Chapter 639
AN ACT
HB 2498
Relating to construction work on existing
structures; amending ORS 701.010 and 701.055.
Be It Enacted by the People of
the State of
SECTION 1. ORS 701.010 is amended to read:
701.010. The Construction
Contractors Board may adopt rules to make licensure optional for persons who
offer, bid or undertake to perform work peripheral to construction, as defined
by administrative rule of the board. The following persons are exempt from
licensure under this chapter:
(1) A person who is
constructing, altering, improving or repairing personal property.
(2) A person who is
constructing, altering, improving or repairing a structure located within the
boundaries of any site or reservation under the jurisdiction of the federal
government.
(3) A person who
furnishes materials, supplies, equipment or finished product and does not
fabricate them into, or consume them, in the performance of the work of a
contractor.
(4) A person working on
one structure or project, under one or more contracts, when the aggregate price
of all of that person’s contracts for labor, materials and all other items is
less than $500 and such work is of a casual, minor or inconsequential nature.
This subsection does not apply to a person who advertises or puts out any sign
or card or other device that might indicate to the public that the person is a
contractor.
(5) An owner who
contracts for work to be performed by a licensed contractor. This subsection
does not apply to a person who, in the pursuit of an independent business,
constructs, remodels, repairs or for compensation and with the intent to sell
the structure, arranges to have constructed, remodeled or repaired a structure
with the intent of offering the structure for sale before, upon or after
completion. It is prima facie evidence that there was an intent of offering the
structure for sale if the person who constructed, remodeled or repaired the
structure or arranged to have the structure constructed, remodeled or repaired
does not occupy the structure after its completion.
(6) An owner who
contracts for one or more licensed contractors to perform work wholly or
partially within the same calendar year on not more than three existing
residential structures of the owner. This subsection does not apply to an owner
contracting for work that requires a building permit unless the work that
requires a permit is performed by, or under the direction of, a general
contractor.
[(6)] (7) A person performing work on a property that person
owns or performing work as the owner’s employee, whether the property is
occupied by the owner or not, or a person performing work on that person’s
residence, whether or not that person owns the residence. This subsection does
not apply to a person performing work on a structure owned by that person or
the owner’s employee, if the work is performed[,] in the pursuit of an independent
business[,] with the intent of
offering the structure for sale before, upon or after completion.
[(7)] (8) A person licensed in one of the following trades or
professions when operating within the scope of that license:
(a) An architect
licensed by the State Board of Architect Examiners.
(b) A registered
professional engineer licensed by the State Board of Examiners for Engineering
and Land Surveying.
(c) A water well
contractor licensed by the Water Resources Department.
(d) A sewage disposal
system installer licensed by the Department of Environmental Quality.
(e) A landscaping
business licensed under ORS 671.510 to 671.710 that constructs fences, decks,
arbors, patios, landscape edging, driveways, walkways or retaining walls and
that meets the applicable bonding requirements under ORS 671.690.
(f) A pesticide operator
licensed under ORS 634.116 who does not conduct inspections for wood destroying
organisms for the transfer of real estate.
(g) An appraiser
certified or licensed under ORS chapter 674 or an appraiser assistant
registered under ORS chapter 674 by the Appraiser Certification and Licensure
Board.
[(8)] (9) A person who performs
work subject to this chapter as an employee of a contractor.
[(9)] (10) A manufacturer of a manufactured home constructed
under standards established by the federal government.
[(10)] (11) A person involved in the movement of:
(a) Modular buildings or
structures other than manufactured structures not in excess of 14 feet in
width.
(b) Structures not in
excess of 16 feet in width when the structures are being moved by their owner
if the owner is not a contractor required to be licensed under this chapter.
[(11)] (12) A commercial lending institution or surety
company that arranges for the completion, repair or remodeling of a structure.
As used in this subsection, “commercial lending institution” means any bank,
mortgage banking company, trust company, savings bank, savings and loan
association, credit union, national banking association, federal savings and
loan association, insurance company or federal credit union maintaining an
office in this state.
[(12)] (13) A real estate licensee as defined in ORS 696.010
or the employee of that licensee when performing work on a structure that the
real estate licensee manages under a contract.
[(13)] (14) Units of government other than those specified in
ORS 701.005 (10)(b) and (c).
[(14)] (15) A qualified intermediary in a property exchange
that qualifies under section 1031 of the Internal Revenue Code as amended and
in effect on January 1, 2004, if the qualified intermediary is not performing
construction activities.
[(15)] (16) A business that supplies
personnel to a licensed contractor for the performance of work under the
direction and supervision of the contractor.
SECTION 2. ORS 701.055 is amended to read:
701.055. (1) A person
may not undertake, offer to undertake or submit a bid to do work as a
contractor unless that person has a current, valid license issued by the
Construction Contractors Board. A partnership, corporation or joint venture may
not undertake, offer to undertake or submit a bid to do work as a contractor
unless that partnership, corporation or joint venture is licensed under this
chapter. A partnership or joint venture is licensed for the purpose of offering
to undertake work as a contractor on a structure if any of the partners or
joint venturers whose name appears in the business name of the partnership or
joint venture is licensed under this chapter.
(2) A licensed
partnership or corporation shall notify the board immediately upon any change
in licensed partners or corporate officers. If a partnership no longer has a licensed
partner, the partnership may not conduct activities that require a license
under this chapter.
(3) A city, county or
the State of
(4) If the applicant for
a building permit is exempt from licensure under ORS 701.010 [(6)] (7), the city, county or
state shall supply the applicant with an Information Notice to Property Owners About Construction Responsibilities. The city, county or
state may not issue a building permit for a residential structure to the
applicant until the applicant signs a statement in substantially the following
form:
______________________________________________________________________________
(a) I have read and
understand the Information Notice to Property Owners About
Construction Responsibilities; and
(b) I own, reside in or
will reside in the completed dwelling. My general contractor is _________,
Construction Contractors Board license no. ______, license
expiration date ________. I will instruct my general contractor that all
subcontractors who work on this dwelling must be licensed with the Construction
Contractors Board; or
(c) I am performing work
on property I own, a residence that I reside in or a residence that I will
reside in.
(d) I will be my own
general contractor and, if I hire subcontractors, I will hire only
subcontractors licensed with the Construction Contractors Board.
(e) If I change my mind
and do hire a general contractor, I will contract with a general contractor who
is licensed with the Construction Contractors Board and I will immediately
notify the office issuing this building permit of the name of the general
contractor _________.
______________________________________________________________________________
(5) The board shall
adopt by rule a form entitled “Information Notice to Property Owners About Construction Responsibilities” that shall describe, in
nontechnical language and in a clear and coherent manner using words in their
common and everyday meaning, the responsibilities property owners are
undertaking by acting as their own general contractor and the problems that
could develop. The responsibilities described in the form shall include, but
not be limited to:
(a) Compliance with
state and federal laws regarding Social Security tax, income tax and
unemployment tax.
(b) Workers’
compensation insurance on workers.
(c) Liability and
property damage insurance.
(6) The board shall
develop and furnish to city, county and state building permit offices, at no
cost to the offices, the Information Notice to Property Owners About Construction Responsibilities and the statement to be
signed by the permit applicant.
(7) A city or county
that requires a business license for engaging in a business subject to
regulation under this chapter shall require that the licensee or applicant for
issuance or renewal of the business license file, or have on file, with the
city or county, a signed statement that the licensee or applicant is licensed
under this chapter.
(8) It is prima facie
evidence of doing business as a contractor if a person for that person’s own
use performs, employs others to perform, or for compensation and with the
intent to sell the structure, arranges to have performed any work described in
ORS 701.005 (3) if within any 36-month period that person offers for sale two
or more newly built structures on which that work was performed.
(9) Licensure under this
chapter is prima facie evidence that the licensee conducts a separate,
independent business.
(10) The provisions of
this chapter are exclusive and a city, county or other political subdivision
may not require or issue any registrations, licenses or surety bonds, nor
charge any fee for the regulatory or surety registration of any contractor
licensed with the board. This subsection does not limit or abridge the
authority of any city or county to:
(a) License and levy and
collect a general and nondiscriminatory license fee levied upon all businesses
or upon business conducted by any firm within the city or county;
(b) Require a contractor
to pay a fee, post a bond or require insurance when the city, county or
political subdivision is contracting for the service of the contractor; or
(c) Regulate a
contractor that is not required to be licensed under this chapter.
(11)(a) A contractor
shall maintain a list that includes the following information about all
subcontractors or other contractors performing work on a project for that
contractor:
(A) Names and addresses.
(B) License numbers.
(b) The contractor must
deliver the list referred to in paragraph (a) of this subsection to the board
within 72 hours after a board request made during reasonable working hours.
(12) A contractor may
not hire any subcontractor or other contractor to perform work unless the
subcontractor or contractor is licensed under this chapter or exempt from
licensure under ORS 701.010.
(13) A consumer
notification form designed to specifically inform a property owner what the
property owner should do to protect themselves in a residential repair, remodel
or construction project shall be prepared by the board and provided at no cost
to all licensed contractors. The contractor shall deliver the form to the
property owner when the contractor submits a bid or proposal for work on a
residential structure. The form shall include an explanation of the meaning of
licensure, including a statement that licensure is not an endorsement of a
contractor’s work, and an explanation of the bond and insurance levels required
of contractors for the benefit of property owners. The form must not be larger
than one side of a sheet of paper that is 8-1/2 inches by 11 inches. The
contractor may reproduce the form on the contractor’s bid proposal.
(14) A contractor may
not perform work subject to this section for an owner of a residential
structure without a written contract if the aggregate contract price exceeds
$2,000. If the price of a contract was initially less than $2,000, but during
the course of performance the contract exceeds that amount, the contractor
shall mail or otherwise deliver a written contract to the owner not later than
five days after the contractor knows or should reasonably know that the
contract price will exceed $2,000. Failure to have a written contract will not
void the contract.
(15) Except as provided
in ORS 671.540, a contractor that is not licensed under ORS 671.560 shall hire
a person licensed under ORS 671.560 to perform landscaping work.
Approved by the Governor June 26, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date January 1, 2008
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