Chapter 647 Oregon Laws 2005
AN ACT
HB 2078
Relating to construction claims; and declaring an emergency.
Be It Enacted by the People of the State of
Oregon:
SECTION
1. (1) There is created the Task
Force on Construction Claims consisting of nine members appointed as follows:
(a)
The administrative officer of the Construction Contractors Board shall appoint
three members:
(A)
One of whom must be a contractor licensed under ORS chapter 701 who specializes
in the construction of single-family residences;
(B)
One of whom must be a general contractor licensed under ORS chapter 701 who
specializes in the construction of commercial multifamily structures; and
(C)
One of whom must be a general contractor licensed under ORS chapter 701 who
specializes in the construction of commercial structures.
(b)
The Director of the State Department of Energy shall appoint one member as a
representative of the State Department of Energy.
(c)
The Director of the Department of Consumer and Business Services shall appoint
five members:
(A)
One of whom must be a member of the Residential Structures Board;
(B)
One of whom must be a person with expertise in residential construction design;
(C)
One of whom must be an insurance agent or other person with expertise in the
insurance industry who is not affiliated with the construction industry;
(D)
One of whom must be a representative of an insurance industry carrier offering
insurance of a type required by ORS 701.105; and
(E)
One of whom must be a representative of the public.
(2)
The task force shall study the relationship between construction claims and
construction industry practices, construction defects, consumer protection and
state-mandated requirements for contractors. The study shall be designed to
produce:
(a)
An evaluation of construction claims in Oregon, including but not limited to
the causes and extent of construction defects, the availability and
affordability of contractor liability insurance and the need for maintaining or
increasing consumer protection.
(b)
Recommendations regarding construction practice changes to reduce construction
claims, such as changes to education, quality control and building code
requirements.
(3)
In addition to the study results described in subsection (2) of this section,
the task force may design the study to produce one or more of the following:
(a)
A review of any construction claim reduction actions taken in other states or
countries.
(b)
Recommendations regarding Oregon construction claims, including but not limited
to recommendations concerning construction defects, consumer protection and
state-mandated requirements for contractors.
(c)
A cost-benefit or other analysis to determine whether current consumer
protection laws, building codes and contractor insurance requirements regarding
construction claims are adequate and any recommendations for changing those
laws, codes or requirements.
(d)
Recommendations regarding changes to the inspection of construction materials
and construction methods that may reduce the number of construction claims.
(e)
Recommendations regarding possible restrictions on construction materials or
methods that may reduce the number of construction claims.
(f)
A review of the impact of construction warranty use on the filing of
construction claims and recommendations regarding construction warranties.
(4)
The Director of the Department of Consumer and Business Services shall provide
for a professional qualified expert to study options regarding actuarially
sound insurance reforms, alternatives and pricing, including loss control
discounts or the designation of a single private insurer to provide the
construction contractor insurance coverage required under ORS 701.105. The task
force shall include any recommendations of the professional qualified expert in
the study materials developed by the task force and may include the
recommendations in the recommendations for legislation reported by the task
force under subsection (11) of this section.
(5)
A majority of the members of the task force constitutes a quorum for the
transaction of business.
(6)
Official action by the task force requires the approval of a majority of the
members of the task force.
(7)
The task force shall elect one of its members to serve as chairperson.
(8)
If there is a vacancy for any cause, the appointing authority shall make an
appointment to become immediately effective.
(9)
The task force shall meet at times and places specified by the call of the
chairperson or of a majority of the members of the task force.
(10)
The task force may adopt rules necessary for the operation of the task force.
(11)
The task force shall submit a report, and may include recommendations for
legislation, regarding construction claims to the Seventy-fourth Legislative
Assembly no later than January 31, 2007.
(12)
The Construction Contractors Board and the Department of Consumer and Business
Services shall provide staff support to the task force pursuant to the
interagency agreement described in subsection (15) of this section.
(13)
Members of the task force are not entitled to compensation, but may be
reimbursed for actual and necessary travel and other expenses incurred by them
in the performance of their official duties in the manner and amounts provided
for in ORS 292.495. Claims for expenses shall be paid out of funds made
available to the Department of Consumer and Business Services for that purpose
under the interagency agreement described in subsection (15) of this section.
(14)
All agencies of state government, as defined in ORS 174.111, are directed to
assist the task force in the performance of its duties and, to the extent
permitted by laws relating to confidentiality, to furnish such information and
advice as the members of the task force consider necessary to perform their
duties.
(15) The Construction Contractors Board and the Department of Consumer and Business Services shall enter into an interagency agreement to coordinate expenditures and staff support to carry out the duties of the task force.
SECTION 2. Section 1 of this 2005 Act is repealed on January 1, 2008.
SECTION 3. This 2005 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2005 Act takes effect on its passage.
Approved by the Governor July 27, 2005
Filed in the office of Secretary of State July 27, 2005
Effective date July 27, 2005
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