Oregon
Summary
As of January 1, 2014, pursuant to SB 207, home service contract providers must register
with Oregon State Construction Contractors Board (CCB). This was not desired and hopefully will not establish any precedent. Home service contract providers use local contractors, but are not logically a construction contractors that should be regulated by a state contractors board. In fact, the legislation mandates we only use other licensed contractors in the state to perform work. It was politics. We had no real choice and the state wanted us registered with some entity. The CCB was the default. We are exempt from CE and other requirements. A provider must:
.
Existing ORS 646, the so-called Oregon “Service Contract” law, only applies to obligors who sell the merchandise covered by the service contract; i.e. typical retail sales. When adopted, ORS 731.164 had
already covered household service contracts, thus the differentiation.
HB 3145, effective January 1, 2004, eliminated coverage of typical household service contracts under ORS 731.164, the Oregon “home protection insurance” law. The DOI and legislature then decided not to amend ORS 646 to cover typical household service contracts, so household service contracts are now exempt.
HB 2669 was then adopted in the 2005 legislature which bootstrapped in a bond requirement at ORS 646.267(6)(a) that at first blush may appear to apply to "home service agreements" but such only applies to an "obligor of a home service agreement." This was an odd amendment but the defintion, by any reasonable statutory construction, must be limited by the definiton of "obligor" in ORS 646 and would not apply to a home service contract company.
At the request of a provider, on June 14, 2011, the Oregon Department of insurance issued a interpretive letter affirming and clrifying the exemption. In particular is states:
with Oregon State Construction Contractors Board (CCB). This was not desired and hopefully will not establish any precedent. Home service contract providers use local contractors, but are not logically a construction contractors that should be regulated by a state contractors board. In fact, the legislation mandates we only use other licensed contractors in the state to perform work. It was politics. We had no real choice and the state wanted us registered with some entity. The CCB was the default. We are exempt from CE and other requirements. A provider must:
- Register the person’s assumed business name, corporation, or LLC with the Oregon Corporation Division.
- Submit an application with the required fee (currently $325 for two years) to the Board for a home services contractor license that contains:
- Evidence of a surety bond in the amount of $10,000
- Evidence of general liability insurance (public liability, personal injury, and property damage) in an amount not less than $100,000 along with various other requirements.
.
Existing ORS 646, the so-called Oregon “Service Contract” law, only applies to obligors who sell the merchandise covered by the service contract; i.e. typical retail sales. When adopted, ORS 731.164 had
already covered household service contracts, thus the differentiation.
HB 3145, effective January 1, 2004, eliminated coverage of typical household service contracts under ORS 731.164, the Oregon “home protection insurance” law. The DOI and legislature then decided not to amend ORS 646 to cover typical household service contracts, so household service contracts are now exempt.
HB 2669 was then adopted in the 2005 legislature which bootstrapped in a bond requirement at ORS 646.267(6)(a) that at first blush may appear to apply to "home service agreements" but such only applies to an "obligor of a home service agreement." This was an odd amendment but the defintion, by any reasonable statutory construction, must be limited by the definiton of "obligor" in ORS 646 and would not apply to a home service contract company.
At the request of a provider, on June 14, 2011, the Oregon Department of insurance issued a interpretive letter affirming and clrifying the exemption. In particular is states:
The definition of home service agreement in ORS 731.164(1)(b)(B) includes traditional home service agreements that provide coverage for mechanical and appliance systems or components inside the home, as well as specified home components located outside of the residential structure.
Statutes
REGULATIONS
None at this time
