77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3285

                           A-Engrossed

                         House Bill 3144
                  Ordered by the House April 15
            Including House Amendments dated April 15

Sponsored by COMMITTEE ON BUSINESS AND LABOR

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.

    { - Revises language regarding assumption of administration
and enforcement of manufactured dwelling services, building
inspection program or partial building inspection program after
municipality ceases administration and enforcement. - }
    { - Authorizes Department of Consumer and Business Services
to accept joint or partial administration of municipal building
inspection program under certain circumstances. Allows department
to enter into agreements with municipality administering program
or with other municipalities or independent contractors to ensure
adequate resources for administration of program. - }
    { - Allows existing one percent permit or hourly rate
surcharge to be used for paying department expenses of joint or
partial administration of municipal building inspection
program. - }
   { +  Authorizes Director of Department of Consumer and
Business Services to enter into agreements with municipalities
for uniform administration of building inspection program within
geographic area. Establishes permissible terms for agreements,
including fee provisions. Authorizes expenditures of fee moneys
from Consumer and Business Services Fund for carrying out
agreement. Authorized expenditure of building permit fee
surcharges for carrying out agreement.
  Authorizes director to adopt rules for carrying out agreement.
Requires annual consultation with specialty code advisory boards
regarding agreements. Requires biennial report to Legislative
Assembly regarding agreements.
  Makes legislative findings regarding construction-related
development activities and building code program staffing and
resource needs.
  Authorizes director to use municipal and Department of Consumer
and Business Services personnel to meet state building code
administration and enforcement needs. Imposes conditions and
limitations.
  Authorizes director to use agreements with municipalities and
use municipal and department personnel to meet state building
code needs when assuming administration and enforcement of local
building inspection program.
  Declares emergency, effective on passage. + }

                        A BILL FOR AN ACT
Relating to building inspection programs; creating new
  provisions; amending ORS 455.148 and 455.150; and declaring an
  emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) Notwithstanding ORS 455.148, 455.150 and
455.153, the Director of the Department of Consumer and Business
Services may enter into an agreement with one or more
municipalities for the Department of Consumer and Business
Services to uniformly administer and enforce all or a portion of
a building inspection program within a geographic area. The
geographic area may be a municipality, a region comprising parts
of more than one municipality or a region comprising multiple
municipalities. The geographic area need not correspond to the
jurisdictional boundaries of municipalities. The agreement may
provide for the department to perform administration and
enforcement for a specified period or for carrying out one or
more particular projects.
  (2) The terms of an agreement under this section may specify
whether the department is to utilize department resources or
combine resources with one or more of the municipalities to carry
out an agreement. An agreement may combine department and local
government resources in any manner that the parties believe will
provide for the efficient and uniform administration of the
building inspection program within the geographic area, including
but not limited to full, divided, mutual or joint performance of
any of the administrative or enforcement functions by any of the
parties to the agreement. A decision by the director regarding
whether to enter into an agreement under this section, and the
content of any agreement that the director enters into under this
section, is not subject to review by the Attorney General or the
Oregon Department of Administrative Services and is subject to
challenge or appeal under ORS chapter 183 only for failure to
comply with an express requirement created under this section or
section 2, 4, 5 or 6 of this 2013 Act.
  (3) An agreement under this section is not an abandonment of a
building inspection program for purposes of ORS 455.148 or
455.150. + }
  SECTION 2.  { + (1) An agreement under section 1 of this 2013
Act may provide for the parties to the agreement to share any fee
revenue generated by the administration and enforcement of the
agreement and to expend the fee revenue anywhere within the
geographic area covered by the agreement.
  (2) Notwithstanding ORS 455.210, if an agreement under section
1 of this 2013 Act provides for the Department of Consumer and
Business Services to administer and enforce a building inspection
program for which one or more municipalities have adopted a fee
or hourly rate, subject to subsection (3)(a) of this section the
department may charge the municipally adopted fee or hourly rate
when providing the building inspection program services within a
municipality.
  (3) Fees described in subsection (2) of this section that are
charged by the department:
  (a) Are subject to any surcharges described under ORS 455.210,
455.220 or 455.447; and
  (b) Notwithstanding ORS 455.210, are not subject to Oregon
Department of Administrative Services approval. + }
  SECTION 3.  { + The Legislative Assembly finds and declares
that:
  (1) It is in the best interests of this state that
construction-related development activities proceed in a manner
that is as quick and efficient as practicable;
  (2) Ensuring that construction-related development activities
proceed quickly and efficiently requires a flexible and

responsive system for state building code administration and
enforcement; and
  (3) Having a flexible and responsive system for state building
code administration and enforcement requires that sufficient
staff and resources be available to assist the Director of the
Department of Consumer and Business Services as needed. + }
  SECTION 4.  { + (1) Subject to ORS 293.235 to 293.245, 293.250,
293.260 to 293.280, 293.285 and 293.293 and any rules adopted
under ORS 293.235 to 293.245, 293.250, 293.260 to 293.280,
293.285 and 293.293, and notwithstanding ORS chapter 240, 276,
282, 283, 291 or 292 or other provisions of ORS chapter 293 or
the rules adopted under ORS chapter 240, 276, 282, 283, 291 or
292, except as provided under this section the Director of the
Department of Consumer and Business Services may take any action
the director considers reasonable to ensure that sufficient staff
and other resources are available for the administration and
enforcement of the state building code. Subject to subsections
(2) to (4) of this section, actions that the director may take
under this section include, but are not limited to:
  (a) Utilizing municipal personnel, or hiring former municipal
personnel, to carry out the administrative and enforcement duties
of the Department of Consumer and Business Services under an
agreement described in section 1 of this 2013 Act;
  (b) Employing additional Department of Consumer and Business
Services staff for carrying out the administrative and
enforcement duties of the department under an agreement described
in section 1 of this 2013 Act; and
  (c) Expending available resources to carry out department
responsibilities to provide sufficient staff and other resources
under an agreement described in section 1 of this 2013 Act.
  (2) The utilization of municipal personnel or hiring of former
municipal personnel under subsection (1)(a) of this section is
subject to any applicable collective bargaining agreements and
may not be used to displace any state employee. Municipal
personnel whom the department utilizes under subsection (1)(a) of
this section retain their status as municipal personnel for
purposes of ORS 30.260 to 30.300 while carrying out the
administrative and enforcement duties of the department under an
agreement.
  (3) The employment of additional staff under subsection (1)(b)
of this section is subject to any limitations established by the
Legislative Assembly on the number of total personnel approved
for the department. To the extent practicable, the director shall
give preference to the use of available state employees to
fulfill additional staffing requirements.
  (4) The employment of additional staff under subsection (1)(b)
of this section and the expenditure of available resources under
subsection (1)(c) of this section must be predicated upon the
availability of adequate revenue, which may include but need not
be limited to revenue derived from municipal sources through an
agreement described under section 1 of this 2013 Act. The use of
existing revenue and available resources to carry out an
agreement under section 1 of this 2013 Act is not an addition to
or amendment of the legislatively adopted budget for the
department.
  (5) Notwithstanding ORS 455.230, the director may use moneys
deposited in the Consumer and Business Services Fund from fees
collected under this section for the purpose of paying the
department's costs of carrying out the administrative and
enforcement duties of the department within any administrative
region established by the director or a geographic region
established by an agreement under section 1 of this 2013 Act or
for the purpose of assisting a local government to carry out an
agreement under section 1 of this 2013 Act. + }
  SECTION 5.  { + (1) If the Department of Consumer and Business
Services assumes the administration and enforcement of a building
inspection program that has been surrendered or abandoned by a
municipality, and immediately prior to the surrender or
abandonment the municipality was charging a fee adopted under ORS
455.210 (3) that was different from the fee authorized under ORS
455.210 (1) for the same services, the department may charge the
fee adopted by the municipality for the services that the
department provides under the program.
  (2) Fees described in subsection (1) of this section that are
charged by the department:
  (a) Are subject to any surcharges described under ORS 455.210,
455.220 or 455.447; and
  (b) Notwithstanding ORS 455.210, are not subject to Oregon
Department of Administrative Services approval. + }
  SECTION 6.  { + Notwithstanding any surcharge use described in
ORS 455.220 (4), the Director of the Department of Consumer and
Business Services may use moneys from surcharges imposed under
ORS 455.210 (4) for the purpose of paying the Department of
Consumer and Business Services' costs of carrying out the
administration and enforcement of the state building code within
an administrative region established by the director or a
geographic region established by an agreement that the director
enters into under section 1 of this 2013 Act. + }
  SECTION 7.  { + The Director of the Department of Consumer and
Business Services:
  (1) May adopt rules, establish policies and procedures and take
other actions the director considers reasonable or expedient for
carrying out agreements under section 1 of this 2013 Act or under
ORS 455.148 (13) or 455.150 (13) and any duties, functions and
powers of the director or the Department of Consumer and Business
Services under sections 1, 2 and 4 to 6 of this 2013 Act or
455.148 (13) or 455.150 (13);
  (2) Shall consult at least annually with appropriate advisory
boards regarding any agreements under section 1 of this 2013 Act
or actions taken by the director under section 1, 2, 4, 5 or 6 of
this 2013 Act or ORS 455.148 (13) or 455.150 (13); and
  (3) Shall report biennially to the Legislative Assembly as
provided under ORS 192.230 to 192.250 regarding any department
activities under section 1, 2, 4, 5 or 6 of this 2013 Act or ORS
455.148 (13) or 455.150 (13). The report shall include, but not
be limited to, information regarding any projected need for an
increase in department resources required for carrying out the
administration and enforcement of building inspection programs
under sections 1, 2 and 4 to 6 of this 2013 Act or under ORS
455.148 (13) or 455.150 (13). + }
  SECTION 8. ORS 455.148 is amended to read:
  455.148. (1)(a) A municipality that assumes the administration
and enforcement of a building inspection program shall administer
and enforce the program for all of the following:
  (A) The state building code, as defined in ORS 455.010, except
as set forth in paragraph (b) of this subsection.
  (B) Manufactured structure installation requirements under ORS
446.155, 446.185 (1) and 446.230.
  (C) Manufactured dwelling parks and mobile home parks under ORS
chapter 446.
  (D) Park and camp programs regulated under ORS 455.680.
  (E) Tourist facilities regulated under ORS 446.310 to 446.350.
  (F) Manufactured dwelling alterations regulated under ORS
446.155.
  (G) Manufactured structure accessory buildings and structures
under ORS 446.253.
  (H) Boilers and pressure vessels described in rules adopted
under ORS 480.525 (5).
  (b) A building inspection program of a municipality may not
include:

  (A) Boiler and pressure vessel programs under ORS 480.510 to
480.670 except those described in rules adopted under ORS 480.525
(5);
  (B) Elevator programs under ORS 460.005 to 460.175;
  (C) Amusement ride regulation under ORS 460.310 to 460.370;
  (D) Prefabricated structure regulation under ORS chapter 455;
  (E) Manufacture of manufactured structures programs under ORS
446.155 to 446.285, including the administration and enforcement
of federal manufactured dwelling construction and safety
standards adopted under ORS 446.155 or the National Manufactured
Housing Construction and Safety Standards Act of 1974;
  (F) Licensing and certification, or the adoption of statewide
codes and standards, under ORS chapter 446, 447, 455, 479 or 693;
or
  (G) Review of plans and specifications as provided in ORS
455.685.
  (2) A municipality that administers a building inspection
program as allowed under this section shall do so for periods of
four years. The Department of Consumer and Business Services
shall adopt rules to adjust time periods for administration of a
building inspection program to allow for variations in the needs
of the department and participants.
  (3) When a municipality administers a building inspection
program, the governing body of the municipality shall, unless
other means are already provided, appoint a person to administer
and enforce the building inspection program, who shall be known
as the building official. A building official shall, in the
municipality for which appointed, attend to all aspects of code
enforcement, including the issuance of all building permits. Two
or more municipalities may combine in the appointment of a single
building official for the purpose of administering a building
inspection program within their communities.
  (4)(a) By January 1 of the year preceding the expiration of the
four-year period described in subsection (2) of this section, the
governing body of the municipality shall notify the Director of
the Department of Consumer and Business Services and, if the
municipality is not a county, notify the county whether the
municipality will continue to administer and enforce the building
inspection program after expiration of the four-year period.
  (b) Notwithstanding the January 1 date set forth in paragraph
(a) of this subsection, the director and the municipality and, if
the municipality is not a county, the county may by agreement
extend that date to no later than March 1.
  (5) If a city does not notify the director, or notifies the
director that it will not administer the building inspection
program, the county or counties in which the city is located
shall administer and enforce the county program within the city
in the same manner as the program is administered and enforced
outside the city, except as provided by subsection (6) of this
section.
  (6) If a county does not notify the director, or notifies the
director that it will not administer and enforce a building
inspection program, the director shall contract with a
municipality or other person or use such state employees or state
agencies as are necessary to administer and enforce a building
inspection program, and permit or other fees arising therefrom
shall be paid into the Consumer and Business Services Fund
created by ORS 705.145 and credited to the account responsible
for paying the expenses thereof. A state employee may not be
displaced as a result of using contract personnel.
  (7) The governing body of a municipality may commence
responsibility for the administration and enforcement of a
building inspection program beginning July 1 of any year by
notifying the director no later than January 1 of the same year
and obtaining the director's approval of an assumption plan as
described in subsection (11)(c) of this section.
  (8) The department shall adopt rules to require the governing
body of each municipality assuming or continuing a building
inspection program under this section to submit a written plan
with the notice required under subsection (4) or (7) of this
section. If the department is the governing body, the department
shall have a plan on file. The plan must specify how cooperation
with the State Fire Marshal or a designee of the State Fire
Marshal will be achieved and how a uniform fire code will be
considered in the review process of the design and construction
phases of buildings or structures.
  (9) A municipality that administers and enforces a building
inspection program pursuant to this section shall recognize and
accept the performances of state building code activities by
businesses and persons authorized under ORS 455.457 to perform
the activities as if the activities were performed by the
municipality. A municipality is not required to accept an
inspection, a plan or a plan review that does not meet the
requirements of the state building code.
  (10) The department or a municipality that accepts an
inspection or plan review as required by this section by a person
licensed under ORS 455.457 has no responsibility or liability for
the activities of the licensee.
  (11) In addition to the requirements of ORS 455.100 and
455.110, the director shall regulate building inspection programs
that municipalities assume on or after January 1, 2002.
Regulation under this subsection shall include but not be limited
to:
  (a) Creating building inspection program application and
amendment requirements and procedures;
  (b) Granting or denying applications for building inspection
program authority and amendments;
  (c) Requiring a municipality assuming a building inspection
program to submit with the notice given under subsection (7) of
this section an assumption plan that includes, at a minimum:
  (A) A description of the intended availability of program
services, including proposed service agreements for carrying out
the program during at least the first two years;
  (B) Demonstration of the ability and intent to provide building
inspection program services for at least two years;
  (C) An estimate of proposed permit revenue and program
operating expenses;
  (D) Proposed staffing levels; and
  (E) Proposed service levels;
  (d) Reviewing procedures and program operations of
municipalities;
  (e) Creating standards for efficient, effective, timely and
acceptable building inspection programs;
  (f) Creating standards for justifying increases in building
inspection program fees adopted by a municipality;
  (g) Creating standards for determining whether a county or
department building inspection program is economically impaired
in its ability to reasonably continue providing the program
throughout a county, if another municipality is allowed to
provide a building inspection program within the same county; and
  (h) Enforcing the requirements of this section.
  (12) The department may assume administration  { + and
enforcement + } of a building inspection program:
  (a) During the pendency of activities under ORS 455.770;
  (b) If a municipality abandons or is no longer able to
administer the building inspection program; and
  (c) If a municipality fails to substantially comply with any
provision of this section or of ORS 455.465, 455.467 and 455.469.
   { +  (13) If the department assumes the administration and
enforcement of a building inspection program under this section,
in addition to any other power granted to the director, the
director may:
  (a) Enter into agreements with local governments under section
1 of this 2013 Act regarding the administration and enforcement
of the assumed building inspection program;
  (b) Take action as described in section 4 of this 2013 Act to
ensure that sufficient staff and other resources are available
for the administration and enforcement of the assumed building
inspection program; and
  (c) Charge fees described in section 5 of this 2013 Act for
department services provided in administering and enforcing the
assumed building inspection program. + }
    { - (13) - }  { +  (14) + } A municipality that abandons or
otherwise ceases to administer  { + and enforce + } a building
inspection program that the municipality assumed under this
section may not resume the administration or enforcement of the
program for at least two years. The municipality may resume the
administration and enforcement of the abandoned program only on
July 1 of an odd-numbered year. Prior to resuming the
administration and enforcement of the program, the municipality
must follow the notification procedure set forth in subsection
(7) of this section.
  SECTION 9. ORS 455.150 is amended to read:
  455.150. (1) Except as provided in subsection   { - (14) - }
 { +  (15) + } of this section, a municipality that assumes the
administration and enforcement of a building inspection program
prior to January 1, 2002, may administer and enforce all or part
of a building inspection program. A building inspection program:
  (a) Is a program that includes the following:
  (A) The state building code, as defined in ORS 455.010, except
as set forth in paragraph (b) of this subsection.
  (B) Manufactured structure installation requirements under ORS
446.155, 446.185 (1) and 446.230.
  (C) Manufactured dwelling parks and mobile home parks under ORS
chapter 446.
  (D) Park and camp programs regulated under ORS 455.680.
  (E) Tourist facilities regulated under ORS 446.310 to 446.350.
  (F) Manufactured dwelling alterations regulated under ORS
446.155.
  (G) Manufactured structure accessory buildings and structures
under ORS 446.253.
  (H) Boilers and pressure vessels described in rules adopted
under ORS 480.525 (5).
  (b) Is not a program that includes:
  (A) Boiler and pressure vessel programs under ORS 480.510 to
480.670 except those described in rules adopted under ORS 480.525
(5);
  (B) Elevator programs under ORS 460.005 to 460.175;
  (C) Amusement ride regulation under ORS 460.310 to 460.370;
  (D) Prefabricated structure regulation under ORS chapter 455;
  (E) Manufacture of manufactured structures programs under ORS
446.155 to 446.285, including the administration and enforcement
of federal manufactured dwelling construction and safety
standards adopted under ORS 446.155 or the National Manufactured
Housing Construction and Safety Standards Act of 1974;
  (F) Licensing and certification, or the adoption of statewide
codes and standards, under ORS chapter 446, 447, 455, 479 or 693;
and
  (G) Review of plans and specifications as provided in ORS
455.685.
  (2) A municipality that administers a building inspection
program as allowed under this section shall do so for periods of
four years. The Department of Consumer and Business Services
shall adopt rules to adjust time periods for administration of a
building inspection program to allow for variations in the needs
of the department and participants.
  (3) When a municipality administers a building inspection
program, the governing body of the municipality shall, unless
other means are already provided, appoint a person to administer
and enforce the building inspection program or parts thereof, who
shall be known as the building official. A building official
shall, in the municipality for which appointed, attend to all
aspects of code enforcement, including the issuance of all
building permits. Two or more municipalities may combine in the
appointment of a single building official for the purpose of
administering a building inspection program within their
communities.
  (4)(a) By January 1 of the year preceding the expiration of the
four-year period described in subsection (2) of this section, the
governing body of the municipality shall notify the Director of
the Department of Consumer and Business Services and, if not a
county, notify the county whether the municipality will continue
to administer the building inspection program, or parts thereof,
after expiration of the four-year period. If parts of a building
inspection program are to be administered and enforced by a
municipality, the parts shall correspond to a classification
designated by the director as reasonable divisions of work.
  (b) Notwithstanding the January 1 date set forth in paragraph
(a) of this subsection, the director and the municipality and, if
the municipality is not a county, the county may by agreement
extend that date to no later than March 1.
  (5) If a city does not notify the director, or notifies the
director that it will not administer certain specialty codes or
parts thereof under the building inspection program, the county
or counties in which the city is located shall administer and
enforce those codes or parts thereof within the city in the same
manner as it administers and enforces them outside the city,
except as provided by subsection (6) of this section.
  (6) If a county does not notify the director, or notifies the
director that it will not administer and enforce certain
specialty codes or parts thereof under the building inspection
program, the director shall contract with a municipality or other
person or use such state employees or state agencies as are
necessary to administer and enforce those codes or parts thereof,
and permit or other fees arising therefrom shall be paid into the
Consumer and Business Services Fund created by ORS 705.145 and
credited to the account responsible for paying such expenses. A
state employee may not be displaced as a result of using contract
personnel.
  (7) If a municipality administering a building inspection
program under this section seeks to administer additional parts
of a program, the municipality must comply with ORS 455.148,
including the requirement that the municipality administer and
enforce all aspects of the building inspection program.
Thereafter, the municipality is subject to ORS 455.148 and ceases
to be subject to this section.
  (8) The department shall adopt rules to require the governing
body of each municipality to submit a written plan with the
notice required under subsection (4) of this section. If the
department is the governing body, the department shall have a
plan on file.  The plan shall specify how cooperation with the
State Fire Marshal or a designee of the State Fire Marshal will
be achieved and how a uniform fire code will be considered in the
review process of the design and construction phases of buildings
or structures.
  (9) A municipality that administers a code for which persons or
businesses are authorized under ORS 455.457 to perform activities
shall recognize and accept those activities as if performed by
the municipality. A municipality is not required to accept an
inspection, a plan or a plan review that does not meet the
requirements of the state building code.
  (10) The department or a municipality that accepts an
inspection or plan review as required by this section by a person

licensed under ORS 455.457 has no responsibility or liability for
the activities of the licensee.
  (11) In addition to the requirements of ORS 455.100 and
455.110, the director shall regulate building inspection programs
of municipalities assumed prior to January 1, 2002. Regulation
under this subsection shall include but not be limited to:
  (a) Creating building inspection program application and
amendment requirements and procedures;
  (b) Granting or denying applications for building inspection
program authority and amendments;
  (c) Reviewing procedures and program operations of
municipalities;
  (d) Creating standards for efficient, effective, timely and
acceptable building inspection programs;
  (e) Creating standards for justifying increases in building
inspection program fees adopted by a municipality;
  (f) Creating standards for determining whether a county or
department building inspection program is economically impaired
in its ability to reasonably continue providing the program or
part of the program throughout a county, if another municipality
is allowed to provide a building inspection program or part of a
program within the same county; and
  (g) Enforcing the requirements of this section.
  (12) The department may assume administration  { + and
enforcement + } of a building inspection program:
  (a) During the pendency of activities under ORS 455.770;
  (b) If a municipality abandons any part of the building
inspection program or is no longer able to administer the
building inspection program; and
  (c) If a municipality fails to substantially comply with any
provision of this section or of ORS 455.465, 455.467 and 455.469.
   { +  (13) If the department assumes the administration and
enforcement of a building inspection program under this section,
in addition to any other power granted to the director, the
director may:
  (a) Enter into agreements with local governments under section
1 of this 2013 Act regarding the administration and enforcement
of the assumed building inspection program;
  (b) Take action as described in section 4 of this 2013 Act to
ensure that sufficient staff and other resources are available
for the administration and enforcement of the assumed building
inspection program; and
  (c) Charge fees described in section 5 of this 2013 Act for
department services provided in administering and enforcing the
assumed building inspection program. + }
    { - (13) - }  { +  (14) + } If a municipality abandons or
otherwise ceases to administer all or part of a building
inspection program described in this section, the municipality
may not resume the administration and enforcement of the
abandoned program or part of a program for at least two years.
The municipality may resume the administration and enforcement of
the abandoned program or part of a program only on July 1 of an
odd-numbered year. To resume the administration and enforcement
of the abandoned program or part of a program, the municipality
must comply with ORS 455.148, including the requirement that the
municipality administer and enforce all aspects of the building
inspection program.  Thereafter, the municipality is subject to
ORS 455.148 and ceases to be subject to this section.
    { - (14) - }  { +  (15) + } A municipality that administers
and enforces a building inspection program under this section
shall include in the program the inspection of boilers and
pressure vessels described in subsection (1)(a)(H) of this
section.
  SECTION 10.  { + This 2013 Act being necessary for the
immediate preservation of the public peace, health and safety, an

emergency is declared to exist, and this 2013 Act takes effect on
its passage. + }
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