Chapter 675 Oregon Laws 2003

 

AN ACT

 

SB 906

 

Relating to building industry activities; creating new provisions; amending ORS 446.003, 446.423, 447.072, 447.076, 455.010, 455.030, 455.085, 455.100, 455.110, 455.132, 455.144, 455.153, 455.156, 455.220, 455.310, 455.420, 455.467, 455.525, 455.530, 455.610, 455.622, 455.625, 455.627, 455.630, 455.715, 455.800, 455.805, 455.815, 455.842, 455.844, 455.846, 469.700, 479.540, 479.560, 479.620, 479.905, 479.940, 701.005, 701.010, 701.065, 701.075, 701.085, 701.105, 701.115 and 705.145 and section 2, chapter 329, Oregon Laws 1999; repealing ORS 455.840 and 455.848 and section 8, chapter 1082, Oregon Laws 1999; and declaring an emergency.

 

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

 

BUILDING CODE AND SPECIALTY CODE

ADMINISTRATION

 

          SECTION 1. Section 2 of this 2003 Act is added to and made a part of ORS chapter 455.

 

          SECTION 2. (1) There is established a Residential Structures Board consisting of nine members appointed by the Governor.

          (2) The members of the board shall assist the Director of the Department of Consumer and Business Services in administering the low-rise residential dwelling program described in this chapter.

          (3) The board must consist of:

          (a) One contractor specializing in the construction of residential structures;

          (b) One contractor specializing in the remodeling of residential structures;

          (c) One contractor specializing in building multifamily housing three stories or less above grade;

          (d) One home designer or architect;

          (e) One building official;

          (f) One representative of residential building trade subcontractors;

          (g) One structural engineer;

          (h) One representative of a utility or energy supplier; and

          (i) One public member who does not receive compensation from any interest represented under paragraphs (a) to (h) of this subsection.

 

          SECTION 3. Notwithstanding the term of office specified in ORS 455.144, of the members first appointed to the Residential Structures Board:

          (1) Two shall serve terms ending on July 1, 2004.

          (2) Two shall serve terms ending on July 1, 2005.

          (3) Two shall serve terms ending on July 1, 2006.

          (4) Three shall serve terms ending on July 1, 2007.

 

          SECTION 4. (1) There is established a Mechanical Board consisting of nine members appointed by the Governor.

          (2) The members of the board shall assist the Director of the Department of Consumer and Business Services in administering the code adopted pursuant to ORS 455.020 for mechanical devices and equipment.

          (3) The board must consist of:

          (a) One representative of the plumbing industry;

          (b) One sheet metal and air conditioner contractor;

          (c) One municipal mechanical inspector possessing the highest level of mechanical inspector certification issued by the Department of Consumer and Business Services;

          (d) One heating, venting and air conditioning contractor;

          (e) One heating, venting and air conditioning installer;

          (f) One sheet metal and air conditioner installer;

          (g) One representative of a natural gas company or other utility;

          (h) One building official; and

          (i) One public member who does not receive compensation from any interest represented under paragraphs (a) to (h) of this subsection.

          (4) At least one of the board members described in subsection (3)(b) or (d) of this section must be an owner or operator of a contracting business employing 10 or fewer persons at the time of the member’s appointment to the term.

 

          SECTION 5. Notwithstanding the term of office specified in ORS 455.144, of the members first appointed to the Mechanical Board:

          (1) Two shall serve terms ending on July 1, 2005.

          (2) Two shall serve terms ending on July 1, 2006.

          (3) Two shall serve terms ending on July 1, 2007.

          (4) Three shall serve terms ending on July 1, 2008.

 

          SECTION 6. ORS 446.003 is amended to read:

          446.003. As used in ORS 446.003 to 446.200 and 446.225 to 446.285, and for the purposes of ORS chapters 195, 196, 197, 215 and 227, the following definitions shall apply, unless the context requires otherwise, or unless administration and enforcement by the State of Oregon under the existing or revised National Manufactured Housing Construction and Safety Standards Act would be adversely affected, and except as provided in ORS 446.265:

          (1) “Accessory building or structure” means any portable, demountable or permanent structure established for use of the occupant of the manufactured structure and as further defined by rule by the Director of the Department of Consumer and Business Services.

          (2)(a) “Alteration” means any change, addition, repair, conversion, replacement, modification or removal of any equipment or installation [which] that may affect the operation, construction or occupancy of a manufactured structure.

          (b) “Alteration” does not [mean] include:

          (A) Minor repairs with approved component parts;

          (B) Conversion of listed fuel-burning appliances in accordance with the terms of their listing;

          (C) Adjustment and maintenance of equipment; or

          (D) Replacement of equipment or accessories in kind.

          (3) “Approved” means approved, licensed or certified by the Department of Consumer and Business Services or its designee.

          (4) “Awning” means any stationary structure, permanent or demountable, used in conjunction with a manufactured structure, other than window awning, for the purpose of providing shelter from the sun and rain, and having a roof with supports and not more than one wall or storage cabinet substituting for a wall.

          (5) “Board” means the Manufactured Structures and Parks Advisory Board.

          (6) “Cabana” means a stationary, lightweight structure [which] that may be prefabricated, or demountable, with two or more walls, used adjacent to and in conjunction with a manufactured structure to provide additional living space.

          (7) “Carport” means a stationary structure consisting of a roof with its supports and not more than one wall, or storage cabinet substituting for a wall, and used for sheltering a motor vehicle.

          (8) “Certification” means an evaluation process by which the department verifies a manufacturer’s ability to produce manufactured structures to the department rules and to the department approved quality control manual.

          (9) “Conversion” or “to convert” means the process of changing a manufactured structure in whole or in part from one type of vehicle or structure to another.

          (10) “Dealer” means any person engaged in selling or distributing manufactured structures or equipment, or both, primarily to persons who in good faith purchase or lease manufactured structures or equipment, or both, for purposes other than resale.

          (11) “Department” means the Department of Consumer and Business Services.

          (12) “Director” means the Director of the Department of Consumer and Business Services.

          (13) “Distributor” means any person engaged in selling and distributing manufactured structures or equipment for resale.

          (14) “Equipment” means materials, appliances, subassembly, devices, fixtures, fittings and apparatuses used in the construction, plumbing, mechanical and electrical systems of a manufactured structure.

          (15) “Federal manufactured housing construction and safety standard” means a standard for construction, design and performance of a manufactured dwelling promulgated by the Secretary of Housing and Urban Development pursuant to the federal National Manufactured Housing Construction and Safety Standards Act of 1974 (Public Law 93-383).

          (16) “Fire inspector” means a deputy or assistant of the State Fire Marshal.

          (17) “Fire Marshal” means the State Fire Marshal.

          (18) “Imminent safety hazard” means an imminent and unreasonable risk of death or severe personal injury.

          (19) “Insignia of compliance” means:

          (a) For a manufactured dwelling built to HUD standards for such dwellings, the HUD label; or

          (b) For all other manufactured structures, the insignia issued by this state indicating compliance with state law.

          (20) “Inspecting authority” or “inspector” means the Director of the Department of Consumer and Business Services or representatives as appointed or authorized to administer and enforce provisions of ORS 446.111, 446.160, 446.176, 446.225 to 446.285, 446.310 to 446.350, 446.990 and this section.

          (21) “Installation” in relation to:

          (a) “Construction” means the arrangements and methods of construction, fire and life safety, electrical, plumbing and mechanical equipment and systems within a manufactured structure.

          (b) “Siting” means the manufactured structure and cabana foundation support and tiedown, the structural, fire and life safety, electrical, plumbing and mechanical equipment and material connections and the installation of skirting and temporary steps.

          (22) “Installer” means any individual licensed by the director to install, set up, connect, hook up, block, tie down, secure, support, install temporary steps, install skirting for or make electrical, plumbing or mechanical connections to manufactured dwellings or cabanas or who provides consultation or supervision for any of these activities, except architects licensed under ORS 671.010 to 671.220 or engineers licensed under ORS 672.002 to 672.325.

          (23) “Limited installer” means any individual with a limited license issued by the director who is engaged in the occupation of installing, setting up, connecting, hooking up, supporting, blocking, tying down, securing, installing temporary steps, installing skirting or making electrical, plumbing or mechanical connections to manufactured dwellings or cabanas under the direct supervision of a licensed installer.

          (24) “Listed” means equipment or materials included in a list, published by an organization concerned with product evaluation acceptable to the department that maintains periodic inspection of production of listed equipment or materials, and whose listing states either that the equipment or materials meets appropriate standards or has been tested and found suitable in a specified manner.

          (25) “Lot” means any space, area or tract of land, or portion of a manufactured dwelling park, mobile home park or recreation park that is designated or used for occupancy by one manufactured structure.

          (26)(a) “Manufactured dwelling” means:

          (A) Residential trailer, a structure constructed for movement on the public highways that has sleeping, cooking and plumbing facilities, that is intended for human occupancy, that is being used for residential purposes and that was constructed before January 1, 1962.

          (B) Mobile home, a structure constructed for movement on the public highways that has sleeping, cooking and plumbing facilities, that is intended for human occupancy, that is being used for residential purposes and that was constructed between January 1, 1962, and June 15, 1976, and met the construction requirements of Oregon mobile home law in effect at the time of construction.

          (C) Manufactured home:

          (i) For any purpose other than that set forth in sub-subparagraph (ii) of this subparagraph, “manufactured home” means a structure constructed for movement on the public highways that has sleeping, cooking and plumbing facilities, that is intended for human occupancy, that is being used for residential purposes and that was constructed in accordance with federal manufactured housing construction and safety standards and regulations in effect at the time of construction; or

          (ii) For purposes of implementing any contract pertaining to manufactured homes between the department and the federal government, “manufactured home” has the meaning given the term in the contract.

          (b) “Manufactured dwelling” does not [mean] include any building or structure constructed to conform to the State of Oregon Structural Specialty Code or the [One and Two Family] Low-Rise Residential Dwelling Code adopted pursuant to ORS 455.100 to 455.450 and 455.610 to 455.630 or any unit identified as a recreational vehicle by the manufacturer.

          (27) “Manufactured dwelling park” means any place where four or more manufactured dwellings are located within 500 feet of one another on a lot, tract or parcel of land under the same ownership, the primary purpose of which is to rent or lease space or keep space for rent or lease to any person for a charge or fee paid or to be paid for the rental or lease or use of facilities or to offer space free in connection with securing the trade or patronage of such person. “Manufactured dwelling park” does not include a lot or lots located within a subdivision being rented or leased for occupancy by no more than one manufactured dwelling per lot if the subdivision was approved by the local government unit having jurisdiction under an ordinance adopted pursuant to ORS 92.010 to 92.190.

          (28)(a) “Manufactured structure” means a:

          (A) “Recreational vehicle” as set forth in this section;

          (B) “Manufactured dwelling” as set forth in this section; or

          (C) “Recreational structure” as set forth in this section.

          (b) “Manufactured structure” does not [apply to] include any building or structure regulated under the State of Oregon Structural Specialty Code or the [One and Two Family] Low-Rise Residential Dwelling Code.

          (29) “Manufacturer” means any person engaged in manufacturing, building, rebuilding, altering, converting or assembling manufactured structures or equipment.

          (30) “Manufacturing” means the building, rebuilding, altering or converting of manufactured structures that bear or are required to bear an Oregon insignia of compliance.

          (31) “Minimum safety standards” means the plumbing, mechanical, electrical, thermal, fire and life safety, structural and transportation standards prescribed by rules adopted by the director.

          (32) “Mobile home park” means any place where four or more manufactured structures are located within 500 feet of one another on a lot, tract or parcel of land under the same ownership, the primary purpose of which is to rent space or keep space for rent to any person for a charge or fee paid or to be paid for the rental or use of facilities or to offer space free in connection with securing the trade or patronage of such person. “Mobile home park” does not include a lot or lots located within a subdivision being rented or leased for occupancy by no more than one manufactured dwelling per lot if the subdivision was approved by the municipality unit having jurisdiction under an ordinance adopted pursuant to ORS 92.010 to 92.190.

          (33) “Municipality” means a city, county or other unit of local government otherwise authorized by law to enact codes.

          (34) “Provider” means any person approved by the director to provide instruction for the purpose of licensing manufactured dwellings and cabana installers or certifying manufactured dwelling inspectors.

          (35) “Ramada” means a stationary structure having a roof extending over a manufactured structure, which may also extend over a patio or parking space for motor vehicles, and is used principally for protection from snow, sun or rain.

          (36) “Recreational structure” means a campground structure with or without plumbing, heating or cooking facilities intended to be used by any particular occupant on a limited-time basis for recreational, seasonal, emergency or transitional housing purposes and may include yurts, cabins, fabric structures or similar structures as further defined, by rule, by the director.

          (37) “Recreational vehicle” means a vehicle with or without motive power, which is designed for human occupancy and to be used temporarily for recreational, seasonal or emergency purposes and as further defined, by rule, by the director.

          (38) “Sale” means rent, lease, sale or exchange.

          (39) “Skirting” means a weather resistant material used to enclose the space below the manufactured structure.

          (40) “Tiedown” means any device designed to anchor a manufactured structure securely to the ground.

          (41) “Transitional housing accommodations” means accommodations described under ORS 446.265.

          (42) “Utilities” means the water, sewer, gas or electric services provided on a lot for a manufactured structure.

 

          SECTION 7. ORS 446.423 is amended to read:

          446.423. Except as otherwise provided in ORS 455.220 (1), all moneys deposited to the Consumer and Business Services Fund that are derived pursuant to ORS 446.003 to 446.200, 446.210, 446.225 to 446.285, 446.395 to 446.420 and 455.220 (1) are continuously appropriated to the Department of Consumer and Business Services for carrying out any of the duties, functions and powers of the department under ORS 446.003 to 446.200, 446.210, 446.225 to 446.285 and 446.395 to 446.420, and rules adopted thereunder, without regard to the source of the moneys.

 

          SECTION 8. ORS 447.072 is amended to read:

          447.072. Notwithstanding ORS 455.610, the Department of Consumer and Business Services, with the approval of the State Plumbing Board, shall adopt rules to create an exemption from permit and inspection requirements for ordinary minor repairs in [one and two family] low-rise residential dwellings and commercial structures when the board finds that the plumbing does not involve any changes or alterations of the existing plumbing system. The exemption from the permit:

          (1) [Shall] May not include new construction or replacement of water heaters or underground plumbing; and

          (2) Shall be available only to registered plumbing contractors or persons exempt from licensing under ORS 693.020.

 

          SECTION 9. ORS 447.076 is amended to read:

          447.076. Notwithstanding ORS 455.610, the Department of Consumer and Business Services, with the approval of the State Plumbing Board, shall adopt rules to create a mandatory inspection program for minor plumbing installations made by registered plumbing contractors in [one or two family] low-rise residential dwellings. The rules adopted by the department shall:

          (1) Define the term “minor plumbing installations[,” which shall] in a manner that does not include new construction;

          (2) Designate which minor plumbing installations are under the inspection program; and

          (3) Provide for random inspection of minor plumbing installations.

 

          SECTION 10. 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;

          (C) The State Plumbing Board established under ORS 693.115;

          (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; or

          (F) The Residential Structures Board established under section 2 of this 2003 Act.

          (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) “Low-Rise Residential Dwelling Code” means the adopted specialty code prescribing standards for the construction of residential dwellings that are three stories or less above grade and have an exterior door for each dwelling unit, but are not facilities or homes described in ORS 443.400 or transient lodging.

          [(4)] (5) “Municipality” means a city, county or other unit of local government otherwise authorized by law to 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 446.062, 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 11. ORS 455.010, as amended by section 10 of this 2003 Act, 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;

          (C) The State Plumbing Board established under ORS 693.115;

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

          (E) The Board of Boiler Rules established under ORS 480.535; [or]

          (F) The Residential Structures Board established under section 2 of this 2003 Act[.]; or

          (G) The Mechanical Board established under section 4 of this 2003 Act.

          (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) “Low-Rise Residential Dwelling Code” means the adopted specialty code prescribing standards for the construction of residential dwellings that are three stories or less above grade and have an exterior door for each dwelling unit, but are not facilities or homes described in ORS 443.400 or transient lodging.

          (5) “Municipality” means a city, county or other unit of local government otherwise authorized by law to administer a building code.

          (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 446.062, 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 12. ORS 455.030 is amended to read:

          455.030. (1) Except as otherwise provided by this section, the Director of the Department of Consumer and Business Services shall be subject to ORS 183.310 to 183.550 in the adoption, amendment or repeal of regulations authorized by, and in the issuance of orders in contested cases arising under, this chapter.

          (2)(a) In addition to the notice requirements of ORS 183.335, notice of a public hearing on adoption, amendment or repeal of a specialty code shall be given to the governing bodies of all municipalities and the notice shall state that copies of the proposed action may be obtained from the Department of Consumer and Business Services.

          (b) The notice of proposed rule change shall include a finding by the advisory board that the added cost, if any, is necessary to the health and safety of the occupants or the public or necessary to conserve scarce resources.

          (c) The director shall maintain a roster of individuals who wish to be notified of any changes to or interpretations of the [One and Two Family] Low-Rise Residential Dwelling Code. Subscribers to the list may be charged a reasonable amount necessary to defray the cost of maintaining the list and advising the subscribers of changes in the code.

          (3) The director [shall not be] is not required to publish or distribute those parts of a specialty code of regulations adopted by reference. However, the director shall publish with a specialty code and annually thereafter a list of places where copies of those parts of the specialty code adopted by reference may be obtained together with the approximate cost thereof. The director shall file one copy of the rule with the Secretary of State. All standards referred to in any specialty code or any of the modifications thereto need not be so filed. All standards and specialty codes referred to in the specialty code shall be kept on file and available for inspection in the offices of the department.

          (4) Any interested person may propose amendments to the state building code, which proposed amendments may be either applicable to all municipalities or, where it is alleged and established that conditions exist within a municipality or some municipalities that are not generally found within other municipalities, amendments may be restricted in application to such municipalities. Amendments proposed to the state building code under this subsection shall be in conformity with the policy and purpose prescribed by ORS 455.020. The justification and the particular circumstances requiring the proposed amendments shall be fully stated in the proposal. The director shall submit all proposed amendments to the appropriate advisory board. The board shall review and report its recommendations to the director on the amendments within 180 days after the date of submission by the director.

          (5) The director, with the approval of the advisory board, may adopt or modify and adopt any amendments proposed to the director under subsection (4) of this section. The director shall, within 30 days after the date of receipt of the recommendations of the advisory board, notify the person proposing the amendments of the adoption, modification and adoption or denial of the proposed amendments. Upon adoption, a copy of each amendment shall be distributed to the governing bodies of all municipalities affected thereby.

          (6) The director shall from time to time make or cause to be made investigations, or may accept authenticated reports from authoritative sources, concerning new materials or modes of construction intended for use in the construction of buildings or structures, or intended for use in other activity regulated by the state building code, and shall, where necessary, propose amendments to the code setting forth the conditions under which the materials or modes may be used, in accordance with the standards and procedures of this chapter.

 

          SECTION 13. ORS 455.085 is amended to read:

          455.085. (1) [In addition to the requirements of ORS 455.110 (2),] The Director of the Department of Consumer and Business Services shall, upon receipt of adequate funds under subsection (2) of this section, publish all state building code provisions relating to the design, construction, prefabrication, equipment or appliance installation, quality of materials, use and occupancy location and repair of detached [one or two family] low-rise residential dwellings[, not more than three stories in height,] in two separate publications. One publication shall contain the applicable provisions of the specialty code adopted under ORS 479.730 (1) and the other publication shall contain the remaining applicable provisions of the state building code. The text of the publications made under this section shall be readable at the ninth grade level of reading, as determined by the director under one or more standard recognized readability formulas, including, but not limited to, the Flesch, Fry or Dale Chall tests.

          (2) The publications under subsection (1) of this section shall be paid for by funds donated by interested citizens, who shall be made aware of the project by the Department of Consumer and Business Services through public service announcements and other nominal-cost advertising. Funds shall be collected until sufficient funds are available to conduct the publication. Refunds shall be made to the donors if sufficient funds are not collected.

 

          SECTION 14. ORS 455.100 is amended to read:

          455.100. The Director of the Department of Consumer and Business Services shall have general supervision over the administration of the state building code regulations, including providing statewide interpretations for the plumbing, elevator, electrical, manufactured structures, boiler, amusement ride, structural[;], mechanical, heating and ventilating[; one and two family], low-rise residential dwelling[;] and prefabricated structures codes.

 

          SECTION 15. ORS 455.100, as amended by section 14 of this 2003 Act, is amended to read:

          455.100. The Director of the Department of Consumer and Business Services shall have general supervision over the administration of the state building code regulations, including providing statewide interpretations for the plumbing, elevator, electrical, manufactured structures, boiler, amusement ride, structural, mechanical, [heating and ventilating,] low-rise residential dwelling and prefabricated structures codes.

 

          SECTION 16. ORS 455.110 is amended to read:

          455.110. Except as otherwise provided by ORS chapters 446, 447, 460, 476, ORS 479.010 to 479.220, 479.510 to 479.945, 479.990 and 479.995 and ORS chapter 480:

          (1) The Director of the Department of Consumer and Business Services shall coordinate, interpret and generally supervise the adoption, administration and enforcement of the state building code.

          (2) The director with the approval of the appropriate advisory boards shall adopt [and publish the specialty codes, including codes of] codes and standards, including regulations as authorized by ORS 455.020 [(2) providing standards for] governing the construction, reconstruction, alteration and repair of buildings and other structures and the installation of mechanical devices and equipment therein[, governing matters of materials, design and construction, fire protection in one-family and two-family dwellings, health, sanitation, safety and maximum energy conservation]. The regulations may include rules for the administration and enforcement of a certification system for persons performing work under the codes and standards adopted under this subsection. However, this subsection does not authorize the establishment of a separate certification for performing work on low-rise residential dwellings.

          (3) The director with the approval of the appropriate advisory boards may amend such codes from time to time. The codes of regulations and any amendment thereof shall conform in so far as practicable to model building codes generally accepted and in use throughout the United States. If there is no nationally recognized model code, consideration shall be given to the existing specialty codes presently in use in this state. Such model codes with modifications considered necessary and specialty codes may be adopted by reference. The codes so promulgated and any amendments thereof shall be based on the application of scientific principles, approved tests and professional judgment and, to the extent that it is practical to do so, the codes shall be promulgated in terms of desired results instead of the means of achieving such results, avoiding wherever possible the incorporation of specifications of particular methods or materials. To that end the codes shall encourage the use of new methods, new materials and maximum energy conservation.

 

          SECTION 17. ORS 455.132 is amended to read:

          455.132. (1) There is established in the Department of Consumer and Business Services a Building Codes Structures Board consisting of [15] nine members.

          (2) The Building Codes Structures Board shall assist the Director of the Department of Consumer and Business Services in administering the structural, mechanical, one- and two-family dwellings, prefabricated structures and energy programs described in this chapter and the accessibility to persons with physical disabilities program described in ORS 447.210 to 447.280.

          (3) The board shall consist of [a representative selected from individuals recommended by the Oregon Disabilities Commission and] members broadly representative of the industries and professions involved in the development and construction of buildings and energy conservation, including:

          (a) An architect or engineer;

          [(b) A homebuilder;]

          [(c) An energy supplier;]

          [(d) A representative of a recognized environmental group;]

          [(e) A prefabricated structure builder;]

          (b) A general contractor, as defined in ORS 701.005, specializing in the construction of buildings more than three stories above grade;

          (c) A contractor specializing in construction for heavy industry;

          (d) A representative of the building trade;

          (e) A representative of a utility or energy supplier;

          (f) A representative of a fire protection agency;

          [(g) A remodeler;]

          [(h) A low income housing representative;]

          [(i) An engineer;]

          [(j)] (g) A building official;

          [(k) An owner or manager of more than two rental housing units;]

          [(L)] (h) An owner or manager of a commercial office building; and

          [(m) Two public members who do not receive compensation from any interest described in paragraphs (a) to (L) of this subsection.]

          (i) A representative selected from individuals recommended by the Oregon Disabilities Commission.

 

          SECTION 18. ORS 455.132, as amended by section 17 of this 2003 Act, is amended to read:

          455.132. (1) There is established in the Department of Consumer and Business Services a Building Codes Structures Board consisting of nine members.

          (2) The Building Codes Structures Board shall assist the Director of the Department of Consumer and Business Services in administering the structural, mechanical, [one- and two-family dwellings,] prefabricated structures and energy programs described in this chapter and the accessibility to persons with physical disabilities program described in ORS 447.210 to 447.280.

          (3) The board shall consist of members broadly representative of the industries and professions involved in the development and construction of buildings and energy conservation, including:

          (a) An architect or engineer;

          (b) A general contractor, as defined in ORS 701.005, specializing in the construction of buildings more than three stories above grade;

          (c) A contractor specializing in construction for heavy industry;

          (d) A representative of the building trade;

          (e) A representative of a utility or energy supplier;

          (f) A representative of a fire protection agency;

          (g) A building official;

          (h) An owner or manager of a commercial office building; and

          (i) A representative selected from individuals recommended by the Oregon Disabilities Commission.

 

          SECTION 19. ORS 455.132, as amended by sections 17 and 18 of this 2003 Act, is amended to read:

          455.132. (1) There is established in the Department of Consumer and Business Services a Building Codes Structures Board consisting of nine members.

          (2) The Building Codes Structures Board shall assist the Director of the Department of Consumer and Business Services in administering the structural, [mechanical,] prefabricated structures and energy programs described in this chapter and the accessibility to persons with physical disabilities program described in ORS 447.210 to 447.280.

          (3) The board shall consist of members broadly representative of the industries and professions involved in the development and construction of buildings and energy conservation, including:

          (a) An architect or engineer;

          (b) A general contractor, as defined in ORS 701.005, specializing in the construction of buildings more than three stories above grade;

          (c) A contractor specializing in construction for heavy industry;

          (d) A representative of the building trade;

          (e) A representative of a utility or energy supplier;

          (f) A representative of a fire protection agency;

          (g) A building official;

          (h) An owner or manager of a commercial office building; and

          (i) A representative selected from individuals recommended by the Oregon Disabilities Commission.

 

          SECTION 20. ORS 455.144 is amended to read:

          455.144. (1) The [boards described in ORS 455.132 and 455.138] Building Codes Structures Board, the Electrical and Elevator Board and the Residential Structures Board shall each be organized and governed as described in this section.

          (2)(a) The term of office of each member is four years and no member shall be eligible for appointment to more than two full terms of office. The Governor shall appoint the members of each board and the board members shall serve at the pleasure of the Governor.

          (b) Before the expiration of the term of a member, the Governor shall appoint a successor whose term begins on July 1 next following. A member is eligible for reappointment. If there is a vacancy for any cause, the Governor shall make an appointment to become immediately effective for the unexpired term.

          (3) A member of each board is entitled to compensation and expenses as provided in ORS 292.495.

          (4) A board shall select one of its members as chairperson and another as vice chairperson, for such terms and with duties and powers necessary for the performance of the functions of such office as the board determines.

          (5) A majority of the members of a board constitutes a quorum for the transaction of business.

          (6) Each board shall meet [at least] once every three months at a place, day and hour determined by the board. A board shall also meet at other times and places specified by the call of [its chairperson or of a majority of the members of the board] the Director of the Department of Consumer and Business Services.

          (7) In accordance with applicable provisions of ORS 183.310 to 183.550, the director [of the Department of Consumer and Business Services] may adopt rules necessary for the administration of the laws that the Department of Consumer and Business Services is charged with administering.

          (8) The Governor may remove a board member for good cause. “Good cause” for removal of a member includes, but is not limited to, three unexcused absences during any 12-month period from a regularly scheduled board meeting.

          (9) The appointment of a member of a board is subject to confirmation by the Senate pursuant to section 4, Article III of the Oregon Constitution.

 

          SECTION 21. ORS 455.144, as amended by section 20 of this 2003 Act, is amended to read:

          455.144. (1) The Building Codes Structures Board, the Electrical and Elevator Board, [and] the Residential Structures Board and the Mechanical Board shall each be organized and governed as described in this section.

          (2)(a) The term of office of each member is four years and no member shall be eligible for appointment to more than two full terms of office. The Governor shall appoint the members of each board and the board members shall serve at the pleasure of the Governor.

          (b) Before the expiration of the term of a member, the Governor shall appoint a successor whose term begins on July 1 next following. A member is eligible for reappointment. If there is a vacancy for any cause, the Governor shall make an appointment to become immediately effective for the unexpired term.

          (3) A member of each board is entitled to compensation and expenses as provided in ORS 292.495.

          (4) A board shall select one of its members as chairperson and another as vice chairperson, for such terms and with duties and powers necessary for the performance of the functions of such office as the board determines.

          (5) A majority of the members of a board constitutes a quorum for the transaction of business.

          (6) Each board shall meet once every three months at a place, day and hour determined by the board. A board shall also meet at other times and places specified by the call of the Director of the Department of Consumer and Business Services.

          (7) In accordance with applicable provisions of ORS 183.310 to 183.550, the director may adopt rules necessary for the administration of the laws that the Department of Consumer and Business Services is charged with administering.

          (8) The Governor may remove a board member for good cause. “Good cause” for removal of a member includes, but is not limited to, three unexcused absences during any 12-month period from a regularly scheduled board meeting.

          (9) The appointment of a member of a board is subject to confirmation by the Senate pursuant to section 4, Article III of the Oregon Constitution.

 

          SECTION 22. ORS 455.153 is amended to read:

          455.153. (1) A municipality may administer any specialty code or building requirements as though the code or requirements were ordinances of the municipality if the municipality is authorized to administer:

          (a) The specialty code under ORS chapter 447 or 455 or ORS 479.510 to 479.945 and 479.995.

          (b) Mobile or manufactured dwelling parks requirements adopted under ORS 446.062.

          (c) Temporary parks requirements adopted under ORS 446.105.

          (d) Manufactured dwelling installation, support and tiedown requirements adopted under ORS 446.230.

          (e) Park or camp requirements adopted under ORS 455.680.

          (2) Administration of any specialty code or building requirement includes establishing a program intended to verify compliance with state licensing requirements and all other administrative and judicial aspects of enforcement of the code or requirement. Nothing in this section affects the concurrent jurisdiction of the Director of the Department of Consumer and Business Services, the Building Codes Structures Board, the State Plumbing Board, the Manufactured Structures and Parks Advisory Board, [or] the Electrical and Elevator Board or the Residential Structures Board to impose civil penalties for violations committed within municipalities.

 

          SECTION 23. ORS 455.153, as amended by section 22 of this 2003 Act, is amended to read:

          455.153. (1) A municipality may administer any specialty code or building requirements as though the code or requirements were ordinances of the municipality if the municipality is authorized to administer:

          (a) The specialty code under ORS chapter 447 or 455 or ORS 479.510 to 479.945 and 479.995.

          (b) Mobile or manufactured dwelling parks requirements adopted under ORS 446.062.

          (c) Temporary parks requirements adopted under ORS 446.105.

          (d) Manufactured dwelling installation, support and tiedown requirements adopted under ORS 446.230.

          (e) Park or camp requirements adopted under ORS 455.680.

          (2) Administration of any specialty code or building requirement includes establishing a program intended to verify compliance with state licensing requirements and all other administrative and judicial aspects of enforcement of the code or requirement. Nothing in this section affects the concurrent jurisdiction of the Director of the Department of Consumer and Business Services, the Building Codes Structures Board, the State Plumbing Board, the Manufactured Structures and Parks Advisory Board, the Electrical and Elevator Board, [or] the Residential Structures Board or the Mechanical Board to impose civil penalties for violations committed within municipalities.

 

          SECTION 24. ORS 455.156 is amended to read:

          455.156. (1) Notwithstanding any other provision of this chapter, ORS chapter 693 or ORS 447.010 to 447.156, 447.992, 479.510 to 479.945, 479.990 or 479.995, the Department of Consumer and Business Services shall carry out the provisions of this section.

          (2)(a) A municipality that establishes a building inspection program under ORS 455.148 or a plumbing inspection program under ORS 455.150 covering installations under the plumbing specialty code or [One and Two Family] Low-Rise Residential Dwelling Code may act on behalf of the State Plumbing Board to investigate violations of and enforce ORS 447.030, 447.040, 693.030 and 693.040 and to issue notices of proposed assessment of civil penalties for those violations.

          (b) A municipality that establishes a building inspection program under ORS 455.148 or an electrical inspection program under ORS 455.150 covering installations under the electrical specialty code or [One and Two Family] Low-Rise Residential Dwelling Code may act on behalf of the Electrical and Elevator Board to investigate violations of and enforce ORS 479.550 (1) and 479.620 and to issue notices of proposed assessment of civil penalties for those violations.

          (c) A municipality that establishes a building inspection program under ORS 455.148 or 455.150 may investigate violations and enforce any provisions of the program administered by the municipality.

          (3) The department shall establish:

          (a) Procedures, forms and standards to carry out the provisions of this section, including but not limited to creating preprinted notices of proposed assessment of penalties that can be completed and served by municipal inspectors;

          (b) A program to provide that all of the moneys recovered by the department, less collection expenses, be paid to the municipality that initiated the charges when a person charged with a violation as provided in subsection (2) of this section, other than a violation of a licensing requirement, agrees to the entry of an assessment of civil penalty or does not [ask for] request a hearing, and an order assessing a penalty is entered against the person;

          (c) A uniform citation process to be used in all jurisdictions of the state for violation of a licensing requirement. The process may include but need not be limited to all program areas administered by a municipality under ORS 455.148 or 455.150 and may provide a uniform method for checking license status and issuing citations for violation of a licensing requirement, and a consistent basis for enforcement of licensing requirements and treatment of violations, including fine amounts;

          [(c)] (d) A program to provide a division of the moneys recovered by the department with the municipality that initiated the charges, when a person charged with a violation as provided in subsection (2) of this section, other than a violation of a licensing requirement, requests a hearing and is assessed a penalty. One-half of the amounts recovered shall be paid to the municipality. The department shall keep an amount equal to its costs of processing the proceeding and collection expenses out of the remaining one-half and remit the balance, if any, to the municipality; and

          [(d)] (e) A program to require municipalities to investigate violations of the department’s permit requirements for plumbing installations and services under the plumbing specialty code and for plumbing and electrical installations and services under the [One and Two Family] Low-Rise Residential Dwelling Code, and to:

          (A) Initiate notices of proposed assessment of civil penalties as agents of the boards designated in subsection (2) of this section; and

          (B) Pay the agents of the boards out of net civil penalty recoveries as if the recoveries were under paragraphs (b) and [(c)] (d) of this subsection.

          (4) The assessment of a civil penalty under this section by a municipality is subject to the amount limitations set forth in ORS 455.895.

          (5)(a) It shall be a defense for any person charged with a penalty for violation of a building inspection program permit requirement covering plumbing installations under the plumbing specialty code, electrical permit requirements under ORS 479.550 or plumbing or electrical requirements under the [One and Two Family] Low-Rise Residential Dwelling Code that the person was previously penalized for the same occurrence.

          (b) A building inspection program permit requirement is a requirement contained in a specialty code or municipal ordinance or rule requiring a permit before the particular installations covered by the codes are commenced.

          (c) A penalty for the same occurrence includes a combination of two or more of the following that are based on the same plumbing or electrical installation:

          (A)(i) An investigative or other fee added to an electrical permit fee when a permit was obtained after the electrical installation was started;

          (ii) A civil penalty pursuant to ORS 479.995 for violation of ORS 479.550 for failure to obtain an electrical permit;

          (iii) A civil penalty pursuant to ORS 455.895 for failure to obtain an electrical permit under the [One and Two Family] Low-Rise Residential Dwelling Code; or

          (iv) A municipal penalty, other than an investigative fee, for making an electrical installation under the electrical specialty code or the [One and Two Family] Low-Rise Residential Dwelling Code without a permit; or

          (B)(i) An investigative or other fee added to a plumbing permit fee when a permit was obtained after the plumbing installation was started;

          (ii) A civil penalty pursuant to ORS 447.992 for failure to obtain a plumbing permit as required under the plumbing specialty code;

          (iii) A civil penalty pursuant to ORS 455.895 for failure to obtain a plumbing permit under the [One and Two Family] Low-Rise Residential Dwelling Code; or

          (iv) A municipal penalty, other than an investigative fee, for making a plumbing installation under the plumbing specialty code or the [One and Two Family] Low-Rise Residential Dwelling Code without a permit.

 

          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 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. Up to one-half of the surcharge collected under this subsection may be used to fund the activities of the Tri-County Building Industry Service Center. The remainder of the surcharge collected under this subsection shall be used 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.

          (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 shall be in a form prescribed by the director and 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)(a) Except as provided in subsection (4) of this section, 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 455.148 (6) or 455.150 (6), shall be deposited by the director in the Consumer and Business Services Fund created by ORS 705.145.

          (b) Notwithstanding subsection [(4)(a)] (1) of this section, the [training] surcharge imposed under subsection (1) of this section for permits established under ORS 446.062 (3), 446.176, 446.405 (2), 446.430 (2) and 455.170 (2) shall be deposited in the Consumer and Business Services Fund established under ORS 705.145 and is continuously appropriated to the department for use as provided in ORS 446.423.

          [(4)(a) From the amount appropriated biennially to the department for the purpose of defraying the costs of training and other educational programs under subsection (1) of this section, the director shall transfer to the Tri-County Building Industry Service Center Account established under ORS 455.848 an amount not to exceed one-half of the biennial appropriation.]

          [(b)] (4) The director shall [deposit] use funds received under ORS 455.210 (6) [in] to fund the activities of the Tri-County Building Industry Service Center [Account established under ORS 455.848].

          (5) The director shall administer training and other education programs under this chapter through contracts with local educational institutions, professional associations or other training providers.

 

          SECTION 26. ORS 455.310 is amended to read:

          455.310. (1) It is not the purpose of this chapter to require that permits be obtained or fees be paid for repairs and maintenance [which] that do not violate the intent of the structural and fire and life safety specialty provisions of the State of Oregon Structural Specialty Code and the [One and Two Family] Low-Rise Residential Dwelling Code, adopted pursuant to ORS 455.020 and 455.610, ORS chapter 476, ORS 479.010 to 479.200 and 479.210 to 479.220, when such repair or maintenance is done on a single-family residence, or a private garage, carport or storage shed that is accessory to a single-family residence.

          (2) Items designated by the Director of the Department of Consumer and Business Services, with the advice of the [Building Codes] Residential Structures Board, shall be exempt from permits and fees required under this chapter. The director shall, pursuant to ORS 183.310 to 183.550, develop and maintain an applicable list of such exempt items, which shall include, but not be limited to, concrete slabs, driveways, sidewalks, masonry repair, porches, patio covers, painting, interior wall, floor or ceiling covering, nonbearing partitions, shelving, cabinet work, gutters, downspouts, small accessory buildings, door and window replacements, replacement or repair of siding and replacement or repair of roofing. In making the list of exempt items, the director shall further define the items on the list contained in this subsection so that no item which adversely affects the structural integrity of the dwelling shall be on the list.

 

          SECTION 27. ORS 455.420 is amended to read:

          455.420. (1) Each individual dwelling unit in a multifamily residential building constructed after October 4, 1977, shall have installed a separate, individual electrical meter for each such dwelling unit except where a building inspector certified under ORS 455.715 to 455.740 determines that pursuant to standards adopted by the Director of the Department of Consumer and Business Services the installation of a single, central electrical meter for all the dwelling units in such building would facilitate an overall reduction in electrical consumption by such units.

          (2) For the purpose of carrying out the provisions of subsection (1) of this section, the director, based on recommendations of the [Building Codes] Residential Structures Board, shall adopt by rule standards for determining whether the installation of a single electrical meter for all dwelling units in a multifamily residential building facilitates an overall reduction in electrical consumption by such units.

 

          SECTION 28. ORS 455.467 is amended to read:

          455.467. (1) Except as provided in subsection (2) of this section, for specialty code plan reviews of simple [one and two family] low-rise residential dwellings, the Department of Consumer and Business Services or a municipality that administers a building inspection program under ORS 455.148 or 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 ORS 455.465.

          (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 ORS 455.465.

          (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 455.148 or 455.150.

          (3) For specialty code plan reviews of commercial structures, a municipality shall include in its building inspection program submitted under ORS 455.148 or 455.150 a process for plan review services. The municipality shall include in its program detailed reasons supporting the proposed plan review process. The plan review services provided by the municipality shall:

          (a) Allow an applicant to defer the submittal of plans for one or more construction phases for a commercial construction project in accordance with the state building code; and

          (b) Allow an applicant to receive permits for each of the phases of a commercial construction project as described in the state building code when the plan review for that phase is approved.

          (4) For a phased commercial construction project as described in subsection (3) of this section, the municipality shall inform the applicant of the detailed plans necessary for each phase of the project and the estimated time for initial and phased review of the building plans for conformance with the state building code.

          (5) An applicant submitting plans under subsection (3) of this section is responsible for ensuring that the project meets all specialty code requirements and that the project does not proceed beyond the level of approval authorized by the building official.

          (6) 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 455.148 or 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 29. ORS 455.525 is amended to read:

          455.525. (1) In the manner provided in ORS 183.310 to 183.550 for the adoption of rules and after consideration of available technology and costs, the Building Codes Structures Board and the Residential Structures Board shall establish basic and uniform performance standards to provide maximum energy conservation and use of passive solar energy in the design, construction, reconstruction, alteration and repair of buildings and other structures. Such standards shall be submitted to the Director of the Department of Consumer and Business Services for proposed inclusion in the state building code as provided by ORS 455.030 (4).

          (2) Any testing requirements adopted under subsection (1) of this section do not apply to fenestration products that are for use within residential structures if the fenestration products are:

          (a) Used in the creation of sunrooms and solariums and constructed with a minimum of a one-half inch space between the panes; or

          (b) Fenestration products used as skylights that constitute no more than 10 percent of the total glazing used in any dwelling unit.

          (3) The Residential Structures Board and the director shall jointly adopt by rule default thermal performance values for residential fenestration products that are produced in low volume. Any testing requirements adopted under subsection (1) of this section or ORS 455.020 or 455.030 do not apply to residential fenestration products that are produced in low volume.

          (4) Fenestration products manufactured for use as skylights that are subject to the provisions of subsection (1) of this section and have frames that are wood, thermal break aluminum or aluminum with vinyl shall be deemed to meet any performance standards included in the state building code when the following glazing configurations are used:

          (a) A minimum one-half inch space between the panes and low-e (emissivity) glass; or

          (b) Triple-layered acrylic.

          (5) Regulations relating to the use and conservation of energy adopted pursuant to ORS 455.020 (2) shall be reviewed by the Building Codes Structures Board and the Residential Structures Board.

 

          SECTION 30. ORS 455.530 is amended to read:

          455.530. The Building Codes Structures Board and the Residential Structures Board may:

          (1) Apply for and receive moneys from any person, from the federal government, [or] from this state or from any [of its agencies or departments] state agency or department.

          (2) Contract with any public agency for the performance of services or the exchange of employees or services by one to the other necessary in carrying out the purposes of ORS 455.525 and 455.530.

 

          SECTION 31. ORS 455.610 is amended to read:

          455.610. (1) The Director of the Department of Consumer and Business Services shall adopt, and amend as necessary, a [One and Two Family Dwelling Code based upon nationally recognized codes as adopted in Oregon.] Low-Rise Residential Dwelling Code that contains all requirements, including structural design provisions, related to the construction of residential dwellings three stories or less above grade. The code provisions for plumbing and electrical requirements must be compatible with other specialty codes adopted by the director. The Electrical and Elevator Board, the Building Codes Structures Board and the State Plumbing Board shall review, respectively, amendments to the electrical, mechanical or plumbing provisions of the code.

          (2) Changes or amendments to the code adopted under subsection (1) of this section may be made when:

          (a) Required by geographic or climatic conditions unique to Oregon;

          (b) Necessary to be compatible with other statutory provisions;

          (c) Changes to the national codes are adopted in Oregon; or

          (d) Necessary to authorize the use of building materials and techniques that are consistent with nationally recognized standards and building practices.

          [(3) The energy conservation provisions adopted in the One and Two Family Dwelling Code shall also be adopted in the State of Oregon Structural Specialty Code.]

          [(4)] (3) The water conservation provisions for toilets, urinals, shower heads and interior faucets adopted in the [One and Two Family] Low-Rise Residential Dwelling Code shall be the same as those adopted under ORS 447.020 to meet the requirements of ORS 447.145.

          [(5)] (4) The Low-Rise Residential Dwelling Code shall be adopted and amended as provided by ORS 455.030 and 455.110.

          [(6) The Building Codes Structures Board is the only appropriate board to advise the director on the adoption of or amendments to the One and Two Family Dwelling Code adopted under this section. Amendments shall be reviewed by the other appropriate specialty boards.]

          [(7) Amendments to the One and Two Family Dwelling Code shall be included in the other appropriate specialty codes.]

          [(8)] (5) The director, by rule, shall establish uniform standards for a municipality to allow an alternate method of construction to the requirements for [structures] one and two family dwellings built to the [One and Two Family] Low-Rise Residential Dwelling Code in areas where the local jurisdiction determines that the fire apparatus means of approach to a property or water supply serving a property does not meet applicable fire code or state building code requirements. The alternate method of construction, which may include but is not limited to the installation of automatic fire sprinkler systems, must be approved in conjunction with the approval of an application under ORS 197.522.

          [(9)] (6) For lots of record existing before July 2, 2001, or property that receives any approval for partition, subdivision or construction under ORS 197.522 before July 2, 2001, a municipality allowing an alternate method of construction to the requirements for [structures] one and two family dwellings built to the [One and Two Family] Low-Rise Residential Dwelling Code may apply the uniform standards established by the director pursuant to subsection [(8)] (5) of this section. For property that receives all approvals for partition, subdivision or construction under ORS 197.522 on or after July 2, 2001, a municipality allowing an alternate method of construction to the requirements for [structures] one and two family dwellings built to the [One and Two Family] Low-Rise Residential Dwelling Code must apply the uniform standards established by the director pursuant to subsection [(8)] (5) of this section.

 

          SECTION 32. ORS 455.610, as amended by section 31 of this 2003 Act, is amended to read:

          455.610. (1) The Director of the Department of Consumer and Business Services shall adopt, and amend as necessary, a Low-Rise Residential Dwelling Code that contains all requirements, including structural design provisions, related to the construction of residential dwellings three stories or less above grade. The code provisions for plumbing and electrical requirements must be compatible with other specialty codes adopted by the director. The Electrical and Elevator Board, the [Building Codes Structures] Mechanical Board and the State Plumbing Board shall review, respectively, amendments to the electrical, mechanical or plumbing provisions of the code.

          (2) Changes or amendments to the code adopted under subsection (1) of this section may be made when:

          (a) Required by geographic or climatic conditions unique to Oregon;

          (b) Necessary to be compatible with other statutory provisions;

          (c) Changes to the national codes are adopted in Oregon; or

          (d) Necessary to authorize the use of building materials and techniques that are consistent with nationally recognized standards and building practices.

          (3) The water conservation provisions for toilets, urinals, shower heads and interior faucets adopted in the Low-Rise Residential Dwelling Code shall be the same as those adopted under ORS 447.020 to meet the requirements of ORS 447.145.

          (4) The Low-Rise Residential Dwelling Code shall be adopted and amended as provided by ORS 455.030 and 455.110.

          (5) The director, by rule, shall establish uniform standards for a municipality to allow an alternate method of construction to the requirements for one and two family dwellings built to the Low-Rise Residential Dwelling Code in areas where the local jurisdiction determines that the fire apparatus means of approach to a property or water supply serving a property does not meet applicable fire code or state building code requirements. The alternate method of construction, which may include but is not limited to the installation of automatic fire sprinkler systems, must be approved in conjunction with the approval of an application under ORS 197.522.

          (6) For lots of record existing before July 2, 2001, or property that receives any approval for partition, subdivision or construction under ORS 197.522 before July 2, 2001, a municipality allowing an alternate method of construction to the requirements for one and two family dwellings built to the Low-Rise Residential Dwelling Code may apply the uniform standards established by the director pursuant to subsection (5) of this section. For property that receives all approvals for partition, subdivision or construction under ORS 197.522 on or after July 2, 2001, a municipality allowing an alternate method of construction to the requirements for one and two family dwellings built to the Low-Rise Residential Dwelling Code must apply the uniform standards established by the director pursuant to subsection (5) of this section.

 

          SECTION 33. ORS 455.622 is amended to read:

          455.622. Notwithstanding ORS 447.020, 455.715 to 455.740, 479.810 (3) or 479.855, the Department of Consumer and Business Services shall adopt education, training and examination requirements that allow certification of inspectors to perform inspections on one and two family dwellings under one or more aspects of the [One and Two Family] Low-Rise Residential Dwelling Code adopted under ORS 455.610 to 455.630.

 

          SECTION 34. ORS 455.625 is amended to read:

          455.625. The Director of the Department of Consumer and Business Services shall, by rule, adopt:

          (1) A list of information required for [one and two family] low-rise residential dwelling building permits; and

          (2) A priority schedule for [one and two family] low-rise residential dwelling inspections and plan review requirements.

 

          SECTION 35. ORS 455.627 is amended to read:

          455.627. The Department of Consumer and Business Services, in consultation with the [appropriate advisory board as defined in ORS 455.010] Residential Structures Board, shall adopt rules to create a mandatory random inspection program for minor electrical installations made by electrical contractors in [one and two family] low-rise residential dwellings.

 

          SECTION 36. ORS 455.630 is amended to read:

          455.630. (1) The [One and Two Family] Low-Rise Residential Dwelling Code shall be enforced by inspectors and building officials qualified pursuant to ORS 455.715 to 455.740.

          (2) Notwithstanding subsection (1) of this section, enforcement of electrical specialty code, permit and licensing provisions shall be under the sole authority of the Electrical and Elevator Board in the Department of Consumer and Business Services.

 

          SECTION 37. ORS 455.715 is amended to read:

          455.715. As used in ORS 455.715 to 455.740, unless the context otherwise requires:

          (1) “Building official” means a person charged by a municipality with responsibility for administration and enforcement of the state building code in the municipality.

          (2) “Business of providing prefabricated structure plan approvals and inspections” means an independent contractor providing prefabricated structure plan approval or inspection services, or both, under the following specialty codes, as provided in ORS 455.020, 455.705 and 455.715:

          (a) Structural;

          (b) Mechanical;

          (c) Plumbing;

          (d) Electrical; and

          (e) [One and two family] Low-rise residential dwelling.

          (3) “Inspector” means:

          (a) A person, including a plans examiner, acting under the authority and direction of a building official and charged with the responsibility of routine enforcement of any specialty code; or

          (b) A person, including a plans examiner, who provides enforcement of any specialty code, who is personally in the business of providing prefabricated structure plan approvals or inspections or is employed by such a business.

 

          SECTION 38. ORS 455.800 is amended to read:

          455.800. As used in ORS 455.800 to 455.820:

          (1) “Building official” means a person who is a building official as defined in ORS 455.715 or a Department of Consumer and Business Services employee charged with enforcement or administration of the state building code.

          (2) “Building trade committee” means a group composed of experienced and knowledgeable local general contractors or other persons having substantial expertise in various aspects of one and two family dwelling construction under the Low-Rise Residential Dwelling Code.

          (3) “General contractor” has the meaning given that term in ORS 701.005.

          (4) “Master builder” means a person certified under ORS 455.810.

          (5) “Qualified construction company” means a company that has been:

          (a) Continuously licensed by the Construction Contractors Board during the preceding 60 months as a general contractor; or

          (b) Continuously licensed by the Construction Contractors Board during at least the preceding 24 months as a general contractor and by one or more other states during the balance of the preceding 60 months in an occupation equivalent to that of a general contractor.

          (6) “Regular employee” means a person who:

          (a) Is continuously employed by, and on the regular payroll of, a qualified construction company;

          (b) Has filed a withholding exemption certificate pursuant to ORS 316.182 for work performed for the qualified construction company; and

          (c) Is available during working hours to supervise on-site dwelling construction, including but not limited to supervising the installation of:

          (A) Drywall;

          (B) Electrical systems;

          (C) Footings;

          (D) Foundations;

          (E) Framing;

          (F) Insulation;

          (G) Mechanical systems;

          (H) Plumbing systems; and

          (I) Stairs.

          (7) “Whole dwelling remodel” means a project that includes the installation in an existing dwelling of all of the following:

          (a) Drywall;

          (b) Electrical systems;

          (c) Footings;

          (d) Foundations;

          (e) Framing;

          (f) Insulation;

          (g) Mechanical systems; and

          (h) Plumbing systems.

 

          SECTION 39. ORS 455.805 is amended to read:

          455.805. An individual may apply to the Department of Consumer and Business Services to be tested and certified as a master builder. The department shall establish uniform criteria for use in determining whether to grant an application. The criteria must, at a minimum, provide that:

          (1) The individual must be an owner or regular employee of a qualified construction company and be authorized by the company to provide assurance to the department that all state and local code requirements are met.

          (2) In each of the five preceding calendar years, the individual must either have performed or supervised a dwelling construction or whole dwelling remodel. In at least two of the years, the construction or remodel must have occurred in a geographic area that had a master builder program.

          (3) The individual must have completed a program sponsored by a local building trade committee or other program approved by the department, providing training relating to the [One and Two Family] construction of one and two family dwellings under the Low-Rise Residential Dwelling Code. A program must include but need not be limited to instruction in:

          (a) Administration;

          (b) Chimneys and fireplaces;

          (c) Decay and termite protections;

          (d) Energy conservation;

          (e) Footings and foundations;

          (f) Roof-ceiling construction;

          (g) Roof coverings;

          (h) Site inspections;

          (i) Wall construction, assemblies and coverings; and

          (j) Wood and metal framing.

          (4) The individual must have scored at least 75 percent on a written examination, approved and administered by the department, covering the [One and Two Family] appropriate aspects of the Low-Rise Residential Dwelling Code.

          (5)(a) The individual must not be the subject of an adverse final order issued by the Construction Contractors Board or Department of Consumer and Business Services based upon acts committed within 36 months preceding the application date that:

          (A) Violated a specialty code, licensing or permit requirement; or

          (B) Resulted in a claim being filed with the board or department against the individual.

          (b) For purposes of this subsection, if the individual is an owner of a qualified construction company, an adverse final order issued against the company is an adverse final order issued against that individual.

 

          SECTION 40. ORS 455.815 is amended to read:

          455.815. (1) Local government establishment of a master builder program is voluntary. A local government electing to establish or terminate a program shall notify the Department of Consumer and Business Services. If terminating a program, the local government must give the notice six months before the program terminates.

          (2) The Department of Consumer and Business Services may implement a master builder program in one or more geographic areas for which the department provides plan review or inspection services. A department decision to include an area as a participant in the program affects only those areas, and those reviews or inspections, for which the department provides services instead of a local government. The department shall notify a county prior to implementing a master builder program in areas of the county that are served by the department.

          (3) A local government may not allow an individual to perform the duties of a master builder unless the local government has a master builder program. The department may allow an individual to perform the duties of a master builder in any geographic area administered by the department.

          (4) A building official of a government having a master builder program may waive plan review elements by that government and may waive government performance of one or more of the required inspections identified by department rule, including but not limited to inspections described in subsection (6) of this section, if:

          (a) An individual certified as a master builder submits construction plans for a one or two family dwelling regulated by the [One and Two Family] Low-Rise Residential Dwelling Code; and

          (b) The building official determines that:

          (A) The work is not of a highly technical nature; and

          (B) There is no unreasonable potential risk to safety of the structure.

          (5) A building official may not waive government performance of plan review or required inspections for:

          (a) Special design applications that are complex and highly technical engineered systems; or

          (b) Unique building sites, including but not limited to sites containing geologic hazards such as landslide hazard areas, floodplains and wetlands.

          (6) Subject to subsections (3) to (5) of this section, a building official may allow a master builder to verify that the master builder has properly performed an installation on a project and, to the extent that inspection would duplicate the verification conducted by the master builder, may waive government performance of the following required inspections:

          (a) Drywall;

          (b) Footings and setbacks;

          (c) Foundation walls, Ufer grounding rods and rebar;

          (d) Insulation;

          (e) Masonry fireplace pre-cover;

          (f) Masonry rebar;

          (g) Gutters, downspouts and foundation drains;

          (h) Roof sheathing nailing;

          (i) Suspended ceilings;

          (j) Underfloor structural; and

          (k) Wall sheathing nailing.

 

          SECTION 41. ORS 455.842 is amended to read:

          455.842. (1) The [Tri-County Building Industry Service Board] Department of Consumer and Business Services shall establish and staff a Tri-County Building Industry Service Center to make available to licensed contractors and their employees, local governments and the public the resources and services described in ORS 455.844. [The Department of Consumer and Business Services shall provide staff to support the activities of the service center. Staff shall be considered public employees for purposes of the State Personnel Relations Law.]

          [(2) In accordance with ORS 183.310 to 183.550, the board shall adopt rules necessary for enforcing the laws that the board is charged with administering.]

          [(3)] (2) [With the approval of] The Director of the Department of Consumer and Business Services[, the board] may adopt by rule a reasonable fee schedule for the purpose of recovering the costs incurred by the [board] department and the service center in providing services under ORS 455.844. Fees adopted and imposed under this section shall be in addition to the total building permit fees otherwise imposed in Clackamas, Multnomah and Washington Counties. A municipality shall collect fees adopted and imposed under this section and remit the fees to the [director. The director shall deposit the fees in the Tri-County Building Industry Service Center Account established under ORS 455.848] department.

 

          SECTION 42. ORS 455.844 is amended to read:

          455.844. The [Tri-County Building Industry Service Board] Department of Consumer and Business Services shall:

          (1) Develop and administer an installation label program for minor installations under the state building code, including but not limited to electrical installations under ORS 455.627, 479.540 and 479.570 and plumbing installations under ORS 447.076;

          (2) Develop standard application forms and procedures for use by municipalities in Clackamas, Multnomah and Washington Counties when issuing structural, mechanical, electrical, plumbing and other permits when such permits do not require a review of building plans;

          (3) Develop standard application forms and procedures for issuing building permits and recording inspections;

          (4) Develop standard forms and procedures for reviewing building plans;

          (5) Establish standardized criteria and methodology for determining fee amounts for permits that are required under the state building code established under ORS 455.030;

          (6) Maintain and make available to the public the names of persons certified to review building plans;

          (7) Maintain and make available to the public the names of persons certified to perform technical inspections;

          [(8) Review the qualifications of persons applying for licensing or certification as an inspector in Clackamas, Multnomah and Washington Counties under any specialty code adopted under ORS 455.030. Notwithstanding ORS 455.737, the board may certify a person as eligible to sit for examination required under ORS chapter 446, 447, 455, 460, 479 or 480. Nothing in this subsection affects the minimum qualifications for licensing, certification or registration under ORS chapter 446, 447, 455, 460, 479 or 480. Examinations and other testing for persons applying for licensing, certification or registration under one or more of the specialty codes shall be conducted as provided under the laws and regulations relating to each specialty code;]

          [(9) Develop and make available appropriate training for persons to review building plans and perform inspections;]

          [(10)] (8) Administer prepaid building permit cost accounts;

          [(11)] (9) Establish [within the Tri-County Building Industry Service Center] sufficient resources to assist local building officials in interpreting the state building code;

          [(12)] (10) Establish a process to facilitate consistent application of the state building code for the [geographical jurisdiction covered by the board] area served by the Tri-County Building Industry Service Center; and

          [(13)] (11) Develop a process for resolving disputes between local building officials and contractors or developers regarding site-specific application of one or more provisions of the state building code.

 

          SECTION 43. ORS 455.846 is amended to read:

          455.846. In accordance with the applicable provisions of ORS 183.310 to 183.550, [the Tri-County Building Industry Service Board, with the approval of] the Director of the Department of Consumer and Business Services[,] may adopt rules necessary for the implementation of ORS [455.840,] 455.842 and 455.844 [and section 8, chapter 1082, Oregon Laws 1999].

 

          SECTION 44. ORS 469.700 is amended to read:

          469.700. (1) The [Building Codes] Residential Structures Board, after public hearing, shall adopt a recommended voluntary energy efficiency rating system for single family residences and provide the Office of Energy with a copy thereof.

          (2) The rating system shall provide a single numerical value or other simple concise means to measure the energy efficiency of any single family residence, taking into account factors including, but not limited to, the heat loss characteristics of ceilings, walls, floors, windows, doors and heating ducts.

          (3) Upon adoption of the rating system under subsections (1) and (2) of this section, the Office of Energy shall publicize the availability of the system, and encourage its voluntary use in real estate transactions.

          (4) As used in subsections (1) to (3) of this section, “single family residence” means a structure designed as a residence for one family and sharing no common wall with another residence of any type.

 

          SECTION 45. ORS 479.905, as amended by section 4, chapter 728, Oregon Laws 2001, is amended to read:

          479.905. For the purposes of ORS 479.870 and 479.905 to 479.945, except where the context requires otherwise:

          (1) “Class A limited energy technician” means a person licensed to install, alter and repair all limited energy systems.

          (2) “Class B limited energy technician” means a person licensed to install, alter and repair all limited energy systems that do not include protective signaling, including but not limited to:

          (a) HVAC;

          (b) Medical;

          (c) Boiler controls;

          (d) Intercom and paging systems;

          (e) Clock systems;

          (f) Data telecommunication installations; and

          (g) Instrumentation.

          (3) “HVAC” means thermostat and associated control wiring of heating, ventilation, air conditioning and refrigeration systems. “HVAC” does not include boiler controls.

          (4) “Limited energy electrical activity” means installation, alteration, maintenance, replacement or repair of electrical wiring and electrical products that do not exceed 100 volt-amperes in Class 2 and Class 3 installations, or that do not exceed 300 volt-amperes for landscape low voltage lighting systems that are cord connected to a ground fault circuit interrupter receptacle, under the electrical specialty code and the [One and Two Family] Low-Rise Residential Dwelling Code.

          (5) “Protective signaling” includes fire alarm, nurse call, burglar alarm, security and voice evacuation systems and other systems that are part of a fire or life safety system.

 

          SECTION 46. ORS 479.940, as amended by section 7, chapter 728, Oregon Laws 2001, is amended to read:

          479.940. (1) The licensure provisions of ORS 479.510 to 479.945 and 479.995 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 and 479.995 do not apply to limited energy electrical activity involving landscape irrigation control wiring and outdoor landscape lighting installed by a business licensed under ORS 671.510 to 671.710.

          (b) A business exempt from licensing under this section 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 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 and 479.995 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 and 479.995, 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 47. ORS 705.145 is amended to read:

          705.145. (1) There is created in the State Treasury a fund to be known as the Consumer and Business Services Fund, separate from the General Fund. All moneys collected or received by the Department of Consumer and Business Services, except moneys collected pursuant to ORS 735.612 and those moneys required to be paid into the Workers’ Benefit Fund, shall be paid into the State Treasury and credited to the Consumer and Business Services Fund. Moneys in the fund may be invested in the same manner as other state moneys and any interest earned shall be credited to the fund.

          (2) The department shall keep a record of all moneys deposited in the Consumer and Business Services Fund that shall indicate, by separate account, the source from which the moneys are derived, the interest earned and the activity or program against which any withdrawal is charged.

          (3) Should moneys credited to any one account be withdrawn, transferred or otherwise used for purposes other than the program or activity for which the account is established, interest shall accrue on the amount withdrawn from the date of withdrawal and until such funds are restored.

          (4) Moneys in the fund shall provide and are appropriated for the administrative expenses of the department and for its expenses in carrying out its functions and duties under any provision of law.

          (5) Except as provided in ORS 705.165, it is the intention of the Legislative Assembly that the performance of the various duties and functions of the department in connection with each of its programs shall be financed by the fees, assessments and charges established and collected in connection with those programs.

          (6) There is created by transfer from the Consumer and Business Services Fund a revolving administrative account in the amount of $100,000. The revolving account shall be disbursed by checks or orders issued by the director or the Workers’ Compensation Board and drawn upon the State Treasury, to carry on the duties and functions of the department and the board. All checks or orders paid from the revolving account shall be reimbursed by a warrant drawn in favor of the department charged against the Consumer and Business Services Fund and recorded in the appropriate subsidiary record.

          (7) For the purposes of ORS chapter 656, the revolving account created pursuant to subsection (6) of this section may also be used to:

          (a) Pay compensation benefits; and

          (b) Refund to employers amounts paid to the Consumer and Business Services Fund in excess of the amounts required by ORS chapter 656.

          (8) Notwithstanding subsections (2), (3) and (5) of this section and except as provided in ORS 455.220 (1), the moneys derived pursuant to ORS 446.003 to 446.200, 446.210, 446.225 to 446.285, 446.395 to 446.420 and 455.220 (1) and deposited to the fund, interest earned on those moneys and withdrawals of moneys for activities or programs under ORS 446.003 to 446.200, 446.210, 446.225 to 446.285 and 446.395 to 446.420, or education and training programs pertaining thereto, must be assigned to a single account within the fund.

          (9) Notwithstanding subsections (2), (3) and (5) of this section, the moneys derived pursuant to ORS 455.240 or 460.370 or from state building code or specialty code program fees for which the amount is established by department rule pursuant to ORS 455.020 (2) and deposited to the fund, interest earned on those moneys and withdrawals of moneys for activities or programs described under ORS 455.240 or 460.310 to 460.370, structural or mechanical specialty code programs or activities for which a fee is collected under ORS 455.020 (2), or programs described under subsection (10) of this section that provide training and education for persons employed in producing, selling, installing, delivering or inspecting manufactured structures or manufactured dwelling parks or recreation parks, must be assigned to a single account within the fund.

          (10) Notwithstanding ORS chapter 279, the department may, after consultation with the appropriate specialty code advisory boards established under ORS 446.280, 455.132, 455.138, 480.535 and 693.115, contract for public or private parties to develop or provide training and education programs relating to the state building code and associated licensing or certification programs.

 

          SECTION 48. Section 2, chapter 329, Oregon Laws 1999, is amended to read:

          Sec. 2. The Director of the Department of Consumer and Business Services [shall conduct a review of the latest developments in communications and cable service technology. Based on the results of the review, the director] shall adopt, amend or repeal the state building code as necessary to establish viable standards for providing advanced telecommunications and cable service technology to newly constructed [one and two family] low-rise residential dwellings.

 

          SECTION 49. ORS 455.840 and 455.848 and section 8, chapter 1082, Oregon Laws 1999, are repealed.

 

          SECTION 50. (1) Notwithstanding section 2 of this 2003 Act and the amendments to ORS 446.003, 455.010, 455.030, 455.100, 455.110, 455.132, 455.153, 455.156, 455.310, 455.420, 455.467, 455.525, 455.530, 455.610, 455.622, 455.625, 455.627, 455.630, 455.715, 455.800, 455.805, 455.815, 469.700, 479.905 and 479.940 and section 2, chapter 329, Oregon Laws 1999, by sections 6, 10, 12, 14, 16, 18, 22, 24, 26 to 31, 33 to 40, 44 to 46 and 48 of this 2003 Act, any rule or standard for one and two family dwellings adopted by the Building Codes Structures Board prior to the operative date set forth in section 53 (1) of this 2003 Act continues in full force and effect until superseded by rules for low-rise residential dwellings adopted by the Residential Structures Board.

          (2) Notwithstanding section 4 of this 2003 Act and the amendments to ORS 455.010, 455.100, 455.132, 455.153 and 455.610 by sections 11, 15, 19, 23 and 32 of this 2003 Act, any rule or standard for mechanical, heating and ventilating devices and equipment adopted by the Building Codes Structures Board prior to the operative date set forth in section 53 (2) of this 2003 Act continues in full force and effect until superseded by rules for mechanical, heating and ventilating devices and equipment adopted by the Mechanical Board.

          (3) In adopting rules, the Residential Structures Board and the Mechanical Board shall specifically identify any rule adopted by the Building Codes Structures Board that is being superseded. The board adopting a rule shall notify the Building Codes Structures Board that the Building Codes Structures Board rule has been superseded.

 

          SECTION 51. (1) Section 2 of this 2003 Act and the amendments to ORS 446.003, 455.010, 455.030, 455.100, 455.110, 455.132, 455.153, 455.156, 455.310, 455.420, 455.467, 455.525, 455.530, 455.610, 455.622, 455.625, 455.627, 455.630, 455.715, 455.800, 455.805, 455.815, 469.700, 479.905 and 479.940 and section 2, chapter 329, Oregon Laws 1999, by sections 6, 10, 12, 14, 16, 18, 22, 24, 26 to 31, 33 to 40, 44 to 46 and 48 of this 2003 Act do not:

          (a) Suspend, limit, terminate or prevent an order issued by the Building Codes Structures Board prior to, on or after the operative date set forth in section 53 (1) of this 2003 Act based on events occurring prior to that date; or

          (b) Eliminate or prevent a fee, civil penalty or other liability imposed by the Building Codes Structures Board prior to, on or after the operative date set forth in section 53 (1) of this 2003 Act based on events occurring prior to that date.

          (2) The Building Codes Structures Board may transfer to the Residential Structures Board the power to enforce an order, fee, civil penalty or other liability described in subsection (1) of this section relating to a residential dwelling three stories or less above grade.

          (3) Section 4 of this 2003 Act and the amendments to ORS 455.010, 455.100, 455.132, 455.153 and 455.610 by sections 11, 15, 19, 23 and 32 of this 2003 Act do not:

          (a) Suspend, limit, terminate or prevent an order issued by the Building Codes Structures Board prior to, on or after the operative date set forth in section 53 (2) of this 2003 Act based on events occurring prior to that date; or

          (b) Eliminate or prevent a fee, civil penalty or other liability imposed by the Building Codes Structures Board prior to, on or after the operative date set forth in section 53 (2) of this 2003 Act based on events occurring prior to that date.

          (4) The Building Codes Structures Board may transfer to the Mechanical Board the power to enforce an order, fee, civil penalty or other liability described in subsection (3) of this section relating to mechanical, heating and ventilating devices and equipment.

          (5) The amendments to ORS 455.132 by section 17 of this 2003 Act do not suspend, limit, terminate, prevent or otherwise affect any action taken by the Building Codes Structures Board prior to, on or after the effective date of this 2003 Act.

          (6) On the effective date of this 2003 Act, the office of members of the Tri-County Building Industry Service Board shall cease. This subsection and the amendments to ORS 455.842, 455.844 and 455.846 by sections 41 to 43 of this 2003 Act and the repeal of ORS 455.840 and 455.848 and section 8, chapter 1082, Oregon Laws 1999, by section 49 of this 2003 Act do not suspend, limit, terminate, prevent or otherwise affect any action of the Department of Consumer and Business Services taken by or through the board prior to the effective date of this 2003 Act.

 

          SECTION 52. (1) The Director of the Department of Consumer and Business Services and the Governor may take all actions prior to the operative date set forth in section 53 (1) of this 2003 Act necessary to facilitate the carrying out of sections 2 and 3 of this 2003 Act and the amendments to statutes and session law by sections 6 to 10, 12 to 14, 16, 18, 20, 22, 24 to 31, 33 to 40 and 44 to 48 of this 2003 Act on and after the operative date set forth in section 53 (1) of this 2003 Act.

          (2) The director and the Governor may take all actions prior to the operative date set forth in section 53 (2) of this 2003 Act necessary to facilitate the carrying out of sections 4 and 5 of this 2003 Act and the amendments to ORS 455.010, 455.100, 455.132, 455.144, 455.153 and 455.610 by sections 11, 15, 19, 21, 23 and 32 of this 2003 Act on and after the operative date set forth in section 53 (2) of this 2003 Act.

          (3) For purposes of administrative convenience, the Governor may adjust the initial term of office for the persons first appointed to the Building Codes Structures Board pursuant to the amendments to ORS 455.132 by section 17 of this 2003 Act.

          (4) On the effective date of this 2003 Act, the office of persons holding positions on the Building Codes Structures Board eliminated by the amendments to ORS 455.132 by section 17 of this 2003 Act shall cease. For board positions that are combined under the amendments to ORS 455.132 by section 17 of this 2003 Act, the Governor shall determine which of the offices continue or cease.

 

          SECTION 53. (1) Sections 1 to 3 of this 2003 Act and the amendments to statutes and session law by sections 6 to 10, 12 to 14, 16, 18, 20, 22, 24 to 31, 33 to 40 and 44 to 48 of this 2003 Act become operative on January 1, 2004.

          (2) Sections 4 and 5 of this 2003 Act and the amendments to ORS 455.010, 455.100, 455.132, 455.144, 455.153 and 455.610 by sections 11, 15, 19, 21, 23 and 32 of this 2003 Act become operative on July 1, 2004.

 

CONSTRUCTION CONTRACTS

 

          SECTION 54. As used in sections 54 to 58 of this 2003 Act:

          (1) “Construction contract” means a written or oral construction agreement, including all plans, specifications and addenda relating to:

          (a) Excavating, landscaping, demolishing and detaching existing structures, leveling, filling in and other preparation of land for the making and placement of a building, structure or superstructure;

          (b) Creation or making of a building, structure or superstructure; and

          (c) Alteration, partial construction and repairs done in and upon a building, structure or superstructure.

          (2) “Contractor” has the meaning given that term in ORS 87.005.

          (3) “Days” means calendar days.

          (4) “Material supplier” means any person providing materials or products under a construction contract by any contractual means including oral authorization, written contract, purchase order, price agreement or rental agreement.

          (5) “Original contractor” has the meaning given that term in ORS 87.005.

          (6) “Owner” has the meaning given that term in ORS 701.410.

          (7) “Subcontractor” has the meaning given that term in ORS 87.005.

 

          SECTION 55. (1) By mutual agreement with an original contractor, an owner may make progress payments to the original contractor on a construction contract that is anticipated to last less than 60 days. An owner shall make progress payments to the original contractor on all other construction contracts. Progress payments shall be made on the basis of a certified billing or estimate for the work performed and the materials or products supplied during the preceding 30-day billing cycle, or an alternate billing cycle as stated in the construction contract. If billings or estimates are to be submitted in alternate, rather than 30-day billing cycles, the construction contract shall specify the alternate billing cycles in a clear and conspicuous manner as prescribed in subsection (2) of this section. Except as provided in subsection (3) of this section, the owner shall make progress payments to the original contractor within 14 days after the date the billing is submitted pursuant to subsection (4) of this section.

          (2) A construction contract may provide for an alternate billing cycle if the plans and specifications specifically set forth that there is an alternate billing cycle and the owner provides for each page of plans and specifications a statement substantially similar to the following statement:

____________________________________________________________________________

 

Notice of Alternate Billing Cycle

 

          The contract will allow the owner to require the submission of billings or estimates in billing cycles other than 30-day cycles. Billings or estimates for the contract shall be submitted as follows:

____________________________________________________________________________

 

____________________________________________________________________________

 

____________________________________________________________________________

 

____________________________________________________________________________

 

          (3) An owner may make progress payments later than 14 days after the date the billing or estimate is submitted if:

          (a) The owner is responsible for providing plans and specifications that expressly allow in a clear and conspicuous manner an extended payment, defined by a specified number of days after the billing or estimate is submitted; and

          (b) The owner provides for each page of plans and specifications a statement substantially similar to the following statement:

____________________________________________________________________________

 

Notice of Extended Payment Provision

 

          The contract will allow the owner to make payment within ___ days after the date a billing or estimate is submitted.

____________________________________________________________________________

 

          (4) The owner is deemed to have received the billing or estimate when the billing or estimate is submitted to any person designated by the owner for the receipt, review or approval of the billing or estimate. A billing or estimate is deemed to be certified 10 days after the owner receives the billing or estimate, unless before that time the owner or the owner’s agent prepares and issues a written statement detailing those items in the billing or estimate that are not approved. An owner may decline to approve a billing or estimate or portion of a billing or estimate for:

          (a) Unsatisfactory work progress;

          (b) Defective construction work, materials or products not remedied;

          (c) Disputed work, materials or products, not to exceed 150 percent of the amount in dispute;

          (d) Failure to comply with other material provisions of the construction contract;

          (e) Third party claims filed or reasonable evidence that such a claim will be filed;

          (f) Failure of the original contractor or a subcontractor to make timely payments to subcontractors and material suppliers for labor, equipment, materials and products;

          (g) Damage to the owner;

          (h) Reasonable evidence that the construction contract cannot be completed for the unpaid balance of the construction contract sum; or

          (i) Other items as allowed under the contract terms and conditions.

          (5) An owner may withhold from a progress payment an amount that is sufficient to pay the direct expenses the owner reasonably expects to incur to correct any items set forth in writing pursuant to subsection (4) of this section. The owner may also withhold a reasonable amount as retainage as defined in ORS 701.410.

          (6) An owner may extend the period within which the billing or estimate may be certified if:

          (a) The owner is responsible for providing plans and specifications that expressly allow in a clear and conspicuous manner an extended period within which a billing or estimate may be certified; and

          (b) The owner provides for each page of plans and specifications, including bid plans and construction plans, a statement substantially similar to the following statement:

____________________________________________________________________________

 

Notice of

Extended Certification Period Provision

 

          The contract will allow the owner to certify billings and estimates within ___ days after the billings and estimates are received from the original contractor.

____________________________________________________________________________

 

          (7) After a subcontractor or material supplier submits a bid or proposal or other written pricing information to an original contractor, an owner and the original contractor may change the specified number of days after certification during which the owner may make payment to the original contractor or within which the owner must certify a billing or estimate. Any original contractor, subcontractor or material supplier that does not provide written consent to the change will continue to be paid as indicated in the plans and specifications.

          (8) When an original contractor completes and an owner approves all work under a construction contract, the owner shall make payment in full of all remaining amounts due on the construction contract within seven days. When an original contractor completes and an owner approves all work under a portion of a construction contract for which the contract states a separate price, the owner shall make payment in full of all remaining amounts due on that portion of the construction contract, subject to the satisfaction of any issue described in subsection (4) of this section or section 56 (4) of this 2003 Act.

          (9) Payment is not required under this section unless the original contractor provides the owner with a billing or estimate for the work performed or the materials or products supplied in accordance with the terms of the construction contract between the parties.

          (10) A construction contract may not alter the right of any original contractor, subcontractor or material supplier to receive prompt and timely progress payments as provided under this section.

          (11) If an owner or a person designated by the owner as responsible for making progress payments on a construction contract does not make a timely payment under this section, the owner shall pay the original contractor interest on the unpaid balance at the rate of one and one-half percent a month or fraction of a month, or at a higher rate as the parties to the construction contract may agree.

          (12) On the written request of a subcontractor, the owner shall notify the subcontractor within five days after the issuance of a progress payment to the original contractor. On the written request of a subcontractor, the owner shall notify the subcontractor within five days after the owner makes the final payment to the original contractor on the construction contract.

          (13) In any action, claim or arbitration brought to collect payments or interest pursuant to this section, the prevailing party shall be awarded reasonable costs and attorney fees.

          (14) If the owner and original contractor are a single entity, that entity shall pay subcontractors and material suppliers within 14 days after the billing or estimate is received unless the deadlines for certification or payment have been modified pursuant to subsection (3) or (6) of this section.

 

          SECTION 56. (1) Performance by an original contractor, subcontractor or material supplier in accordance with the provisions of a construction contract entitles the original contractor, subcontractor or material supplier to payment from the party with whom the original contractor, subcontractor or material supplier contracts.

          (2) If a subcontractor or material supplier has performed in accordance with the provisions of a construction contract, the original contractor shall pay to the subcontractor or material supplier, and each subcontractor shall pay to its subcontractors or material suppliers, the full amount received for such subcontractor’s work and for materials and products supplied based on the subcontract or purchase order terms and conditions within seven days of receipt by the original contractor or subcontractor of a progress payment or final payment. Payment is not required under this subsection unless a subcontractor or material supplier provides to the original contractor or subcontractor a billing or invoice for the work performed or materials or products supplied in compliance with the terms of the contract between the parties. Each subcontractor or material supplier must provide an appropriate waiver of any mechanic’s or materialman’s lien in accordance with subcontract or purchase order terms and conditions. The original contractor or subcontractor may require that such waivers of lien be notarized.

          (3) Any failure to reasonably account for the application or use of payments, as proven in a legal proceeding authorized under the terms of the construction contract, may constitute grounds for disciplinary action by the Construction Contractors Board under ORS 701.135.

          (4) Nothing in this section prevents an original contractor when submitting a bill or estimate to an owner, or a subcontractor when submitting a bill or estimate to the original contractor, from omitting from the bill estimate amounts

withheld from payment to a subcontractor or material supplier for:

          (a) Unsatisfactory work progress;

          (b) Defective construction work, materials or products not remedied;

          (c) Disputed work, materials or products, not to exceed 150 percent of the amount in dispute;

          (d) Failure to comply with other material provisions of the construction contract;

          (e) Third party claims filed or reasonable evidence that such a claim will be filed;

          (f) Failure of the subcontractor to make timely payments to subcontractors and material suppliers for labor, equipment, materials and products;

          (g) Damage to an original contractor, subcontractor or material supplier;

          (h) Reasonable evidence that the subcontract cannot be completed for the unpaid balance of the subcontract sum;

          (i) A reasonable amount for retainage, as defined in ORS 701.410, that does not exceed the actual percentage allowed by the subcontract or purchase order; or

          (j) Other items as allowed under the subcontract or purchase order terms and conditions.

          (5) If a progress or final payment to a subcontractor or material supplier is delayed by more than seven days after receipt of a progress or final payment by an original contractor or subcontractor, the original contractor or subcontractor shall pay its subcontractor or material supplier interest beginning on the eighth day, except during periods of time during which payment is withheld pursuant to subsection (4) of this section, at the rate of one and one-half percent a month or a fraction of a month on the unpaid balance or at such higher rate as the parties agree.

          (6) In any action, claim or arbitration brought to collect payments or interest under this section, the prevailing party shall be awarded reasonable costs and attorney fees.

 

          SECTION 57. (1) An original contractor may suspend performance under a construction contract, or terminate a construction contract if performance is suspended for longer than 30 days, for failure by the owner to make timely payment of the amount certified under section 55 of this 2003 Act. An original contractor shall provide written notice to an owner at least seven days before the original contractor suspends performance or terminates the contract, unless a shorter notice period is prescribed in the contract. An original contractor may not be deemed in breach of a construction contract for suspending performance or terminating a construction contract pursuant to this subsection. A construction contract may not extend the notice period under this subsection.

          (2) A subcontractor may suspend performance under a construction contract, or terminate a construction contract if performance is suspended for longer than 30 days, for failure by the owner to make timely payment of amounts certified under section 55 of this 2003 Act or the subcontractor fails to receive payment for the certified work under section 56 (2) of this 2003 Act. A subcontractor shall provide written notice to the original contractor and owner at least three days before the subcontractor suspends performance or terminates the contract, unless a shorter notice period is prescribed in the contract. A subcontractor may not be deemed in breach of a construction contract for suspending performance or terminating a contract pursuant to this subsection. A construction contract may not extend the notice period under this subsection.

          (3) A subcontractor may suspend performance under a construction contract, or terminate a construction contract if performance is suspended for longer than 30 days, if the owner makes timely payment of amounts certified under section 55 of this 2003 Act for the subcontractor’s work but the original contractor fails to pay the subcontractor for the certified work. A subcontractor shall provide written notice to the original contractor and owner at least seven days before the subcontractor suspends performance or terminates the contract, unless a shorter notice period is prescribed in the contract. A subcontractor may not be deemed in breach of a construction contract for suspending performance or terminating a contract pursuant to this subsection. A construction contract may not extend the notice period under this subsection.

          (4) A subcontractor may suspend performance under a construction contract, or terminate a construction contract if performance is suspended for longer than 30 days, if the owner fails to approve portions of the contractor’s billing or estimate under section 55 of this 2003 Act for that subcontractor’s work but the reasons for that failure are not the fault of or directly related to the subcontractor’s work. A subcontractor shall provide written notice to the original contractor and the owner at least seven days before the subcontractor suspends performance or terminates the contract, unless a shorter notice period is prescribed in the contract. A subcontractor may not be deemed in breach of a construction contract for suspending performance or terminating a contract pursuant to this subsection. A construction contract may not extend the notice period under this subsection.

          (5) A contractor or subcontractor may not submit a notice of suspension under this section until the lawful period for payment to the contractor or subcontractor has expired.

          (6) An original contractor or subcontractor that suspends performance as provided in this section is not required to furnish further labor, materials, products or services until the original contractor or subcontractor is paid the amount that was certified under section 55 of this 2003 Act, together with any documented, substantial and reasonably incurred costs for mobilization resulting from the shutdown or start-up of a project.

          (7) In any action, claim or arbitration brought pursuant to this section, the prevailing party shall be awarded reasonable costs and attorney fees.

          (8) Written notice required under this section is deemed to have been provided if the notice:

          (a) Is delivered in person to the owner, original contractor, subcontractor or a person designated by the owner, original contractor or subcontractor to receive notice; or

          (b) Is delivered by certified mail, return receipt requested, or other means that provides written, third party verification of delivery to the last business address of the owner, original contractor or subcontractor known to the party giving notice.

 

          SECTION 58. (1) A construction contract may not include any provision, covenant or clause that:

          (a) Makes the contract subject to the laws of another state or that requires any litigation, arbitration or other dispute resolution proceeding arising from the contract to be conducted in another state; or

          (b) States that a party to the contract cannot suspend performance under the contract or terminate the contract if another party to the contract fails to make prompt payments under the contract pursuant to sections 54 to 58 of this 2003 Act.

          (2) Any provision, covenant or clause described in subsection (1) of this section is void and unenforceable.

 

          SECTION 59. Sections 54 to 58 of this 2003 Act do not apply to:

          (1) A contract for the construction, alteration, repair, maintenance, moving or demolition of a building that is subject to the Low-Rise Residential Dwelling Code;

          (2) A public contract under ORS chapter 279; or

          (3) Housing in which all or part of the dwelling units are reserved for rental to persons having an income equal to or less than 80 percent of the median household income for the area as determined by the Housing and Community Services Department.

 

          SECTION 60. The provisions of sections 54 to 58 of this 2003 Act apply to construction contracts for which the plans and specifications are first published on or after January 1, 2004.

 

BUILDING TRADE

LICENSEE IDENTIFICATION

 

          SECTION 61. Section 62 of this 2003 Act is added to and made a part of ORS chapter 455.

 

          SECTION 62. (1) A person who is registered, licensed or certified by the State Plumbing Board or the Director of the Department of Consumer and Business Services pursuant to ORS 460.057, 460.059, 479.630, 479.910, 480.630, 693.060, 693.103 or 693.111 must wear and visibly display an identification badge indicating the person’s current license, registration or certification status while performing work for which the license, registration or certification is required. The authority that registers, licenses or certifies the person shall specify the size and content of the identification badge and may establish such other specifications as the authority deems appropriate.

          (2) Subsection (1) of this section does not apply under any circumstances in which wearing or displaying the identification badge may create a danger to the public health or safety of the person or the public.

          (3) Nothing in this section is intended to require the display of a contractor or business license, registration, certification or other authorization.

 

ELECTRICAL CODE AND INSPECTORS

 

          SECTION 63. Section 64 of this 2003 Act is added to and made a part of ORS 479.510 to 479.945.

 

          SECTION 64. The Director of the Department of Consumer and Business Services, with the approval of the Electrical and Elevator Board, may adopt rules regulating or prohibiting conflicts of interest for electrical inspectors in regard to any work performed by an inspector or a related party under a license issued under ORS 479.630.

 

          SECTION 65. ORS 479.540 is amended to read:

          479.540. (1) Except as otherwise provided in this subsection, a person is not required to obtain a license to make an electrical installation on residential or farm property that is owned by the person or a member of the person’s immediate family if the property is not intended for sale, exchange, lease or rent. The following apply to the exemption established in this subsection:

          (a) The exemption established for a person under this subsection does not exempt the work performed by the person from having to comply with the requirements for such work under ORS chapter 455 or this chapter and rules adopted thereunder.

          (b) If the property is a building used as a residence and is for rent, lease, sale or exchange, this subsection establishes an exemption for work on, alterations to or replacement of parts of electrical installations as necessary for maintenance of the existing electrical installations on that property, but does not exempt new electrical installations or substantial alterations to existing electrical installations on that property. As used in this paragraph, “new electrical installations or substantial alterations” does not include the replacement of an existing garbage disposal, dishwasher or electric hot water heater with a similar appliance of 30 amps or less, single phase, by a landlord, landlord’s agent or the employee of the landlord or landlord’s agent.

          (2) An electrical contractor license is not required in connection with an electrical installation:

          (a) Of meters and similar devices for measuring electricity by a person principally engaged in the business of generating or selling electricity in connection with the construction or maintenance of electrical lines, wires or equipment.

          (b) Of ignition or lighting systems for motor vehicles.

          (c) To be made by a person on the person’s property in connection with the person’s business.

          (d) To be made by a public utility, telecommunications carrier as defined in ORS 133.721 or municipality for generation, transmission or distribution of electricity on property which it owns or manages.

          (3) A person whose sole business is generating or selling electricity in connection with the construction or maintenance of electrical lines, wires or equipment, is not required to obtain a license to transform, transmit or distribute electricity from its source to the service head of the premises to be supplied thereby.

          (4)(a) A person is not required to obtain a license for the repair or replacement of light fixtures, light switches, lighting ballast, electrical outlets or smoke alarms in a building used for housing purposes that is owned, leased, managed or operated by a housing authority and the person doing the repair or replacement is a member of the housing authority’s regular maintenance staff.

          (b) A license is not required for:

          (A) Temporary demonstrations;

          (B) A street lighting system located on a public street or in a right of way if the system is similar to a system provided by a public utility and the installation or maintenance, or both, is performed by a qualified employee of a licensed electrical contractor principally engaged in the business of installing and maintaining such systems; or

          (C) An outdoor transmission or distribution system, whether overhead or underground, if the system is similar to a system provided by a public utility and the installation or maintenance, or both, is performed by a qualified employee of a licensed electrical contractor principally engaged in the business of installing and maintaining such systems.

          (c) For the purposes of this subsection, “qualified employee” means an employee who has registered with or graduated from a State of Oregon or federally approved apprenticeship course designed for the work being performed. The supervising electrician signature required under ORS 479.560 (1)(b) does not apply to contractors working under this subsection.

          (5) The provisions of ORS 479.510 to 479.945 and 479.995 do not apply:

          (a) To electrical products owned by, supplied to or to be supplied to a public utility as defined in ORS 757.005 or telecommunications carrier as defined in ORS 133.721;

          (b) To electrical installations made by or for such a public utility or telecommunications carrier where the electrical installations are an integral part of the equipment or electrical products of such utility; or

          (c) To any electrical generation plant owned or operated by a municipality to the same extent as a public utility or telecommunications carrier under paragraphs (a) and (b) of this subsection.

          (6) A permit is not required:

          (a) For the repair or replacement of light fixtures, light switches, lighting ballast, electrical outlets or smoke alarms in a building used for housing purposes that is owned, leased, managed or operated by a housing authority; or

          (b) For the repair, alteration or replacement of existing electrical products or electrical installations authorized by ORS 479.560 (3) at an industrial plant, a commercial office building, a building that is owned, leased, managed or operated by the state or a local government entity or other facilities designated by the Electrical and Elevator Board when the owner, operating manager or electrical contractor of the facility meets the provisions of ORS 479.630 (1) and (2) and:

          (A) Obtains a master permit for inspection under ORS 479.560 (3); or

          (B) Obtains a master individual inspection permit under ORS 479.565.

          (7) In cases of emergency in industrial plants, a permit is not required in advance for electrical installation made by a person licensed as a general supervising electrician, a general journeyman electrician or an electrical apprentice under ORS 479.630 if an application accompanied by appropriate fee for a permit is submitted to the Department of Consumer and Business Services within five days after the commencement of such electrical work.

          (8)(a) A license or permit is not required for the installation or assembly of industrial electrical equipment by the duly authorized agents of the factory, vendor or owner.

          (b) The license and permit exemptions of this subsection do not apply to activity in an area where industrial electrical equipment is installed in or enters a hazardous location or penetrates or enters a fire rated assembly or plenum rated assembly.

          (c) As used in this subsection:

          (A) “Duly authorized agents” means individuals trained by the factory or a vendor or by experience and who are knowledgeable in the operation, maintenance, repair and installation of industrial electrical equipment.

          (B) “Installation or assembly” means the reassembly at a job site of equipment that is wired and assembled at the factory and then disassembled for shipping purposes or of existing equipment that is relocated. “Installation or assembly” does not include work involving field fabricated assemblies or any other electrical product that is not an original part of the industrial electrical equipment. “Installation or assembly” does not include the connection of industrial electrical equipment to a power source.

          (9) A person is not required to obtain a license or permit to set in place and connect a certified electrical product as long as the work performed is not an electrical installation as defined in ORS 479.530.

          (10) The provisions of ORS 479.510 to 479.945 and 479.995 do not apply to electrical installations involving:

          (a) Communication and signal systems of railroad companies.

          (b) Telephone terminal equipment and communications systems including all grandfathered or registered telephone terminal equipment and communications systems identified in the Federal Communications Commission rules and regulations, Volume X, part 68, and all terminal equipment and communications systems that are utilized in conjunction with private line communications services.

          (c) Remote and permanent broadcast systems of radio and television stations licensed by the Federal Communications Commission if the systems are not part of the building’s permanent wiring.

          (11)(a) The board may grant partial or complete exemptions by rule for any electrical product from any of the provisions of ORS 455.610 to 455.630 or 479.510 to 479.945 and 479.995 if the board determines that the electrical product does not present a danger to the health and safety of the people of this state.

          (b) If the board grants an exemption pursuant to subsection (1) of this section, the board may determine that the product may be installed by a person not licensed under ORS 479.510 to 479.945 and 479.995.

          (12) ORS 479.760 does not apply to products described in this subsection that comply with the minimum electrical installation safety code. This subsection does not exempt any products used in locations determined to be hazardous in the electrical code of this state. The following apply to this subsection:

          (a) Except as provided in paragraph (b) of this subsection, the exemption under this subsection applies to:

          (A) Industrial electrical equipment that is factory wired using separately certified components and is custom-made, limited produced or outside the scope, as determined by the Director of the Department of Consumer and Business Services, of the standards and requirements of Underwriters Laboratories, Canadian Standards Association or American National Standards Institute as in effect on October 23, 1999.

          (B) The rotating equipment portion of power generation equipment.

          (C) Testing equipment used in a laboratory or hospital.

          (D) Commercial electrical air conditioning equipment.

          (E) Prefabricated work performed by an electrical contractor with licensed electrical personnel in the contractor’s place of business for assembly on the job site if the work is composed of parts that are certified electrical products.

          (b) Notwithstanding paragraph (a) of this subsection, the board may require any of the products described in paragraph (a) of this subsection to be subject to the certification requirements under ORS 479.760 if the board determines that the product or class of products has presented a fire or life safety hazard in use. A determination under this paragraph shall be effective as to any such product or class of products sold or offered for sale after the date of the determination becomes final. The board may reinstate any exemption removed under this paragraph if the board determines that the reasons for the removal of the exemption have been corrected.

          (13) ORS 479.760 does not apply to electrical equipment that has been in use for one year or more and that is offered for sale.

          (14) A person who holds a limited maintenance specialty contractor license or a limited pump installation specialty contractor license issued under ORS 479.510 to 479.945 and 479.995 or a person who is the employee of such license holder and who is listed with the board as an employee is not required to have a journeyman license or supervising electrician’s license to perform work authorized under the person’s license.

          (15) A person is not required to obtain a permit for work on, alterations to or replacement of parts of electrical installations as necessary for maintenance of existing electrical installations on residential property owned by the person or by a member of the person’s immediate family. This subsection does not establish an exemption for new electrical installations or substantial alterations to existing electrical installations.

          (16) A permit is not required for those minor electrical installations for which the board has authorized an installation label.

          (17) A residential home, as defined in ORS 443.580, and an adult foster home, as defined in ORS 443.705, is not a multifamily dwelling and only electrical installation standards and safety requirements applicable to single family dwellings apply to such homes.

          (18) The permit requirements of ORS 479.550 and the license requirements of ORS 479.620 do not apply to cable television installations.

          (19) The provisions of any electrical products code or rule adopted pursuant to ORS 479.510 to 479.945 and 479.995 apply to cable and such products installed as part of a cable television installation.

          (20) As used in this section, “smoke alarm” shall have the meaning given that term under ORS 479.250.

 

          SECTION 66. ORS 479.560 is amended to read:

          479.560. (1) The Department of Consumer and Business Services or a designated agent shall issue a permit to:

          (a) Any applicant who has complied with ORS 479.510 to 479.945 and 479.995 and the rules issued thereunder, covering an electrical installation to be made on [the applicant’s own property] residential or farm property owned by the applicant or a member of the applicant’s immediate family as allowed under ORS 479.540 (1).

          (b) A licensed electrical contractor or an agent the contractor has designated to the department or the department’s designated agent in a record signed by the electrical contractor. The department or department’s designated agent shall only issue a permit under this subsection if the application for the permit is accompanied by a signed statement that the electrical contractor’s general supervising electrician of record will sign the permit before an inspection of the electrical work is requested. A contractor or the contractor’s general supervisor will promptly request an inspection of electrical work performed under a permit issued under this subsection. A permit issued under this subsection shall state the name of the electrical contractor.

          (2) A permit issued to an electrical contractor upon the request of the contractor’s supervising electrician is void upon the end of the employment of such supervising electrician before completion of the electrical installation.

          (3) Except for the installation or alteration of an electrical service, the owner, operating manager or electrical contractor of an industrial plant who meets the provisions of ORS 479.630 (1) and (2), a commercial office building, a building that is owned, leased, managed or operated by the state or a local government entity or other facilities designated by the Electrical and Elevator Board, in lieu of the required inspection permit, may apply to the department or municipality providing inspection service for a master electrical inspection permit. Under the permit the authority having jurisdiction shall cause a periodic inspection to be made of the electrical installations. The authority may also cause a cover inspection, which shall be made before electrical installations are covered. The periodic inspection under the permit shall be done at least once a year or more frequently based on the needs of the particular plant, building or facility. The department shall adopt rules in accordance with ORS 183.310 to 183.550 for:

          (a) The annual issuance of the master electrical inspection permit;

          (b) The conduct of the inspections on the electrical installations and electrical products;

          (c) The granting of a waiver of payment of permit fees other than for the master electrical inspection permit; and

          (d) The fixing and collecting of inspection fees at the cost of making the inspection according to the time required of the inspector.

 

          SECTION 66a. ORS 479.540, as amended by section 65 of this 2003 Act and section 1, chapter 344, Oregon Laws 2003 (Enrolled Senate Bill 822), is amended to read:

          479.540. (1) Except as otherwise provided in this subsection, a person is not required to obtain a license to make an electrical installation on residential or farm property that is owned by the person or a member of the person’s immediate family if the property is not intended for sale, exchange, lease or rent. The following apply to the exemption established in this subsection:

          (a) The exemption established for a person under this subsection does not exempt the work performed by the person from having to comply with the requirements for such work under ORS chapter 455 or this chapter and rules adopted thereunder.

          (b) If the property is a building used as a residence and is for rent, lease, sale or exchange, this subsection establishes an exemption for work on, alterations to or replacement of parts of electrical installations as necessary for maintenance of the existing electrical installations on that property, but does not exempt new electrical installations or substantial alterations to existing electrical installations on that property. As used in this paragraph, “new electrical installations or substantial alterations” does not include the replacement of an existing garbage disposal, dishwasher or electric hot water heater with a similar appliance of 30 amps or less, single phase, by a landlord, landlord’s agent or the employee of the landlord or landlord’s agent.

          (2) An electrical contractor license is not required in connection with an electrical installation:

          (a) Of meters and similar devices for measuring electricity by a person principally engaged in the business of generating or selling electricity in connection with the construction or maintenance of electrical lines, wires or equipment.

          (b) Of ignition or lighting systems for motor vehicles.

          (c) To be made by a person on the person’s property in connection with the person’s business.

          (d) To be made by a public utility, consumer-owned utility as defined in ORS 757.270, telecommunications carrier as defined in ORS 133.721, competitive telecommunications provider as defined in ORS 759.005 or municipality for generation, transmission or distribution of electricity on property that the utility, carrier, provider or municipality owns or manages.

          (3) A person whose sole business is generating or selling electricity in connection with the construction or maintenance of electrical lines, wires or equipment, is not required to obtain a license to transform, transmit or distribute electricity from its source to the service head of the premises to be supplied thereby.

          (4)(a) A person is not required to obtain a license for the repair or replacement of light fixtures, light switches, lighting ballast, electrical outlets or smoke alarms in a building used for housing purposes that is owned, leased, managed or operated by a housing authority and the person doing the repair or replacement is a member of the housing authority’s regular maintenance staff.

          (b) A license is not required for:

          (A) Temporary demonstrations;

          (B) A street lighting system located on a public street or in a right of way if the system is similar to a system provided by a public utility and the installation or maintenance, or both, is performed by a qualified employee of a licensed electrical contractor principally engaged in the business of installing and maintaining such systems; or

          (C) An outdoor transmission or distribution system, whether overhead or underground, if the system is similar to a system provided by a public utility and the installation or maintenance, or both, is performed by a qualified employee of a licensed electrical contractor principally engaged in the business of installing and maintaining such systems.

          (c) For the purposes of this subsection, “qualified employee” means an employee who has registered with or graduated from a State of Oregon or federally approved apprenticeship course designed for the work being performed. The supervising electrician signature required under ORS 479.560 (1)(b) does not apply to contractors working under this subsection.

          (5) The provisions of ORS 479.510 to 479.945 and 479.995 do not apply:

          (a) To electrical products owned by, supplied to or to be supplied to a public utility as defined in ORS 757.005, consumer-owned utility as defined in ORS 757.270,telecommunications carrier as defined in ORS 133.721 or competitive telecommunications provider as defined in ORS 759.005;

          (b) To electrical installations made by or for a public utility, consumer-owned utility, telecommunications carrier or competitive telecommunications provider if the electrical installations are an integral part of the equipment or electrical products of the utility, carrier or provider; or

          (c) To any electrical generation plant owned or operated by a municipality to the same extent that a [public] utility, telecommunications carrier or competitive telecommunications provider is exempted under paragraphs (a) and (b) of this subsection.

          (6) A permit is not required:

          (a) For the repair or replacement of light fixtures, light switches, lighting ballast, electrical outlets or smoke alarms in a building used for housing purposes that is owned, leased, managed or operated by a housing authority; or

          (b) For the repair, alteration or replacement of existing electrical products or electrical installations authorized by ORS 479.560 (3) at an industrial plant, a commercial office building, a building that is owned, leased, managed or operated by the state or a local government entity or other facilities designated by the Electrical and Elevator Board when the owner, operating manager or electrical contractor of the facility meets the provisions of ORS 479.630 (1) and (2) and:

          (A) Obtains a master permit for inspection under ORS 479.560 (3); or

          (B) Obtains a master individual inspection permit under ORS 479.565.

          (7) In cases of emergency in industrial plants, a permit is not required in advance for electrical installation made by a person licensed as a general supervising electrician, a general journeyman electrician or an electrical apprentice under ORS 479.630 if an application accompanied by appropriate fee for a permit is submitted to the Department of Consumer and Business Services within five days after the commencement of such electrical work.

          (8)(a) A license or permit is not required for the installation or assembly of industrial electrical equipment by the duly authorized agents of the factory, vendor or owner.

          (b) The license and permit exemptions of this subsection do not apply to activity in an area where industrial electrical equipment is installed in or enters a hazardous location or penetrates or enters a fire rated assembly or plenum rated assembly.

          (c) As used in this subsection:

          (A) “Duly authorized agents” means individuals trained by the factory or a vendor or by experience and who are knowledgeable in the operation, maintenance, repair and installation of industrial electrical equipment.

          (B) “Installation or assembly” means the reassembly at a job site of equipment that is wired and assembled at the factory and then disassembled for shipping purposes or of existing equipment that is relocated. “Installation or assembly” does not include work involving field fabricated assemblies or any other electrical product that is not an original part of the industrial electrical equipment. “Installation or assembly” does not include the connection of industrial electrical equipment to a power source.

          (9) A person is not required to obtain a license or permit to set in place and connect a certified electrical product as long as the work performed is not an electrical installation as defined in ORS 479.530.

          (10) The provisions of ORS 479.510 to 479.945 and 479.995 do not apply to electrical installations involving:

          (a) Communication and signal systems of railroad companies.

          (b) Telephone terminal equipment and communications systems including all grandfathered or registered telephone terminal equipment and communications systems identified in the Federal Communications Commission rules and regulations, Volume X, part 68, and all terminal equipment and communications systems that are utilized in conjunction with private line communications services.

          (c) Remote and permanent broadcast systems of radio and television stations licensed by the Federal Communications Commission if the systems are not part of the building’s permanent wiring.

          (11)(a) The board may grant partial or complete exemptions by rule for any electrical product from any of the provisions of ORS 455.610 to 455.630 or 479.510 to 479.945 and 479.995 if the board determines that the electrical product does not present a danger to the health and safety of the people of this state.

          (b) If the board grants an exemption pursuant to subsection (1) of this section, the board may determine that the product may be installed by a person not licensed under ORS 479.510 to 479.945 and 479.995.

          (12) ORS 479.760 does not apply to products described in this subsection that comply with the minimum electrical installation safety code. This subsection does not exempt any products used in locations determined to be hazardous in the electrical code of this state. The following apply to this subsection:

          (a) Except as provided in paragraph (b) of this subsection, the exemption under this subsection applies to:

          (A) Industrial electrical equipment that is factory wired using separately certified components and is custom-made, limited produced or outside the scope, as determined by the Director of the Department of Consumer and Business Services, of the standards and requirements of Underwriters Laboratories, Canadian Standards Association or American National Standards Institute as in effect on October 23, 1999.

          (B) The rotating equipment portion of power generation equipment.

          (C) Testing equipment used in a laboratory or hospital.

          (D) Commercial electrical air conditioning equipment.

          (E) Prefabricated work performed by an electrical contractor with licensed electrical personnel in the contractor’s place of business for assembly on the job site if the work is composed of parts that are certified electrical products.

          (b) Notwithstanding paragraph (a) of this subsection, the board may require any of the products described in paragraph (a) of this subsection to be subject to the certification requirements under ORS 479.760 if the board determines that the product or class of products has presented a fire or life safety hazard in use. A determination under this paragraph shall be effective as to any such product or class of products sold or offered for sale after the date of the determination becomes final. The board may reinstate any exemption removed under this paragraph if the board determines that the reasons for the removal of the exemption have been corrected.

          (13) ORS 479.760 does not apply to electrical equipment that has been in use for one year or more and that is offered for sale.

          (14) A person who holds a limited maintenance specialty contractor license or a limited pump installation specialty contractor license issued under ORS 479.510 to 479.945 and 479.995 or a person who is the employee of such license holder and who is listed with the board as an employee is not required to have a journeyman license or supervising electrician’s license to perform work authorized under the person’s license.

          (15) A person is not required to obtain a permit for work on, alterations to or replacement of parts of electrical installations as necessary for maintenance of existing electrical installations on residential property owned by the person or by a member of the person’s immediate family. This subsection does not establish an exemption for new electrical installations or substantial alterations to existing electrical installations.

          (16) A permit is not required for those minor electrical installations for which the board has authorized an installation label.

          (17) A residential home, as defined in ORS 443.580, and an adult foster home, as defined in ORS 443.705, is not a multifamily dwelling and only electrical installation standards and safety requirements applicable to single family dwellings apply to such homes.

          (18) The permit requirements of ORS 479.550 and the license requirements of ORS 479.620 do not apply to cable television installations.

          (19) The provisions of any electrical products code or rule adopted pursuant to ORS 479.510 to 479.945 and 479.995 apply to cable and such products installed as part of a cable television installation.

          (20) As used in this section, “smoke alarm” shall have the meaning given that term under ORS 479.250.

 

          SECTION 66b. The amendments to ORS 479.540 by section 66a of this 2003 Act become operative on January 1, 2004.

 

ELECTRICAL CONTRACTORS

 

          SECTION 67. ORS 479.620 is amended to read:

          479.620. Subject to ORS 479.540, [no] a person [shall] may not:

          (1) Without an electrical contractor’s license, engage in the business of making electrical installations [without an electrical contractor’s license], advertise as or otherwise purport to be licensed to make electrical installations or purport to be acting as a business that makes electrical installations.

          (2) Except as provided in ORS 479.630 (10)(c) and (11)(f), direct, supervise or control the making of an electrical installation without a supervising electrician’s license.

          (3) Except as provided in subsection (5) of this section, make any electrical installation without a supervising or journeyman electrician’s license.

          (4) Perform work on an electrical installation as an apprentice electrician without an electrical apprentice’s license.

          (5) Make any electrical installation on a single or multifamily dwelling unit not exceeding three floors above grade, as provided in ORS 479.630 (14), without a limited residential electrician’s license.

          (6) Permit or suffer any electrical installation on property which the person owns, controls, manages or supervises to be made by a person not licensed to make such an installation.

          (7) Install, maintain, replace or repair electrical wiring or electrical products on an oil module without a Class I oil module electrician’s license.

          (8) Perform electrical work on an oil module in the capacity of helper or trainee without a Class II oil module electrician’s license.

 

LICENSED DEVELOPERS

 

          SECTION 68. The Construction Contractors Board shall develop a separate class of contractor license for contractors who are licensed developers.

 

          SECTION 68a. Section 68 of this 2003 Act is added to and made a part of ORS chapter 701.

 

          SECTION 69. ORS 701.005 is amended to read:

          701.005. As used in this chapter:

          (1) “Board” means the Construction Contractors Board.

          (2) “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.

          (3) “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.

          (4) “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.

          (5) “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 or licensed under ORS 701.350, a lead-based paint inspector licensed under ORS 701.515 and a cross connection and backflow prevention device inspector 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.

          (6) “Large commercial structure” means a structure that is not a residential structure or small commercial structure.

          (7) “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.

          [(7)] (8) “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, 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.

          [(8)] (9) “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.

          [(9)] (10) “Small commercial structure” means a nonresidential structure that has a ground area of 4,000 square feet or less, including exterior walls, and not more than 20 feet in height from the top surface of the lowest flooring to the highest interior overhead finish of the structure.

          [(10)] (11) “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 70. 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 Construction Contractors 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 business licensed under ORS 671.510 to 671.710 that constructs fences, decks, arbors, driveways, walkways or retaining walls when:

          (A) Performed in conjunction with landscaping work; or

          (B) Not performed in conjunction with landscaping work and that has filed a bond under ORS 671.690 (1)(b).

          (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 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 [(7)(b)] (8)(b) and (c).

 

          SECTION 71. ORS 701.065 is amended to read:

          701.065. (1) Except as provided in subsection (2) of this section, a contractor may not perfect a claim of a construction lien, or commence a claim with the Construction Contractors Board, in arbitration or in any court of this state for compensation for the performance of any work or for the breach of any contract for work that is subject to this chapter, unless the contractor had a valid license issued by the board:

          (a) At the time the contractor bid or entered into the contract for performance of the work; and

          (b) Continuously while performing the work for which compensation is sought.

          (2) The board, arbitrator or court shall not apply the provisions of subsection (1) of this section to a lien or claim if the board, arbitrator or court determines that:

          (a) The contractor either did not have a valid license at any time required under subsection (1) of this section, or had an initial issuance thereof, and:

          (A) The contractor was not aware of the requirement that the contractor be licensed, and the contractor submitted a completed application for a license within a number of days established by the board, but not more than 90 days, of the date the contractor became aware of the requirement;

          (B) At the time the contractor perfected a claim of a construction lien or commenced any other claim subject to the provisions of subsection (1) of this section, the contractor was licensed by the board; and

          (C) Enforcement of the provisions of subsection (1) of this section would result in substantial injustice to the contractor; [or]

          (b) The contractor was licensed by the board for some but not all of the times required under subsection (1) of this section and had a lapse in such license and:

          (A) The contractor was not aware of the lapse in the license for more than a number of days established by the board, but not to exceed 90 days, before submitting a completed application for license renewal with the board;

          (B) Except for perfection of a claim of a construction lien and a suit to foreclose the lien, at the time the contractor commenced any other claim subject to the provisions of subsection (1) of this section the contractor’s license was renewed under ORS 701.115 to include the entire time period for which a license was required under subsection (1) of this section; and

          (C) For perfection of a claim of a construction lien and a suit to foreclose the lien, the contractor’s license was renewed under ORS 701.115 for the entire time period for which a license was required under subsection (1) of this section, but not later than 90 days following perfection of the lien[.];

          (c)(A) The contractor is a licensed developer and did not have a valid license during all or part of the period described in subsection (1) of this section;

          (B) The licensed developer was unaware of the license requirement and obtained a license within a time established by the board, not to exceed 90 days after the licensed developer learned of the requirement;

          (C) The licensed developer was licensed at the time the licensed developer perfected the lien or commenced the claim; and

          (D) Enforcement of subsection (1) of this section would result in substantial injustice to the licensed developer; or

          (d) The claim:

          (A) Is directed against a person or entity that:

          (i) Is subject to ORS chapter 671, 672 or 701;

          (ii) Provides construction or design labor or services of any kind; or

          (iii) Manufactures, distributes, rents or otherwise provides materials, supplies, equipment, systems or products; and

          (B) Arises out of defects, deficiencies or inadequate performance in the construction, design, labor, services, materials, supplies, equipment, systems or products provided.

          (3) If a contractor falsely swears to information provided under ORS 701.075 or knowingly violates the provisions of ORS 656.029, 670.600 or 701.075, the contractor may not perfect a claim of a construction lien, or commence a claim with the board, in arbitration or in any court of this state for compensation for the performance of any work on a residential structure or for the breach of any contract for work on a residential structure that is subject to this chapter.

 

          SECTION 72. Notwithstanding ORS 701.065, a contractor is not barred from commencing a claim described in ORS 701.065 (2)(d) with the Construction Contractors Board, in arbitration or in a court, for construction work performed in whole or in part prior to April 1, 2004, if the contractor obtains a license as a licensed developer prior to April 1, 2004, and at the time of the work the contractor:

          (1) Owns the property or an interest in the property associated with the construction work;

          (2) Arranges for the construction work;

          (3) Is engaged 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;

          (4) 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

          (5) Does not perform any construction work on the property.

 

          SECTION 73. ORS 701.075 is amended to read:

          701.075. (1) An applicant for a construction contractor license must submit the application on a form prescribed by the Construction Contractors Board. The application shall include, but not be limited to, at least the following information regarding the applicant:

          (a) Classification of the license being sought.

          (b) A list of unsatisfied judgments resulting from bond claims and litigation involving the applicant or its principals within the prior five years.

          (c) Social Security number.

          (d) Workers’ compensation insurance account number if help is hired or traded.

          (e) Unemployment insurance account number if help is hired.

          (f) State withholding tax account number if help is hired.

          (g) Federal employer identification number, if help is hired or if self-employed and participating in a retirement plan.

          (h) The name and address of:

          (A) Each partner, [or] venturer or member, if the applicant is a partnership, [or] joint venture or limited liability company.

          (B) The owner, if the applicant is an individual proprietorship.

          (C) The corporate officers, if the applicant is a corporation.

          (2) An applicant shall conform to the information provided by the applicant on the application and to the terms of the application.

          (3) The board shall adopt by rule an application form that requires an applicant to indicate, as set forth in ORS 670.600, the basis under which the applicant qualifies as an independent contractor.

          (4) Prior to licensure, an applicant must demonstrate compliance with the licensure education requirements described in ORS 701.280 (1) and pass an examination based on the requirements.

          (5) Prior to licensure, an applicant shall submit proof satisfactory to the board that the applicant has the legal capacity to contract.

          (6) Notwithstanding subsection (4) of this section, the examination requirement for licensure does not apply to a person registered with the board prior to July 1, 2000, unless the person’s license has lapsed more than two years prior to the application date.

          (7) A business licensed under this chapter must at all times have at least one owner or employee who:

          (a) Has passed an examination under subsection (4) of this section; or

          (b) Is exempt under subsection (6) of this section from examination and was, at any time prior to July 1, 2000, an owner of the business or an employee designated by an owner to exercise management or supervisory authority over the construction activities of the business.

          (8) Subsections (4), (6) and (7) of this section do not apply to a licensed developer.

 

          SECTION 74. ORS 701.085 is amended to read:

          701.085. (1) An applicant for issuance or renewal of a contractor license shall file with the Construction Contractors Board a surety bond with one or more corporate sureties authorized to do business in this state in the amount set forth in subsections (2) to (5) of this section. The surety bond must provide that the applicant, with regard to work subject to this chapter, will pay claims ordered paid by the board under ORS 701.145 or 701.146. Bonds filed under this subsection shall remain in effect for at least one year or until depleted by claims paid under ORS 701.150, unless the surety sooner cancels the bond. At the discretion of the surety the bond may be continued for an additional period by continuation certificate. Except as provided in subsection (6) of this section, the aggregate liability of the surety under the bond for claims against the bond [shall] may not exceed the penal sum of the bond no matter how many years the bond is in force. Except as provided in subsection (6) of this section, [no] an extension by continuation certificate, reinstatement, reissue or renewal of the bond [shall] may not increase the liability of the surety.

          (2) A general contractor or licensed developer shall obtain a surety bond in the amount of $15,000.

          (3) A specialty contractor shall obtain a surety bond in the amount of $10,000.

          (4) An inspector shall obtain a surety bond in the amount of $10,000.

          (5) The board may reduce the amount of the surety bond required by this section to $5,000 for a contractor upon a showing that the contractor does not perform work as a contractor exceeding $40,000 in gross annual volume and does not enter into contracts that exceed $5,000. The board shall designate the contractor as a limited contractor.

          (6) The board, by rule, may require a licensee to obtain a new surety bond if, pursuant to a board order for payment of a claim described in ORS 701.140, the surety pays a claim out of the bond of the licensee. The new surety bond must be in the amount set forth in subsections (2) to (5) of this section unless a higher amount is required by a board condition or rule described in subsection (7) or (8) of this section. The board may allow a licensee to obtain, instead of a new bond, a certification that the surety remains liable for the full penal sum of the bond, notwithstanding payment by the surety on the claim.

          (7) If the amount the licensee must pay against the bond under this section exceeds the amount of the bond, the board shall suspend the contractor’s license until the amount owed is paid. The board, as a condition of ending the suspension, may require a contractor requesting reinstatement of a license to file a bond of an amount up to five times as much as the amount required ordinarily of a licensee under this section.

          (8) The board by rule may establish conditions for applicants or persons licensed under this chapter under which the applicant or licensee must file a bond of an amount up to five times as much as the amount required ordinarily of an applicant or licensee under this section. The board may reduce the amount of bond it would otherwise require if the contractor demonstrates satisfactory completion of approved elective classes on dispute resolution and prevention, basic accounting and record keeping or such other classes as the board may prescribe.

          (9) The bond required under this section is for the exclusive purpose of payment of final orders and arbitration awards of the board in accordance with this chapter.

          (10) Upon determination under ORS 701.145 or 701.146 of a claim against a contractor who holds a bond required under this section, the board shall notify the surety on the bond of the final order in a manner determined by the board by rule. The notification shall include a list of all claims upon which a final order has been issued.

          (11) A suit or action may not be commenced against a surety on a bond required under this section until 30 days after the date that the surety is notified by the board under ORS 701.150 that payment is due on the claim.

          (12) In any action against a surety on a bond under this section that is based on the failure of the surety to pay a claim or on the denial of a claim by the surety, the court may award:

          (a) Costs;

          (b) Reasonable attorney fees to the prevailing party as part of the costs; and

          (c) Twice the amount of any damages that the board ordered the surety to pay on the claim, if the surety arbitrarily and capriciously refused to pay upon order of the board.

 

          SECTION 75. ORS 701.105 is amended to read:

          701.105. (1) A contractor who possesses a license as required under this chapter shall have in effect public liability, personal injury and property damage insurance covering the work of the contractor that is subject to this chapter, for an amount not less than:

          (a) $500,000 for a general contractor or licensed developer.

          (b) $300,000 for a residential-only specialty contractor.

          (c) $500,000 for all other specialty contractors.

          (d) $100,000 for a limited contractor.

          (e) $300,000 for an inspector.

          (2) The contractor shall provide satisfactory evidence to the Construction Contractors Board at the time of licensure and renewal that the insurance required by subsection (1) of this section has been procured and is in effect.

 

          SECTION 76. ORS 701.115 is amended to read:

          701.115. (1) A license is valid for two years or four years, at the discretion of the applicant, from the date of issuance unless the license is revoked or suspended as set forth in ORS 701.135. Upon application, a license may be renewed by the same procedure provided for an original license if the applicant:

          (a) Submits any additional supplemental information or completes any required education as the Construction Contractors Board may require by rule; and

          (b) Passes the examination required in ORS 701.075 (4), if the applicant has not previously satisfied the examination requirement and is not exempt under ORS 701.075 (6) or (8).

          (2) The board shall issue a pocket-card certificate of licensure to a contractor licensed under this chapter indicating the type of license.

          (3) The board may vary the dates of license renewal by giving to the licensee written notice of the renewal date assigned and by making appropriate adjustments in the renewal fee.

          (4) If a contractor applies for renewal not more than one year after the contractor’s license lapses, upon the contractor’s compliance with the requirements of subsection (1) of this section, the board may renew the lapsed license. The board may designate the effective date of renewal as the last date on which the contractor was licensed.

          (5) A contractor may convert a license to inactive status if the contractor is not engaged in work as a contractor. A contractor having an inactive license is subject to board licensing requirements and fees, but is not subject to the bonding requirement of ORS 701.085 or the insurance requirement of ORS 701.105. An inactive license is not considered a valid license for purposes of offering to undertake construction work, submitting a bid for construction work, obtaining a building permit or performing construction work. A license may not be placed or maintained in inactive status more than once during any two-year period.

 

          SECTION 77. Sections 68 and 72 of this 2003 Act and the amendments to ORS 701.005, 701.010, 701.065, 701.075, 701.085, 701.105 and 701.115 by sections 69 to 71 and 73 to 76 of this 2003 Act become operative on October 1, 2003.

 

          SECTION 78. The unit captions used in this 2003 Act are provided only for the convenience of the reader and do not become part of the statutory law of this state or express any legislative intent in the enactment of this 2003 Act.

 

EMERGENCY CLAUSE

 

          SECTION 79. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

 

Approved by the Governor August 21, 2003

 

Filed in the office of Secretary of State August 21, 2003

 

Effective date August 21, 2003

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