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 1877
B-Engrossed
House Bill 2498
Ordered by the Senate June 4
Including House Amendments dated May 7 and Senate Amendments
dated
June 4
Sponsored by Representative ROBLAN; Representatives BERGER,
BONAMICI, BOONE, BRUUN, CLEM, ESQUIVEL, GARRARD, GREENLICK,
HUNT, JENSON, READ, SCHAUFLER, SHIELDS, Senators MONNES
ANDERSON, MORSE, NELSON, VERGER (at the request of Oregon
Association of Realtors)
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.
Extends exemption from Construction Contractors Board licensing
to owner who contracts with one or more licensed contractors to
perform work on not more than { - four - } { + three
existing + } residential structures of owner within same calendar
year. Specifies that exemption does not apply to owner
contracting for work that requires building permit unless work
requiring permit is performed by, or under direction of, general
contractor.
A BILL FOR AN ACT
Relating to construction work on existing structures; amending
ORS 701.010 and 701.055.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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) An owner who contracts for one or more licensed
contractors to perform work wholly or partially within the same
calendar year on not more than three existing residential
structures of the owner. This subsection does not apply to an
owner contracting for work that requires a building permit unless
the work that requires a permit is performed by, or under the
direction of, a general contractor. + }
{ - (6) - } { + (7) + } 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) - } { + (8) + } A person licensed in one of the
following trades or professions when operating within the scope
of that license:
(a) An architect licensed by the State Board of Architect
Examiners.
(b) A registered professional engineer licensed by the State
Board of Examiners for Engineering and Land Surveying.
(c) A water well contractor licensed by the Water Resources
Department.
(d) A sewage disposal system installer licensed by the
Department of Environmental Quality.
(e) A landscaping business licensed under ORS 671.510 to
671.710 that constructs fences, decks, arbors, 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) - } { + (9) + } A person who performs work subject
to this chapter as an employee of a contractor.
{ - (9) - } { + (10) + } A manufacturer of a manufactured
home constructed under standards established by the federal
government.
{ - (10) - } { + (11) + } 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) - } { + (12) + } 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) - } { + (13) + } 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) - } { + (14) + } Units of government other than
those specified in ORS 701.005 (10)(b) and (c).
{ - (14) - } { + (15) + } 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) - } { + (16) + } A business that supplies
personnel to a licensed contractor for the performance of work
under the direction and supervision of the contractor.
SECTION 2. ORS 701.055 is amended to read:
701.055. (1) A person may not undertake, offer to undertake or
submit a bid to do work as a contractor unless that person has a
current, valid license issued by the Construction Contractors
Board. A partnership, corporation or joint venture may not
undertake, offer to undertake or submit a bid to do work as a
contractor unless that partnership, corporation or joint venture
is licensed under this chapter. A partnership or joint venture is
licensed for the purpose of offering to undertake work as a
contractor on a structure if any of the partners or joint
venturers whose name appears in the business name of the
partnership or joint venture is licensed under this chapter.
(2) A licensed partnership or corporation shall notify the
board immediately upon any change in licensed partners or
corporate officers. If a partnership no longer has a licensed
partner, the partnership may not conduct activities that require
a license under this chapter.
(3) A city, county or the State of Oregon may not issue a
building permit to any person required to be licensed under this
chapter that does not have a current, valid license. A county,
city or state agency that requires the issuance of a permit as a
condition precedent to construction, alteration, improvement,
demolition, movement or repair of any building or structure or
the appurtenances to the structure shall, as a condition for
issuing the permit, require that the applicant for a permit file
a written statement, subscribed by the applicant. The statement
must affirm that the applicant is licensed under this chapter,
give the license number and state that the license is in full
force and effect, or, if the applicant is exempt from licensing
under this chapter, list the basis for the exemption. The city,
county or state agency shall list the contractor's license number
on the permit obtained by that contractor.
(4) If the applicant for a building permit is exempt from
licensure under ORS 701.010 { - (6) - } { + (7) + }, the
city, county or state shall supply the applicant with an
Information Notice to Property Owners About Construction
Responsibilities. The city, county or state may not issue a
building permit for a residential structure to the applicant
until the applicant signs a statement in substantially the
following form:
_________________________________________________________________
(a) I have read and understand the Information Notice to
Property Owners About Construction Responsibilities; and
(b) I own, reside in or will reside in the completed dwelling.
My general contractor is ______, Construction Contractors Board
license no. ____, license expiration date _____. I will instruct
my general contractor that all subcontractors who work on this
dwelling must be licensed with the Construction Contractors
Board; or
(c) I am performing work on property I own, a residence that I
reside in or a residence that I will reside in.
(d) I will be my own general contractor and, if I hire
subcontractors, I will hire only subcontractors licensed with the
Construction Contractors Board.
(e) If I change my mind and do hire a general contractor, I
will contract with a general contractor who is licensed with the
Construction Contractors Board and I will immediately notify the
office issuing this building permit of the name of the general
contractor ______.
_________________________________________________________________
(5) The board shall adopt by rule a form entitled ' Information
Notice to Property Owners About Construction Responsibilities'
that shall describe, in nontechnical language and in a clear and
coherent manner using words in their common and everyday meaning,
the responsibilities property owners are undertaking by acting as
their own general contractor and the problems that could develop.
The responsibilities described in the form shall include, but not
be limited to:
(a) Compliance with state and federal laws regarding Social
Security tax, income tax and unemployment tax.
(b) Workers' compensation insurance on workers.
(c) Liability and property damage insurance.
(6) The board shall develop and furnish to city, county and
state building permit offices, at no cost to the offices, the
Information Notice to Property Owners About Construction
Responsibilities and the statement to be signed by the permit
applicant.
(7) A city or county that requires a business license for
engaging in a business subject to regulation under this chapter
shall require that the licensee or applicant for issuance or
renewal of the business license file, or have on file, with the
city or county, a signed statement that the licensee or applicant
is licensed under this chapter.
(8) It is prima facie evidence of doing business as a
contractor if a person for that person's own use performs,
employs others to perform, or for compensation and with the
intent to sell the structure, arranges to have performed any work
described in ORS 701.005 (3) if within any 36-month period that
person offers for sale two or more newly built structures on
which that work was performed.
(9) Licensure under this chapter is prima facie evidence that
the licensee conducts a separate, independent business.
(10) The provisions of this chapter are exclusive and a city,
county or other political subdivision may not require or issue
any registrations, licenses or surety bonds, nor charge any fee
for the regulatory or surety registration of any contractor
licensed with the board. This subsection does not limit or
abridge the authority of any city or county to:
(a) License and levy and collect a general and
nondiscriminatory license fee levied upon all businesses or upon
business conducted by any firm within the city or county;
(b) Require a contractor to pay a fee, post a bond or require
insurance when the city, county or political subdivision is
contracting for the service of the contractor; or
(c) Regulate a contractor that is not required to be licensed
under this chapter.
(11)(a) A contractor shall maintain a list that includes the
following information about all subcontractors or other
contractors performing work on a project for that contractor:
(A) Names and addresses.
(B) License numbers.
(b) The contractor must deliver the list referred to in
paragraph (a) of this subsection to the board within 72 hours
after a board request made during reasonable working hours.
(12) A contractor may not hire any subcontractor or other
contractor to perform work unless the subcontractor or contractor
is licensed under this chapter or exempt from licensure under ORS
701.010.
(13) A consumer notification form designed to specifically
inform a property owner what the property owner should do to
protect themselves in a residential repair, remodel or
construction project shall be prepared by the board and provided
at no cost to all licensed contractors. The contractor shall
deliver the form to the property owner when the contractor
submits a bid or proposal for work on a residential structure.
The form shall include an explanation of the meaning of
licensure, including a statement that licensure is not an
endorsement of a contractor's work, and an explanation of the
bond and insurance levels required of contractors for the benefit
of property owners. The form must not be larger than one side of
a sheet of paper that is 8-1/2 inches by 11 inches. The
contractor may reproduce the form on the contractor's bid
proposal.
(14) A contractor may not perform work subject to this section
for an owner of a residential structure without a written
contract if the aggregate contract price exceeds $2,000. If the
price of a contract was initially less than $2,000, but during
the course of performance the contract exceeds that amount, the
contractor shall mail or otherwise deliver a written contract to
the owner not later than five days after the contractor knows or
should reasonably know that the contract price will exceed
$2,000. Failure to have a written contract will not void the
contract.
(15) Except as provided in ORS 671.540, a contractor that is
not licensed under ORS 671.560 shall hire a person licensed under
ORS 671.560 to perform landscaping work.
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