Oregon Administrative Rules Chapter 808 - LANDSCAPE CONTRACTORS BOARD

Oregon Administrative Rules Chapter 808 — Landscape Contractors Board (LCB)

Overview

The Oregon Landscape Contractors Board is the administrative body empowered by statute to regulate the landscape contracting industry in Oregon. The Board's rules are codified in OAR Chapter 808, which governs licensing, conduct, contracts, claims, enforcement, and other aspects related to landscape contractors.

The purpose of the rules is to:

Ensure that landscape contracting businesses and professionals meet minimum standards.

Protect consumers from fraud, poor workmanship, and unfair business practices.

Provide a framework for resolving disputes between contractors and consumers.

Statutory Authority

The authority for OAR Chapter 808 stems from the Oregon Revised Statutes (ORS) 671.510–671.760, which:

Establish licensing requirements for landscape contracting businesses and professionals.

Grant the Board authority to adopt administrative rules.

Provide for enforcement mechanisms, including civil penalties, suspension, and revocation of licenses.

Authorize the Board to investigate consumer complaints and conduct hearings.

Key Provisions of OAR Chapter 808

Licensing Requirements

Landscape contractors must obtain licenses to legally operate, with different types of licenses for business entities and individual professionals.

Licenses are required for various specialties or phases of landscaping, including irrigation, landscape construction, and maintenance.

Contractors must maintain bonding and insurance as conditions for licensing.

Contract Standards

For landscaping work costing $2,000 or more, written contracts are mandatory.

Contracts must include the contractor's name, license number, a detailed description of the work, price, completion timeline, and cancellation rights.

Arbitration clauses are permitted but must be clearly disclosed to the consumer.

Scope of Work and Subcontracting

Contractors may only perform work within their licensed scope.

Work outside a licensee’s scope must be subcontracted to appropriately licensed professionals.

Certain construction activities, like decks or fences, fall outside the Board’s jurisdiction and must be handled by other licensed contractors.

Claims and Dispute Resolution

Consumers may file claims with the Board regarding defective work, breach of contract, or unlicensed activities.

The Board investigates claims and may initiate hearings or impose penalties.

Arbitration is available as an alternative dispute resolution mechanism when agreed upon by parties.

Civil Penalties and Enforcement

The Board may impose civil penalties for violations such as unlicensed activity, failure to use proper contracts, false advertising, and failure to maintain bonding.

Penalties escalate for repeated violations and may result in license suspension or revocation.

Enforcement and Judicial Review

The Board’s decisions, including licensing actions and penalties, can be reviewed by Oregon courts through contested case proceedings under the Oregon Administrative Procedures Act (APA). Courts ensure the Board does not act arbitrarily or exceed its statutory authority.

Leading Case Law

JL Ward Co. v. Landscape Contractors Board, 141 Or. App. 181, 916 P.2d 887 (1996)

Facts:
JL Ward Co., a residential homebuilder, included landscaping work in the homes it built but did not separately offer landscaping services or hold a landscape contractor’s license. The Board imposed civil penalties for operating without a license.

Issue:
Does incorporating landscaping into home construction constitute "offering landscaping services" that triggers licensing requirements?

Holding:
No. The Court of Appeals held that JL Ward Co. did not “offer” landscaping services separately; the landscaping was part of the home sale, and thus the company was not subject to licensing under the landscaping statutes.

Reasoning:
The court emphasized the statutory language requiring an “offer” of landscaping services, meaning a separate presentation or agreement to perform landscaping. Because JL Ward’s landscaping was not separately offered or contracted, it did not fall under the Board’s licensing requirements.

Significance:
This case clarifies that licensing rules apply only when landscaping services are offered as such, protecting developers who include landscaping as part of a broader home sale from unintended regulatory burdens.

Significance of the Case

It establishes a clear boundary on who must comply with the licensing rules in OAR Chapter 808.

It reinforces the requirement for explicit offering or contracting of landscaping services.

It highlights the importance of statutory interpretation in administrative enforcement.

Additional Legal Principles

The Board must follow fair administrative procedures, including notice, opportunity to be heard, and reasoned decision-making.

Penalties imposed must not be arbitrary or capricious, as per Oregon judicial standards.

Written contracts required by the rules serve to protect consumers and establish clear terms for work and payment.

Arbitration provisions in contracts must be clearly disclosed to preserve consumers’ rights.

Summary

Oregon Administrative Rules Chapter 808 governs the licensing and conduct of landscape contractors in Oregon. It sets minimum standards for contracts, scope of work, consumer protections, and enforcement. The Board’s authority derives from Oregon statutes, and its rules are subject to judicial review.

The JL Ward Co. case is a pivotal judicial interpretation limiting the Board’s reach to only those who offer landscaping services distinctly. This ensures balanced regulation protecting consumers without overburdening related businesses like homebuilders.

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