Chapter 104
Oregon Laws 2011
AN ACT
HB 2156
Relating to
performance securities provided for landscape contracting business work;
creating new provisions; and amending ORS 671.690.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 671.690 is amended to
read:
671.690. (1) An applicant for a
license as a 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
671.760; and
(d) All amounts from the bond, letter
of credit or deposit the board orders paid under ORS 671.703.
(3) In addition to providing the
applicant with coverage for the activities described in ORS 671.520 (1), the
bond or letter of credit must provide the applicant with coverage for:
(a) Backflow assembly testing services
provided by employees of the landscape contracting business who are certified
under ORS 448.279;
(b) The installation, repair or
maintenance by the landscape contracting business of backflow assemblies for
irrigation systems and ornamental water features as described in ORS 447.060;
and
(c) The installation by the landscape
contracting business of landscape irrigation control wiring and outdoor
landscape lighting as described in ORS 479.940.
[(3)]
(4) In lieu of the surety bond or letter of credit,[required under subsection (1) of this
section, the landscape contracting business] the applicant 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)]
(5) 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 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 landscape contracting business.
[(5)]
(6) 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)]
(7) The landscape contracting business is responsible for all work [that is] subject to ORS 671.510 to
671.760 that is performed or contracted for by the business.
SECTION 2. The amendments to ORS
671.690 by section 1 of this 2011 Act apply to bonds, letters of credit and
deposits filed with the State Landscape Contractors Board on or after the
effective date of this 2011 Act.
Approved by
the Governor May 19, 2011
Filed in the
office of Secretary of State May 19, 2011
Effective date
January 1, 2012
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