Chapter 1045 Oregon Laws 1999

Session Law

AN ACT

SB 587

Relating to building code inspectors; creating new provisions; amending ORS 455.010, 455.020, 455.080, 455.150, 455.210, 455.220, 455.345, 455.675, 455.725 and 455.895; appropriating money; and limiting expenditures.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Sections 2 to 11 and 20 to 23 of this 1999 Act are added to and made a part of ORS chapter 455.

SECTION 2. (1)(a) A person may not employ an individual to perform specialty code inspections in any specialty area unless the individual has a license issued in that specialty area under section 3 of this 1999 Act.

(b) A person may not engage in specialty code inspections without having a license issued under section 3 of this 1999 Act in the specialty area for which the inspection is provided.

(c) A person may not employ an individual to perform plan reviews unless the individual has a license issued under section 3 of this 1999 Act.

(d) A person may not engage in reviewing plans without having a license issued under section 3 of this 1999 Act.

(2) The requirements in subsection (1) of this section do not apply to a person who is an employee of the state or of a municipality.

SECTION 3. In accordance with the applicable provisions of ORS 183.310 to 183.550, the Director of the Department of Consumer and Business Services by rule shall establish a licensing system for persons that perform specialty code inspections or plan reviews and for businesses that employ persons that perform specialty code inspections or plan reviews. Such a system shall include but not be limited to the following provisions:

(1) Prescribing the form and content of and the times and procedures for submitting an application for the issuance or renewal of a license.

(2) Prescribing the terms of the licenses and the fees for the original issue and renewal in amounts that do not exceed the cost to the Department of Consumer and Business Services of administering the licensing system.

(3) Prescribing the requirements for and the manner of testing the competency of applicants for the protection of the public health and safety.

(4) Prescribing the amounts and conditions of bonds and liability insurance.

(5) Setting forth those actions or circumstances that constitute failure to achieve or maintain licensing competency or that otherwise constitute a danger to the public health or safety and for which the director may refuse to issue or renew or may suspend or revoke a license or impose a civil penalty.

SECTION 4. (1) A person shall not inspect or review any project or installation in which the person, employer of the person or relative of the person has any financial interest or business affiliation. A person designated under section 20 (1)(a) of this 1999 Act may not perform both the inspection and plan review for the same project or installation. A municipality or the state shall perform either the inspection, the plan review, or both.

(2) For purposes of this section, "relative" has the meaning given that term in ORS 95.200.

SECTION 5. All moneys received by the Department of Consumer and Business Services pursuant to sections 3 and 6 of this 1999 Act shall be paid into the State Treasury and credited to the appropriate specialty code account under this chapter or ORS 479.510 to 479.945. All moneys deposited in the accounts under this section are continuously appropriated to the department to carry out the provisions of sections 2 to 11 of this 1999 Act.

SECTION 6. (1) Fee amounts shall not be established by the Director of the Department of Consumer and Business Services or any municipality for fees charged by persons licensed under section 3 of this 1999 Act.

(2) Fees charged by a person licensed under section 3 of this 1999 Act shall include a surcharge equal to the percentage amounts established for municipalities under ORS 455.210 (4) and (5) and 455.220 (1). The surcharges shall be remitted quarterly to the department to partially defray the department's administration, inspection and training costs incurred pursuant to sections 2, 3, 7 and 8 of this 1999 Act. Funds received by the department under this section shall be deposited in the Consumer and Business Services Fund created by ORS 705.145.

SECTION 7. (1) The Director of the Department of Consumer and Business Services, by rule, shall develop quality control procedures for the activities of specialty code inspectors, plan reviewers and businesses that employ specialty code inspectors and plan reviewers licensed under section 3 of this 1999 Act. These procedures shall include but are not limited to random sampling of the work of such persons and businesses.

(2) The Director of the Department of Consumer and Business Services shall appoint by rule a chief inspector for each specialty code under ORS chapter 455.

SECTION 8. (1) In addition to any other authority and power granted to the Director of the Department of Consumer and Business Services under this chapter and ORS chapters 447 and 479, with respect to specialty code inspectors, plan reviewers and businesses that employ specialty code inspectors and plan reviewers licensed under section 3 of this 1999 Act, if the director has reason to believe that there is a failure to enforce or there is a violation of any provision of this chapter or ORS chapters 447 and 479 or any rule adopted thereunder, the director may:

(a) Examine building code activities of specialty code inspectors, plan reviewers and businesses that employ specialty code inspectors and plan reviewers;

(b) Take sworn testimony; and

(c) With the authorization of the office of the Attorney General, subpoena persons and records to obtain testimony on official actions that were taken or omitted or to obtain documents otherwise subject to public inspection under ORS 192.410 to 192.505.

(2) The investigative authority authorized by subsection (1) of this section covers violations or omissions by specialty code inspectors, plan reviewers and businesses that employ specialty code inspectors and plan reviewers licensed under section 3 of this 1999 Act related to enforcement of codes or administrative rules, licensing of inspectors or financial transactions.

SECTION 9. Violation of section 2 or 4 of this 1999 Act is a Class A misdemeanor.

SECTION 10. (1) The Department of Consumer and Business Services shall grant the specialty code programs under this chapter and ORS 479.510 to 479.945 a loan from the Consumer and Business Services Fund pursuant to ORS 705.145 in the amount necessary to carry out the provisions of sections 2 to 11 of this 1999 Act.

(2) When the the department determines that moneys in sufficient amount have been collected pursuant to sections 3 and 6 of this 1999 Act, the Consumer and Business Services Fund shall be restored pursuant to ORS 705.145 (3) for the loan described in subsection (1) of this section. The moneys used to restore the fund under this subsection shall not be considered a budget item on which limitation is otherwise fixed by law, but shall be in addition to any specific biennial appropriations or amounts authorized to be expended from continually appropriated moneys for the biennium.

SECTION 11. A person carrying on, conducting or transacting specialty code inspections or plan reviews or a business employing specialty code inspectors or plan reviewers may not maintain any suit or action relating to specialty code inspections or plan reviews in any of the courts of this state without alleging and proving that the person or business was licensed under section 3 of this 1999 Act at the time of performing such work.

SECTION 12. ORS 455.010 is amended to read:

455.010. As used in this chapter, unless the context requires otherwise:

(1)(a) "Advisory board" means the board with responsibility for assisting in the adoption, amendment or administration of a specialty code specifically:

(A) The Building Codes Structures Board established under ORS 455.132;

(B) The Electrical and Elevator Board established under ORS 455.138;

(D) The Manufactured Structures and Parks Advisory Board established under ORS 446.280; or

(E) The Board of Boiler Rules established under ORS 480.535.

(b) "Appropriate advisory board" means the advisory board that has jurisdiction over a particular code, standard, license, certification or matter.

(2) "Department" means the Department of Consumer and Business Services.

(3) "Director" means the Director of the Department of Consumer and Business Services.

(4) "Municipality" means a city, county or other unit of local government otherwise authorized by law to [enact] administer a building code.

(5) "One and Two Family Dwelling Code" means the adopted specialty code prescribing standards for the construction of one and two family dwellings.

(6) "Prefabricated structure" means a building or subassembly which has been in whole or substantial part manufactured or assembled using closed construction at an off-site location to be wholly or partially assembled on-site; but does not include a manufactured structure.

(7) "Specialty code" means a code of regulations adopted under ORS 446.185, 447.020 (2), 455.020 (2), 455.610, 455.680, 460.085, 460.360, 479.730 (1) or 480.545; but does not include regulations adopted by the State Fire Marshal pursuant to ORS chapter 476 or ORS 479.010 to 479.200 and 479.210 to 479.220.

(8) "State building code" means the combined specialty codes.

(9) "Structural code" means the specialty code prescribing structural standards for building construction.

(10) "Unsafe condition" means a condition caused by earthquake which is determined by the department or any representative of the department to be dangerous to life and property. "Unsafe condition" includes but is not limited to:

(a) Any portion, member or appurtenance of a building that has become detached or dislodged or appears likely to fail or collapse and thereby injure persons or damage property; or

(b) Any portion, of a building or structure that has been damaged by earthquake, or by fire or explosion resulting from an earthquake, to the extent that the structural strength or stability of the building is substantially less than it was prior to the earthquake.

SECTION 13. ORS 455.020 is amended to read:

455.020. (1) This chapter is enacted to enable the Director of the Department of Consumer and Business Services to promulgate a state building code to govern the construction, reconstruction, alteration and repair of buildings and other structures and the installation of mechanical devices and equipment therein, and to require the correction of unsafe conditions caused by earthquakes in existing buildings. The state building code shall establish uniform performance standards providing reasonable safeguards for health, safety, welfare, comfort and security of the residents of this state who are occupants and users of buildings, and will provide for the use of modern methods, devices, materials, techniques and practicable maximum energy conservation.

(2) The regulations adopted pursuant to this chapter shall include structural standards; standards for the installation and use of mechanical, heating and ventilating devices and equipment; and standards for prefabricated structures; and shall, subject to ORS 455.210 (1) to (5), prescribe reasonable fees for the issuance of building permits and similar documents, inspections and plan review services by the Department of Consumer and Business Services.

(3) This chapter does not affect the statutory jurisdiction and authority of the Workers' Compensation Board, under ORS chapter 654, to promulgate occupational safety and health standards relating to places of employment, and to administer and enforce all state laws, regulations, rules, standards and lawful orders requiring places of employment to be safe and healthful.

(4) This chapter and any specialty code does not limit the authority of a municipality to enact regulations providing for local administration of the state building code; local appeal boards; fees and other charges; abatement of nuisances and dangerous buildings; enforcement through penalties, stop-work orders or other means; or minimum health, sanitation and safety standards for governing the use of structures for housing, except where the power of municipalities to enact any such regulations is expressly withheld or otherwise provided for by statute. Pursuant to the regulation of dangerous buildings, a municipality may adopt seismic rehabilitation plans that provide for phased completion of repairs that are designed to provide improved life safety but that may be less than the standards for new buildings.

SECTION 14. ORS 455.080 is amended to read:

455.080. Any inspector, including a specialty code inspector licensed under section 3 of this 1999 Act, authorized by or pursuant to law to determine compliance with the requirements of the state building code or any specialty code under this chapter is authorized, in the performance of normal duties, to require any person who is engaged in any activity regulated by ORS chapter 693 or 701, ORS 447.010 to 447.160 or 479.510 to 479.945 to demonstrate proof of compliance with the licensing, registration or certification requirements of those statute sections.

SECTION 15. ORS 455.150 is amended to read:

455.150. (1) A municipality may administer all or part of a building inspection program. A building inspection program:

(a) Is a program that includes:

(A) The state building code as defined in ORS 455.010, except as set forth in paragraph (b) of this subsection;

(B) Manufactured structure installation requirements under ORS 446.155, 446.185 (1) and 446.230;

(D) Park and camp programs regulated under ORS 455.680;

(E) Tourist facilities regulated under ORS 446.310 to 446.350;

(F) Manufactured dwelling alterations regulated under ORS 446.155; and

(G) Manufactured structure accessory buildings and structures under ORS 446.253.

(b) Is not a program that includes:

(A) Boiler and pressure vessel programs under ORS 480.510 to 480.665;

(B) Elevator programs under ORS 460.005 to 460.175;

(D) Prefabricated structure regulation under ORS chapter 455;

(E) Manufacture of manufactured structures programs under ORS 446.155 to 446.285, including the administration and enforcement of federal manufactured dwelling construction and safety standards adopted under ORS 446.155 or the National Manufactured Housing Construction and Safety Standards Act of 1974;

(F) Licensing and certification and adoption of statewide codes and standards under ORS chapter 446, 447, 455, 479 or 693; and

(G) Review of plans and specifications as provided in ORS 455.685.

(2) A municipality that administers a building inspection program as allowed under this section shall do so for periods of four years. The Department of Consumer and Business Services shall adopt rules to adjust time periods for administration of a building inspection program to allow for variations in the needs of the department and participants.

(3) When a municipality administers a building inspection program, the governing body of the municipality shall, unless other means are already provided, appoint a person to administer and enforce the building inspection program or parts thereof, who shall be known as the building official. A building official shall, in the municipality for which appointed, attend to all aspects of code enforcement, including the issuance of all building permits. Two or more municipalities may combine in the appointment of a single building official for the purpose of administering a building inspection program within their communities.

(4)(a) By January 1 of the first year of each period of administration as provided in subsection (2) of this section, the governing body of each municipality shall notify the Director of the Department of Consumer and Business Services and if not a county, notify the county of the building inspection program or parts thereof that it will administer and enforce beginning July 1 of that year. If parts of a building inspection program are to be administered and enforced by a municipality, the parts shall correspond to a classification designated by the director as reasonable divisions of work.

(b) Notwithstanding the January 1 date set forth in paragraph (a) of this subsection, the director and the municipality and, if the municipality is not a county, the county may by agreement extend that date to no later than March 1.

(5) If a city does not notify the director, or notifies the director that it will not administer certain specialty codes or parts thereof, the county or counties in which the city is located shall administer and enforce those codes or parts thereof within the city in the same manner as it administers and enforces them outside the city, except as provided by subsection (6) of this section.

(6) If a county does not notify the director, or notifies the director that it will not administer and enforce certain specialty codes or parts thereof, the director shall contract with a municipality or other person or use such state employees or state agencies as are necessary to administer and enforce those codes or parts thereof, and permit or other fees arising therefrom shall be paid into the Consumer and Business Services Fund created by ORS 705.145 and credited to the account responsible for paying such expenses. No state employee shall be displaced as a result of using contract personnel.

(7) The governing body of a municipality may change its building code administration and enforcement responsibility beginning July 1 of any year by notifying the director by January 1 of such year of the change to be made. Upon such change, responsibility shall be fixed as provided by subsections (5) and (6) of this section.

(8) The Department of Consumer and Business Services shall adopt rules to require the governing body of each municipality to submit a written plan with the notice required under subsection (4) of this section. If the department is the governing body, the department shall have a plan on file. The plan shall specify how cooperation with the State Fire Marshal or a designee of the State Fire Marshal will be achieved and how a uniform fire code will be considered in the review process of the design and construction phases of buildings or structures.

(9) A municipality that administers a code for which persons or businesses are authorized under section 3 of this 1999 Act to perform activities shall recognize and accept those activities as if performed by the municipality. A municipality is not required to accept an inspection, a plan or a plan review that does not meet the requirements of the state building code.

(10) The department or a municipality that accepts an inspection or plan review as required by this section by a person licensed under section 3 of this 1999 Act shall have no responsibility or liability for the activities of the licensee.

[(9)] (11) In addition to the requirements of ORS 455.100 and 455.110, the Director of the Department of Consumer and Business Services shall regulate building inspection programs of municipalities. Regulation shall include but not be limited to:

(a) Creating building inspection program application and amendment requirements and procedures;

(b) Granting or denying applications for building inspection program authority and amendments;

(d) Creating standards for efficient, effective timely and acceptable building inspection programs;

(e) Creating standards for justifying increases in building inspection program fees adopted by a municipality;

(f) Creating standards for determining whether a county or department building inspection program is economically impaired in its ability to reasonably continue providing the program or part of the program throughout a county, if another municipality is allowed to provide a building inspection program or part of a program within the same county; and

(g) Enforcing the requirements of this section.

[(10)] (12) The Department of Consumer and Business Services may assume temporary administration of a building inspection program:

(a) During the pendency of activities under ORS 455.770; [and]

(b) If a municipality abandons any part of the building inspection program or is no longer able to administer the building inspection program; and

(c) If a municipality fails to substantially comply with any provision of this section or of sections 20, 21 and 22 of this 1999 Act.

SECTION 16. ORS 455.345 is amended to read:

455.345. (1) Permit, fee, plan check and inspection requirements required by ORS 455.210 (1) to (5) shall apply to owner-built dwellings and outbuildings exempted from the structural code under ORS 455.330.

(2) Building officials or specialty code inspectors licensed under section 3 of this 1999 Act inspecting structures exempted from the structural code under ORS 455.325 to 455.350, shall:

(a) Require the owner-builder to comply with those structural code requirements listed under ORS 455.340; and

(b) Inform the owner-builder in writing of those items which fail to comply with code standards and are exempt from code standards and make that information part of the permanent inspection record on the structures.

(3) An owner-builder of a structure exempted from the structural code under ORS 455.325 to 455.350 shall file a notice with the county clerk who shall make the notice a part of the permanent deed record of the property. That notice shall contain the information provided to the owner-builder under subsection (2)(b) of this section and a description of the property sufficient if it were contained in a mortgage of the property to give constructive notice of the mortgage under the law of this state.

(4) Any person, or that person's agent, selling an owner-built dwelling or outbuilding exempted from the structural code under ORS 455.325 to 455.350 shall notify each potential buyer of the existence, location and contents of the notice filed under subsection (3) of this section prior to any commitment to purchase the property.

SECTION 17. ORS 455.675 is amended to read:

455.675. For the purposes of the codes of regulations adopted under this chapter, unless the context clearly indicates otherwise, the following substitutions shall be made in any code adopted by reference as part of the state building code:

(1) "Building official" for "administrative authority."

(2) "Governing body" for "mayor" and "city council."

(3) "Municipality" for ["city."] "city," "county" or other unit of local government.

SECTION 18. ORS 455.725 is amended to read:

455.725. (1) Upon application, the Director of the Department of Consumer and Business Services or an authorized representative shall examine and evaluate any program or facility established by a municipality or educational institution for the training of building officials, [and] inspectors and specialty code inspectors and plan reviewers licensed under section 3 of this 1999 Act.

(2) If the director finds that a training program is qualified under the minimum requirements established pursuant to ORS 455.720, the director shall, in writing, certify the training program as being qualified for such a period of time and upon such conditions as the director may prescribe. An individual complies with any minimum requirement for building officials or inspectors established pursuant to ORS 455.720 when the individual satisfactorily completes a training program certified under this section.

SECTION 19. ORS 455.895 is amended to read:

455.895. [In addition to any other authority and power granted to the Director of the Department of Consumer and Business Services under this chapter and ORS chapters 446, 447, 460, 479 and 480:]

(1) The Director of the Department of Consumer and Business Services, in consultation with the appropriate board, may impose a civil penalty against any person who violates any provision of this chapter and ORS chapters 446, 447, 460, 479 and 480 or any rule adopted thereunder. A civil penalty imposed under this subsection shall be in an amount determined by the director of not more than $1,000 for each offense or, in the case of a continuing offense, not more than $1,000 for each day of the offense. Moneys received from any civil penalty under this subsection shall be disposed of according to ORS 455.230 to be used for enforcement of ORS chapters 446, 447, 460, 479 and 480.

(2) The director, in consultation with the appropriate board, may impose a civil penalty against any person who violates any provision of section 2 or 4 of this 1999 Act or any rule adopted thereunder. A civil penalty imposed under this subsection shall be in an amount determined by the director of not more than $2,000 for each offense or, in the case of repeated offenses, not more than $2,000 for each day of the offense. Moneys received from any civil penalty under this subsection shall be deposited in the appropriate specialty code account under this chapter or ORS 479.510 to 479.945 to be used for enforcement of sections 2 to 8 of this 1999 Act.

[(2)] (3) Civil penalties under this section shall be imposed as provided in ORS 183.090.

[(3)] (4) A civil penalty imposed under this section may be remitted or reduced upon such terms and conditions as the director considers proper and consistent with the public health and safety. In any judicial review of a civil penalty imposed under this section, the court may, in its discretion, reduce the penalty.

(5) Any officer, director, shareholder or agent of a corporation, or member or agent of a partnership or association, who personally participates in or is an accessory to any violation of section 2 or 4 of this 1999 Act by the partnership, association or corporation, is subject to the penalties prescribed in subsections (2) and (6) of this section.

(6) In addition to the civil penalty set forth in subsection (2) of this section, any person who violates section 2 or 4 of this 1999 Act may be required by the director to forfeit and pay to the General Fund of the State Treasury a civil penalty in an amount determined by the director, which shall not exceed five times the amount by which such person profited in any transaction that violates section 2 or 4 of this 1999 Act.

SECTION 20. (1) In administering a building inspection program, the Department of Consumer and Business Services or a municipality shall:

(a) Designate at least three persons licensed under section 3 of this 1999 Act from whom the department or municipality will accept plan reviews; or

(b) Contract with a person licensed under section 3 of this 1999 Act and may include as a term of the contract a process for collection of plan review fees.

(2) For plan reviews conducted under subsection (1) of this section, the department or a municipality may:

(a) Establish the process for collecting fees from a person licensed under section 3 of this 1999 Act; and

(b) Collect an administrative fee as provided in ORS 455.210.

(3) The provisions of ORS 279.005 to 279.111 do not apply to a personal services contract between the department or a municipality and a person licensed under section 3 of this 1999 Act.

SECTION 21. (1) Except as provided in subsection (2) of this section, for specialty code plan reviews of simple one and two family dwellings, the Department of Consumer and Business Services or a municipality that administers a building inspection program under ORS 455.150 shall approve or disapprove the specialty code building plan:

(a) For a jurisdiction with a population that is less than 300,000, within 10 business days of receiving a complete application, or shall implement the process described in section 20 of this 1999 Act.

(b) For a jurisdiction with a population that is 300,000 or more, within 15 business days of receiving a complete application, or shall implement the process described in section 20 of this 1999 Act.

(2) The 10-day and 15-day requirements in subsection (1) of this section do not apply if:

(a) The plan requires approval by federal, state or local agencies outside the jurisdiction of the issuing agency;

(b) The plan is for a complex structure that requires additional review as determined by the department or municipality; or

(c) Based on conditions that exist in the affected municipality, the Director of the Department of Consumer and Business Services authorizes a different plan review schedule as described in a building inspection program submitted under ORS 455.150.

(3) For specialty code plan reviews of commercial structures, a municipality shall include in its building inspection program submitted under ORS 455.150 a process for plan review services. The municipality shall include in its program detailed reasons supporting the proposed plan review process.

(4) A municipality that repeatedly fails to meet the plan review period described in this section or otherwise authorized in its building inspection program submitted under ORS 455.150 shall be considered to be engaging in a pattern of conduct of failing to provide timely plan reviews under ORS 455.160.

SECTION 22. A municipality shall add to and make a part of its building inspection program under ORS 455.150 the policies and ordinances adopted by the municipality to implement sections 20 and 21 of this 1999 Act.

SECTION 23. A person aggrieved by a decision made by a building official under authority established pursuant to ORS 455.150 or section 21 of this 1999 Act may appeal the decision. The following apply to an appeal under this section:

(1) An appeal under this section shall be made first to the appropriate specialty code chief inspector of the Department of Consumer and Business Services. The decision of the department chief inspector may be appealed to the appropriate advisory board. The decision of the advisory board may only be appealed to the Director of the Department of Consumer and Business Services if codes in addition to the applicable specialty code are at issue.

(2) If the appropriate advisory board determines that a decision by the department chief inspector is a major code interpretation, then the inspector shall distribute the decision in writing to all applicable specialty code public and private inspection authorities in the state. The decision shall be distributed within 60 days after the board's determination, and there shall be no charge for the distribution of the decision. As used in this subsection, a "major code interpretation" means a code interpretation decision that affects or may affect more than one job site or more than one inspection jurisdiction.

(3) If an appeal is made under this section, an inspection authority shall extend the plan review deadline by the number of days it takes for a final decision to be issued for the appeal.

SECTION 24. ORS 455.210 is amended to read:

455.210. (1) Fees shall be prescribed as required by ORS 455.020 for plan review and permits issued by the Department of Consumer and Business Services for the construction, reconstruction, alteration and repair of prefabricated structures and of buildings and other structures and the installation of mechanical heating and ventilating devices and equipment. The fees shall not exceed the fee schedule printed in the "Uniform Building Code," 1979 Edition and in the "Uniform Mechanical Code," 1979 Edition, both published by the International Conference of Building Officials. Fees shall not be effective until approved by the Oregon Department of Administrative Services.

(2) Notwithstanding subsection (1) of this section, the maximum fee the Director of the Department of Consumer and Business Services may prescribe for a limited plan review for fire and life safety as required under ORS 479.155 shall be 40 percent of the prescribed permit fee.

(3)(a) A municipality may[, for the types of permits described in subsection (1) of this section,] adopt by ordinance or regulation such fees as may be necessary and reasonable to provide for the administration and enforcement of [the structural code, mechanical code or One and Two Family Dwelling Code] any specialty code or codes for which the municipality has assumed responsibility under ORS 455.150.

(b) Ten or more persons or an association with 10 or more members may, within 30 days of the adoption of a fee under paragraph (a) of this subsection, appeal the fee to the Director of the Department of Consumer and Business Services. Within 60 days of the receipt of the appeal, the director shall, after notice to affected parties and hearing, review the municipality's costs of administering and enforcing the specialty code or codes referred to in paragraph (a) of this subsection and approve the fee if the director feels it is necessary and reasonable. If the director does not approve the fee upon appeal, the fee shall not be effective. The appeal process provided in this paragraph shall not apply to fees that have been submitted for a vote and approved by a majority of the electors voting on the question.

(c) Fees collected by a municipality under this subsection shall be used [only] for the administration and enforcement of [the specialty code or codes referred to in paragraph (a) of this subsection for which they were adopted] a building inspection program for which the municipality has assumed responsibility under ORS 455.150.

(4) Notwithstanding any other provision of ORS 455.010 to 455.315 and 455.410 to 455.740, for the purpose of partially defraying state administrative costs, there is hereby imposed a surcharge in the amount of two percent of the total permit fees [collected] and hourly charges collected when an applicant chooses to pay an hourly rate instead of purchasing a permit. Municipalities shall collect and remit to the director as provided in ORS 455.220.

(5) Notwithstanding any other provisions of ORS 455.010 to 455.315 and 455.410 to 455.740, for the purpose of partially defraying state inspection costs, there is hereby imposed a surcharge in the amount of two percent of the total permit fees [collected] and hourly charges collected when an applicant chooses to pay an hourly rate instead of purchasing a permit. Municipalities shall collect and remit to the director as provided in ORS 455.220.

(6) The director shall adopt administrative rules to allow reduced fees for review of plans [which] that have been previously reviewed.

SECTION 25. ORS 455.220 is amended to read:

455.220. (1) For the purpose of defraying the costs of training and other educational programs administered by the Department of Consumer and Business Services under this chapter there is hereby imposed a surcharge in the amount of one percent of the total building permit fees [collected] and hourly charges collected when an applicant chooses to pay an hourly rate instead of purchasing a permit in connection with the construction of, or addition or alteration to, buildings and equipment or appurtenances.

(2) Permit surcharges shall be collected by each municipality and remitted to the Director of the Department of Consumer and Business Services. Each municipality having a population greater than 40,000 shall, on a monthly basis, prepare and submit to the director a report of permits and certificates issued in each class or category and fees and surcharges thereon collected during the month, together with other statistical information as required by the director concerning construction activity regulated by the parts of the state building code administered by the municipality. All other municipalities shall submit such a report on a quarterly basis. The report, which shall be in a form prescribed by the director, shall be submitted, together with a remittance covering the surcharges collected, by no later than the 15th day following the month or quarter in which the surcharges are collected.

(3) All surcharges and other fees prescribed by ORS 455.010 to 455.240 and 455.410 to 455.740 and payable to the department, except fees received under ORS 455.150 (6), shall be deposited by the director in the Consumer and Business Services Fund created by ORS 705.145.

SECTION 26. Notwithstanding any other law, the maximum limit for payment of administrative expenses by the Department of Consumer and Business Services established under section 1, chapter 404, Oregon Laws 1999 (Enrolled House Bill 5012), is increased by $147,106 for the purpose of implementing this 1999 Act.

SECTION 27. Nothing in sections 2 to 11 and 20 to 23 applies to special inspections as described in each specialty code as adopted by the Director of the Department of Consumer and Business Services.

SECTION 28. Nothing in section 2, 3, 4, 7, 11, 21 or 23 of this 1999 Act is intended to limit, supersede or otherwise affect the rights, obligations or professional activities of an inspector engaged in the business of providing prefabricated structure plan approvals and inspections, as defined in ORS 455.715, pursuant to ORS 455.715 to 455.740.

SECTION 29. The new provisions and amendments to statutes by this 1999 Act become operative on July 1, 2000.

Approved by the Governor September 1, 1999

Filed in the office of Secretary of State September 1, 1999

Effective date October 23, 1999

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