suspending
performance or terminating a contract pursuant to this
subsection.  A construction contract may not extend the notice
period under this subsection.
  (3) A subcontractor may suspend performance under a
construction contract, or terminate a construction contract if
performance is suspended for longer than 30 days, if the owner
makes timely payment of amounts certified under section 55 of
this 2003 Act for the subcontractor's work but the original
contractor fails to pay the subcontractor for the certified work.
A subcontractor shall provide written notice to the original
contractor and owner at least seven days before the subcontractor
suspends performance or terminates the contract, unless a shorter
notice period is prescribed in the contract. A subcontractor may
not be deemed in breach of a construction contract for suspending
performance or terminating a contract pursuant to this
subsection.  A construction contract may not extend the notice
period under this subsection.
  (4) A subcontractor may suspend performance under a
construction contract, or terminate a construction contract if
performance is suspended for longer than 30 days, if the owner
fails to approve portions of the contractor's billing or estimate
under section 55 of this 2003 Act for that subcontractor's work
but the reasons for that failure are not the fault of or directly
related to the subcontractor's work. A subcontractor shall
provide written notice to the original contractor and the owner
at least seven days before the subcontractor suspends performance
or terminates the contract, unless a shorter notice period is
prescribed in the contract. A subcontractor may not be deemed in
breach of a construction contract for suspending performance or
terminating a contract pursuant to this subsection. A
construction contract may not extend the notice period under this
subsection.
  (5) A contractor or subcontractor may not submit a notice of
suspension under this section until the lawful period for payment
to the contractor or subcontractor has expired.
  (6) An original contractor or subcontractor that suspends
performance as provided in this section is not required to
furnish further labor, materials, products or services until the
original contractor or subcontractor is paid the amount that was
certified under section 55 of this 2003 Act, together with any
documented, substantial and reasonably incurred costs for
mobilization resulting from the shutdown or start-up of a
project.
  (7) In any action, claim or arbitration brought pursuant to
this section, the prevailing party shall be awarded reasonable
costs and attorney fees.
  (8) Written notice required under this section is deemed to
have been provided if the notice:
  (a) Is delivered in person to the owner, original contractor,
subcontractor or a person designated by the owner, original
contractor or subcontractor to receive notice; or
  (b) Is delivered by certified mail, return receipt requested,
or other means that provides written, third party verification of
delivery to the last business address of the owner, original
contractor or subcontractor known to the party giving notice. + }
  SECTION 58.  { + (1) A construction contract may not include
any provision, covenant or clause that:
  (a) Makes the contract subject to the laws of another state or
that requires any litigation, arbitration or other dispute
resolution proceeding arising from the contract to be conducted
in another state; or
  (b) States that a party to the contract cannot suspend
performance under the contract or terminate the contract if
another party to the contract fails to make prompt payments under
the contract pursuant to sections 54 to 58 of this 2003 Act.
  (2) Any provision, covenant or clause described in subsection
(1) of this section is void and unenforceable. + }
  SECTION 59.  { + Sections 54 to 58 of this 2003 Act do not
apply to:
  (1) A contract for the construction, alteration, repair,
maintenance, moving or demolition of a building that is subject
to the Low-Rise Residential Dwelling Code;
  (2) A public contract under ORS chapter 279; or
  (3) Housing in which all or part of the dwelling units are
reserved for rental to persons having an income equal to or less
than 80 percent of the median household income for the area as
determined by the Housing and Community Services Department. + }
  SECTION 60.  { + The provisions of sections 54 to 58 of this
2003 Act apply to construction contracts for which the plans and
specifications are first published on or after January 1,
2004. + }
 
                               { +
BUILDING TRADE LICENSEE IDENTIFICATION + }
 
  SECTION 61.  { + Section 62 of this 2003 Act is added to and
made a part of ORS chapter 455. + }
  SECTION 62. { +  (1) A person who is registered, licensed or
certified by the State Plumbing Board or the Director of the
Department of Consumer and Business Services pursuant to ORS
460.057, 460.059, 479.630, 479.910, 480.630, 693.060, 693.103 or
693.111 must wear and visibly display an identification badge
indicating the person's current license, registration or
certification status while performing work for which the license,
registration or certification is required. The authority that
registers, licenses or certifies the person shall specify the
size and content of the identification badge and may establish
such other specifications as the authority deems appropriate.
  (2) Subsection (1) of this section does not apply under any
circumstances in which wearing or displaying the identification
 
badge may create a danger to the public health or safety of the
person or the public.
  (3) Nothing in this section is intended to require the display
of a contractor or business license, registration, certification
or other authorization. + }
 
                               { +
ELECTRICAL CODE AND INSPECTORS + }
 
  SECTION 63.  { + Section 64 of this 2003 Act is added to and
made a part of ORS 479.510 to 479.945. + }
  SECTION 64.  { + The Director of the Department of Consumer and
Business Services, with the approval of the Electrical and
Elevator Board, may adopt rules regulating or prohibiting
conflicts of interest for electrical inspectors in regard to any
work performed by an inspector or a related party under a license
issued under ORS 479.630. + }
  SECTION 65. ORS 479.540 is amended to read:
  479.540. (1) Except as otherwise provided in this subsection, a
person is not required to obtain a license to make an electrical
installation on  { + residential or farm + } property that is
owned by the person or a member of the person's immediate family
if the property is not intended for sale, exchange, lease or
rent. The following apply to the exemption established in this
subsection:
  (a) The exemption established for a person under this
subsection does not exempt the work performed by the person from
having to comply with the requirements for such work under ORS
chapter 455 or this chapter and rules adopted thereunder.
  (b) If the property is a building used as a residence and is
for rent, lease, sale or exchange, this subsection establishes an
exemption for work on, alterations to or replacement of parts of
electrical installations as necessary for maintenance of the
existing electrical installations on that property, but does not
exempt new electrical installations or substantial alterations to
existing electrical installations on that property. As used in
this paragraph, 'new electrical installations or substantial
alterations' does not include the replacement of an existing
garbage disposal, dishwasher or electric hot water heater with a
similar appliance of 30 amps or less, single phase, by a
landlord, landlord's agent or the employee of the landlord or
landlord's agent.
  (2) An electrical contractor license is not required in
connection with an electrical installation:
  (a) Of meters and similar devices for measuring electricity by
a person principally engaged in the business of generating or
selling electricity in connection with the construction or
maintenance of electrical lines, wires or equipment.
  (b) Of ignition or lighting systems for motor vehicles.
  (c) To be made by a person on the person's property in
connection with the person's business.
  (d) To be made by a public utility, telecommunications carrier
as defined in ORS 133.721 or municipality for generation,
transmission or distribution of electricity on property which it
owns or manages.
  (3) A person whose sole business is generating or selling
electricity in connection with the construction or maintenance of
electrical lines, wires or equipment, is not required to obtain a
license to transform, transmit or distribute electricity from its
source to the service head of the premises to be supplied
thereby.
  (4)(a) A person is not required to obtain a license for the
repair or replacement of light fixtures, light switches, lighting
ballast, electrical outlets or smoke alarms in a building used
for housing purposes that is owned, leased, managed or operated
by a housing authority and the person doing the repair or
replacement is a member of the housing authority's regular
maintenance staff.
  (b) A license is not required for:
  (A) Temporary demonstrations;
  (B) A street lighting system located on a public street or in a
right of way if the system is similar to a system provided by a
public utility and the installation or maintenance, or both, is
performed by a qualified employee of a licensed electrical
contractor principally engaged in the business of installing and
maintaining such systems; or
  (C) An outdoor transmission or distribution system, whether
overhead or underground, if the system is similar to a system
provided by a public utility and the installation or maintenance,
or both, is performed by a qualified employee of a licensed
electrical contractor principally engaged in the business of
installing and maintaining such systems.
  (c) For the purposes of this subsection, 'qualified employee'
means an employee who has registered with or graduated from a
State of Oregon or federally approved apprenticeship course
designed for the work being performed. The supervising
electrician signature required under ORS 479.560 (1)(b) does not
apply to contractors working under this subsection.
  (5) The provisions of ORS 479.510 to 479.945 and 479.995 do not
apply:
  (a) To electrical products owned by, supplied to or to be
supplied to a public utility as defined in ORS 757.005 or
telecommunications carrier as defined in ORS 133.721;
  (b) To electrical installations made by or for such a public
utility or telecommunications carrier where the electrical
installations are an integral part of the equipment or electrical
products of such utility; or
  (c) To any electrical generation plant owned or operated by a
municipality to the same extent as a public utility or
telecommunications carrier under paragraphs (a) and (b) of this
subsection.
  (6) A permit is not required:
  (a) For the repair or replacement of light fixtures, light
switches, lighting ballast, electrical outlets or smoke alarms in
a building used for housing purposes that is owned, leased,
managed or operated by a housing authority; or
  (b) For the repair, alteration or replacement of existing
electrical products or electrical installations authorized by ORS
479.560 (3) at an industrial plant, a commercial office building,
a building that is owned, leased, managed or operated by the
state or a local government entity or other facilities designated
by the Electrical and Elevator Board when the owner, operating
manager or electrical contractor of the facility meets the
provisions of ORS 479.630 (1) and (2) and:
  (A) Obtains a master permit for inspection under ORS 479.560
(3); or
  (B) Obtains a master individual inspection permit under ORS
479.565.
  (7) In cases of emergency in industrial plants, a permit is not
required in advance for electrical installation made by a person
licensed as a general supervising electrician, a general
journeyman electrician or an electrical apprentice under ORS
479.630 if an application accompanied by appropriate fee for a
permit is submitted to the Department of Consumer and Business
Services within five days after the commencement of such
electrical work.
  (8)(a) A license or permit is not required for the installation
or assembly of industrial electrical equipment by the duly
authorized agents of the factory, vendor or owner.
  (b) The license and permit exemptions of this subsection do not
apply to activity in an area where industrial electrical
equipment is installed in or enters a hazardous location or
penetrates or enters a fire rated assembly or plenum rated
assembly.
  (c) As used in this subsection:
  (A) 'Duly authorized agents' means individuals trained by the
factory or a vendor or by experience and who are knowledgeable in
the operation, maintenance, repair and installation of industrial
electrical equipment.
  (B) 'Installation or assembly' means the reassembly at a job
site of equipment that is wired and assembled at the factory and
then disassembled for shipping purposes or of existing equipment
that is relocated. 'Installation or assembly' does not include
work involving field fabricated assemblies or any other
electrical product that is not an original part of the industrial
electrical equipment. 'Installation or assembly' does not include
the connection of industrial electrical equipment to a power
source.
  (9) A person is not required to obtain a license or permit to
set in place and connect a certified electrical product as long
as the work performed is not an electrical installation as
defined in ORS 479.530.
  (10) The provisions of ORS 479.510 to 479.945 and 479.995 do
not apply to electrical installations involving:
  (a) Communication and signal systems of railroad companies.
  (b) Telephone terminal equipment and communications systems
including all grandfathered or registered telephone terminal
equipment and communications systems identified in the Federal
Communications Commission rules and regulations, Volume X, part
68, and all terminal equipment and communications systems that
are utilized in conjunction with private line communications
services.
  (c) Remote and permanent broadcast systems of radio and
television stations licensed by the Federal Communications
Commission if the systems are not part of the building's
permanent wiring.
  (11)(a) The board may grant partial or complete exemptions by
rule for any electrical product from any of the provisions of ORS
455.610 to 455.630 or 479.510 to 479.945 and 479.995 if the board
determines that the electrical product does not present a danger
to the health and safety of the people of this state.
  (b) If the board grants an exemption pursuant to subsection (1)
of this section, the board may determine that the product may be
installed by a person not licensed under ORS 479.510 to 479.945
and 479.995.
  (12) ORS 479.760 does not apply to products described in this
subsection that comply with the minimum electrical installation
safety code. This subsection does not exempt any products used in
locations determined to be hazardous in the electrical code of
this state. The following apply to this subsection:
  (a) Except as provided in paragraph (b) of this subsection, the
exemption under this subsection applies to:
  (A) Industrial electrical equipment that is factory wired using
separately certified components and is custom-made, limited
produced or outside the scope, as determined by the Director of
the Department of Consumer and Business Services, of the
standards and requirements of Underwriters Laboratories, Canadian
Standards Association or American National Standards Institute as
in effect on October 23, 1999.
  (B) The rotating equipment portion of power generation
equipment.
  (C) Testing equipment used in a laboratory or hospital.
  (D) Commercial electrical air conditioning equipment.
  (E) Prefabricated work performed by an electrical contractor
with licensed electrical personnel in the contractor's place of
business for assembly on the job site if the work is composed of
parts that are certified electrical products.
 
  (b) Notwithstanding paragraph (a) of this subsection, the board
may require any of the products described in paragraph (a) of
this subsection to be subject to the certification requirements
under ORS 479.760 if the board determines that the product or
class of products has presented a fire or life safety hazard in
use. A determination under this paragraph shall be effective as
to any such product or class of products sold or offered for sale
after the date of the determination becomes final. The board may
reinstate any exemption removed under this paragraph if the board
determines that the reasons for the removal of the exemption have
been corrected.
  (13) ORS 479.760 does not apply to electrical equipment that
has been in use for one year or more and that is offered for
sale.
  (14) A person who holds a limited maintenance specialty
contractor license or a limited pump installation specialty
contractor license issued under ORS 479.510 to 479.945 and
479.995 or a person who is the employee of such license holder
and who is listed with the board as an employee is not required
to have a journeyman license or supervising electrician's license
to perform work authorized under the person's license.
  (15) A person is not required to obtain a permit for work on,
alterations to or replacement of parts of electrical
installations as necessary for maintenance of existing electrical
installations on residential property owned by the person or by a
member of the person's immediate family. This subsection does not
establish an exemption for new electrical installations or
substantial alterations to existing electrical installations.
  (16) A permit is not required for those minor electrical
installations for which the board has authorized an installation
label.
  (17) A residential home, as defined in ORS 443.580, and an
adult foster home, as defined in ORS 443.705, is not a
multifamily dwelling and only electrical installation standards
and safety requirements applicable to single family dwellings
apply to such homes.
  (18) The permit requirements of ORS 479.550 and the license
requirements of ORS 479.620 do not apply to cable television
installations.
  (19) The provisions of any electrical products code or rule
adopted pursuant to ORS 479.510 to 479.945 and 479.995 apply to
cable and such products installed as part of a cable television
installation.
  (20) As used in this section, 'smoke alarm' shall have the
meaning given that term under ORS 479.250.
  SECTION 66. ORS 479.560 is amended to read:
  479.560. (1) The Department of Consumer and Business Services
or a designated agent shall issue a permit to:
  (a) Any applicant who has complied with ORS 479.510 to 479.945
and 479.995 and the rules issued thereunder, covering an
electrical installation to be made on   { - the applicant's own
property - }  { +  residential or farm property owned by the
applicant or a member of the applicant's immediate family + } as
allowed under ORS 479.540 (1).
  (b) A licensed electrical contractor or an agent the contractor
has designated to the department or the department's designated
agent in a record signed by the electrical contractor.  The
department or department's designated agent shall only issue a
permit under this subsection if the application for the permit is
accompanied by a signed statement that the electrical
contractor's general supervising electrician of record will sign
the permit before an inspection of the electrical work is
requested. A contractor or the contractor's general supervisor
will promptly request an inspection of electrical work performed
under a permit issued under this subsection. A permit issued
 
under this subsection shall state the name of the electrical
contractor.
  (2) A permit issued to an electrical contractor upon the
request of the contractor's supervising electrician is void upon
the end of the employment of such supervising electrician before
completion of the electrical installation.
  (3) Except for the installation or alteration of an electrical
service, the owner, operating manager or electrical contractor of
an industrial plant who meets the provisions of ORS 479.630 (1)
and (2), a commercial office building, a building that is owned,
leased, managed or operated by the state or a local government
entity or other facilities designated by the Electrical and
Elevator Board, in lieu of the required inspection permit, may
apply to the department or municipality providing inspection
service for a master electrical inspection permit. Under the
permit the authority having jurisdiction shall cause a periodic
inspection to be made of the electrical installations. The
authority may also cause a cover inspection, which shall be made
before electrical installations are covered. The periodic
inspection under the permit shall be done at least once a year or
more frequently based on the needs of the particular plant,
building or facility. The department shall adopt rules in
accordance with ORS 183.310 to 183.550 for:
  (a) The annual issuance of the master electrical inspection
permit;
  (b) The conduct of the inspections on the electrical
installations and electrical products;
  (c) The granting of a waiver of payment of permit fees other
than for the master electrical inspection permit; and
  (d) The fixing and collecting of inspection fees at the cost of
making the inspection according to the time required of the
inspector.
  SECTION 66a. ORS 479.540, as amended by section 65 of this 2003
Act and section 1, chapter 344, Oregon Laws 2003 (Enrolled Senate
Bill 822), is amended to read:
  479.540. (1) Except as otherwise provided in this subsection, a
person is not required to obtain a license to make an electrical
installation on residential or farm property that is owned by the
person or a member of the person's immediate family if the
property is not intended for sale, exchange, lease or rent. The
following apply to the exemption established in this subsection:
  (a) The exemption established for a person under this
subsection does not exempt the work performed by the person from
having to comply with the requirements for such work under ORS
chapter 455 or this chapter and rules adopted thereunder.
  (b) If the property is a building used as a residence and is
for rent, lease, sale or exchange, this subsection establishes an
exemption for work on, alterations to or replacement of parts of
electrical installations as necessary for maintenance of the
existing electrical installations on that property, but does not
exempt new electrical installations or substantial alterations to
existing electrical installations on that property. As used in
this paragraph, 'new electrical installations or substantial
alterations' does not include the replacement of an existing
garbage disposal, dishwasher or electric hot water heater with a
similar appliance of 30 amps or less, single phase, by a
landlord, landlord's agent or the employee of the landlord or
landlord's agent.
  (2) An electrical contractor license is not required in
connection with an electrical installation:
  (a) Of meters and similar devices for measuring electricity by
a person principally engaged in the business of generating or
selling electricity in connection with the construction or
maintenance of electrical lines, wires or equipment.
  (b) Of ignition or lighting systems for motor vehicles.
 
  (c) To be made by a person on the person's property in
connection with the person's business.
  (d) To be made by a public utility,  { + consumer-owned utility
as defined in ORS 757.270, + } telecommunications carrier as
defined in ORS 133.721, competitive telecommunications provider
as defined in ORS 759.005 or municipality for generation,
transmission or distribution of electricity on property that the
utility, carrier, provider or municipality owns or manages.
  (3) A person whose sole business is generating or selling
electricity in connection with the construction or maintenance of
electrical lines, wires or equipment, is not required to obtain a
license to transform, transmit or distribute electricity from its
source to the service head of the premises to be supplied
thereby.
  (4)(a) A person is not required to obtain a license for the
repair or replacement of light fixtures, light switches, lighting
ballast, electrical outlets or smoke alarms in a building used
for housing purposes that is owned, leased, managed or operated
by a housing authority and the person doing the repair or
replacement is a member of the housing authority's regular
maintenance staff.
  (b) A license is not required for:
  (A) Temporary demonstrations;
  (B) A street lighting system located on a public street or in a
right of way if the system is similar to a system provided by a
public utility and the installation or maintenance, or both, is
performed by a qualified employee of a licensed electrical
contractor principally engaged in the business of installing and
maintaining such systems; or
  (C) An outdoor transmission or distribution system, whether
overhead or underground, if the system is similar to a system
provided by a public utility and the installation or maintenance,
or both, is performed by a qualified employee of a licensed
electrical contractor principally engaged in the business of
installing and maintaining such systems.
  (c) For the purposes of this subsection, 'qualified employee'
means an employee who has registered with or graduated from a
State of Oregon or federally approved apprenticeship course
designed for the work being performed. The supervising
electrician signature required under ORS 479.560 (1)(b) does not
apply to contractors working under this subsection.
  (5) The provisions of ORS 479.510 to 479.945 and 479.995 do not
apply:
  (a) To electrical products owned by, supplied to or to be
supplied to a public utility as defined in ORS 757.005,  { +
consumer-owned utility as defined in ORS 757.270, + }
telecommunications carrier as defined in ORS 133.721 or
competitive telecommunications provider as defined in ORS
759.005;
  (b) To electrical installations made by or for a public
utility, { +  consumer-owned utility, + } telecommunications
carrier or competitive telecommunications provider if the
electrical installations are an integral part of the equipment or
electrical products of the utility, carrier or provider; or
  (c) To any electrical generation plant owned or operated by a
municipality to the same extent that a   { - public - }  utility,
telecommunications carrier or competitive telecommunications
provider is exempted under paragraphs (a) and (b) of this
subsection.
  (6) A permit is not required:
  (a) For the repair or replacement of light fixtures, light
switches, lighting ballast, electrical outlets or smoke alarms in
a building used for housing purposes that is owned, leased,
managed or operated by a housing authority; or
  (b) For the repair, alteration or replacement of existing
electrical products or electrical installations authorized by ORS
479.560 (3) at an industrial plant, a commercial office building,
a building that is owned, leased, managed or operated by the
state or a local government entity or other facilities designated
by the Electrical and Elevator Board when the owner, operating
manager or electrical contractor of the facility meets the
provisions of ORS 479.630 (1) and (2) and:
  (A) Obtains a master permit for inspection under ORS 479.560
(3); or
  (B) Obtains a master individual inspection permit under ORS
479.565.
  (7) In cases of emergency in industrial plants, a permit is not
required in advance for electrical installation made by a person
licensed as a general supervising electrician, a general
journeyman electrician or an electrical apprentice under ORS
479.630 if an application accompanied by appropriate fee for a
permit is submitted to the Department of Consumer and Business
Services within five days after the commencement of such
electrical work.
  (8)(a) A license or permit is not required for the installation
or assembly of industrial electrical equipment by the duly
authorized agents of the factory, vendor or owner.
  (b) The license and permit exemptions of this subsection do not
apply to activity in an area where industrial electrical
equipment is installed in or enters a hazardous location or
penetrates or enters a fire rated assembly or plenum rated
assembly.
  (c) As used in this subsection:
  (A) 'Duly authorized agents' means individuals trained by the
factory or a vendor or by experience and who are knowledgeable in
the operation, maintenance, repair and installation of industrial
electrical equipment.
  (B) 'Installation or assembly' means the reassembly at a job
site of equipment that is wired and assembled at the factory and
then disassembled for shipping purposes or of existing equipment
that is relocated. 'Installation or assembly' does not include
work involving field fabricated assemblies or any other
electrical product that is not an original part of the industrial
electrical equipment. 'Installation or assembly' does not include
the connection of industrial electrical equipment to a power
source.
  (9) A person is not required to obtain a license or permit to
set in place and connect a certified electrical product as long
as the work performed is not an electrical installation as
defined in ORS 479.530.
  (10) The provisions of ORS 479.510 to 479.945 and 479.995 do
not apply to electrical installations involving:
  (a) Communication and signal systems of railroad companies.
  (b) Telephone terminal equipment and communications systems
including all grandfathered or registered telephone terminal
equipment and communications systems identified in the Federal
Communications Commission rules and regulations, Volume X, part
68, and all terminal equipment and communications systems that
are utilized in conjunction with private line communications
services.
  (c) Remote and permanent broadcast systems of radio and
television stations licensed by the Federal Communications
Commission if the systems are not part of the building's
permanent wiring.
  (11)(a) The board may grant partial or complete exemptions by
rule for any electrical product from any of the provisions of ORS
455.610 to 455.630 or 479.510 to 479.945 and 479.995 if the board
determines that the electrical product does not present a danger
to the health and safety of the people of this state.
  (b) If the board grants an exemption pursuant to subsection (1)
of this section, the board may determine that the product may be
 
installed by a person not licensed under ORS 479.510 to 479.945
and 479.995.
  (12) ORS 479.760 does not apply to products described in this
subsection that comply with the minimum electrical installation
safety code. This subsection does not exempt any products used in
locations determined to be hazardous in the electrical code of
this state. The following apply to this subsection:
  (a) Except as provided in paragraph (b) of this subsection, the
exemption under this subsection applies to:
  (A) Industrial electrical equipment that is factory wired using
separately certified components and is custom-made, limited
produced or outside the scope, as determined by the Director of
the Department of Consumer and Business Services, of the
standards and requirements of Underwriters Laboratories, Canadian
Standards Association or American National Standards Institute as
in effect on October 23, 1999.
  (B) The rotating equipment portion of power generation
equipment.
  (C) Testing equipment used in a laboratory or hospital.
  (D) Commercial electrical air conditioning equipment.
  (E) Prefabricated work performed by an electrical contractor
with licensed electrical personnel in the contractor's place of
business for assembly on the job site if the work is composed of
parts that are certified electrical products.
  (b) Notwithstanding paragraph (a) of this subsection, the board
may require any of the products described in paragraph (a) of
this subsection to be subject to the certification requirements
under ORS 479.760 if the board determines that the product or
class of products has presented a fire or life safety hazard in
use. A determination under this paragraph shall be effective as
to any such product or class of products sold or offered for sale
after the date of the determination becomes final. The board may
reinstate any exemption removed under this paragraph if the board
determines that the reasons for the removal of the exemption have
been corrected.
  (13) ORS 479.760 does not apply to electrical equipment that
has been in use for one year or more and that is offered for
sale.
  (14) A person who holds a limited maintenance specialty
contractor license or a limited pump installation specialty
contractor license issued under ORS 479.510 to 479.945 and
479.995 or a person who is the employee of such license holder
and who is listed with the board as an employee is not required
to have a journeyman license or supervising electrician's license
to perform work authorized under the person's license.
  (15) A person is not required to obtain a permit for work on,
alterations to or replacement of parts of electrical
installations as necessary for maintenance of existing electrical
installations on residential property owned by the person or by a
member of the person's immediate family. This subsection does not
establish an exemption for new electrical installations or
substantial alterations to existing electrical installations.
  (16) A permit is not required for those minor electrical
installations for which the board has authorized an installation
label.
  (17) A residential home, as defined in ORS 443.580, and an
adult foster home, as defined in ORS 443.705, is not a
multifamily dwelling and only electrical installation standards
and safety requirements applicable to single family dwellings
apply to such homes.
  (18) The permit requirements of ORS 479.550 and the license
requirements of ORS 479.620 do not apply to cable television
installations.
  (19) The provisions of any electrical products code or rule
adopted pursuant to ORS 479.510 to 479.945 and 479.995 apply to
 
cable and such products installed as part of a cable television
installation.
  (20) As used in this section, 'smoke alarm' shall have the
meaning given that term under ORS 479.250.
  SECTION 66b.  { + The amendments to ORS 479.540 by section 66a
of this 2003 Act become operative on January 1, 2004. + }
 
                               { +
ELECTRICAL CONTRACTORS + }
 
  SECTION 67. ORS 479.620 is amended to read:
  479.620. Subject to ORS 479.540,   { - no - }  { +  a + }
person   { - shall - }  { +  may not + }:
  (1)  { + Without an electrical contractor's license, + } engage
in the business of making electrical installations   { - without
an electrical contractor's license - }  { + , advertise as or
otherwise purport to be licensed to make electrical installations
or purport to be acting as a business that makes electrical
installations + }.
  (2) Except as provided in ORS 479.630 (10)(c) and (11)(f),
direct, supervise or control the making of an electrical
installation without a supervising electrician's license.
  (3) Except as provided in subsection (5) of this section, make
any electrical installation without a supervising or journeyman
electrician's license.
  (4) Perform work on an electrical installation as an apprentice
electrician without an electrical apprentice's license.
  (5) Make any electrical installation on a single or multifamily
dwelling unit not exceeding three floors above grade, as provided
in ORS 479.630 (14), without a limited residential electrician's
license.
  (6) Permit or suffer any electrical installation on property
which the person owns, controls, manages or supervises to be made
by a person not licensed to make such an installation.
  (7) Install, maintain, replace or repair electrical wiring or
electrical products on an oil module without a Class I oil module
electrician's license.
  (8) Perform electrical work on an oil module in the capacity of
helper or trainee without a Class II oil module electrician's
license.
 
                               { +
LICENSED DEVELOPERS + }
 
  SECTION 68.  { + The Construction Contractors Board shall
develop a separate class of contractor license for contractors
who are licensed developers. + }
  SECTION 68a.  { + Section 68 of this 2003 Act is added to and
made a part of ORS chapter 701. + }
  SECTION 69. ORS 701.005 is amended to read:
  701.005. As used in this chapter:
  (1) 'Board' means the Construction Contractors Board.
  (2) 'Contractor' means a person who, for compensation or with
the intent to sell, arranges or undertakes or offers to undertake
or submits a bid to construct, alter, repair, add to, subtract
from, improve, inspect, move, wreck or demolish, for another, any
building, highway, road, railroad, excavation or other structure,
project, development or improvement attached to real estate or to
do any part thereof. 'Contractor' includes general contractors,
residential-only contractors and specialty contractors as defined
in this section.
  (3) 'General contractor' means a contractor whose business
operations require the use of more than two unrelated building
trades or crafts that the contractor supervises or performs in
whole or part, whenever the sum of all contracts on any single
property, including materials and labor, exceeds an amount
established by rule by the board. 'General contractor' does not
include specialty contractors or limited contractors, as
described in ORS 701.085.
  (4) 'Home inspector' means a person who, for a fee, inspects
and provides written reports on the overall physical condition of
a residential structure and the appurtenances thereto. 'Home
inspector' does not include persons certified under ORS chapter
455 to inspect new, repaired or altered structures for compliance
with the state building code.
  (5) 'Inspector' means a contractor registered with the board
who inspects or otherwise provides services to a property owner
or other contractor but does not substantively add to or subtract
from a structure. 'Inspector' includes but is not limited to a
home inspector certified or licensed under ORS 701.350, a
lead-based paint inspector licensed under ORS 701.515 and a cross
connection and backflow prevention device inspector certified
under ORS 448.279. 'Inspector' does not include city or county
inspectors acting under ORS 701.225 or an inspector as defined in
ORS 455.715.
  (6) 'Large commercial structure' means a structure that is not
a residential structure or small commercial structure.
   { +  (7) 'Licensed developer' means a contractor who owns
property or an interest in property and arranges for construction
work, if the contractor:
  (a) Engages in the business of arranging for construction work
and performing other activities associated with the improvement
of real property, with the intent to sell the property;
  (b) Acts in association with one or more licensed general
contractors and the general contractor or combination of general
contractors have sole responsibility for overseeing all phases of
construction activity on the property; and
  (c) Does not perform any construction work on the property. + }
    { - (7) - }  { +  (8) + } 'Residential-only contractor' means
a general contractor or specialty contractor who performs work
exclusively in connection with residential structures and small
commercial structures, and the appurtenances thereto.
'Residential-only contractor' includes, but is not limited to:
  (a) A person who purchases or owns property and constructs or
for compensation arranges for the construction of one or more
residential structures or small commercial structures with the
intent of selling the structures;
  (b) A school district, as defined in ORS 332.002, that permits
students to construct a residential structure or small commercial
structure as an educational experience to learn building
techniques and sells the completed structure;
  (c) A community college district, as defined in ORS 341.005,
that permits students to construct a residential structure or
small commercial structure as an educational experience to learn
building techniques and sells the completed structure; or
  (d) Any person except a landscape contractor, nurseryman,
gardener or person engaged in the commercial harvest of forest
products who is engaged as an independent contractor to remove
trees, prune trees, remove tree limbs or stumps or to engage in
tree or limb guying.
    { - (8) - }  { +  (9) + } 'Residential structure' means a
residence, including a site-built home, modular home constructed
off-site, floating home as defined in ORS 830.700, condominium
unit, manufactured dwelling or duplex, or a multiunit residential
building consisting of four units or less that is not part of a
multistructure complex of buildings.
    { - (9) - }  { +  (10) + } 'Small commercial structure' means
a nonresidential structure that has a ground area of 4,000 square
feet or less, including exterior walls, and not more than 20 feet
in height from the top surface of the lowest flooring to the
highest interior overhead finish of the structure.
 
    { - (10) - }  { +  (11) + } 'Specialty contractor' means a
contractor who performs work on a structure, project, development
or improvement and whose operations as such do not fall within
the definition of ' general contractor.' 'Specialty contractor'
includes a person who performs work regulated under ORS chapter
446.
  SECTION 70. 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 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 that might indicate
to the public that the 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 is 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 the 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 licensed under ORS 671.510 to
671.710 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 bond 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.
  (g) An appraiser certified or licensed under ORS chapter 674 by
the Appraiser Certification and Licensure Board.
  (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 the
structures are being moved by their owner if the 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   { - (7)(b) - }  { +  (8)(b) + } and (c).
  SECTION 71. ORS 701.065 is amended to read:
  701.065. (1) Except as provided in subsection (2) of this
section, a contractor may not perfect a claim of a construction
lien, or commence a claim with the Construction Contractors
Board, in arbitration or in any court of this state for
compensation for the performance of any work or for the breach of
any contract for work that is subject to this chapter, unless the
contractor had a valid license issued by the board:
  (a) At the time the contractor bid or entered into the contract
for performance of the work; and
  (b) Continuously while performing the work for which
compensation is sought.
  (2) The board, arbitrator or court shall not apply the
provisions of subsection (1) of this section to a lien or claim
if the board, arbitrator or court determines that:
  (a) The contractor either did not have a valid license at any
time required under subsection (1) of this section, or had an
initial issuance thereof, and:
  (A) The contractor was not aware of the requirement that the
contractor be licensed, and the contractor submitted a completed
application for a license within a number of days established by
the board, but not more than 90 days, of the date the contractor
became aware of the requirement;
  (B) At the time the contractor perfected a claim of a
construction lien or commenced any other claim subject to the
provisions of subsection (1) of this section, the contractor was
licensed by the board; and
  (C) Enforcement of the provisions of subsection (1) of this
section would result in substantial injustice to the contractor;
  { - or - }
  (b) The contractor was licensed by the board for some but not
all of the times required under subsection (1) of this section
and had a lapse in such license and:
  (A) The contractor was not aware of the lapse in the license
for more than a number of days established by the board, but not
to exceed 90 days, before submitting a completed application for
license renewal with the board;
 
  (B) Except for perfection of a claim of a construction lien and
a suit to foreclose the lien, at the time the contractor
commenced any other claim subject to the provisions of subsection
(1) of this section the contractor's license was renewed under
ORS 701.115 to include the entire time period for which a license
was required under subsection (1) of this section; and
  (C) For perfection of a claim of a construction lien and a suit
to foreclose the lien, the contractor's license was renewed under
ORS 701.115 for the entire time period for which a license was
required under subsection (1) of this section, but not later than
90 days following perfection of the lien  { - . - }  { + ;
  (c)(A) The contractor is a licensed developer and did not have
a valid license during all or part of the period described in
subsection (1) of this section;
  (B) The licensed developer was unaware of the license
requirement and obtained a license within a time established by
the board, not to exceed 90 days after the licensed developer
learned of the requirement;
  (C) The licensed developer was licensed at the time the
licensed developer perfected the lien or commenced the claim; and
  (D) Enforcement of subsection (1) of this section would result
in substantial injustice to the licensed developer; or
  (d) The claim:
  (A) Is directed against a person or entity that:
  (i) Is subject to ORS chapter 671, 672 or 701;
  (ii) Provides construction or design labor or services of any
kind; or
  (iii) Manufactures, distributes, rents or otherwise provides
materials, supplies, equipment, systems or products; and
  (B) Arises out of defects, deficiencies or inadequate
performance in the construction, design, labor, services,
materials, supplies, equipment, systems or products provided. + }
  (3) If a contractor falsely swears to information provided
under ORS 701.075 or knowingly violates the provisions of ORS
656.029, 670.600 or 701.075, the contractor may not perfect a
claim of a construction lien, or commence a claim with the board,
in arbitration or in any court of this state for compensation for
the performance of any work on a residential structure or for the
breach of any contract for work on a residential structure that
is subject to this chapter.
  SECTION 72.  { + Notwithstanding ORS 701.065, a contractor is
not barred from commencing a claim described in ORS 701.065
(2)(d) with the Construction Contractors Board, in arbitration or
in a court, for construction work performed in whole or in part
prior to April 1, 2004, if the contractor obtains a license as a
licensed developer prior to April 1, 2004, and at the time of the
work the contractor:
  (1) Owns the property or an interest in the property associated
with the construction work;
  (2) Arranges for the construction work;
  (3) Is engaged in the business of arranging for construction
work and performing other activities associated with the
improvement of real property, with the intent to sell the
property;
  (4) Acts in association with one or more licensed general
contractors and the general contractor or combination of general
contractors have sole responsibility for overseeing all phases of
construction activity on the property; and
  (5) Does not perform any construction work on the property. + }
  SECTION 73. ORS 701.075 is amended to read:
  701.075. (1) An applicant for a construction contractor license
must submit the application on a form prescribed by the
Construction Contractors Board. The application shall include,
but not be limited to, at least the following information
regarding the applicant:
  (a) Classification of the license being sought.
  (b) A list of unsatisfied judgments resulting from bond claims
and litigation involving the applicant or its principals within
the prior five years.
  (c) Social Security number.
  (d) Workers' compensation insurance account number if help is
hired or traded.
  (e) Unemployment insurance account number if help is hired.
  (f) State withholding tax account number if help is hired.
  (g) Federal employer identification number, if help is hired or
if self-employed and participating in a retirement plan.
  (h) The name and address of:
  (A) Each partner { + , + }   { - or - }  venturer { +  or
member + }, if the applicant is a partnership { + , + }
 { - or - }  joint venture { +  or limited liability company + }.
  (B) The owner, if the applicant is an individual
proprietorship.
  (C) The corporate officers, if the applicant is a corporation.
  (2) An applicant shall conform to the information provided by
the applicant on the application and to the terms of the
application.
  (3) The board shall adopt by rule an application form that
requires an applicant to indicate, as set forth in ORS 670.600,
the basis under which the applicant qualifies as an independent
contractor.
  (4) Prior to licensure, an applicant must demonstrate
compliance with the licensure education requirements described in
ORS 701.280 (1) and pass an examination based on the
requirements.
  (5) Prior to licensure, an applicant shall submit proof
satisfactory to the board that the applicant has the legal
capacity to contract.
  (6) Notwithstanding subsection (4) of this section, the
examination requirement for licensure does not apply to a person
registered with the board prior to July 1, 2000, unless the
person's license has lapsed more than two years prior to the
application date.
  (7) A business licensed under this chapter must at all times
have at least one owner or employee who:
  (a) Has passed an examination under subsection (4) of this
section; or
  (b) Is exempt under subsection (6) of this section from
examination and was, at any time prior to July 1, 2000, an owner
of the business or an employee designated by an owner to exercise
management or supervisory authority over the construction
activities of the business.
   { +  (8) Subsections (4), (6) and (7) of this section do not
apply to a licensed developer. + }
  SECTION 74. ORS 701.085 is amended to read:
  701.085. (1) An applicant for issuance or renewal of a
contractor license shall file with the Construction Contractors
Board a surety bond with one or more corporate sureties
authorized to do business in this state in the amount set forth
in subsections (2) to (5) of this section. The surety bond must
provide that the applicant, with regard to work subject to this
chapter, will pay claims ordered paid by the board under ORS
701.145 or 701.146. Bonds filed under this subsection shall
remain in effect for at least one year or until depleted by
claims paid under ORS 701.150, unless the surety sooner cancels
the bond. At the discretion of the surety the bond may be
continued for an additional period by continuation certificate.
Except as provided in subsection (6) of this section, the
aggregate liability of the surety under the bond for claims
against the bond   { - shall - }  { +  may + } not exceed the
penal sum of the bond no matter how many years the bond is in
force. Except as provided in subsection (6) of this section,
 
  { - no - }  { +  an + } extension by continuation certificate,
reinstatement, reissue or renewal of the bond   { - shall - }
 { +  may not + } increase the liability of the surety.
  (2) A general contractor  { + or licensed developer + } shall
obtain a surety bond in the amount of $15,000.
  (3) A specialty contractor shall obtain a surety bond in the
amount of $10,000.
  (4) An inspector shall obtain a surety bond in the amount of
$10,000.
  (5) The board may reduce the amount of the surety bond required
by this section to $5,000 for a contractor upon a showing that
the contractor does not perform work as a contractor exceeding
$40,000 in gross annual volume and does not enter into contracts
that exceed $5,000. The board shall designate the contractor as a
limited contractor.
  (6) The board, by rule, may require a licensee to obtain a new
surety bond if, pursuant to a board order for payment of a claim
described in ORS 701.140, the surety pays a claim out of the bond
of the licensee. The new surety bond must be in the amount set
forth in subsections (2) to (5) of this section unless a higher
amount is required by a board condition or rule described in
subsection (7) or (8) of this section. The board may allow a
licensee to obtain, instead of a new bond, a certification that
the surety remains liable for the full penal sum of the bond,
notwithstanding payment by the surety on the claim.
  (7) If the amount the licensee must pay against the bond under
this section exceeds the amount of the bond, the board shall
suspend the contractor's license until the amount owed is paid.
The board, as a condition of ending the suspension, may require a
contractor requesting reinstatement of a license to file a bond
of an amount up to five times as much as the amount required
ordinarily of a licensee under this section.
  (8) The board by rule may establish conditions for applicants
or persons licensed under this chapter under which the applicant
or licensee must file a bond of an amount up to five times as
much as the amount required ordinarily of an applicant or
licensee under this section. The board may reduce the amount of
bond it would otherwise require if the contractor demonstrates
satisfactory completion of approved elective classes on dispute
resolution and prevention, basic accounting and record keeping or
such other classes as the board may prescribe.
  (9) The bond required under this section is for the exclusive
purpose of payment of final orders and arbitration awards of the
board in accordance with this chapter.
  (10) Upon determination under ORS 701.145 or 701.146 of a claim
against a contractor who holds a bond required under this
section, the board shall notify the surety on the bond of the
final order in a manner determined by the board by rule. The
notification shall include a list of all claims upon which a
final order has been issued.
  (11) A suit or action may not be commenced against a surety on
a bond required under this section until 30 days after the date
that the surety is notified by the board under ORS 701.150 that
payment is due on the claim.
  (12) In any action against a surety on a bond under this
section that is based on the failure of the surety to pay a claim
or on the denial of a claim by the surety, the court may award:
  (a) Costs;
  (b) Reasonable attorney fees to the prevailing party as part of
the costs; and
  (c) Twice the amount of any damages that the board ordered the
surety to pay on the claim, if the surety arbitrarily and
capriciously refused to pay upon order of the board.
  SECTION 75. ORS 701.105 is amended to read:
  701.105. (1) 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 { +  or licensed
developer + }.
  (b) $300,000 for a residential-only specialty contractor.
  (c) $500,000 for all other specialty contractors.
  (d) $100,000 for a limited contractor.
  (e) $300,000 for an inspector.
  (2) The contractor shall provide satisfactory evidence to the
Construction Contractors Board at the time of licensure and
renewal that the insurance required by subsection (1) of this
section has been procured and is in effect.
  SECTION 76. ORS 701.115 is amended to read:
  701.115. (1) A license is valid for two years or four years, at
the discretion of the applicant, from the date of issuance unless
the license is revoked or suspended as set forth in ORS 701.135.
Upon application, a license may be renewed by the same procedure
provided for an original license if the applicant:
  (a) Submits any additional supplemental information or
completes any required education as the Construction Contractors
Board may require by rule; and
  (b) Passes the examination required in ORS 701.075 (4), if the
applicant has not previously satisfied the examination
requirement and is not exempt under ORS 701.075 (6) { +  or
(8) + }.
  (2) The board shall issue a pocket-card certificate of
licensure to a contractor licensed under this chapter indicating
the type of license.
  (3) The board may vary the dates of license renewal by giving
to the licensee written notice of the renewal date assigned and
by making appropriate adjustments in the renewal fee.
  (4) If a contractor applies for renewal not more than one year
after the contractor's license lapses, upon the contractor's
compliance with the requirements of subsection (1) of this
section, the board may renew the lapsed license. The board may
designate the effective date of renewal as the last date on which
the contractor was licensed.
  (5) A contractor may convert a license to inactive status if
the contractor is not engaged in work as a contractor. A
contractor having an inactive license is subject to board
licensing requirements and fees, but is not subject to the
bonding requirement of ORS 701.085 or the insurance requirement
of ORS 701.105. An inactive license is not considered a valid
license for purposes of offering to undertake construction work,
submitting a bid for construction work, obtaining a building
permit or performing construction work. A license may not be
placed or maintained in inactive status more than once during any
two-year period.
  SECTION 77.  { + Sections 68 and 72 of this 2003 Act and the
amendments to ORS 701.005, 701.010, 701.065, 701.075, 701.085,
701.105 and 701.115 by sections 69 to 71 and 73 to 76 of this
2003 Act become operative on October 1, 2003. + }
  SECTION 78.  { + The unit captions used in this 2003 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 2003 Act. + }
 
                               { +
EMERGENCY CLAUSE + }
 
  SECTION 79.  { + 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. + }
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