74th OREGON LEGISLATIVE ASSEMBLY--2007 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 402
 
                         House Bill 2117
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for State Landscape Contractors Board)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Changes terminology regarding individuals and businesses
performing landscaping services.
  Clarifies applicability of independent contractor tax
identification number requirement. Requires partnerships and
corporations licensed as landscape contracting business to report
certain ownership changes. Adjusts language regarding false
representation of licensure. Exempts stockholder changes in
corporate landscape contracting business from business
relicensing requirement. Corrects language regarding content of
State Landscape Contractors Board final orders. Changes business
license tax provisions applicable both to construction
contractors and landscape contracting businesses to result in
separately applicable provisions.
 
                        A BILL FOR AN ACT
Relating to landscaping; creating new provisions; and amending
  ORS 215.213, 215.283, 447.060, 448.279, 479.940, 571.045,
  571.057, 571.250, 656.027, 671.321, 671.520, 671.525, 671.530,
  671.540, 671.555, 671.560, 671.565, 671.568, 671.570, 671.574,
  671.575, 671.580, 671.590, 671.600, 671.603, 671.605, 671.607,
  671.610, 671.613, 671.614, 671.615, 671.625, 671.650, 671.660,
  671.690, 671.700, 671.703, 671.707, 671.710, 671.997, 701.005,
  701.010, 701.013 and 701.015.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 215.213 is amended to read:
  215.213. (1) In counties that have adopted marginal lands
provisions under ORS 197.247 (1991 Edition), the following uses
may be established in any area zoned for exclusive farm use:
  (a) Public or private schools, including all buildings
essential to the operation of a school.
  (b) Churches and cemeteries in conjunction with churches.
  (c) The propagation or harvesting of a forest product.
  (d) Utility facilities necessary for public service, including
wetland waste treatment systems but not including commercial
facilities for the purpose of generating electrical power for
public use by sale or transmission towers over 200 feet in
height. A utility facility necessary for public service may be
established as provided in ORS 215.275.
 
  (e) A dwelling on real property used for farm use if the
dwelling is occupied by a relative of the farm operator or the
farm operator's spouse, which means a child, parent, stepparent,
grandchild, grandparent, stepgrandparent, sibling, stepsibling,
niece, nephew or first cousin of either, if the farm operator
does or will require the assistance of the relative in the
management of the farm use and the dwelling is located on the
same lot or parcel as the dwelling of the farm operator.
Notwithstanding ORS 92.010 to 92.190 or the minimum lot or parcel
size requirements under ORS 215.780, if the owner of a dwelling
described in this paragraph obtains construction financing or
other financing secured by the dwelling and the secured party
forecloses on the dwelling, the secured party may also foreclose
on the homesite, as defined in ORS 308A.250, and the foreclosure
shall operate as a partition of the homesite to create a new
parcel.
  (f) Nonresidential buildings customarily provided in
conjunction with farm use.
  (g) Primary or accessory dwellings customarily provided in
conjunction with farm use. For a primary dwelling, the dwelling
must be on a lot or parcel that is managed as part of a farm
operation and is not smaller than the minimum lot size in a farm
zone with a minimum lot size acknowledged under ORS 197.251.
  (h) Operations for the exploration for and production of
geothermal resources as defined by ORS 522.005 and oil and gas as
defined by ORS 520.005, including the placement and operation of
compressors, separators and other customary production equipment
for an individual well adjacent to the wellhead. Any activities
or construction relating to such operations shall not be a basis
for an exception under ORS 197.732 (1)(a) or (b).
  (i) Operations for the exploration for minerals as defined by
ORS 517.750. Any activities or construction relating to such
operations shall not be a basis for an exception under ORS
197.732 (1)(a) or (b).
  (j) A site for the disposal of solid waste that has been
ordered to be established by the Environmental Quality Commission
under ORS 459.049, together with equipment, facilities or
buildings necessary for its operation.
  (k) One manufactured dwelling or recreational vehicle, or the
temporary residential use of an existing building, in conjunction
with an existing dwelling as a temporary use for the term of a
hardship suffered by the existing resident or a relative of the
resident. Within three months of the end of the hardship, the
manufactured dwelling or recreational vehicle shall be removed or
demolished or, in the case of an existing building, the building
shall be removed, demolished or returned to an allowed
nonresidential use. The governing body or its designee shall
provide for periodic review of the hardship claimed under this
paragraph. A temporary residence approved under this paragraph is
not eligible for replacement under paragraph (t) of this
subsection.
  (L) The breeding, kenneling and training of greyhounds for
racing in any county with a population of more than 200,000 in
which there is located a greyhound racing track or in a county
with a population of more than 200,000 that is contiguous to such
a county.
  (m) Climbing and passing lanes within the right of way existing
as of July 1, 1987.
  (n) Reconstruction or modification of public roads and
highways, including the placement of utility facilities overhead
and in the subsurface of public roads and highways along the
public right of way, but not including the addition of travel
lanes, where no removal or displacement of buildings would occur,
or no new land parcels result.
 
 
  (o) Temporary public road and highway detours that will be
abandoned and restored to original condition or use at such time
as no longer needed.
  (p) Minor betterment of existing public road and highway
related facilities, such as maintenance yards, weigh stations and
rest areas, within right of way existing as of July 1, 1987, and
contiguous public-owned property utilized to support the
operation and maintenance of public roads and highways.
  (q) A replacement dwelling to be used in conjunction with farm
use if the existing dwelling has been listed in a county
inventory as historic property as defined in ORS 358.480.
  (r) Creation of, restoration of or enhancement of wetlands.
  (s) A winery, as described in ORS 215.452.
  (t) Alteration, restoration or replacement of a lawfully
established dwelling that:
  (A) Has intact exterior walls and roof structure;
  (B) Has indoor plumbing consisting of a kitchen sink, toilet
and bathing facilities connected to a sanitary waste disposal
system;
  (C) Has interior wiring for interior lights;
  (D) Has a heating system; and
  (E) In the case of replacement:
  (i) Is removed, demolished or converted to an allowable
nonresidential use within three months of the completion of the
replacement dwelling. A replacement dwelling may be sited on any
part of the same lot or parcel. A dwelling established under this
paragraph shall comply with all applicable siting standards.
However, the standards shall not be applied in a manner that
prohibits the siting of the dwelling. If the dwelling to be
replaced is located on a portion of the lot or parcel not zoned
for exclusive farm use, the applicant, as a condition of
approval, shall execute and record in the deed records for the
county where the property is located a deed restriction
prohibiting the siting of a dwelling on that portion of the lot
or parcel. The restriction imposed shall be irrevocable unless a
statement of release is placed in the deed records for the
county. The release shall be signed by the county or its designee
and state that the provisions of this paragraph regarding
replacement dwellings have changed to allow the siting of another
dwelling. The county planning director or the director's designee
shall maintain a record of the lots and parcels that do not
qualify for the siting of a new dwelling under the provisions of
this paragraph, including a copy of the deed restrictions and
release statements filed under this paragraph; and
  (ii) For which the applicant has requested a deferred
replacement permit, is removed or demolished within three months
after the deferred replacement permit is issued. A deferred
replacement permit allows construction of the replacement
dwelling at any time. If, however, the established dwelling is
not removed or demolished within three months after the deferred
replacement permit is issued, the permit becomes void. The
replacement dwelling must comply with applicable building codes,
plumbing codes, sanitation codes and other requirements relating
to health and safety or to siting at the time of construction. A
deferred replacement permit may not be transferred, by sale or
otherwise, except by the applicant to the spouse or a child of
the applicant.
  (u) Farm stands if:
  (A) The structures are designed and used for the sale of farm
crops or livestock grown on the farm operation, or grown on the
farm operation and other farm operations in the local
agricultural area, including the sale of retail incidental items
and fee-based activity to promote the sale of farm crops or
livestock sold at the farm stand if the annual sale of incidental
items and fees from promotional activity do not make up more than
25 percent of the total annual sales of the farm stand; and
  (B) The farm stand does not include structures designed for
occupancy as a residence or for activity other than the sale of
farm crops or livestock and does not include structures for
banquets, public gatherings or public entertainment.
  (v) An armed forces reserve center, if the center is within
one-half mile of a community college. For purposes of this
paragraph, 'armed forces reserve center' includes an armory or
National Guard support facility.
  (w) A site for the takeoff and landing of model aircraft,
including such buildings or facilities as may reasonably be
necessary. Buildings or facilities shall not be more than 500
square feet in floor area or placed on a permanent foundation
unless the building or facility preexisted the use approved under
this paragraph. The site shall not include an aggregate surface
or hard surface area unless the surface preexisted the use
approved under this paragraph. As used in this paragraph, 'model
aircraft' means a small-scale version of an airplane, glider,
helicopter, dirigible or balloon that is used or intended to be
used for flight and is controlled by radio, lines or design by a
person on the ground.
  (x) A facility for the processing of farm crops located on a
farm operation that provides at least one-quarter of the farm
crops processed at the facility. The building established for the
processing facility shall not exceed 10,000 square feet of floor
area exclusive of the floor area designated for preparation,
storage or other farm use or devote more than 10,000 square feet
to the processing activities within another building supporting
farm uses. A processing facility shall comply with all applicable
siting standards but the standards shall not be applied in a
manner that prohibits the siting of the processing facility.
  (y) Fire service facilities providing rural fire protection
services.
  (z) Irrigation canals, delivery lines and those structures and
accessory operational facilities associated with a district as
defined in ORS 540.505.
  (aa) Utility facility service lines. Utility facility service
lines are utility lines and accessory facilities or structures
that end at the point where the utility service is received by
the customer and that are located on one or more of the
following:
  (A) A public right of way;
  (B) Land immediately adjacent to a public right of way,
provided the written consent of all adjacent property owners has
been obtained; or
  (C) The property to be served by the utility.
  (bb) Subject to the issuance of a license, permit or other
approval by the Department of Environmental Quality under ORS
454.695, 459.205, 468B.050, 468B.053 or 468B.055, or in
compliance with rules adopted under ORS 468B.095, and as provided
in ORS 215.246 to 215.251, the land application of reclaimed
water, agricultural or industrial process water or biosolids for
agricultural, horticultural or silvicultural production, or for
irrigation in connection with a use allowed in an exclusive farm
use zone under this chapter.
  (2) In counties that have adopted marginal lands provisions
under ORS 197.247 (1991 Edition), the following uses may be
established in any area zoned for exclusive farm use subject to
ORS 215.296:
  (a) A primary dwelling in conjunction with farm use or the
propagation or harvesting of a forest product on a lot or parcel
that is managed as part of a farm operation or woodlot if the
farm operation or woodlot:
  (A) Consists of 20 or more acres; and
  (B) Is not smaller than the average farm or woodlot in the
county producing at least $2,500 in annual gross income from the
 
crops, livestock or forest products to be raised on the farm
operation or woodlot.
  (b) A primary dwelling in conjunction with farm use or the
propagation or harvesting of a forest product on a lot or parcel
that is managed as part of a farm operation or woodlot smaller
than required under paragraph (a) of this subsection, if the lot
or parcel:
  (A) Has produced at least $20,000 in annual gross farm income
in two consecutive calendar years out of the three calendar years
before the year in which the application for the dwelling was
made or is planted in perennials capable of producing upon
harvest an average of at least $20,000 in annual gross farm
income; or
  (B) Is a woodlot capable of producing an average over the
growth cycle of $20,000 in gross annual income.
  (c) Commercial activities that are in conjunction with farm use
but not including the processing of farm crops as described in
subsection (1)(x) of this section.
  (d) Operations conducted for:
  (A) Mining and processing of geothermal resources as defined by
ORS 522.005 and oil and gas as defined by ORS 520.005, not
otherwise permitted under subsection (1)(h) of this section;
  (B) Mining, crushing or stockpiling of aggregate and other
mineral and other subsurface resources subject to ORS 215.298;
  (C) Processing, as defined by ORS 517.750, of aggregate into
asphalt or portland cement; and
  (D) Processing of other mineral resources and other subsurface
resources.
  (e) Community centers owned by a governmental agency or a
nonprofit community organization and operated primarily by and
for residents of the local rural community, hunting and fishing
preserves, public and private parks, playgrounds and campgrounds.
Subject to the approval of the county governing body or its
designee, a private campground may provide yurts for overnight
camping. No more than one-third or a maximum of 10 campsites,
whichever is smaller, may include a yurt. The yurt shall be
located on the ground or on a wood floor with no permanent
foundation. Upon request of a county governing body, the Land
Conservation and Development Commission may provide by rule for
an increase in the number of yurts allowed on all or a portion of
the campgrounds in a county if the commission determines that the
increase will comply with the standards described in ORS 215.296
(1). A public park or campground may be established as provided
under ORS 195.120. As used in this paragraph, 'yurt' means a
round, domed shelter of cloth or canvas on a collapsible frame
with no plumbing, sewage disposal hookup or internal cooking
appliance.
  (f) Golf courses.
  (g) Commercial utility facilities for the purpose of generating
power for public use by sale.
  (h) Personal-use airports for airplanes and helicopter pads,
including associated hangar, maintenance and service facilities.
A personal-use airport as used in this section means an airstrip
restricted, except for aircraft emergencies, to use by the owner,
and, on an infrequent and occasional basis, by invited guests,
and by commercial aviation activities in connection with
agricultural operations. No aircraft may be based on a
personal-use airport other than those owned or controlled by the
owner of the airstrip.  Exceptions to the activities permitted
under this definition may be granted through waiver action by the
Oregon Department of Aviation in specific instances. A
personal-use airport lawfully existing as of September 13, 1975,
shall continue to be permitted subject to any applicable rules of
the Oregon Department of Aviation.
  (i) A facility for the primary processing of forest products,
provided that such facility is found to not seriously interfere
with accepted farming practices and is compatible with farm uses
described in ORS 215.203 (2). Such a facility may be approved for
a one-year period which is renewable. These facilities are
intended to be only portable or temporary in nature. The primary
processing of a forest product, as used in this section, means
the use of a portable chipper or stud mill or other similar
methods of initial treatment of a forest product in order to
enable its shipment to market. Forest products, as used in this
section, means timber grown upon a parcel of land or contiguous
land where the primary processing facility is located.
  (j) A site for the disposal of solid waste approved by the
governing body of a city or county or both and for which a permit
has been granted under ORS 459.245 by the Department of
Environmental Quality together with equipment, facilities or
buildings necessary for its operation.
  (k) Dog kennels not described in subsection (1)(L) of this
section.
  (L) Residential homes as defined in ORS 197.660, in existing
dwellings.
  (m) The propagation, cultivation, maintenance and harvesting of
aquatic species that are not under the jurisdiction of the State
Fish and Wildlife Commission or insect species. Insect species
shall not include any species under quarantine by the State
Department of Agriculture or the United States Department of
Agriculture. The county shall provide notice of all applications
under this paragraph to the State Department of Agriculture.
Notice shall be provided in accordance with the county's land use
regulations but shall be mailed at least 20 calendar days prior
to any administrative decision or initial public hearing on the
application.
  (n) Home occupations as provided in ORS 215.448.
  (o) Transmission towers over 200 feet in height.
  (p) Construction of additional passing and travel lanes
requiring the acquisition of right of way but not resulting in
the creation of new land parcels.
  (q) Reconstruction or modification of public roads and highways
involving the removal or displacement of buildings but not
resulting in the creation of new land parcels.
  (r) Improvement of public road and highway related facilities
such as maintenance yards, weigh stations and rest areas, where
additional property or right of way is required but not resulting
in the creation of new land parcels.
  (s) A destination resort that is approved consistent with the
requirements of any statewide planning goal relating to the
siting of a destination resort.
  (t) Room and board arrangements for a maximum of five unrelated
persons in existing residences.
  (u) A living history museum related to resource based
activities owned and operated by a governmental agency or a local
historical society, together with limited commercial activities
and facilities that are directly related to the use and enjoyment
of the museum and located within authentic buildings of the
depicted historic period or the museum administration building,
if areas other than an exclusive farm use zone cannot accommodate
the museum and related activities or if the museum administration
buildings and parking lot are located within one quarter mile of
the metropolitan urban growth boundary. As used in this
paragraph:
  (A) 'Living history museum' means a facility designed to depict
and interpret everyday life and culture of some specific historic
period using authentic buildings, tools, equipment and people to
simulate past activities and events; and
  (B) 'Local historical society' means the local historical
society, recognized as such by the county governing body and
organized under ORS chapter 65.
  (v) Operations for the extraction and bottling of water.
  (w) An aerial fireworks display business that has been in
continuous operation at its current location within an exclusive
farm use zone since December 31, 1986, and possesses a
wholesaler's permit to sell or provide fireworks.
  (x) A   { - landscaping - }  { +  landscape contracting + }
business, as defined in ORS 671.520, or a business providing
landscape architecture services, as described in ORS 671.318, if
the business is pursued in conjunction with the growing and
marketing of nursery stock on the land that constitutes farm use.
  (3) In counties that have adopted marginal lands provisions
under ORS 197.247 (1991 Edition), a single-family residential
dwelling not provided in conjunction with farm use may be
established on a lot or parcel with soils predominantly in
capability classes IV through VIII as determined by the
Agricultural Capability Classification System in use by the
United States Department of Agriculture Soil Conservation Service
on October 15, 1983. A proposed dwelling is subject to approval
of the governing body or its designee in any area zoned for
exclusive farm use upon written findings showing all of the
following:
  (a) The dwelling or activities associated with the dwelling
will not force a significant change in or significantly increase
the cost of accepted farming practices on nearby lands devoted to
farm use.
  (b) The dwelling is situated upon generally unsuitable land for
the production of farm crops and livestock, considering the
terrain, adverse soil or land conditions, drainage and flooding,
location and size of the tract. A lot or parcel shall not be
considered unsuitable solely because of its size or location if
it can reasonably be put to farm use in conjunction with other
land.
  (c) Complies with such other conditions as the governing body
or its designee considers necessary.
  (4) In counties that have adopted marginal lands provisions
under ORS 197.247 (1991 Edition), one single-family dwelling, not
provided in conjunction with farm use, may be established in any
area zoned for exclusive farm use on a lot or parcel described in
subsection (7) of this section that is not larger than three
acres upon written findings showing:
  (a) The dwelling or activities associated with the dwelling
will not force a significant change in or significantly increase
the cost of accepted farming practices on nearby lands devoted to
farm use;
  (b) If the lot or parcel is located within the Willamette River
Greenway, a floodplain or a geological hazard area, the dwelling
complies with conditions imposed by local ordinances relating
specifically to the Willamette River Greenway, floodplains or
geological hazard areas, whichever is applicable; and
  (c) The dwelling complies with other conditions considered
necessary by the governing body or its designee.
  (5) Upon receipt of an application for a permit under
subsection (4) of this section, the governing body shall notify:
  (a) Owners of land that is within 250 feet of the lot or parcel
on which the dwelling will be established; and
  (b) Persons who have requested notice of such applications and
who have paid a reasonable fee imposed by the county to cover the
cost of such notice.
  (6) The notice required in subsection (5) of this section shall
specify that persons have 15 days following the date of postmark
of the notice to file a written objection on the grounds only
that the dwelling or activities associated with it would force a
significant change in or significantly increase the cost of
accepted farming practices on nearby lands devoted to farm use.
If no objection is received, the governing body or its designee
shall approve or disapprove the application. If an objection is
received, the governing body shall set the matter for hearing in
the manner prescribed in ORS 215.402 to 215.438. The governing
body may charge the reasonable costs of the notice required by
subsection (5)(a) of this section to the applicant for the permit
requested under subsection (4) of this section.
  (7) Subsection (4) of this section applies to a lot or parcel
lawfully created between January 1, 1948, and July 1, 1983. For
the purposes of this section:
  (a) Only one lot or parcel exists if:
  (A) A lot or parcel described in this section is contiguous to
one or more lots or parcels described in this section; and
  (B) On July 1, 1983, greater than possessory interests are held
in those contiguous lots, parcels or lots and parcels by the same
person, spouses or a single partnership or business entity,
separately or in tenancy in common.
  (b) 'Contiguous' means lots, parcels or lots and parcels that
have a common boundary, including but not limited to, lots,
parcels or lots and parcels separated only by a public road.
  (8) A person who sells or otherwise transfers real property in
an exclusive farm use zone may retain a life estate in a dwelling
on that property and in a tract of land under and around the
dwelling.
  (9) No final approval of a nonfarm use under this section shall
be given unless any additional taxes imposed upon the change in
use have been paid.
  (10) Roads, highways and other transportation facilities and
improvements not allowed under subsections (1) and (2) of this
section may be established, subject to the approval of the
governing body or its designee, in areas zoned for exclusive farm
use subject to:
  (a) Adoption of an exception to the goal related to
agricultural lands and to any other applicable goal with which
the facility or improvement does not comply; or
  (b) ORS 215.296 for those uses identified by rule of the Land
Conservation and Development Commission as provided in section 3,
chapter 529, Oregon Laws 1993.
  SECTION 2. ORS 215.283 is amended to read:
  215.283. (1) The following uses may be established in any area
zoned for exclusive farm use:
  (a) Public or private schools, including all buildings
essential to the operation of a school.
  (b) Churches and cemeteries in conjunction with churches.
  (c) The propagation or harvesting of a forest product.
  (d) Utility facilities necessary for public service, including
wetland waste treatment systems but not including commercial
facilities for the purpose of generating electrical power for
public use by sale or transmission towers over 200 feet in
height. A utility facility necessary for public service may be
established as provided in ORS 215.275.
  (e) A dwelling on real property used for farm use if the
dwelling is occupied by a relative of the farm operator or the
farm operator's spouse, which means a child, parent, stepparent,
grandchild, grandparent, stepgrandparent, sibling, stepsibling,
niece, nephew or first cousin of either, if the farm operator
does or will require the assistance of the relative in the
management of the farm use and the dwelling is located on the
same lot or parcel as the dwelling of the farm operator.
Notwithstanding ORS 92.010 to 92.190 or the minimum lot or parcel
size requirements under ORS 215.780, if the owner of a dwelling
described in this paragraph obtains construction financing or
other financing secured by the dwelling and the secured party
forecloses on the dwelling, the secured party may also foreclose
on the homesite, as defined in ORS 308A.250, and the foreclosure
shall operate as a partition of the homesite to create a new
parcel.
  (f) Primary or accessory dwellings and other buildings
customarily provided in conjunction with farm use.
  (g) Operations for the exploration for and production of
geothermal resources as defined by ORS 522.005 and oil and gas as
defined by ORS 520.005, including the placement and operation of
compressors, separators and other customary production equipment
for an individual well adjacent to the wellhead. Any activities
or construction relating to such operations shall not be a basis
for an exception under ORS 197.732 (1)(a) or (b).
  (h) Operations for the exploration for minerals as defined by
ORS 517.750. Any activities or construction relating to such
operations shall not be a basis for an exception under ORS
197.732 (1)(a) or (b).
  (i) A site for the disposal of solid waste that has been
ordered to be established by the Environmental Quality Commission
under ORS 459.049, together with equipment, facilities or
buildings necessary for its operation.
  (j) The breeding, kenneling and training of greyhounds for
racing.
  (k) Climbing and passing lanes within the right of way existing
as of July 1, 1987.
  (L) Reconstruction or modification of public roads and
highways, including the placement of utility facilities overhead
and in the subsurface of public roads and highways along the
public right of way, but not including the addition of travel
lanes, where no removal or displacement of buildings would occur,
or no new land parcels result.
  (m) Temporary public road and highway detours that will be
abandoned and restored to original condition or use at such time
as no longer needed.
  (n) Minor betterment of existing public road and highway
related facilities such as maintenance yards, weigh stations and
rest areas, within right of way existing as of July 1, 1987, and
contiguous public-owned property utilized to support the
operation and maintenance of public roads and highways.
  (o) A replacement dwelling to be used in conjunction with farm
use if the existing dwelling has been listed in a county
inventory as historic property as defined in ORS 358.480.
  (p) Creation of, restoration of or enhancement of wetlands.
  (q) A winery, as described in ORS 215.452.
  (r) Farm stands if:
  (A) The structures are designed and used for the sale of farm
crops or livestock grown on the farm operation, or grown on the
farm operation and other farm operations in the local
agricultural area, including the sale of retail incidental items
and fee-based activity to promote the sale of farm crops or
livestock sold at the farm stand if the annual sale of incidental
items and fees from promotional activity do not make up more than
25 percent of the total annual sales of the farm stand; and
  (B) The farm stand does not include structures designed for
occupancy as a residence or for activity other than the sale of
farm crops or livestock and does not include structures for
banquets, public gatherings or public entertainment.
  (s) Alteration, restoration or replacement of a lawfully
established dwelling that:
  (A) Has intact exterior walls and roof structure;
  (B) Has indoor plumbing consisting of a kitchen sink, toilet
and bathing facilities connected to a sanitary waste disposal
system;
  (C) Has interior wiring for interior lights;
  (D) Has a heating system; and
  (E) In the case of replacement:
  (i) Is removed, demolished or converted to an allowable
nonresidential use within three months of the completion of the
replacement dwelling. A replacement dwelling may be sited on any
part of the same lot or parcel. A dwelling established under this
paragraph shall comply with all applicable siting standards.
However, the standards shall not be applied in a manner that
prohibits the siting of the dwelling. If the dwelling to be
replaced is located on a portion of the lot or parcel not zoned
for exclusive farm use, the applicant, as a condition of
approval, shall execute and record in the deed records for the
county where the property is located a deed restriction
prohibiting the siting of a dwelling on that portion of the lot
or parcel. The restriction imposed shall be irrevocable unless a
statement of release is placed in the deed records for the
county. The release shall be signed by the county or its designee
and state that the provisions of this paragraph regarding
replacement dwellings have changed to allow the siting of another
dwelling. The county planning director or the director's designee
shall maintain a record of the lots and parcels that do not
qualify for the siting of a new dwelling under the provisions of
this paragraph, including a copy of the deed restrictions and
release statements filed under this paragraph; and
  (ii) For which the applicant has requested a deferred
replacement permit, is removed or demolished within three months
after the deferred replacement permit is issued. A deferred
replacement permit allows construction of the replacement
dwelling at any time. If, however, the established dwelling is
not removed or demolished within three months after the deferred
replacement permit is issued, the permit becomes void. The
replacement dwelling must comply with applicable building codes,
plumbing codes, sanitation codes and other requirements relating
to health and safety or to siting at the time of construction. A
deferred replacement permit may not be transferred, by sale or
otherwise, except by the applicant to the spouse or a child of
the applicant.
  (t) A site for the takeoff and landing of model aircraft,
including such buildings or facilities as may reasonably be
necessary. Buildings or facilities shall not be more than 500
square feet in floor area or placed on a permanent foundation
unless the building or facility preexisted the use approved under
this paragraph. The site shall not include an aggregate surface
or hard surface area unless the surface preexisted the use
approved under this paragraph. As used in this paragraph, 'model
aircraft' means a small-scale version of an airplane, glider,
helicopter, dirigible or balloon that is used or intended to be
used for flight and is controlled by radio, lines or design by a
person on the ground.
  (u) A facility for the processing of farm crops located on a
farm operation that provides at least one-quarter of the farm
crops processed at the facility. The building established for the
processing facility shall not exceed 10,000 square feet of floor
area exclusive of the floor area designated for preparation,
storage or other farm use or devote more than 10,000 square feet
to the processing activities within another building supporting
farm uses. A processing facility shall comply with all applicable
siting standards but the standards shall not be applied in a
manner that prohibits the siting of the processing facility.
  (v) Fire service facilities providing rural fire protection
services.
  (w) Irrigation canals, delivery lines and those structures and
accessory operational facilities associated with a district as
defined in ORS 540.505.
  (x) Utility facility service lines. Utility facility service
lines are utility lines and accessory facilities or structures
that end at the point where the utility service is received by
the customer and that are located on one or more of the
following:
  (A) A public right of way;
  (B) Land immediately adjacent to a public right of way,
provided the written consent of all adjacent property owners has
been obtained; or
  (C) The property to be served by the utility.
  (y) Subject to the issuance of a license, permit or other
approval by the Department of Environmental Quality under ORS
454.695, 459.205, 468B.050, 468B.053 or 468B.055, or in
compliance with rules adopted under ORS 468B.095, and as provided
in ORS 215.246 to 215.251, the land application of reclaimed
water, agricultural or industrial process water or biosolids for
agricultural, horticultural or silvicultural production, or for
irrigation in connection with a use allowed in an exclusive farm
use zone under this chapter.
  (z) A county law enforcement facility that lawfully existed on
August 20, 2002, and is used to provide rural law enforcement
services primarily in rural areas, including parole and
post-prison supervision, but not including a correctional
facility as defined under ORS 162.135.
  (2) The following nonfarm uses may be established, subject to
the approval of the governing body or its designee in any area
zoned for exclusive farm use subject to ORS 215.296:
  (a) Commercial activities that are in conjunction with farm use
but not including the processing of farm crops as described in
subsection (1)(u) of this section.
  (b) Operations conducted for:
  (A) Mining and processing of geothermal resources as defined by
ORS 522.005 and oil and gas as defined by ORS 520.005 not
otherwise permitted under subsection (1)(g) of this section;
  (B) Mining, crushing or stockpiling of aggregate and other
mineral and other subsurface resources subject to ORS 215.298;
  (C) Processing, as defined by ORS 517.750, of aggregate into
asphalt or portland cement; and
  (D) Processing of other mineral resources and other subsurface
resources.
  (c) Private parks, playgrounds, hunting and fishing preserves
and campgrounds. Subject to the approval of the county governing
body or its designee, a private campground may provide yurts for
overnight camping. No more than one-third or a maximum of 10
campsites, whichever is smaller, may include a yurt. The yurt
shall be located on the ground or on a wood floor with no
permanent foundation. Upon request of a county governing body,
the Land Conservation and Development Commission may provide by
rule for an increase in the number of yurts allowed on all or a
portion of the campgrounds in a county if the commission
determines that the increase will comply with the standards
described in ORS 215.296 (1). As used in this paragraph, 'yurt'
means a round, domed shelter of cloth or canvas on a collapsible
frame with no plumbing, sewage disposal hookup or internal
cooking appliance.
  (d) Parks and playgrounds. A public park may be established
consistent with the provisions of ORS 195.120.
  (e) Community centers owned by a governmental agency or a
nonprofit community organization and operated primarily by and
for residents of the local rural community. A community center
authorized under this paragraph may provide services to veterans,
including but not limited to emergency and transitional shelter,
preparation and service of meals, vocational and educational
counseling and referral to local, state or federal agencies
providing medical, mental health, disability income replacement
and substance abuse services, only in a facility that is in
existence on January 1, 2006. The services may not include direct
delivery of medical, mental health, disability income replacement
or substance abuse services.
  (f) Golf courses.
  (g) Commercial utility facilities for the purpose of generating
power for public use by sale.
  (h) Personal-use airports for airplanes and helicopter pads,
including associated hangar, maintenance and service facilities.
A personal-use airport, as used in this section, means an
airstrip restricted, except for aircraft emergencies, to use by
the owner, and, on an infrequent and occasional basis, by invited
guests, and by commercial aviation activities in connection with
agricultural operations. No aircraft may be based on a
personal-use airport other than those owned or controlled by the
owner of the airstrip.  Exceptions to the activities permitted
under this definition may be granted through waiver action by the
Oregon Department of Aviation in specific instances. A
personal-use airport lawfully existing as of September 13, 1975,
shall continue to be permitted subject to any applicable rules of
the Oregon Department of Aviation.
  (i) Home occupations as provided in ORS 215.448.
  (j) A facility for the primary processing of forest products,
provided that such facility is found to not seriously interfere
with accepted farming practices and is compatible with farm uses
described in ORS 215.203 (2). Such a facility may be approved for
a one-year period which is renewable. These facilities are
intended to be only portable or temporary in nature. The primary
processing of a forest product, as used in this section, means
the use of a portable chipper or stud mill or other similar
methods of initial treatment of a forest product in order to
enable its shipment to market. Forest products, as used in this
section, means timber grown upon a parcel of land or contiguous
land where the primary processing facility is located.
  (k) A site for the disposal of solid waste approved by the
governing body of a city or county or both and for which a permit
has been granted under ORS 459.245 by the Department of
Environmental Quality together with equipment, facilities or
buildings necessary for its operation.
  (L) One manufactured dwelling or recreational vehicle, or the
temporary residential use of an existing building, in conjunction
with an existing dwelling as a temporary use for the term of a
hardship suffered by the existing resident or a relative of the
resident. Within three months of the end of the hardship, the
manufactured dwelling or recreational vehicle shall be removed or
demolished or, in the case of an existing building, the building
shall be removed, demolished or returned to an allowed
nonresidential use. The governing body or its designee shall
provide for periodic review of the hardship claimed under this
paragraph. A temporary residence approved under this paragraph is
not eligible for replacement under subsection (1)(s) of this
section.
  (m) Transmission towers over 200 feet in height.
  (n) Dog kennels not described in subsection (1)(j) of this
section.
  (o) Residential homes as defined in ORS 197.660, in existing
dwellings.
  (p) The propagation, cultivation, maintenance and harvesting of
aquatic species that are not under the jurisdiction of the State
Fish and Wildlife Commission or insect species. Insect species
shall not include any species under quarantine by the State
Department of Agriculture or the United States Department of
Agriculture. The county shall provide notice of all applications
under this paragraph to the State Department of Agriculture.
Notice shall be provided in accordance with the county's land use
regulations but shall be mailed at least 20 calendar days prior
to any administrative decision or initial public hearing on the
application.
  (q) Construction of additional passing and travel lanes
requiring the acquisition of right of way but not resulting in
the creation of new land parcels.
  (r) Reconstruction or modification of public roads and highways
involving the removal or displacement of buildings but not
resulting in the creation of new land parcels.
  (s) Improvement of public road and highway related facilities,
such as maintenance yards, weigh stations and rest areas, where
 
additional property or right of way is required but not resulting
in the creation of new land parcels.
  (t) A destination resort that is approved consistent with the
requirements of any statewide planning goal relating to the
siting of a destination resort.
  (u) Room and board arrangements for a maximum of five unrelated
persons in existing residences.
  (v) Operations for the extraction and bottling of water.
  (w) Expansion of existing county fairgrounds and activities
directly relating to county fairgrounds governed by county fair
boards established pursuant to ORS 565.210.
  (x) A living history museum related to resource based
activities owned and operated by a governmental agency or a local
historical society, together with limited commercial activities
and facilities that are directly related to the use and enjoyment
of the museum and located within authentic buildings of the
depicted historic period or the museum administration building,
if areas other than an exclusive farm use zone cannot accommodate
the museum and related activities or if the museum administration
buildings and parking lot are located within one quarter mile of
an urban growth boundary. As used in this paragraph:
  (A) 'Living history museum' means a facility designed to depict
and interpret everyday life and culture of some specific historic
period using authentic buildings, tools, equipment and people to
simulate past activities and events; and
  (B) 'Local historical society' means the local historical
society recognized by the county governing body and organized
under ORS chapter 65.
  (y) An aerial fireworks display business that has been in
continuous operation at its current location within an exclusive
farm use zone since December 31, 1986, and possesses a
wholesaler's permit to sell or provide fireworks.
  (z) A   { - landscaping - }  { +  landscape contracting + }
business, as defined in ORS 671.520, or a business providing
landscape architecture services, as described in ORS 671.318, if
the business is pursued in conjunction with the growing and
marketing of nursery stock on the land that constitutes farm use.
  (3) Roads, highways and other transportation facilities and
improvements not allowed under subsections (1) and (2) of this
section may be established, subject to the approval of the
governing body or its designee, in areas zoned for exclusive farm
use subject to:
  (a) Adoption of an exception to the goal related to
agricultural lands and to any other applicable goal with which
the facility or improvement does not comply; or
  (b) ORS 215.296 for those uses identified by rule of the Land
Conservation and Development Commission as provided in section 3,
chapter 529, Oregon Laws 1993.
  SECTION 3. ORS 447.060 is amended to read:
  447.060. (1) ORS 447.010 to 447.156 do not apply to a person:
  (a) Engaging in plumbing work when not so engaged for hire.
  (b) Using the services of regular employees in performing
plumbing work for the benefit of property owned, leased or
operated by the person. For purposes of this paragraph, 'regular
employee' means a person who is subject to the provisions of ORS
316.162 to 316.221 and who has completed a withholding exemptions
certificate required by ORS 316.162 to 316.221.
  (c) Using the services of an employee or contractor of a
utility company, energy service provider or water supplier to
install an approved low-flow showerhead or faucet aerator in
existing plumbing fixtures. The devices installed under this
paragraph are exempt from the certification, permit and
inspection requirements of ORS 447.010 to 447.156 and ORS chapter
693.
  (2) A   { - landscaping - }  { +  landscape contracting + }
business licensed under ORS 671.560 is not required to be
licensed under ORS 447.010 to 447.156 to install, repair or
maintain backflow assemblies for irrigation systems and
ornamental water features if the work is performed by an
individual who is licensed as required by ORS 671.615 and is an
owner or employee of the   { - landscaping - }  { +  landscape
contracting + } business. The repair and maintenance of the
backflow assembly must be performed by a tester certified under
ORS 448.279. The   { - registration - }  { +  licensing + }
exemption established under this subsection does not exempt the
 { - landscaping - }  { +  landscape contracting + } business
from the inspection and permit requirements of ORS 447.010 to
447.156.
  (3) This section applies to any person, including but not
limited to, individuals, corporations, associations, firms,
partnerships, joint stock companies, public and municipal
corporations, political subdivisions, this state, the federal
government and state or federal agencies.
  SECTION 4. ORS 448.279 is amended to read:
  448.279. (1) The Department of Human Services by rule shall
establish a certification program for persons who inspect cross
connections or test backflow assemblies. The program shall
include minimum qualifications necessary for a person to be
certified to:
  (a) Conduct a cross connection inspection; and
  (b) Test a backflow assembly.
  (2) Except for an employee of a water supplier as defined in
ORS 448.115, a person certified under this section must:
  (a) Become licensed as a construction contractor with the
Construction Contractors Board as provided under ORS chapter 701;
or
  (b)   { - Become licensed as a landscape contractor as
provided - }  { + Be employed by a landscape contracting business
licensed + } under ORS 671.510 to 671.710.
  (3) In conjunction with the certification program established
under subsection (1) of this section, the department may
establish and collect a fee from an individual requesting
certification under the program. A fee imposed under this
subsection may:
  (a) Not be refundable; and
  (b) Not exceed the cost of administering the certification
program of the department for which purpose the fee is
established, as authorized by the Legislative Assembly within the
budget of the department and as the budget may be modified by the
Emergency Board.
  (4) The department may not require a journeyman plumber who
holds a certificate of competency issued under ORS chapter 693 or
an apprentice plumber, as defined in ORS 693.010, to obtain a
certification for testing backflow prevention device assemblies
under the program established under this section.
  (5) All moneys collected by the department under this section
shall be deposited in the General Fund to the credit of an
account of the department. Such moneys are continuously
appropriated to the department to pay the cost of administering
the certification program established pursuant to this section
and the cost of administering water system cross connection and
backflow assembly programs.
  SECTION 5. ORS 479.940 is amended to read:
  479.940. (1) The licensure provisions of ORS 479.510 to 479.945
do not apply to the following activity on Class II and III
systems in one and two family dwellings 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 do
not apply to limited energy electrical activity involving
landscape irrigation control wiring and outdoor landscape
lighting installed by a  { + landscape contracting + } business
licensed under ORS 671.510 to 671.710.
  (b) A  { + landscape contracting  + }business exempt from
licensing under this   { - section - }  { +  subsection + } shall
issue an identification card to its landscape irrigation control
wiring or outdoor landscape lighting installer. The form for the
identification card shall be provided by the State Landscape
Contractors Board. The identification card shall include the name
of the installer, the name and State Landscape Contractors Board
identification number of the   { - landscaping - }  { +
landscape contracting + } 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 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,
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 6. ORS 571.045 is amended to read:
  571.045. ORS 571.055 (1) and 571.057 do not apply to:
  (1) Any person whose business consists only of retail sales to
the ultimate consumer and the total of such sales of nursery
stock does not exceed $250 during a fiscal year. Except as
provided in subsection (2) of this section, the provisions of ORS
564.040, 564.991, 571.005 to 571.230 and 571.991 apply at any
time the sales of nursery stock exceed $250 during a fiscal year.
  (2) A person licensed as a   { - landscaping - }  { +
landscape contracting + } business under ORS 671.560 and 671.565
who does not grow plants, does not store plants except as
provided by the State Department of Agriculture by rule, and
acquires all plants from a nursery licensed under this chapter.
  SECTION 7. ORS 571.057 is amended to read:
  571.057. (1) Each person required to be licensed by ORS 571.055
shall make application for such license or for renewal thereof,
on a form furnished by the State Department of Agriculture which
shall contain:
  (a) The name and address of the applicant; the number of
locations to be operated by the applicant and the addresses
thereof; and the assumed business name of the applicant;
  (b) If other than an individual, a statement whether such
person is a partnership, corporation or other organization;
  (c) The gross dollar volume of sales or purchases of nursery
stock by the applicant within Oregon during the prior calendar
year, or if the applicant maintains sales records on a fiscal
basis, the prior fiscal year; and
  (d) The type of business to be operated and, if applicant is an
agent, the principals the applicant represents.
  (2) Each application for license shall be accompanied by a
license fee as provided for by this section and any amounts
required by ORS 571.075 (3). Such application shall not be a
public record but shall be subject to audit and review by the
department. An applicant for an original license or for a renewal
license, without a full calendar year of prior nursery stock
sales or purchase experience upon which to base the fees, shall
base such fees on an estimated annual gross dollar volume of
sales or purchases of nursery stock by the applicant.
Notwithstanding the provisions of ORS 571.075, upon application
by such person for a renewal of license for a subsequent year,
the fees for the previous license year shall be adjusted to
reflect the actual annual gross dollar volume of sales or
purchases of nursery stock by such applicant. Any additional fees
found to be due shall be paid to the department at the time of
application for renewal of license, or the department shall
refund any overpayment found to be due the applicant.
  (3)(a) For license years beginning on and after July 1, 1995,
the license fees for growers and dealers shall be established by
the department after consulting with the State Nursery Research
and Regulatory Committee and after public hearing in accordance
with ORS chapter 183. Such fees shall be established on the basis
of annual gross dollar volume of sales or purchases of nursery
stock within Oregon for the calendar year immediately preceding
the license period.
  (b) The license fees shall not be less than $65 nor more than
$20,000. The millage rate shall be not less than one-tenth mill
nor more than 5 mills. The fees shall be established in such
amount as shall be sufficient to allow the department to
administer and enforce the provisions of ORS 564.040, 564.991,
571.005 to 571.230 and 571.991.
  (c) For license years beginning July 1, 1994, and thereafter,
in addition to and at the time of payment of the annual license
fee, growers and dealers shall pay assessments for the expenses
of carrying out the provisions of ORS 571.230 (2) and (3).
Dealers shall pay 0.0002 times the gross dollar purchases in the
previous license year. Growers shall pay 0.0002 times the gross
dollar sales in the previous license year. In no event shall the
assessment be less than $10.
  (4) For florists and landscape   { - contractors - }  { +
contracting businesses + }, dealer and agent fees will be
computed on the basis of gross purchases of plants. For
greenhouse operators and growers, including persons collecting
native plants, fees will be computed on the basis of gross sales
of plants or sales value of plants produced in Oregon.
  (5) Each grower or dealer shall be entitled to one sales
location under the license of the grower or dealer. Each
additional sales location, yard, branch store, stall or peddling
vehicle maintained by such person shall require the payment of
the full license fee for each of such additional sales outlets. A
grower who is also a dealer shall be licensed only as a grower.
  SECTION 8. ORS 571.250 is amended to read:
  571.250. The State Landscape Contractors Board and the State
Department of Agriculture shall enter into an interagency
agreement to address how the board and the department shall
ensure that licensed   { - landscaping - }  { +  landscape
contracting + } businesses comply with the provisions of this
chapter.
  SECTION 9. ORS 656.027 is amended to read:
  656.027. All workers are subject to this chapter except those
nonsubject workers described in the following subsections:
  (1) A worker employed as a domestic servant in or about a
private home. For the purposes of this subsection 'domestic
servant' means any worker engaged in household domestic service
by private employment contract, including, but not limited to,
home health workers.
  (2) A worker employed to do gardening, maintenance, repair,
remodeling or similar work in or about the private home of the
person employing the worker.
  (3)(a) A worker whose employment is casual and either:
  (A) The employment is not in the course of the trade, business
or profession of the employer; or
  (B) The employment is in the course of the trade, business or
profession of a nonsubject employer.
  (b) For the purpose of this subsection, 'casual' refers only to
employments where the work in any 30-day period, without regard
to the number of workers employed, involves a total labor cost of
less than $500.
  (4) A person for whom a rule of liability for injury or death
arising out of and in the course of employment is provided by the
laws of the United States.
  (5) A worker engaged in the transportation in interstate
commerce of goods, persons or property for hire by rail, water,
aircraft or motor vehicle, and whose employer has no fixed place
of business in this state.
  (6) Firefighter and police employees of any city having a
population of more than 200,000 that provides a disability and
retirement system by ordinance or charter.
  (7)(a) Sole proprietors, except those described in paragraph
(b) of this subsection. When labor or services are performed
under contract, the sole proprietor must qualify as an
independent contractor.
  (b) Sole proprietors actively   { - registered - }  { +
licensed + } under ORS 671.525 or   { - licensed under ORS - }
701.035. When labor or services are performed under contract for
remuneration, notwithstanding ORS 656.005 (30), the sole
proprietor must qualify as an independent contractor. Any sole
proprietor   { - registered - }  { +  licensed + } under ORS
671.525 or   { - licensed under ORS - }  701.035 and involved in
activities subject thereto is conclusively presumed to be an
independent contractor.
  (8) Except as provided in subsection (23) of this section,
partners who are not engaged in work performed in direct
connection with the construction, alteration, repair,
improvement, moving or demolition of an improvement on real
property or appurtenances thereto. When labor or services are
performed under contract, the partnership must qualify as an
independent contractor.
  (9) Except as provided in subsection (25) of this section,
members, including members who are managers, of limited liability
companies, regardless of the nature of the work performed.
However, members, including members who are managers, of limited
liability companies with more than one member, while engaged in
work performed in direct connection with the construction,
alteration, repair, improvement, moving or demolition of an
improvement on real property or appurtenances thereto, are
subject workers. When labor or services are performed under
contract, the limited liability company must qualify as an
independent contractor.
  (10) Except as provided in subsection (24) of this section,
corporate officers who are directors of the corporation and who
have a substantial ownership interest in the corporation,
regardless of the nature of the work performed by such officers,
subject to the following limitations:
  (a) If the activities of the corporation are conducted on land
that receives farm use tax assessment pursuant to ORS chapter
308A, corporate officer includes all individuals identified as
directors in the corporate bylaws, regardless of ownership
interest, and who are members of the same family, whether related
by blood, marriage or adoption.
  (b) If the activities of the corporation involve the commercial
harvest of timber and all officers of the corporation are members
of the same family and are parents, daughters or sons,
daughters-in-law or sons-in-law or grandchildren, then all such
officers may elect to be nonsubject workers. For all other
corporations involving the commercial harvest of timber, the
maximum number of exempt corporate officers for the corporation
shall be whichever is the greater of the following:
  (A) Two corporate officers; or
  (B) One corporate officer for each 10 corporate employees.
  (c) When labor or services are performed under contract, the
corporation must qualify as an independent contractor.
  (11) A person performing services primarily for board and
lodging received from any religious, charitable or relief
organization.
  (12) A newspaper carrier utilized in compliance with the
provisions of ORS 656.070 and 656.075.
  (13) A person who has been declared an amateur athlete under
the rules of the United States Olympic Committee or the Canadian
Olympic Committee and who receives no remuneration for
performance of services as an athlete other than board, room,
rent, housing, lodging or other reasonable incidental subsistence
allowance, or any amateur sports official who is certified by a
recognized Oregon or national certifying authority, which
requires or provides liability and accident insurance for such
officials. A roster of recognized Oregon and national certifying
authorities will be maintained by the Department of Consumer and
Business Services, from lists of certifying organizations
submitted by the Oregon School Activities Association and the
Oregon Park and Recreation Society.
  (14) Volunteer personnel participating in the ACTION programs,
organized under the Domestic Volunteer Service Act of 1973, P.L.
93-113, known as the Foster Grandparent Program and the Senior
Companion Program, whether or not the volunteers receive a
stipend or nominal reimbursement for time and travel expenses.
  (15) A person who has an ownership or leasehold interest in
equipment and who furnishes, maintains and operates the
equipment.  As used in this subsection 'equipment' means:
  (a) A motor vehicle used in the transportation of logs, poles
or piling.
  (b) A motor vehicle used in the transportation of rocks,
gravel, sand, dirt or asphalt concrete.
  (c) A motor vehicle operated as a taxicab as defined in ORS
825.017.
  (d) A motor vehicle used in the transportation of property by a
for-hire motor carrier that is required under ORS 825.100 or
825.104 to possess a certificate or permit.
  (16) A person engaged in the transportation of the public for
recreational down-river boating activities on the waters of this
state pursuant to a federal permit when the person furnishes the
equipment necessary for the activity. As used in this subsection,
' recreational down-river boating activities' means those boating
activities for the purpose of recreational fishing, swimming or
sightseeing utilizing a float craft with oars or paddles as the
primary source of power.
  (17) A person who performs volunteer ski patrol activities who
receives no wage other than noncash remuneration.
  (18) A person 19 years of age or older who contracts with a
newspaper publishing company or independent newspaper dealer or
contractor to distribute newspapers to the general public and
perform or undertake any necessary or attendant functions related
thereto.
  (19) A person performing foster parent or adult foster care
duties pursuant to ORS chapter 411, 418, 430 or 443.
  (20) A person performing services on a volunteer basis for a
nonprofit, religious, charitable or relief organization, whether
or not such person receives meals or lodging or nominal
reimbursements or vouchers for meals, lodging or expenses.
  (21) A person performing services under a property tax work-off
program established under ORS 310.800.
  (22) A person who performs service as a caddy at a golf course
in an established program for the training and supervision of
caddies under the direction of a person who is an employee of the
golf course.
  (23)(a) Partners who are actively   { - registered - }  { +
licensed + } under ORS 671.525 or   { - licensed under ORS - }
701.035 and who have a substantial ownership interest in a
partnership. If all partners are members of the same family and
are parents, spouses, sisters, brothers, daughters or sons,
daughters-in-law or sons-in-law or grandchildren, all such
partners may elect to be nonsubject workers. For all other
partnerships   { - registered - }  { +  licensed + } under ORS
671.510 to 671.710 or   { - licensed under - }  ORS chapter 701,
the maximum number of exempt partners shall be whichever is the
greater of the following:
  (A) Two partners; or
  (B) One partner for each 10 partnership employees.
  (b) When labor or services are performed under contract for
remuneration, notwithstanding ORS 656.005 (30), the partnership
qualifies as an independent contractor. Any partnership
  { - registered - }  { +  licensed + } under ORS 671.525 or
 { - licensed under ORS - } 701.035 and involved in activities
subject thereto is conclusively presumed to be an independent
contractor.
  (24)(a) Corporate officers who are directors of a corporation
actively   { - registered - }  { +  licensed + } under ORS
671.525 or   { - licensed under ORS - }  701.035 and who have a
substantial ownership interest in the corporation, regardless of
the nature of the work performed. If all officers of the
corporation are members of the same family and are parents,
spouses, sisters, brothers, daughters or sons, daughters-in-law
or sons-in-law or grandchildren, all such officers may elect to
be nonsubject workers. For all other corporations
 { - registered - }  { +  licensed + } under ORS 671.510 to
671.710 or
  { - licensed under - }  ORS chapter 701, the maximum number of
exempt corporate officers shall be whichever is the greater of
the following:
  (A) Two corporate officers; or
  (B) One corporate officer for each 10 corporate employees.
  (b) When labor or services are performed under contract for
remuneration, notwithstanding ORS 656.005 (30), the corporation
qualifies as an independent contractor. Any corporation
  { - registered - }  { +  licensed + } under ORS 671.525 or
 { - licensed under ORS - } 701.035 and involved in activities
subject thereto is conclusively presumed to be an independent
contractor.
  (25)(a) Limited liability company members who are members of a
company actively   { - registered - }  { +  licensed + } under
ORS 671.525 or
  { - licensed under ORS - }  701.035 and who have a substantial
ownership interest in the company, regardless of the nature of
the work performed. If all members of the company are members of
the same family and are parents, spouses, sisters, brothers,
daughters or sons, daughters-in-law or sons-in-law or
grandchildren, all such members may elect to be nonsubject
workers. For all other companies   { - registered - }  { +
licensed + } under ORS 671.510 to 671.710 or
  { - licensed under - }  ORS chapter 701, the maximum number of
exempt company members shall be whichever is the greater of the
following:
  (A) Two company members; or
  (B) One company member for each 10 company employees.
  (b) When labor or services are performed under contract for
remuneration, notwithstanding ORS 656.005 (30), the company
qualifies as an independent contractor. Any company
 { - registered - }  { +  licensed + } under ORS 671.525 or
 { - licensed under ORS - }  701.035 and involved in activities
subject thereto is conclusively presumed to be an independent
contractor.
  (26) A person serving as a referee or assistant referee in a
youth or adult recreational soccer match whose services are
retained on a match-by-match basis.
  (27) A person performing language translator or interpreter
services that are provided for others through an agent or broker.
  SECTION 10. ORS 671.321 is amended to read:
  671.321. (1) ORS 671.310 to 671.459, 671.992 and 671.995 do not
restrict or otherwise affect the right of any person to:
  (a) Practice architecture under ORS 671.010 to 671.220;
  (b) Practice engineering under ORS 672.002 to 672.325;
  (c) Engage in the occupation of growing and marketing nursery
stock, or use the title 'nurseryman' or 'landscape nurseryman';
  (d) Operate as a landscape   { - contractor - }  { +
professional + } or
  { - landscaping - }  { +  landscape contracting + } business
under ORS 671.510 to 671.710 or use the title  { +  ' landscape
professional' or + } 'landscape contractor';
  (e) Perform work described under ORS 671.540;
  (f) Engage in making plans or drawings for the selection,
placement or use of plants or other site features unless the
plans or drawings are for the purpose of providing construction
details and specifications not otherwise exempted;
  (g) Use the title 'landscape designer' in connection with
activities described under paragraph (f) of this subsection;
  (h) Make any plans, drawings or specifications for property
owned by that person; or
  (i) Provide recommendations or written specifications for soil
amendments or planting mediums if the recommendations or
specifications are solely for purposes of plant installation and
do not significantly alter the stability of the soil profile or
surface drainage patterns.
  (2) The scope of services described in ORS 671.310 (5) and (6)
does not preclude a registered landscape architect from:
  (a) Planning the development of land areas and elements used on
land areas; or
  (b) Performing services described in ORS 671.310 (5) and (6) in
connection with the settings, approaches or environment for
buildings, structures or facilities in accordance with legally
established standards for public health, safety and welfare.
  (3) ORS 671.310 to 671.459, 671.992 and 671.995 do not apply
to:
  (a) The preparation of detailed or shop drawings that a
construction contractor is required to furnish or the
administration of construction contracts by a person customarily
engaged in contracting work.
  (b) The preparation of technical submissions or the
administration of construction contracts by employees of a
landscape architect or a landscape architecture business when
acting under the direct supervision of a registered landscape
architect.
  (c) Employees of the federal government acting within the scope
of that employment.
  SECTION 11. ORS 671.520 is amended to read:
  671.520. As used in ORS 671.510 to 671.710, unless the context
requires otherwise:
   { +  (1) 'Landscape contracting business' means a business
that for compensation or with the intent to be compensated
 
arranges for or submits a bid or otherwise offers or contracts to
provide the services of a landscape professional. + }
    { - (1) - }  { +  (2) + } 'Landscape   { - contractor - }
 { +  professional + } ' means any person who for compensation or
with the intent to be compensated performs or supervises
activities requiring the art, ability, experience, knowledge,
science and skill to:
  (a) Plan or install lawns, shrubs, vines, trees or nursery
stock;
  (b) Prepare property on which lawns, shrubs, vines, trees or
nursery stock is to be installed;
  (c) Construct or repair ornamental water features, drainage
systems or irrigation systems; or
  (d) Plan or install fences, decks, arbors, patios, landscape
edging, driveways, walkways or retaining walls.
    { - (2) 'Landscaping business' means a business that for
compensation or with the intent to be compensated arranges for or
submits a bid or otherwise offers or contracts to provide the
services of a landscape contractor. - }
  (3) 'Licensee' means a person that is licensed under ORS
671.510 to 671.710 as a landscape   { - contractor - }  { +
professional + } or
  { - landscaping - }  { +  landscape contracting + } business.
  (4) 'Nursery stock' means nursery stock:
  (a) As defined by ORS 571.005 other than stock grown for
commercial resale or reforestation; or
  (b) As defined by the State Landscape Contractors Board by
rule.
  (5) 'Ornamental water features' means fountains, ponds,
waterfalls, man-made streams and other decorative water-related
constructions as identified by the board by rule.
  SECTION 12. ORS 671.525 is amended to read:
  671.525. (1) An applicant for a   { - landscaping - }  { +
landscape contracting + } business license must qualify as an
independent contractor, under ORS 670.600, to be licensed with
the State Landscape Contractors Board.
  (2) The board shall establish two classes of independent
contractor   { - registration - }  { +  licensees + }:
  (a) The nonexempt class is composed of the following entities:
  (A) Sole proprietorships, partnerships, corporations and
limited liability companies with one or more employees; and
  (B) Partnerships, corporations and limited liability companies
with more than two partners, corporate officers or members if any
of the partners, officers or members are not part of the same
family and related as parents, spouses, siblings, children,
grandchildren, sons-in-law or daughters-in-law.
  (b) The exempt class is composed of all sole proprietorships,
partnerships, corporations and limited liability companies that
do not qualify as nonexempt.
   { +  (3) + } All partnerships, corporations and limited
liability companies  { + applying for a landscape contracting
business license + } must have a federal tax identification
number.
    { - (3) - }  { +  (4) + } If a licensee who qualifies
 { - for registration - } under subsection (2)(b) of this section
hires one or more employees, or falls into any of the categories
set out in subsection (2)(a)(B) of this section, the licensee is
subject to penalties under ORS 671.997 and must   { - reapply to
the board for registration in the correct class - }  { +  submit
proof that the licensee qualifies under subsection (2)(a) of this
subsection + }.
    { - (4) - }  { +  (5) + } The decision of the board that a
licensee is an independent contractor applies only when the
licensee is performing work of the nature described in ORS
671.520 and 671.530.
  SECTION 13. ORS 671.530 is amended to read:
  671.530. (1) A person may not operate as a landscape
  { - contractor - }  { +  professional + } in this state without
a valid landscape
  { - contractor's - }  { +  professional + } license issued
pursuant to ORS 671.560.
  (2) A person may not represent in any manner that the person is
a landscape   { - contractor - }  { +  professional + } unless
the person has a valid landscape   { - contractor's - }  { +
professional + } license issued pursuant to ORS 671.560. The
prohibition in this subsection includes, but is not limited to:
  (a) Using the title of landscape contractor { + , landscape
professional + }, landscape gardener or landscaper or any other
title using a form of the word 'landscape'  { +  that indicates
or tends to indicate that the person is a landscape
professional + }; and
  (b) Using any   { - title, - }  sign, card or device that
indicates or tends to indicate that the person is a landscape
 { - contractor - }  { + professional + }.
  (3) A person may not operate as a   { - landscaping - }  { +
landscape contracting + } business in this state unless the
person has a valid
  { - landscaping - }  { +  landscape contracting + } business
license issued pursuant to ORS 671.560.
  (4) A person may not advertise or represent in any manner that
the person is a   { - landscape - }  { +  landscape
contracting + } business unless the person has a valid
 { - landscaping - }  { +  landscape contracting + } business
license issued pursuant to ORS 671.560. The prohibition in this
subsection includes, but is not limited to:
  (a) Using the title of landscape business { + , + }
 { - or - }  landscaping business { +  or landscape contracting
business + }; and
  (b) Using any title, sign, card or device that indicates or
tends to indicate that the person is a   { - landscaping - }
 { +  landscape contracting + } business.
  (5) A landscape maintenance business may use a form of the word
'landscape' in the title of the business only if the title
clearly indicates the maintenance nature of the business. For
purposes of this subsection, the term 'landscape gardening' does
not indicate the maintenance nature of a landscape maintenance
business.
  (6) A landscape   { - contractor - }  { +  professional + } is
authorized to perform landscaping work only while in the employ
of a
  { - landscaping - }  { +  landscape contracting + } business
licensed and bonded as required by ORS 671.510 to 671.710. If the
landscape
  { - contractor - }  { +  professional + } is the sole
proprietor, the   { - contractor - }  { + landscape
professional + } must also obtain a license as a
  { - landscaping - }  { +  landscape contracting + } business.
  SECTION 14. ORS 671.540 is amended to read:
  671.540. ORS 671.510 to 671.710 and 671.990 (2) do not apply
to:
  (1) Any federal or state agency or any political subdivision
performing landscaping work on public property.
  (2) Any landscape architect registered under ORS 671.310 to
671.459 and practicing as provided under ORS 671.310 to 671.459.
  (3) Landscaping work performed by a landscape maintenance
business if:
  (a) The landscaping work is performed for a customer that in a
calendar year receives primarily landscape maintenance services
from the business;
  (b) The value of all labor, materials or other items supplied
for landscaping work at a job site does not exceed $500 in a
calendar year; and
  (c) The landscaping work is of a casual, minor or
inconsequential nature, as those terms are defined by the State
Landscape Contractors Board by rule.
  (4) Installation of fences, decks, arbors, driveways, walkways
or retaining walls if performed by a person or business licensed
with the Construction Contractors Board.
  (5) Rough grading of plots and areas of land performed in
conjunction with new or remodeling construction if performed by a
person or business licensed with the Construction Contractors
Board.
  (6) Any owner of property who contracts for landscaping work to
be performed by a person licensed under ORS 671.560. The
exception provided by this subsection does not apply to a person
who, in pursuit of an independent business, performs or contracts
for the performance of landscaping work with the intent of
offering for sale before, upon or after completion of the
landscaping work the property upon which the landscaping work is
performed.
  (7) Any landscaping work performed by a person on property that
the person owns or in which the person has a legal interest.  The
exception provided by this subsection does not apply to a person
who, in pursuit of an independent business, performs or contracts
for the performance of landscaping work with the intent of
offering for sale before, upon or after completion of the
landscaping work the property on which the landscaping work is
performed.
  (8) A general contractor licensed under ORS chapter 701 who
performs landscaping work if the total value of the landscaping
is less than $2,500 per residential dwelling and the landscaping
work is performed on residential property for which the
contractor is under contract for the construction of a new
dwelling. The exception provided by this subsection does not
apply to the performance of irrigation work by a general
contractor. The State Landscape Contractors Board shall revise
the amount specified in this subsection every five years,
beginning in 2003, based on changes in the Portland-Salem, OR-WA
Consumer Price Index for All Urban Consumers for All Items as
published by the Bureau of Labor Statistics of the United States
Department of Labor.
  (9) A general contractor licensed under ORS chapter 701 who
performs landscaping work on residential property that is
directly related to local building code requirements or occupancy
ordinances including, but not limited to, the placement of street
trees. The exception provided by this subsection does not apply
to the performance of irrigation work by a general contractor.
  (10) A person engaged in making plans or drawings for the
selection, placement or use of plants or other site features,
unless the plans or drawings are for the purpose of providing
construction details and specifications.
  (11) Use by a person other than a landscape
 { - contractor - }  { + professional + } of the title 'landscape
designer' when engaged in making plans or drawings described in
subsection (10) of this section.
  (12) A person providing recommendations or written
specifications for soil amendments or planting media if the
recommendations or specifications are solely for the purpose of
plant installation.
  (13) A person registered under ORS 447.010 to 447.156 when
performing repair and maintenance on piping for irrigation
systems.
  (14) An employee, as defined in ORS 657.015, of a general
contractor licensed under ORS chapter 701 when performing work
that the contractor may perform under subsection (8) or (9) of
this section.
  (15) An employee of a licensed   { - landscaping - }  { +
landscape contracting + } business when performing work for the
business under the direct supervision of a licensed landscape
 { - contractor - }  { + professional + }.
  (16) An employee of a worker leasing company or temporary
service provider, both as defined in ORS 656.850, when performing
work for a licensed   { - landscaping - }  { +  landscape
contracting + } business under the direct supervision of a
licensed landscape   { - contractor - }  { + professional + }.
  SECTION 15. ORS 671.555 is amended to read:
  671.555. (1) The State Landscape Contractors Board may
investigate the activities of any person engaged in the
  { - landscaping - }  { +  landscape contracting + } business to
determine compliance with ORS 671.510 to 671.710.
  (2) With the approval of the city or county, the board may
conduct investigations with city or county inspectors, provided
that the city or county is reimbursed by the board for the costs
of such investigations.
  (3) Any inspector  { + or investigator + } authorized by the
board to determine compliance with   { - the provisions of - }
ORS 671.510 to 671.710   { - is authorized to - }  { +  may + }
require any person who is engaged in any activity regulated by
ORS 671.510 to 671.710 to demonstrate proof of compliance with
the   { - registration - }  { +  licensing + } requirements of
ORS 671.510 to 671.710. If a person who is contracting directly
with the owner of the property does not demonstrate proof of
compliance with the   { - license - }   { + licensing + }
requirements of ORS 671.510 to 671.710, the inspector
 { - shall - }  { +  or investigator may + } give notice of
noncompliance to the person. The notice of noncompliance shall be
in writing, shall specifically state that the person is not in
compliance with the   { - registration - }  { +  licensing + }
requirements of ORS 671.510 to 671.710 and shall provide that
unless the person demonstrates proof of compliance within two
days of the date of the notice, the inspector  { + or
investigator + } may by order stop all work then being done by
the person. The notice of noncompliance shall be served upon the
person and shall be served upon or delivered to the owner of each
property upon which the person is then performing work under
contract. If more than one person is the owner of any such
property, a copy of the notice need be given to only one of such
persons. If after receipt of the notice of noncompliance the
person fails within the two-day period specified in the notice to
demonstrate proof of compliance with the
  { - registration - }  { +  licensing + } requirements of ORS
671.510 to 671.710, the inspector   { - is authorized to - }
 { + or investigator may + } order the work stopped by notice in
writing served on any persons engaged in the activity. Any person
so notified shall stop such work until proof of compliance is
demonstrated. However, the inspector  { + or investigator + } may
not order the work stopped until at least two days after the
copies of the notice of noncompliance have been served upon or
delivered to the owners.
  (4) Notwithstanding subsection (3) of this section, the board
may order { +  landscaping + } work stopped immediately if the
 { - landscape contractor - }  { +  landscape contracting
business + } working on a worksite
  { - has never registered with the board or if the
contractor - }  cannot demonstrate that the   { - contractor - }
 { +  business + } has been   { - registered - }
 { + licensed + } at any time within the two years immediately
preceding work on the worksite.
  (5) The board has the power to administer oaths, issue notices
and subpoenas in the name of the board, compel the attendance of
witnesses and the production of evidence, hold hearings and
perform such other acts as are reasonably necessary to carry out
its duties under ORS 671.510 to 671.710.
 
  (6) If any person fails to comply with a subpoena issued under
subsection (5) of this section or refuses to testify on matters
on which the person may be lawfully interrogated, the board shall
compel obedience in the manner provided in ORS 183.440.
  SECTION 16. ORS 671.560 is amended to read:
  671.560. (1) Except as provided in ORS 671.590, the State
Landscape Contractors Board shall issue a landscape
 { - contractor's - }  { + professional + } license to an
applicant who satisfies the requirements of ORS 671.570.
  (2) The board shall issue a   { - landscaping - }  { +
landscape contracting + } business license to an applicant who
satisfies the requirements of the board.
  (3) An applicant for a license under this section shall apply
to the board upon a form furnished by the board and give such
information as the board considers necessary.
  (4) The board may issue a limited or specialty license if the
applicant is required to have a landscape   { - contractor's - }
 { + professional + } license or { +  landscape contracting + }
business license but is not qualified or required to be licensed
for all phases of landscape   { - contracting - }  { +  work + }.
  (5) A   { - landscaping - }  { +  landscape contracting + }
business that qualifies for the exemption described in ORS
571.045 shall indicate on its license application or license
renewal application under this section the reasons the business
qualifies for the exemption.
  SECTION 17. ORS 671.565 is amended to read:
  671.565. (1) Each person applying for a   { - landscaping - }
 { + landscape contracting + } business license shall:
  (a) Pay to the State Landscape Contractors Board the applicable
 { - landscaping - }  { +  landscape contracting + } business
license fee established by the board under ORS 671.650.
  (b) Employ at least one person with a landscape
 { - contractor - }  { + professional + } license to supervise
the landscaping operation of the business.
  (c) Submit the names of all employees who are licensed
  { - contractors - }  { +  landscape professionals + }.
  (d) File with the board a form of security acceptable under ORS
671.690.
  (e) File with the board a certificate of public liability,
personal injury and property damage insurance covering the work
of the   { - landscaping - }  { +  landscape contracting + }
business that is subject to ORS 671.510 to 671.710 for an amount
not less than $100,000.
  (f) Indicate, as set forth in ORS 670.600, the basis under
which the applicant qualifies as an independent contractor.
  (2) At the time of application for a license, for renewal of a
license in active status or for return of a license to active
status, the   { - landscaping - }  { +  landscape contracting + }
business shall provide evidence satisfactory to the board that
the public liability, personal injury and property damage
insurance required by subsection (1)(e) of this section is in
effect. During a license period, the   { - landscaping - }  { +
landscape contracting + } business shall provide, to the extent
required by the board, satisfactory evidence of continued public
liability, personal injury and property damage insurance
coverage.
  SECTION 18. ORS 671.568 is amended to read:
  671.568. (1) If a licensed   { - landscaping - }  { +
landscape contracting + } business is not operating as a
 { - landscaping - }  { +  landscape contracting + } business,
the State Landscape Contractors Board may, upon request, place
the license of the   { - landscaping - }  { +  landscape
contracting + } business in inactive status.
  (2) A   { - landscaping - }  { +  landscape contracting + }
business in inactive status remains subject to board jurisdiction
and is required to comply with the requirements for a
 { - landscaping - }  { + landscape contracting + } business
other than the security requirement under ORS 671.690 and the
insurance requirements under ORS 671.565.
  (3) A   { - landscaping - }  { +  landscape contracting + }
business that is in inactive status may not:
  (a) Perform work as a   { - landscaping - }  { +  landscape
contracting + } business;
  (b) Offer or provide for the performance of landscaping work as
a   { - landscaping - }  { +  landscape contracting + } business;
or
  (c) Obtain a building permit for work involving landscaping
work by the  { + landscape contracting  + }business.
  (4) A   { - landscaping - }  { +  landscape contracting + }
business license may not be placed or maintained in inactive
status more than once during a licensing period.
  SECTION 19. ORS 671.570 is amended to read:
  671.570. Each person applying for a landscape
 { - contractor's - }  { + professional + } license
 { - shall - }   { + must:
  (1) + } Pay to the State Landscape Contractors Board the
 { + license + } fee required by ORS 671.650 { + . + }
 { - and: - }
   { +  (2) Pay a nonrefundable application fee and an
examination fee. + }
    { - (1) - }   { + (3) + } Pass an examination, which
 { - shall be offered - }  { +  the board shall offer + } at
least once each six months { + , + }   { - by the board - }  to
determine the fitness of the applicant for licensing and
 { - have - } :
  (a) { +  Have,  + }within 10 years before the day the
application for a license is made, at least:
  (A) Twenty-four months of employment with a   { - landscape
contractor - }  { +  landscape contracting business + }; or
  (B) Twelve months of employment with a   { - landscape
contractor - }  { + landscape contracting business + } and one
full year of training in an area related to landscaping at an
accredited school or college; or
  (b)   { - Proven - }   { + Prove + } to the satisfaction of the
board by test and experience that the applicant is qualified.
    { - (2) - }  { +  (4) + } Be employed by a
 { - landscaping - }  { +  landscape contracting + } business if
performing landscaping work.
    { - (3) Pay a nonrefundable examination fee. - }
  SECTION 20. ORS 671.574 is amended to read:
  671.574. (1) If a landscape   { - contractor - }  { +
professional + } is not operating as a landscape
 { - contractor - }  { +  professional + }, the State Landscape
Contractors Board may, upon request, place the license of the
landscape   { - contractor - }  { +  professional + } in inactive
status.
  (2) A landscape   { - contractor - }  { +  professional + } in
inactive status remains subject to board jurisdiction, licensing
requirements and fees.
  (3) A landscape   { - contractor - }  { +  professional + }
that is in inactive status may not perform or supervise work as a
landscape
  { - contractor - }  { +  professional + }.
  (4) A landscape   { - contractor - }  { +  professional + }
license may not be placed or maintained in inactive status more
than once during a licensing period.
  SECTION 21. ORS 671.575 is amended to read:
  671.575. (1) A   { - landscaping - }  { +  landscape
contracting + } business may not file a lien, file a claim with
the State Landscape Contractors Board or bring or maintain in any
court of this state a suit or action for compensation for the
performance of any work or for the breach of any contract for
work   { - which - }  { +  that + } is subject to ORS 671.510 to
671.710 and 671.997, unless the   { - landscaping - }
 { + landscape contracting + } business was:
  (a) Licensed under ORS 671.510 to 671.710   { - and 671.997 - }
at the time the   { - landscaping - }  { +  landscape
contracting + } business bid or entered into the contract for
performance of the work; and
  (b) Licensed continuously while performing the work for which
compensation is sought.
  (2) If the court determines that the   { - landscaping - }
 { +  landscape contracting + } business was not aware of the
requirement that the
  { - contractor be registered - }  { +  business be
licensed + }, a court may choose not to apply subsection (1) of
this section if the court finds that to do so would result in a
substantial injustice to the unlicensed   { - landscaping - }
 { +  landscape contracting + } business.
  (3) If a   { - landscaping - }  { +  landscape contracting + }
business falsely swears to information provided under ORS 671.560
or 671.565 or knowingly violates the provisions of ORS 656.029,
670.600, 671.560 or 671.565, the   { - landscaping - }  { +
landscape contracting + } business may not file a lien, file a
claim with the State Landscape Contractors Board or bring or
maintain in any court of this state a suit or action for
compensation for the performance of any work or for the breach of
any contract for work   { - which - }  { +  that + } is subject
to ORS 671.510 to 671.710 and 671.997.
  SECTION 22. ORS 671.580 is amended to read:
  671.580. A landscape   { - contractor's - }  { +
professional + } license issued pursuant to ORS 671.560 is a
personal privilege and is not transferable.
  SECTION 23. ORS 671.590 is amended to read:
  671.590. The State Landscape Contractors Board may license
without examination any person who is a landscape
 { - contractor - }  { + professional + } licensed, certified or
registered under the laws of another state, territory of the
United States, the District of Columbia or another country where
the requirements on the date the applicant was licensed,
certified or registered were substantially equal to the
requirements for licensing of landscape   { - contractors - }
 { + professionals + } in this state on the date of application
by the person.
  SECTION 24. ORS 671.600 is amended to read:
  671.600.  { + (1) + } A new  { + landscape contracting
business + } license shall be required whenever there is a change
in ownership, irrespective of whether the business name is
changed. { +  As used in this subsection, 'change in ownership'
does not include a change in the holders of corporate stock. + }
   { +  (2) + } If a licensee moves to another location,
relicensing is not required but the licensee must notify the
State Landscape Contractors Board promptly of the new address.
  SECTION 25. ORS 671.603 is amended to read:
  671.603. (1) A landscape   { - contractor - }  { +
professional + } or person operating as a   { - landscaping - }
 { +  landscape contracting + } business shall notify the State
Landscape Contractors Board of a change of address for the
 { - contractor - }  { +  professional + } or business that
occurs while the   { - contractor - }  { +  professional + } or
business is licensed by the board or within one year after a
license expires. The landscape
  { - contractor - }  { +  professional + } or
 { - landscaping - }  { +  landscape contracting + } business
shall ensure that the board receives notice of the change of
address no later than the 10th day after the change of address
occurs.
 
  (2) Initial notice of a contested case or arbitration directed
by the board to the last-known address of record for a landscape
 { - contractor - }  { +  professional + } or
 { - landscaping - }  { +  landscape contracting + } business is
considered delivered to the   { - contractor - }
 { + professional + } or business when deposited in the United
States mail and sent registered, certified or post office receipt
secured. Any other communication directed by the board to the
last-known address of record for a landscape   { - contractor - }
 { +  professional + } or
  { - landscaping - }  { +  landscape contracting + } business is
considered delivered to the   { - contractor - }  { +
professional + } or business when deposited in the United States
mail, regular mail.
  SECTION 26. ORS 671.605 is amended to read:
  671.605. A   { - licensed - }  partnership or corporation
 { + licensed as a landscape contracting business + } shall
notify the State Landscape Contractors Board immediately upon any
change in partners or
  { - corporate officers - }  { +  corporate owners or in the
percentage of an ownership interest in the landscape contracting
business + }. Upon a change in partners, a licensed partnership
immediately shall  { + apply for a new + } license
 { - again - }  and pay to the board the fee required by ORS
671.650 for an original license.
  SECTION 27. ORS 671.607 is amended to read:
  671.607. (1) As used in this section:
  (a) '  { - Landscaping - }  { +  Landscape contracting + }
business debt ' means an amount owed under:
  (A) A final order or arbitration award issued   { - by the
State Landscape Contractors Board for a claim filed - }  under
ORS 671.703; or
  (B) A judgment or civil penalty arising from
 { - landscaping - }  { + landscape contracting + } business
activities in any state.
  (b) '  { - Landscaping - }  { +  Landscape contracting + }
business license ' means a license issued within the United
States to engage in a
  { - landscaping - }  { +  landscape contracting + } business.
  (c) 'Officer' means any of the following persons:
  (A) A president, vice president, secretary, treasurer or
director of a corporation.
  (B) A general partner in a limited partnership.
  (C) A manager in a manager-managed limited liability company.
  (D) A member of a member-managed limited liability company.
  (E) A trustee.
  (F) A person qualifying as an officer under board rules. The
definition of officer adopted by board rule may include persons
not listed in this paragraph who may exercise substantial control
over a business.
  (d) 'Owner' means a sole proprietor of, general partner in or
holder of a controlling interest in a business, or a person
defined as an owner by board rule.
  (2) The board shall adopt rules defining an owner for purposes
of subsection (1) of this section. The rules may not define an
owner in a manner that includes an investor who has no right to
manage a business, including but not limited to:
  (a) A person who is solely a minority shareholder in a
corporation;
  (b) A member of a manager-managed limited liability company; or
  (c) A limited partner in a limited partnership who does not
participate in the control of the business of the limited
partnership.
  (3) The board may suspend or refuse to issue a
 { - landscaping - }  { + landscape contracting + } business
license if:
  (a) The business owes a   { - landscaping - }  { +  landscape
contracting + } business debt or has had a   { - landscaping - }
 { +  landscape contracting + } business license revoked;
  (b) An owner or officer of the   { - landscaping - }  { +
landscape contracting + } business owes a   { - landscaping - }
 { +  landscape contracting + } business debt or has had a
 { - landscaping - }  { +  landscape contracting + } business
license revoked; or
  (c) An owner or officer of the   { - landscaping - }  { +
landscape contracting + } business was an owner or officer of
another business at the time the other business incurred a
 { - landscaping - }  { +  landscape contracting + } business
debt that is owing or at the time of an event that resulted in
the revocation of the other business's
  { - landscaping - }  { +  landscape contracting + } business
license.
  (4) The board may hold the suspension or refusal of a license
under subsection (3) of this section in abeyance if the person
owing a   { - landscaping - }  { +  landscape contracting + }
business debt is adhering to a board-approved plan for
restitution of the amount owed.
  SECTION 28. ORS 671.610 is amended to read:
  671.610. (1) In addition to any civil penalty assessed under
ORS 671.997, the State Landscape Contractors Board may suspend,
revoke or refuse to issue or renew the license of a landscape
  { - contractor - }  { +  professional + } or
 { - landscaping - }  { +  landscape contracting + } business
that does any of the following:
  (a) Obtains or attempts to obtain a license under ORS 671.510
to 671.710 by fraud or material misrepresentation.
  (b) Makes a material misrepresentation about the quality of any
material or service the person provides.
  (c) Performs defective work.
  (d) Furnishes defective materials.
  (e) Makes misleading statements when advertising services or
materials.
  (f) Violates a provision of ORS 671.510 to 671.710.
  (g) Fails to have a replacement bond, letter of credit or
deposit on file at the time of a termination, cancellation,
reduction or withdrawal of the bond, letter of credit or deposit
required by ORS 671.690.
  (h) Fails to maintain public liability, personal injury and
property damage insurance as required by ORS 671.565 throughout a
licensing period.
  (i) Violates a voluntary compliance agreement entered into
under ORS 646.605 to 646.652.
  (j) Performs work for which a permit is required under the
state building code without obtaining the required permit, if the
work results in the filing of a claim with the board.
  (k) Violates a rule or order of the board.
  (L) Refuses to comply with a subpoena issued by the board.
  (m) Fails to pay in full any amount owed to a claimant under a
final order of the board or an arbitration award, or under a
judgment rendered in this or any other state.
  (n) Does not make payment, including any interest due, for
labor or materials contracted for by the person pursuant to a
contract for a public improvement within 90 days after the date
the person receives payment from a public contracting agency or,
if the person is a subcontractor, from the contractor.
  (o) Engages in conduct as a landscape   { - contractor - }
 { + professional + } or   { - landscaping - }  { +  landscape
contracting + } business that is dishonest or fraudulent or that
the board finds injurious to the welfare of the public.
  (p) Fails to comply with the requirements of ORS 652.120.
  (q) Is convicted of a crime under ORS 163.115, 163.185,
163.225, 163.235, 163.355, 163.365, 163.375, 163.385, 163.395,
163.405, 163.408, 163.411, 163.415, 163.425, 163.427, 164.055,
164.075, 164.325 or 164.415, provided that the facts supporting
the conviction and all intervening circumstances make the
determination to suspend, revoke or refuse to issue or renew the
license consistent with ORS 670.280.
  (2) The board may suspend or refuse to renew the license of a
landscape   { - contractor - }  { +  professional + } or
 { - landscaping - }  { +  landscape contracting + } business
without prior hearing if, after investigating and setting forth
in writing the facts supporting the action, the board determines
that continued activity by the landscape
  { - contractor - }  { +  professional + } or
 { - landscaping - }  { +  landscape contracting + } business
poses an imminent threat of serious harm to the public welfare.
Facts sufficient to support a suspension or refusal to renew
under this subsection include, but are not limited to:
  (a) The lack of a surety bond, letter of credit or deposit
required under ORS 671.690;
  (b) The lack of public liability, personal injury or property
damage insurance required under ORS 671.565;
  (c) The hiring of employees while   { - registered - }  { +
licensed + } as exempt under ORS 671.525;
  (d) Conduct as a landscape   { - contractor - }  { +
professional + } or a
  { - landscaping - }  { +  landscape contracting + } business
that is dishonest; or
  (e) Operation of a   { - landscaping - }  { +  landscape
contracting + } business that does not employ at least one
licensed landscape
  { - contractor - }  { +  professional + }.
  (3) A person whose license is suspended or refused renewal
under subsection (2) of this section may request a hearing within
90 days after receiving the notice of the suspension or refusal
to renew. Except as provided in this subsection, the board shall
give a contested case hearing requested under this subsection
priority over other hearings and schedule the hearing for the
earliest practicable date. If a citation is issued to the person
and the order of suspension or refusal to renew will terminate by
its terms if a court renders a final judgment regarding the
citation in favor of the person, the person may request that the
board hold the requested contested case hearing in abeyance until
after the court has rendered a final judgment.
  (4) A person whose license is revoked under this section is not
eligible to apply for a license under ORS 671.510 to 671.710
until two years after the effective date of the revocation.
  (5) The board may suspend, revoke or refuse to reissue the
license of a   { - landscaping - }  { +  landscape
contracting + } business, and may impose a civil penalty, all as
provided under ORS 671.997 (4), if the board determines, after
notice and opportunity for a hearing, that the
 { - landscaping - }  { +  landscape contracting + } business was
working with other   { - landscaping - }  { +  landscape
contracting + } businesses on the same task and work site where
one of the   { - landscaping - }  { +  landscape contracting + }
businesses is   { - registered - }  { +  licensed + } as an
exempt independent contractor under ORS 671.525 (2)(b) and the
total number of   { - landscaping - }  { +  landscape
contracting + } businesses working on the task exceeded:
  (a) Two sole proprietors;
  (b) One partnership;
  (c) One corporation; or
  (d) One limited liability company.
  SECTION 29. ORS 671.613 is amended to read:
  671.613. (1) The failure of a   { - landscaping - }  { +
landscape contracting + } business to comply with the provisions
 
of this section and ORS 279C.800 to 279C.870, 656.021, 657.665,
670.600,
  { - 671.520, - }  671.525, 671.530 and 671.575 or to be in
conformance with the provisions of ORS 279.835 to 279.855 or ORS
chapter 279A, 279B, 279C, 316, 571, 656 or 657 is a basis for
suspension of the
  { - landscaping - }  { +  landscape contracting + } business
license, revocation of the   { - landscaping - }  { +  landscape
contracting + } business license, refusal to issue or reissue a
 { - landscaping - }  { +  landscape contracting + } business
license, assessment of a civil penalty as set forth in ORS
671.997 or a combination of these sanctions.
  (2) Any action against a   { - landscaping - }  { +  landscape
contracting + } business under this section shall be conducted in
conformance with the provisions of ORS 183.413 to 183.497.
  SECTION 30. ORS 671.614 is amended to read:
  671.614. (1) The State Landscape Contractors Board may issue an
order placing a   { - landscaping - }  { +  landscape
contracting + } business, or any landscape   { - contractor - }
 { +  professional + } that is employed by the
  { - landscaping - }  { +  landscape contracting + } business or
is a   { - landscaping - }  { + landscape contracting + }
business owner or officer as defined in ORS 671.607, on probation
if three or more claims are filed against the
 { - landscaping - }  { +  landscape contracting + } business's
bond, letter of credit or deposit within a 12-month period.
  (2) The board may place a   { - landscaping - }  { +  landscape
contracting + } business or landscape   { - contractor - }  { +
professional + } on probation under this section only if the
board determines after investigation of the complaints that a
significant likelihood exists that continued activity by the
 { - landscaping - }  { +  landscape contracting + } business or
landscape   { - contractor - }  { +  professional + } without
board supervision will result in additional claims against the
 { - landscaping - }  { +  landscape contracting + } business.
  (3) The board may require as a condition of probation imposed
under this section that the landscape   { - contractor - }  { +
professional + } take a board-approved education course in one or
more subjects relating to landscape   { - contracting - }  { +
operations + }.
  (4) The board may require as a condition of probation imposed
under this section that the owner or officer of the
 { - landscaping - }  { + landscape contracting + } business take
a board-approved education course in one or more subjects
relating to   { - landscaping - }  { +  landscape contracting + }
business or general business practices.
  (5) The board may take action to suspend, revoke or refuse to
renew the license of the   { - landscaping - }  { +  landscape
contracting + } business or landscape   { - contractor - }  { +
professional + } if the   { - contractor or - }  business  { + or
professional  + }fails to fulfill the terms of the probation.
  SECTION 31. ORS 671.615 is amended to read:
  671.615. The State Landscape Contractors Board may license a
landscape   { - contractor - }  { +  professional + } to install
backflow assemblies for irrigation systems and ornamental water
features. The board, by rule, shall establish qualifications for
issuance of a license under this section. A landscape
 { - contractor - }  { +  professional + } may install a backflow
assembly only if the landscape   { - contractor - }
 { + professional + } is licensed under this section { +  and is
the owner of, or employed by, a licensed landscape contracting
business + }. A landscape   { - contractor - }  { +
professional + } installing a backflow assembly may tap into the
potable water supply only at a point after the connection between
the water system and the customer, as that connection is defined
in ORS 448.115.
  SECTION 32. ORS 671.625 is amended to read:
  671.625. (1) The State Landscape Contractors Board shall by
rule adopt minimum standards for written contracts and billings
of the   { - landscaping - }  { +  landscape contracting + }
businesses. The standards shall set forth requirements for
information that must be contained in contracts and billings. The
information required shall be any information the board
determines is necessary to provide protection for consumers of
the services and materials provided by   { - landscaping - }
 { +  landscape contracting + } businesses.
  (2) Work by a   { - landscaping - }  { +  landscape
contracting + } business subject to ORS 671.510 to 671.710 shall
only be performed subject to a written contract. Any contract or
billing for such work must conform to the standards adopted under
subsection (1) of this section.
  (3) A contract that does not substantially comply with this
section may not be enforced by a   { - landscaping - }  { +
landscape contracting + } business in any court or other
proceedings within this state.
  SECTION 33. ORS 671.650 is amended to read:
  671.650. (1) The State Landscape Contractors Board shall
establish fees, including but not limited to annual landscape
  { - contractor's - }  { +  professional + } license fees and
annual   { - landscaping - }  { + landscape contracting + }
business license fees.
  (2) The license fee for an out-of-state   { - landscaping - }
 { + landscape contracting + } business operating in Oregon must
be the same as for an Oregon   { - landscaping - }  { +
landscape contracting + } business.
  SECTION 34. ORS 671.660 is amended to read:
  671.660. (1) The fee for renewal of a license issued under ORS
671.510 to 671.710 shall be paid annually on or before the last
day of the month of the anniversary of issuance.
  (2) A person who has been previously licensed under ORS 671.510
to 671.710 and whose license has expired shall not be issued
another license except upon written application to the State
Landscape Contractors Board with the required annual fee.  The
board may require the person to also pay a penalty fee.
  (3) If a license lapses for two years or more, the
  { - individual or business - }  { +  person + } must reapply as
for initial issuance of the license.
  (4) When a  { + landscape contracting  + }business renews its
license the business must submit the names of all employees who
are licensed landscape   { - contractors - }  { +
professionals + }.
  (5) When a person renews a landscape   { - contractor's - }
 { + professional + } license, the person must submit the name of
the employer if the person is currently performing landscaping
work.
  SECTION 35. ORS 671.690 is amended to read:
  671.690. (1) An applicant for a license as a
 { - landscaping - }  { + landscape contracting + } business
shall file with the State Landscape Contractors Board a surety
bond with one or more corporate sureties authorized to do
business in this state, or an irrevocable letter of credit issued
by an insured institution, as defined in ORS 706.008. The amount
of the bond or letter of credit shall be:
  (a) $3,000 for an applicant, unless the applicant is described
in paragraph (b), (c) or (d) of this subsection.
  (b) $10,000 for an applicant who, not in conjunction with the
performance of landscaping work, constructs fences, decks,
arbors, patios, landscape edging, driveways, walkways or
retaining walls, unless the applicant is made subject to
paragraph (d) of this subsection by work on other jobs performed
by the applicant.
 
  (c) $10,000 for an applicant who charges more than $10,000, but
less than $25,000, for a landscape job.
  (d) $15,000 for an applicant who charges $25,000 or more for a
landscape job.
  (2) The bond or letter of credit required under subsection (1)
of this section shall be conditioned that the applicant pays:
  (a) All taxes and contributions due to the State of Oregon;
  (b) All persons furnishing labor or material, or renting or
supplying equipment to the  { + landscape contracting + }
business;
  (c) All amounts that may be adjudged against the  { + landscape
contracting  + }business by reason of negligent or improper work
or breach of contract in performing any work subject to ORS
671.510 to 671.710; and
  (d) All amounts from the bond, letter of credit or deposit the
board orders paid under ORS 671.703.
  (3) In lieu of the surety bond or letter of credit required
under subsection (1) of this section, the   { - landscaping - }
 { +  landscape contracting + } business may file with the board,
under the same terms and conditions as when a bond is filed, a
deposit in cash or negotiable securities acceptable to the board.
  (4) The bond, letter of credit or deposit required by this
section must be continuously on file with the board in the amount
required by this section and is for the exclusive purpose of
payment of final orders and arbitration awards   { - of the
board - }  in accordance with ORS 671.703. Upon termination or
cancellation of the bond, withdrawal of the deposit or reduction
of the bond, letter of credit or deposit to less than the
required amount, the licensee shall immediately:
  (a) File a replacement bond, letter of credit or deposit; or
  (b) Surrender the license to the board and cease operating as a
 { - landscaping - }  { +  landscape contracting + } business.
  (5) If the cost of a project makes, or foreseeably will make, a
licensee subject to a higher bond or letter of credit requirement
under subsection (1) of this section, the licensee shall
immediately file additional bonds, letters of credit or deposits
to meet the higher requirements.
  (6) The   { - landscaping - }  { +  landscape contracting + }
business is responsible for all work that is subject to ORS
671.510 to 671.710.
  SECTION 36. ORS 671.700 is amended to read:
  671.700. A person having a claim against a
 { - landscaping - }  { + landscape contracting + } business
shall give the State Landscape Contractors Board notice of the
claim in writing 90 days before any action on the bond or deposit
is commenced.
  SECTION 37. ORS 671.703 is amended to read:
  671.703. (1) If a person has a claim against a licensed
  { - landscaping - }  { +  landscape contracting + } business
for negligent or improper work performed by the
 { - landscaping - }  { +  landscape contracting + } business, or
for alleged breach of contract by the   { - landscaping - }
 { + landscape contracting + } business, the person may file the
claim with the State Landscape Contractors Board.
  (2) Upon receipt of a claim that qualifies under subsection (1)
of this section, the board shall initiate an investigation.  Upon
completion of the investigation, if the board determines that
facts exist supporting an order for payment, the board may order
the   { - landscaping - }  { +  landscape contracting + }
business to pay the claim.  A party to the claim may request a
hearing on the order issued by the board.
  (3) Subject to subsection (6) of this section, if the
resolution of a claim under this section requires a hearing, the
board may require that the hearing be conducted as a binding
arbitration under rules adopted by the board under subsection (5)
of this section.
  (4) The board may use arbitration to resolve a landscaping
dispute between any parties who agree to follow the rules of the
board, including parties to a dispute not described under
subsection (1) of this section.
  (5) Except as provided in this subsection, rules adopted by the
board to regulate arbitration under subsections (3) and (4) of
this section must substantially conform with the provisions of
ORS 36.600, 36.610 to 36.630, 36.635 (2), 36.640, 36.645 (2),
36.650 to 36.680, 36.685 (1) and 36.690 to 36.740. The rules may:
  (a) Require that a hearing under ORS 183.413 to 183.470 be
conducted for issues for which a petition could be filed under
ORS 36.615, 36.620, 36.625 and 36.640;
  (b) Limit orders and awards made by the arbitrator as necessary
to comply with ORS 671.510 to 671.710;
  (c) Require that a request that an arbitrator modify or correct
an award under ORS 36.690 be submitted in a form specified by the
rule;
  (d) Require that a petition under ORS 36.705 (2) or 36.710 (1)
be filed in a shorter period of time than provided by ORS 36.705
and 36.710; and
  (e) Include any other provision necessary to conform the
arbitration to ORS 671.510 to 671.710.
  (6) A party to a claim that is subject to a board order of
binding arbitration under subsection (3) of this section may
avoid the arbitration if the party requests to have the claim
resolved through a contested case hearing or files a complaint in
a court.  A party making a request or filing a complaint under
this subsection is subject to the following provisions:
  (a) If the party requests to have a claim resolved through a
contested case hearing, the party must, within the time specified
in paragraph (c) of this subsection, deliver the request in
writing to the board and to all parties entitled by board rule to
receive a copy of the request.
  (b) If the party files a complaint in a court, the party must,
within the time specified in paragraph (c) of this subsection,
deliver a copy of the complaint to the board and to all parties
entitled by the board rule to receive a copy of the complaint. If
the party filing the complaint is the claimant, the claimant must
allege all elements of the claim in the complaint.  If the
complaint is filed by the licensed   { - landscaping - }  { +
landscape contracting + } business against whom a claim is
alleged, the complaint may be a complaint for damages, a
complaint for declaratory judgment or other complaint that allows
the claimant to file a response alleging the elements of the
claim. The claimant has the burden of proving the elements of the
claim in any action described in this paragraph.
  (c) A party that is subject to paragraph (a) or (b) of this
subsection must deliver a request or complaint to the board as
described in paragraphs (a) and (b) of this subsection no later
than the 30th day after the board sends notice that an
arbitration hearing has been scheduled. Failure to timely deliver
a request or complaint under this paragraph constitutes consent
to the binding arbitration.
  (d) If a party makes a timely request under paragraph (a) of
this subsection for a contested case hearing and another party
timely files a complaint in compliance with paragraph (b) of this
subsection, the filing of the complaint supersedes the request
for a contested case hearing.
  (e) A party may not withdraw a request made in compliance with
paragraph (a) of this subsection unless all parties agree to the
withdrawal.
  (f) The provisions of paragraph (b) of this subsection are in
addition to any other requirements imposed by law regarding the
filing of a complaint.
  (7) An arbitration conducted under subsection (3) or (4) of
this section must be held before an administrative law judge
acting as arbitrator. The administrative law judge assigned to
act as arbitrator of the case on behalf of the board must be from
the Office of Administrative Hearings established under ORS
183.605. The assignment of an administrative law judge to act as
arbitrator is subject to a request for a different arbitrator
under ORS 183.645 or a rule adopted pursuant to ORS 183.645.
  (8) If a party to a claim under subsection (1) of this section
requests a contested case hearing, the board shall schedule the
hearing. If a party requests that the claim be resolved by a
court, the board shall suspend further processing of the claim
until the claim is resolved by an appropriate court.
  (9) If the claim is submitted for determination by a court, the
board may require that the claimant provide status reports on the
pending action. The board may dismiss or close a claim filed
under subsection (1) of this section as established by rule of
the board if the claimant fails to submit status reports on a
pending action.
  (10)   { - The board shall issue a final order or arbitration
award in a form that indicates the maximum amount payable from
the deposit, bond or letter of credit. If the landscaping - }
 { +  If a final order or arbitration award is issued under this
section and the landscape contracting + } business does not pay
the claim on or before the 30th day after receiving the
 { - board - }  order or award, the board shall order the claim
paid out of the deposit, bond or letter of credit filed under ORS
671.690.
  (11) The board may dismiss or close a claim as established by
rule of the board if:
  (a) The claimant does not permit the person against whom the
claim is filed to be present at any inspection made by the board;
or
  (b) The board determines that the person against whom the claim
is filed is capable of complying with recommendations made by the
board relative to the claim, but the claimant does not permit the
person to comply with the recommendations. The board may dismiss
or close a claim under this paragraph only if the person was
licensed at the time the work was first performed and is licensed
at the time the board makes its recommendations.
  (12) The board may suspend processing a claim if the board
determines that the nature or complexity of the claim is such
that a court is the appropriate forum for the adjudication of the
claim.
  SECTION 38. ORS 671.707 is amended to read:
  671.707. (1) If a final order of the State Landscape
Contractors Board is not paid by the   { - registrant - }  { +
landscape contracting business + }, the board shall notify the
surety on the
  { - registrant's - }  bond { +  of the business + }.
  (2) An order of the board that determines a claim under ORS
671.703 that becomes final by operation of law or on appeal and
remains unpaid for 20 days after the order becomes final is an
order in favor of the claimant against the   { - registrant - }
 { +  landscape contracting business + } and may be recorded with
the county clerk in any county of this state.
  (3) Upon receipt, the clerk shall record the order in the
County Clerk Lien Record. In addition to any other remedy
provided by law, recording an order in the County Clerk Lien
Record pursuant to this section has the effect provided for in
ORS 205.125 and 205.126, and the order may be enforced as
provided in ORS 205.125 and 205.126.
  SECTION 39. ORS 671.710 is amended to read:
  671.710. (1) Determinations by the State Landscape Contractors
Board or judgments against the surety bond, letter of credit or
deposit of a   { - landscaping - }  { +  landscape
contracting + } business for claims filed during a 90-day period
shall be satisfied in the priority listed in subsections (2) to
(4) of this section. The payment of a claim filed during a 90-day
period has priority over any claim filed during a subsequent
90-day period. A 90-day period begins on the date the first claim
is filed with the board. A subsequent 90-day period begins on the
date the first claim is filed with the board after the close of
the preceding 90-day period.
  (2) Determinations and judgments as a result of claims filed
within the 90-day period against a   { - landscaping - }  { +
landscape contracting + } business by owners of property upon
which landscaping work was performed, or was contracted to
perform, have payment priority to the full extent of the bond,
letter of credit or deposit over all other claims filed within
that 90-day period.
  (3) If the total of all claims against a   { - landscaping - }
 { + landscape contracting + } business by owners of property
under subsection (2) of this section does not exhaust the bond,
letter of credit or deposit, amounts due as a result of all other
claims filed within that 90-day period may be satisfied from the
remainder of the bond, letter of credit or deposit.
  (4) If the total of all claims against a   { - landscaping - }
 { + landscape contracting + } business within a 90-day period
exceeds the amount of the bond, letter of credit or deposit
available for payment of those claims, payment from the bond,
letter of credit or deposit shall be apportioned as the board
determines, subject to the claim payment priorities established
under this section.
  (5) The bond, letter of credit or deposit may not be used to
satisfy claims filed more than one year following the date the
work was completed.
  SECTION 40. ORS 671.997 is amended to read:
  671.997. (1) Except as provided in subsection (4) of this
section, a person who violates any provision of ORS 671.510 to
671.710 or a rule adopted pursuant to subsection (5) of this
section or ORS 670.310, 670.605 or 671.670 shall forfeit and pay
to the State Landscape Contractors Board a civil penalty in an
amount determined by the board of not more than $2,000 for each
offense.
  (2) The board shall impose civil penalties under this section
as provided in ORS 183.745.
  (3) The provisions of this section are in addition to and not
in lieu of any other penalty or sanction provided by law.
  (4) If a   { - landscaping - }  { +  landscape contracting + }
business commits an act described under ORS 671.610 (5), the
board shall impose penalties and sanctions on both the
 { - landscaping - }  { +  landscape contracting + } business to
which the contract is awarded and the
  { - landscaping - }  { +  landscape contracting + } business
that awards the contract as follows:
  (a) A civil penalty of not less than $500 nor more than $1,000
for a first offense;
  (b) A civil penalty of not less than $1,000 nor more than
$2,000 for a second offense;
  (c) Suspension of license or refusal to reissue license for six
months for a third offense;
  (d) Revocation of license for three years for a fourth offense;
and
  (e) Permanent revocation of the   { - landscaping - }  { +
landscape contracting + } business's license for a fifth offense.
  (5) The board shall provide by rule a process and criteria that
must be met for restoration of a license that has  { + not + }
been  { +  permanently + } revoked.
  SECTION 41. ORS 701.005 is amended to read:
  701.005. As used in this chapter:
  (1) 'Board' means the Construction Contractors Board.
  (2) 'Construction debt' means an amount owed under:
  (a) A final order or arbitration award issued by the board; or
  (b) A judgment or civil penalty arising from construction
activities within the United States.
  (3) '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.
  (4) '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.
  (5) '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.
  (6) '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 under ORS 701.350, a lead-based paint
inspector licensed under ORS 701.515 and a cross connection
inspector and backflow assembly tester 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.
  (7) 'Large commercial structure' means a structure that is not
a residential structure or small commercial structure.
  (8) '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.
  (9) 'Officer' means any of the following persons:
  (a) A president, vice president, secretary, treasurer or
director of a corporation.
  (b) A general partner in a limited partnership.
  (c) A manager in a manager-managed limited liability company.
  (d) A member of a member-managed limited liability company.
  (e) A trustee.
  (f) A person defined as an officer under board rules. The
definition of officer adopted by board rule may include persons
not listed in this subsection who may exercise substantial
control over a business.
  (10) '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 - }  { +
contracting business + }, 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.
  (11) '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.
  (12) 'Small commercial structure' means a nonresidential
structure that has a ground area of 4,000 square feet or less,
including exterior walls, and a height of not more than 20 feet
from the top surface of the lowest flooring to the highest
interior overhead finish of the structure.
  (13) '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 42. 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 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 - }  { +  landscape contracting + }
business licensed under ORS 671.510 to 671.710 that constructs
fences, decks, arbors, patios, landscape edging, driveways,
walkways or retaining walls and that meets the applicable bonding
requirements under ORS 671.690.
  (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 or
an appraiser assistant registered 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 (10)(b) and (c).
  (14) A qualified intermediary in a property exchange that
qualifies under section 1031 of the Internal Revenue Code as
amended and in effect on January 1, 2004, if the qualified
intermediary is not performing construction activities.
  (15) A business that supplies personnel to a licensed
contractor for the performance of work under the direction and
supervision of the contractor.
  SECTION 43. ORS 701.013 is amended to read:
  701.013. It is the intent of the Legislative Assembly to reduce
the number of city business licenses that construction
contractors   { - and landscape contractors - }  are required to
obtain in order to conduct business in the Portland metropolitan
area. It is the purpose of this section and ORS 701.015 to enable
construction contractors   { - and landscape contractors - }  to
secure from the metropolitan service district one business
license that will permit the conduct of business by
 { - such - }  { +  construction + } contractors in cities in
which the contractors perform a limited amount of work and in
which they do not have a principal place of business.
Furthermore, it is also the intent of the Legislative Assembly
that this section and ORS 701.015 apply only to
 { + construction + } contractors engaged in the building trades
and crafts   { - and to landscape contractors - }  without regard
to any subsequent expansion of the jurisdiction of the
Construction Contractors Board   { - or State Landscape
Contractors Board - }  over other trades and crafts.  It is
declared to be the policy of this state that, to the maximum
extent possible consistent with the requirements of this section
and ORS 701.015, the cities within the boundaries of the
metropolitan service district be allowed to control the
imposition of business license taxes and to maintain the level of
revenues obtained from those taxes. The amount and trends of
revenue produced or distributed to each city is intended to
reflect the construction business activity within the
participating cities.
  SECTION 44. ORS 701.015 is amended to read:
  701.015. (1) A contractor   { - or landscape contractor - }
shall pay directly to any city within the boundaries of a
metropolitan service district any business license tax imposed by
the city when:
  (a) The principal place of business of the contractor   { - or
the landscape contractor - }  is within the city; or
  (b) The principal place of business of the contractor   { - or
the landscape contractor - }  is not within the city but the
contractor
  { - or landscape contractor - }  derives gross receipts of
$250,000 or more from business conducted within the boundaries of
the city during the calendar year for which the business license
tax is owed.
  (2) A contractor   { - or landscape contractor - }  who
conducts business during any year in any city within the
boundaries of the metropolitan service district other than a city
to which the contractor   { - or landscape contractor - }  has
paid a business license tax for that year may apply for a
business license from the metropolitan service district.
  (3) When a contractor   { - or landscape contractor - }
obtains a business license from the metropolitan service district
under subsection (2) of this section, if a city within the
boundaries of the metropolitan service district other than a city
to which the contractor   { - or landscape contractor - }  is
required to directly pay a business license tax under subsection
(1) of this section demands payment of a business license tax by
the contractor   { - or landscape contractor - } , the city shall
waive such payment upon presentation of proof by the contractor
 { - or landscape contractor - }  that the contractor   { - or
landscape contractor - }  has a business license issued by the
metropolitan service district. Possession by the contractor
  { - or landscape contractor - }  of a current business license
issued by the metropolitan service district under subsection (2)
of this section shall be proof sufficient to obtain the waiver
described in this subsection.
  (4) The metropolitan service district shall issue a business
license to a contractor   { - or landscape contractor - }  when:
  (a) The contractor   { - or landscape contractor - }  presents
proof to the district that the contractor   { - or landscape
contractor - }  has paid the business license tax imposed by each
city within the boundaries of the district to which the
contractor   { - or landscape contractor - }  must directly pay a
business license tax under subsection (1) of this section; and
  (b) The contractor   { - or landscape contractor - }  pays a
license fee to the district. The license fee charged under this
paragraph shall be twice the average business license tax charged
contractors by cities located within the metropolitan service
district plus an amount that is sufficient to reimburse the
district for the administrative expenses of the district incurred
in carrying out its duties under this section.
  (5) The metropolitan service district shall distribute the
business license fees collected by the district under this
section, less administrative expenses, to the cities that are
located wholly or partly within the district and that collect a
business license tax. In any year, each such city shall receive
such share of the license fees as the number of residential
building permits that it issued during that year bears to the
total number of residential building permits that were issued
during that year by all of the cities located wholly or partly
within the district. Distribution of moneys under this subsection
shall be made at least once in each year. The metropolitan
service district shall determine the number of residential
building permits issued by cities within the district from
statistics and other data published by the State Housing Council.
  (6) As used in this section:
  (a) 'Business license tax' means any fee paid by a person to a
city or county for any form of license that is required by the
city or county in order to conduct business in that city or
county. The term does not include any franchise fee or privilege
tax imposed by a city upon a public utility under ORS 221.420 or
221.450 or any provision of a city charter.
  (b) 'Conducting business' means to engage in any activity in
pursuit of gain including activities carried on by a person
through officers, agents and employees as well as activities
carried on by a person on that person's own behalf.
    { - (c) 'Landscape contractor' means a person or business who
is licensed under ORS 671.510 to 671.710 as a landscape
contractor. - }
    { - (d) - }  { +  (c) + } 'Principal place of business' means
the location in this state of the central administrative office
of a person conducting business in this state.
  SECTION 45.  { + Sections 46 to 48 of this 2007 Act are added
to and made a part of ORS 671.510 to 671.710. + }
  SECTION 46.  { + The Legislative Assembly intends to reduce the
number of city business licenses that a landscape contracting
business must obtain to conduct business in the Portland
metropolitan area. The purpose of this section and section 47 of
this 2007 Act is to enable a landscape contracting business to
secure from the metropolitan service district one business
license that will permit the landscape contracting business to
conduct business in cities in which the landscape contracting
business performs a limited amount of work and in which it does
not have a principal place of business. The Legislative Assembly
also intends that this section and section 47 of this 2007 Act
apply only to landscape contracting businesses without regard to
any subsequent expansion of the jurisdiction of the State
Landscape Contractors Board over other businesses. It is the
policy of this state that, to the maximum extent possible
consistent with the requirements of this section and section 47
of this 2007 Act, the cities within the boundaries of the
metropolitan service district be allowed to control the
imposition of business license taxes and to maintain the level of
revenues obtained from those taxes. The amount and trends of
revenue produced or distributed to each city is intended to
reflect the landscape contracting business activity within the
participating cities. + }
  SECTION 47.  { + (1) As used in this section:
  (a) 'Business license tax' means any fee paid by a person to a
city or county for any form of license that is required by the
city or county in order to conduct business in that city or
county. 'Business license tax' does not mean a franchise fee or
privilege tax imposed by a city upon a public utility under ORS
221.420 or 221.450 or under a city charter.
  (b) 'Conducting business' means engaging directly, or through
officers, agents and employees, in an activity in pursuit of
gain.
  (c) 'Principal place of business' means the location in this
state of the central administrative office of a person conducting
business in this state.
  (d) 'Within a metropolitan service district' means that city
limits are wholly or partially inside district boundaries.
  (2) A landscape contracting business shall pay directly to any
city within a metropolitan service district any business license
tax imposed by the city if:
  (a) The landscape contracting business has its principal place
of business within the city; or
  (b) The landscape contracting business does not have its
principal place of business within the city but derives gross
receipts of $250,000 or more from conducting business within the
city during the calendar year for which the tax is owed.
  (3) A landscape contracting business may apply for a business
license from a metropolitan service district if the business
conducts business in a city that is within the district but that
is not a city to which the business directly pays a business
license tax for that year.
  (4) The metropolitan service district shall issue a business
license to a landscape contracting business if:
  (a) The business proves to the district that the business has
directly paid the business license tax imposed by each city
within the district to which the business must directly pay a
business license tax; and
  (b) The business pays a license fee to the district.
  (5) The license fee charged under subsection (4) of this
section shall be twice the average business license tax charged
to landscape contracting businesses by cities located within the
metropolitan service district plus an amount that is sufficient
to reimburse the district for the administrative expenses of the
district incurred in carrying out its duties under this section.
  (6) If a landscape contracting business is issued a business
license by the metropolitan service district under subsection (4)
of this section, and a city within the district other than a city
described in subsection (2) of this section demands that the
business pay a business license tax, the demanding city shall
waive payment of the tax if the business proves by possession or
otherwise that the business has a business license issued by the
metropolitan service district for the calendar year for which the
tax is owed.
  (7) The metropolitan service district shall distribute the
business license fees collected by the district under this
section, less administrative expenses, to the cities within the
district that collect a business license tax. In any year, each
of the cities shall receive a share of the license fees based
upon the proportion that the number of residential building
permits the city issued during the year bears to the total number
of residential building permits issued during the year by all of
the cities within the district. The district shall determine the
number of residential building permits issued by cities within
the district from statistics and other data published by the
State Housing Council. A district shall distribute moneys under
this subsection at least once each year. + }
  SECTION 48.  { + (1) As used in this section, 'business license
tax' has the meaning given that term in section 47 of this 2007
Act.
  (2) A city that imposes a business license tax based on or
measured by adjusted net income earned by conducting business
within the city is exempt from section 47 of this 2007 Act. + }
 
  SECTION 49.  { + Sections 46 to 48 of this 2007 Act and the
amendments to ORS 215.213, 215.283, 447.060, 448.279, 479.940,
571.045, 571.057, 571.250, 656.027, 671.321, 671.520, 671.525,
671.530, 671.540, 671.555, 671.560, 671.565, 671.568, 671.570,
671.574, 671.575, 671.580, 671.590, 671.600, 671.603, 671.605,
671.607, 671.610, 671.613, 671.614, 671.615, 671.625, 671.650,
671.660, 671.690, 671.700, 671.703, 671.707, 671.710, 671.997,
701.005, 701.010, 701.013 and 701.015 by sections 1 to 44 of this
2007 Act do not limit or terminate any right, duty, obligation or
disability acquired or incurred before the effective date of this
2007 Act under ORS 215.213, 215.283, 447.060, 448.279, 479.940,
571.045, 571.057, 571.250, 656.027, 671.321, 671.520, 671.525,
671.530, 671.540, 671.555, 671.560, 671.565, 671.568, 671.570,
671.574, 671.575, 671.580, 671.590, 671.600, 671.603, 671.605,
671.607, 671.610, 671.613, 671.614, 671.615, 671.625, 671.650,
671.660, 671.690, 671.700, 671.703, 671.707, 671.710, 671.997,
701.005, 701.010, 701.013 and 701.015 as set forth in the 2005
Edition of Oregon Revised Statutes. + }
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