Bill Text: OR SB155 | 2011 | Regular Session | Enrolled
Bill Title: Relating to construction contractors.
Sponsorship: Unknown
Status: (Passed) 2011-06-01 - Effective date, January 1, 2012. [SB155 Detail]
Download: Oregon-2011-SB155-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
Senate Bill 155
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber
for Construction Contractors Board)
CHAPTER ................
AN ACT
Relating to construction contractors; creating new provisions;
and amending ORS 701.005 and 701.139.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 701.005, as amended by section 4, chapter 77,
Oregon Laws 2010, is amended to read:
701.005. As used in this chapter:
(1) 'Board' means the Construction Contractors Board.
(2) 'Commercial contractor' means a licensed contractor that
holds an endorsement as a:
(a) Commercial general contractor level 1;
(b) Commercial specialty contractor level 1;
(c) Commercial general contractor level 2;
(d) Commercial specialty contractor level 2; or
(e) Commercial developer.
(3) 'Commercial developer' means a developer of property that
is zoned for or intended for use compatible with a small
commercial or large commercial structure.
(4) 'Construction debt' means an amount owed under:
(a) An order or arbitration award issued by the board that has
become final by operation of law;
(b) A judgment or civil penalty that has become final by
operation of law arising from construction activities within the
United States; or
(c) A judgment or civil penalty that has become final by
operation of law arising from a failure to comply with ORS
656.017.
(5) 'Contractor' means any of the following:
(a) A person that, 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, a building,
highway, road, railroad, excavation or other structure, project,
development or improvement attached to real estate, or to do any
part thereof.
(b) A person that 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.
Enrolled Senate Bill 155 (SB 155-A) Page 1
(c) 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.
(d) 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.
(e) A person except a landscape contracting business,
nurseryman, gardener or person engaged in the commercial harvest
of forest products, that is engaged as an independent contractor
to remove trees, prune trees, remove tree limbs or stumps or to
engage in tree or limb guying.
(f) A business that supplies the services of a home inspector
certified under ORS 701.350 or a cross-connection inspector and
backflow assembly tester certified under ORS 448.279.
(g) A person that for compensation arranges, undertakes, offers
to undertake or submits a bid to clean or service chimneys.
(6) 'Developer' means a contractor that owns property or an
interest in property and engages in the business of arranging for
construction work or performing other activities associated with
the improvement of real property, with the intent to sell the
property.
(7)(a) '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.
(b) 'General contractor' does not mean a specialty contractor
or a residential limited contractor.
(8)(a) 'Home improvement' means a renovation, remodel, repair
or alteration by a residential contractor to an existing
owner-occupied:
(A) Residence that is a site-built home;
(B) Condominium, rental residential unit or other residential
dwelling unit that is part of a larger structure, if the property
interest in the unit is separate from the property interest in
the larger structure;
(C) Modular home constructed off-site;
(D) Manufactured dwelling; or
(E) Floating home, as defined in ORS 830.700.
(b) 'Home improvement' does not include a renovation, remodel,
repair or alteration by a residential contractor:
(A) To a structure that contains one or more dwelling units and
is four stories or less above grade; or
(B) That the residential contractor performed in the course of
constructing a new residential structure.
(9)(a) '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 of the
residential structure - } .
(b) '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.
(10) 'Key employee' means an employee or owner of a contractor
who is a corporate officer, manager, superintendent, foreperson
or lead person or any other employee the board identifies by
rule.
Enrolled Senate Bill 155 (SB 155-A) Page 2
(11) 'Large commercial structure' means a structure that is not
a residential structure or small commercial structure.
(12) 'Officer' means any of the following persons:
(a) A president, vice president, secretary, treasurer or
director of a corporation.
(b) A general partner in a limited partnership.
(c) A manager in a manager-managed limited liability company.
(d) A member of a member-managed limited liability company.
(e) A trustee.
(f) A person the board defines by rule as an officer. The
definition of officer adopted by board rule may include persons
not listed in this subsection who may exercise substantial
control over a business.
(13) 'Residential contractor' means a licensed contractor that
holds an endorsement as a:
(a) Residential general contractor;
(b) Residential specialty contractor;
(c) Residential limited contractor; or
(d) Residential developer.
(14) 'Residential developer' means a developer of property that
is zoned for or intended for use compatible with a residential or
small commercial structure.
(15)(a) 'Residential structure' means:
(A) A residence that is a site-built home;
(B) A structure that contains one or more dwelling units and is
four stories or less above grade;
(C) A condominium, rental residential unit or other residential
dwelling unit that is part of a larger structure, if the property
interest in the unit is separate from the property interest in
the larger structure;
(D) A modular home constructed off-site;
(E) A manufactured dwelling; { - or - }
(F) A floating home as defined in ORS 830.700 { - . - } { + ;
or
(G) An appurtenance to a home, structure, unit or dwelling
described in subparagraphs (A) to (F) of this paragraph. + }
(b) 'Residential structure' does not mean:
(A) Subject to paragraph (a)(C) of this subsection, a structure
that contains both residential and nonresidential units;
(B) Transient lodging;
(C) A residential school or residence hall;
(D) A state or local correctional facility other than a local
facility for persons enrolled in work release programs maintained
under ORS 144.460;
(E) A youth correction facility as defined in ORS 420.005;
(F) A youth care center operated by a county juvenile
department under administrative control of a juvenile court
pursuant to ORS 420.855 to 420.885;
(G) A detention facility as defined in ORS 419A.004;
(H) A nursing home;
(I) A hospital; or
(J) A place constructed primarily for recreational activities.
(16) 'Responsible managing individual' means an individual who:
(a) Is an owner described in ORS 701.094 or an employee of the
business;
(b) Exercises management or supervisory authority, as defined
by the board by rule, over the construction activities of the
business; and
Enrolled Senate Bill 155 (SB 155-A) Page 3
(c)(A) Successfully completed the training and testing required
for licensing under ORS 701.122 within a period the board
identifies by rule;
(B) Demonstrated experience the board requires by rule; or
(C) Complied with the licensing requirements of ORS 446.395.
(17) 'Small commercial structure' means:
(a) A nonresidential structure that has a ground area of 10,000
square feet or less, including exterior walls, and a height of
not more than 20 feet from the top surface of the lowest flooring
to the highest interior overhead finish of the structure;
(b) A nonresidential leasehold, rental unit or other unit that
is part of a larger structure, if the unit has a ground area of
12,000 square feet or less, excluding exterior walls, and a
height of not more than 20 feet from the top surface of the
lowest flooring to the highest interior overhead finish of the
unit; { - or - }
(c) A nonresidential structure of any size for which the
contract price of all construction contractor work to be
performed on the structure as part of a construction project does
not total more than $250,000 { - . - } { + ; or
(d) An appurtenance to a structure or unit described in
paragraphs (a) to (c) of this subsection. + }
(18) '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 446.395.
(19) 'Zero-lot-line dwelling' means a single-family dwelling
unit constructed in a group of attached units in which:
(a) Each attached unit extends from foundation to roof with
open space on two sides; and
(b) Each dwelling unit is separated by a property line.
SECTION 2. ORS 701.139 is amended to read:
701.139. The Construction Contractors Board may determine the
validity of a complaint described in ORS 701.140 filed against a
licensed contractor. A person must file the complaint within the
applicable time limitation described in ORS 701.143. The
complaint must be filed and resolved as follows:
(1) A complaint against a residential contractor that is not
also endorsed as a commercial contractor involving work on a
residential or small commercial structure { - or an
appurtenance to a residential or small commercial structure - }
must be resolved as provided in ORS 701.145.
(2) A complaint against a commercial contractor that is not
also endorsed as a residential contractor involving work on a
small commercial or large commercial structure or an appurtenance
to a { - small commercial or - } large commercial structure
must be resolved as provided in ORS 701.146.
(3) A complaint against a contractor that is endorsed as both a
residential contractor and a commercial contractor:
(a) Involving work on a residential structure { - or an
appurtenance to a residential structure - } must be resolved as
provided under ORS 701.145.
(b) Involving work on a small commercial structure { - or an
appurtenance to a small commercial structure - } may be resolved
as provided in ORS 701.145 or 701.146, at the complainant's
election.
(c) Involving work on a large commercial structure or an
appurtenance to a large commercial structure must be resolved as
provided in ORS 701.146.
Enrolled Senate Bill 155 (SB 155-A) Page 4
(4) Notwithstanding subsections (1) to (3) of this section and
except as provided in ORS 701.148, with prior agreement of the
complainant and the licensed contractor, a complaint may be
resolved by the board through binding arbitration under ORS
701.148.
SECTION 3. { + The amendments to ORS 701.005 and 701.139 by
sections 1 and 2 of this 2011 Act apply to work performed under
construction contracts entered into before, on or after the
effective date of this 2011 Act. + }
SECTION 4. { + Sections 5 and 6 of this 2011 Act are added to
and made a part of ORS chapter 701. + }
SECTION 5. { + (1) Notwithstanding ORS 701.126, the
Construction Contractors Board shall adopt criteria for allowing
the exemption of a residential contractor from any board rule
requiring continuing education in state building code compliance
or requiring building exterior shell training.
(2) The board may require a residential contractor to take
continuing education or training in other subjects to offset the
reduction in continuing education or training hours created by
the exemption described in subsection (1) of this section. + }
SECTION 6. { + (1) The Construction Contractors Board may
approve private and public education and training programs as
programs that may be credited toward meeting the continuing
education requirements for residential contractors adopted by the
board under ORS 701.126. The board may determine the number of
hours to be credited to an approved program.
(2) Programs approved by the board under this section must be
designed to directly contribute to the professional competency of
residential contractors. + }
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Passed by Senate March 2, 2011
Repassed by Senate May 17, 2011
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House May 12, 2011
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Enrolled Senate Bill 155 (SB 155-A) Page 5
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 155 (SB 155-A) Page 6
