Bill Text: OR HB3266 | 2011 | Regular Session | Introduced


Bill Title: Relating to building trades.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3266 Detail]

Download: Oregon-2011-HB3266-Introduced.html


     76th OREGON LEGISLATIVE ASSEMBLY--2011 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 3792

                         House Bill 3266

Sponsored by Representative HOLVEY

                             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 as
introduced.

  Removes persons performing construction, electrical or plumbing
work for more than two employers at same time from coverage of
employee exemption to construction contractor, electrical and
plumbing laws.
  Specifies exemption of regular employee of residential property
owner exempted from plumber licensing laws. Clarifies scope of
residential property owner exemption.

                        A BILL FOR AN ACT
Relating to building trades; creating new provisions; and
  amending ORS 447.060, 479.540, 693.020 and 701.010.
Be It Enacted by the People of the State of Oregon:
  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
residential general contractor.
  (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  { + to + } 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. { +  For purposes of
this subsection, a person who performs work for more than two
property owners under coexisting employment or agency
relationships is considered to be acting as an independent
contractor and not as an employee of the property owners. + }
  (8) A person licensed in one of the following trades or
professions when operating within the scope of that license:
  (a) An architect   { - licensed - }   { + registered + } by the
State Board of Architect Examiners.
  (b) A professional engineer registered 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 landscape contracting business licensed under ORS 671.510
to 671.760.
  (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.
  (9) A landscape contracting business operating within the scope
of a license issued under ORS 671.510 to 671.760 that:
  (a) Constructs fences, decks, arbors, patios, landscape edging,
driveways, walkways or retaining walls and meets the applicable
bonding requirements under ORS 671.690; or
  (b) Subcontracts to a licensed plumbing contractor, or
otherwise arranges for a licensed plumbing contractor to perform,
the installation of an irrigation system described in ORS 671.540
(1)(m) or the repair or maintenance of an irrigation system.
  (10) A person who performs work subject to this chapter as an
employee of a contractor.
  (11) A manufacturer of a manufactured home constructed under
standards established by the federal government.
  (12) 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.
  (13) 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.
  (14) 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.
  (15) Units of government other than those specified in ORS
701.005 (5)(c) and (d).
  (16) 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.
  (17) A business that supplies personnel to a licensed
contractor for the performance of work under the direction and
supervision of the contractor.
  (18) City or county inspectors acting under ORS 701.225 or
inspectors described in ORS 455.715.
  SECTION 2. 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,  { + subject to paragraph (c) of this
subsection, + } '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.
   { +  (c) For purposes of paragraph (b) of this subsection, a
person who performs electrical installations or substantial
alterations for more than two landlords under coexisting
employment or agency relationships is considered to be acting as
an independent contractor and not as the landlord's agent or the
employee of the landlord. + }
  (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 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) The provisions of ORS 479.510 to 479.945 and 479.995 do not
apply to:
  (a) Electrical installations and repairs involving
communication and signal systems of railroad companies.
  (b) Electrical installations and repairs involving 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.
  (c) The installing, maintaining, repairing or replacement of
telecommunications systems on the provider side of the
demarcation point by a telecommunications service provider.
  (d) The maintaining, repairing or replacement of
telecommunications equipment on the customer side of the
demarcation point by a telecommunications service provider.
  (e) Installations, by a telecommunications service provider or
an appropriately licensed electrical contractor, of
telecommunications systems on the customer side of the
demarcation point except:
  (A) Installations involving more than 10 telecommunications
outlets; and
  (B) Installations of any size that penetrate fire-resistive
construction or air handling systems or that pass through
hazardous locations.
  (f) Notwithstanding paragraph (e) of this subsection,
installation of telecommunications systems on the customer side
of the demarcation point in:
  (A) One and two family dwellings; and
  (B) Multifamily dwellings having not more than four dwelling
units if the installation is by a telecommunications service
provider.
  (g) Notwithstanding paragraph (e) of this subsection,
installation or replacement of cord or plug connected
telecommunications equipment on the customer side of the
demarcation point.

  (h) Notwithstanding paragraph (e) of this subsection,
installation of patch cord and jumper cross-connected equipment
on the customer side of the demarcation point.
  (10)(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.
  (11) ORS 479.760 does not apply to products described in this
subsection that comply with the electrical product safety
standards established by concurrence of the board and the
Director of the Department of Consumer and Business Services as
described under ORS 479.730. 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) The rotating equipment portion of power generation
equipment.
  (B) Testing equipment used in a laboratory or hospital.
  (C) Commercial electrical air conditioning equipment.
  (D) 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 meet the electrical product safety standards
established by concurrence of the board and the director.
  (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 installed 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.
  (12)(a) ORS 479.610 does not apply to installations of
industrial electrical equipment unless the board determines that
the product or class of products may present a fire or life
safety hazard.
  (b) The board may reinstate an exemption removed under this
subsection if the product qualifies for reinstatement under:
  (A) An equipment safety program approved by the board;
  (B) Equipment minimum safety standards established by
concurrence of the board and the director;
  (C) An evaluation by an approved field evaluation firm;
  (D) A listing from a nationally recognized testing laboratory;
  (E) An evaluation of a first model of a product by the board;
or
  (F) Any other method approved by the board.
  (13) ORS 479.760 does not apply to electrical equipment that
has been installed and in use for one year or more.
  (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 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) A person is not required to obtain a license to make an
electrical installation in a prefabricated structure, as defined
in ORS 455.010, that is designed for residential use and intended
for delivery in another state.
  (21) As used in this section, 'smoke alarm' has the meaning
given that term under ORS 479.250.
  SECTION 3. ORS 447.060 is amended to read:
  447.060. (1) ORS 447.010 to 447.156 do not apply to a person:
  (a) Engaging in plumbing work when not so engaged for hire.
  (b) Using the services of regular employees in performing
plumbing work { + , or to a regular employee performing plumbing
work, + } for the benefit of property owned, leased or operated
by the person. For purposes of this paragraph, 'regular employee'
means a person who is subject to the provisions of ORS 316.162 to
316.221 and who has completed a withholding exemptions
certificate required by ORS 316.162 to 316.221.  { + However,
'regular employee ' does not include a person who provides
services for more than two property owners, lessors or operators
under coexisting employment or agency relationships. + }
  (c) Using the services of an employee or contractor of a
utility company, energy service provider or water supplier to
install an approved low-flow showerhead or faucet aerator in
existing plumbing fixtures. The devices installed under this
paragraph are exempt from the certification, permit and
inspection requirements of ORS 447.010 to 447.156 and ORS chapter
693.
  (2) A landscape contracting business licensed under ORS 671.560
is not required to be licensed under ORS 447.010 to 447.156 to
install, repair or maintain backflow assemblies for irrigation
systems and ornamental water features if the work is performed by
an individual who is licensed as required by ORS 671.615 and is
an owner or employee of the landscape contracting business. The
repair and maintenance of the backflow assembly must be performed
by a tester certified under ORS 448.279. The licensing exemption
established under this subsection does not exempt the landscape
contracting business from the inspection and permit requirements
of ORS 447.010 to 447.156.
  (3) This section applies to any person, including but not
limited to, individuals, corporations, associations, firms,
partnerships, joint stock companies, public and municipal
corporations, political subdivisions, this state, the federal
government and state or federal agencies.
  SECTION 4. ORS 693.020 is amended to read:
  693.020. (1) Except as provided in subsection (2) of this
section, this chapter does not apply to:

  (a) A person working on a building or premises owned by the
person, regardless of whether the person holds a license under
this chapter, if the person complies with all the rules adopted
under this chapter and ORS 447.010 to 447.156 and ORS chapter
455.
  (b) A person testing, repairing, servicing, maintaining,
installing or replacing new or existing potable water pump
equipment not exceeding seven and one-half horsepower on
residential property and piping between the pumps and storage
tanks for the pumps, regardless of whether the person holds any
license under this chapter.
  (c) A person installing exterior storm drains that are not
connected to a sanitary sewer or combination sanitary storm
sewer.
  (d) An employee or contractor of a utility, energy service
provider or water supplier who is installing an approved low-flow
showerhead or faucet aerator in existing plumbing fixtures. The
devices installed under this paragraph are exempt from the
certification, permit and inspection requirements of this chapter
and ORS 447.010 to 447.156.
  (e) A person who owns, leases or operates residential property
and who repairs, or uses regular employees to repair, existing
plumbing on  { + residential + } property owned, leased or
operated by the person,  { + or who is a regular employee
repairing existing plumbing for a person who owns, leases or
operates the property, + } regardless of whether the person or
employee holds a license under this chapter. As used in this
paragraph:
  (A) 'Repair' means the act of replacing or putting together
plumbing parts that restore the existing plumbing system to a
safe and sanitary operating condition.
  (B) 'Regular employee' means a person who is subject to the
provisions of ORS 316.162 to 316.221 and who has completed a
withholding exemptions certificate required by the provisions of
ORS 316.162 to 316.221.  { + However, 'regular employee' does not
include a person who repairs plumbing for more than two property
owners, lessors or operators under coexisting employment or
agency relationships. + }
  (f) A person installing plumbing in a prefabricated structure,
as defined in ORS 455.010, that is designed for residential use
and intended for delivery in another state.
  (2) Subsection (1)(a) to (d) of this section does not allow a
person other than a journeyman plumber or apprentice plumber to
install, remodel or alter plumbing in a commercial or industrial
building being constructed or offered for sale, exchange, rent or
lease. As used in this subsection, 'install, remodel or alter '
means activities that involve installations or changes to the
plumbing inside a wall, floor, crawl space or ceiling, or a
change in the configuration of a plumbing system.
  (3) This section applies to any person, including but not
limited to individuals, corporations, associations, firms,
partnerships, joint stock companies, public and municipal
corporations, political subdivisions, this state and any agencies
thereof and the federal government and any agencies thereof.
  (4) Except as provided in subsection (1)(d) of this section,
nothing in this section exempts a person from the plumbing
inspection requirements of ORS 447.010 to 447.156.
  SECTION 5.  { + The amendments to ORS 447.060, 479.540, 693.020
and 701.010 by sections 1 to 4 of this 2011 Act apply to agency
and employee relationships coexisting on or after the effective
date of this 2011 Act. + }
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