Oregon Welding Licensing Law

Oregon Code · 5 sections

The following is the full text of Oregon’s welding licensing law statutes as published in the Oregon Code. For the official version, see the Oregon Legislature.

ORS 390.805

390.805 to 390.925, 537.332 to 537.360 and 537.505 to 537.795. [2005 c.669 �2]

�� Sec. 4. Section 2 of this 2005 Act applies to all ground water permits containing a ground water mitigation requirement, all final orders approving water right applications containing a ground water mitigation requirement, all mitigation credits, all ground water mitigation projects and all mitigation banks issued or approved in the Deschutes River Basin by the Water Resources Department or the Water Resources Commission before, on or after the effective date of this 2005 Act [July 29, 2005]. [2005 c.669 �4]

�� Sec. 5. (1) The Water Resources Commission shall repeal the rules referred to in section 2, chapter 669, Oregon Laws 2005, on January 2, 2029.

�� (2) Ground water permits and mitigation projects approved before the repeal remain valid and effective. [2005 c.669 �5; 2011 c.694 �1]

(Water Well Constructors)

�� 537.747 Water well constructor�s license; rules; fees. (1) No person shall advertise services to construct, alter, abandon or convert wells, offer to enter or enter into a contract with another person or public agency to construct, alter, abandon or convert a well for such other person, cause any well construction, alteration, abandonment or conversion to be performed under such a contract or operate well drilling machinery without possessing a water well constructor�s license therefor in good standing issued by the Water Resources Department. The department shall adopt a single water well constructor�s license that may specify the type of well, type of well alteration or construction or type of well drilling machine operation for which the water well constructor is qualified.

�� (2) Notwithstanding subsection (1) of this section, a person may operate a well drilling machine without a water well constructor�s license if supervised by one who possesses such a license.

�� (3) A person shall be qualified to receive a water well constructor�s license if the person:

�� (a) Is at least 18 years of age.

�� (b) Has passed a written examination conducted by the department to determine fitness to operate as a water well constructor.

�� (c) Has paid a license fee and an examination fee according to the fee schedule set forth under subsection (6) of this section.

�� (d) Has one year or more experience in the operation of well drilling machinery.

�� (e) Provides evidence that the person has completed an arc welding training course from a community college, received a professional welding certification, passed a welding proficiency test or otherwise completed professional welding training, if the evidence is required under rules adopted by the Water Resources Commission that are based on the type of well for which the water well constructor is qualified.

�� (4) Upon fulfillment of all the requirements set out in subsection (3) of this section, the department shall issue the applicant a water well constructor�s license in a form prescribed by the department. The license may be issued for a period of two years.

�� (5) A water well constructor�s license shall expire on June 30 or on such date as may be specified by department rule. A person may renew a license by submitting an application and the appropriate fees any time before the license expires but not later than one year after the license expires. A person who renews a license within the 12 months after the license expires may either pay a penalty fee set forth under subsection (6)(d) of this section or requalify for a water well constructor�s license in accordance with subsection (3) of this section. If a person fails to renew a license within 12 months after expiration, the person must comply with the requirements of subsection (3) of this section for a new water well constructor�s license.

�� (6) The department shall collect in advance the following fees:

�� (a) An examination fee of $25.

�� (b) A license fee of $165.

�� (c) A renewal fee of $165, if the license is renewed on or before the expiration date.

�� (d) Unless a person requalifies for a water well constructor�s license in accordance with subsection (3) of this section, a water well constructor shall pay a renewal fee of $275 if an expired license is renewed on or before 12 months after the expiration date.

�� (e) If a person requalifies for a water well constructor�s license under subsection (3) of this section, the person shall pay the renewal fee established under paragraph (c) of this subsection.

�� (7) The department may revoke, suspend or refuse to renew any water well constructor�s license when it appears to the satisfaction of the department, after notice and opportunity to be heard by the licensee, that the licensee has failed to comply with the provisions of ORS 537.505 to 537.795 and 537.992 applicable to such licensee or any order or rule adopted thereunder applicable to such licensee, or has made a material misrepresentation or material misstatement of fact on an application for a license or well log or established a pattern of conduct that willfully or negligently violates any provision of ORS 537.505 to 537.795 and

ORS 480.410

480.410 to 480.460 shall be paid by the State Fire Marshal to the State Treasurer monthly and shall constitute and be an appropriation to the Department of the State Fire Marshal available for the payment of salaries and expenses of deputies and clerical and other assistants of the State Fire Marshal. [Formerly part of 480.450; 1973 c.832 �18; 2021 c.539 �142]

BOILERS AND PRESSURE VESSELS

�� 480.510 Short title. ORS 480.510 to 480.670 may be cited as the Boiler and Pressure Vessel Law. [1961 c.485 �1; 1969 c.582 �1; 1983 c.676 �2]

�� 480.515 Definitions for ORS 480.510 to 480.670. As used in ORS 480.510 to 480.670, unless the context requires otherwise:

�� (1) �Alteration� means a change or addition to equipment, other than the ordinary repair or replacement of an existing part of the equipment.

�� (2) �Board� means the Board of Boiler Rules created under ORS 480.535.

�� (3) �Boiler� or �boilers� means:

�� (a) A closed vessel or vessels intended for the heating or vaporizing of liquids to be used externally to such vessel or vessels by the application of heat from combustible fuels, electricity or nuclear energy;

�� (b) Related appurtenances including but not limited to pressure piping directly connected and related to the safe operation of a boiler; and

�� (c) Pressure piping consisting of boiler or nonboiler external piping connected to a boiler, but not potable water nonboiler external piping.

�� (4) �Boiler external piping� has the meaning given the term in the 1986 Pressure Piping Code B 31.1, adopted by the American Society of Mechanical Engineers.

�� (5) �Certificate of competency� means a certificate issued under the provisions of ORS 480.565 (3).

�� (6) �Department� means the Department of Consumer and Business Services.

�� (7) �Director� means the Director of the Department of Consumer and Business Services.

�� (8) �Installation permit� means a permit issued by the department for the installation, alteration or repair of a boiler or pressure vessel.

�� (9) �Minimum safety standards� means the rules, regulations, formulae, definitions and interpretations for the safe construction, installation, operation and repair of boilers and pressure vessels either adopted by ORS 480.510 to 480.670 or adopted by the board, under ORS 480.510 to 480.670.

�� (10) �Nonboiler external piping� has the meaning given the term in the 1986 Pressure Piping Code B 31.1, adopted by the American Society of Mechanical Engineers.

�� (11) �Operating permit� means a permit issued by the department authorizing the operation of a boiler or pressure vessel.

�� (12) �Pressure vessel� means containers for the containment of pressure, either internal or external. This pressure may be obtained from an external source or by the application of heat from a direct or indirect source, or any combination thereof.

�� (13) �Related appurtenances� means any equipment instrumental to the safe operation of a boiler or pressure vessel.

�� (14) �Shop inspection� means an inspection at a boiler or pressure vessel manufacturing, construction or repair facility.

�� (15) �Temporary operation authorization� means an authorization issued by the department to operate a boiler or pressure vessel for a specified period pending the issuance of an operating permit. [1961 c.485 �3; 1969 c.582 �2; 1971 c.753 �58; 1973 c.830 �1; 1983 c.676 �3; 1987 c.414 �35; 1991 c.518 �2; 1993 c.744 �142; 2007 c.487 �3; 2009 c.696 �11]

�� 480.520 Purpose of ORS 480.510 to 480.670. The purpose of ORS 480.510 to 480.670 is to protect the safety of the people of Oregon and to protect property situated in Oregon from the hazard of fires and explosions caused by boilers and pressure vessels. To accomplish this purpose the Legislative Assembly intends by ORS 480.510 to 480.670 to provide a system:

�� (1) For determining where and by whom boilers and pressure vessels are being constructed, installed, repaired, used and operated.

�� (2) To ensure that only qualified persons do welding on boilers and on pressure vessels.

�� (3) To ensure that boilers and pressure vessels are manufactured, installed, repaired, operated, inspected and maintained so as to meet the minimum safety standards formulated and promulgated by the Board of Boiler Rules.

�� (4) For the administration and enforcement of ORS 480.510 to 480.670 by the Department of Consumer and Business Services and the board.

�� (5) To defray the cost of administration and the cost of enforcing ORS 480.510 to 480.670 by establishing fees to be charged for:

�� (a) Issuing operating permits;

�� (b) Issuing installation permits;

�� (c) Giving examinations; and

�� (d) Making inspections. [1961 c.485 �2; 1969 c.583 �3; 1983 c.676 �4; 2007 c.487 �4; 2009 c.696 �12]

�� 480.525 Exempt vessels; rules; fee. (1) ORS 480.510 to 480.670 do not apply to:

�� (a) Boilers and pressure vessels under federal safety regulations or control.

�� (b) Domestic water heaters designed for heating potable water, equipped with an approved pressure-relieving device, containing only water and that do not exceed a:

�� (A) Capacity of 120 gallons;

�� (B) Water temperature of 210 degrees Fahrenheit;

�� (C) Pressure of 150 pounds per square inch gauge pressure; or

�� (D) Heat input of 200,000 Btu per hour.

�� (c) Domestic water heaters designed to create hot water instantaneously on demand without the use of a storage tank.

�� (d) Pressure vessels containing liquefied petroleum gas that are under the jurisdiction of the State Fire Marshal. However, the construction and repair of the vessels must comply with ORS 480.510 to 480.670 and are under the jurisdiction of the Board of Boiler Rules.

�� (e) Air tanks used in the operation of brakes on self-propelled vehicles and trailers that are used for transporting freight or passengers.

�� (f) Medical sterilizers that do not exceed one and one-half cubic feet in volume.

�� (g) Pressure vessels that do not exceed one and one-half cubic feet in volume and:

�� (A) Are not operated at gauge pressure of more than 150 pounds per square inch;

�� (B) Are equipped with a relief valve;

�� (C) Are approved under the American Society of Mechanical Engineers code adopted by the board;

�� (D) Are set at a maximum pressure of 150 pounds per square inch or less; and

�� (E) Are located in a place of public assembly.

�� (h) Pressure vessels that do not exceed five cubic feet in volume and:

�� (A) Are not operated at gauge pressure of more than 150 pounds per square inch;

�� (B) Are equipped with a relief valve;

�� (C) Are approved under the American Society of Mechanical Engineers code adopted by the board; and

�� (D) Are set at a maximum pressure of 150 pounds per square inch or less.

�� (2) Notwithstanding subsection (1) of this section, if the board, upon presentation of satisfactory evidence, determines that danger to health or safety is evident in any pressure vessel or class of pressure vessels exempted under subsection (1)(g) of this section, the board may require the inspection or reinspection of the pressure vessel or class of pressure vessels and make the pressure vessel or class of pressure vessels subject to the fee, construction or other requirements of ORS 480.510 to 480.670.

�� (3) The following boilers and pressure vessels are exempt from ORS 480.510 to 480.670, except as to all provisions relating to construction, installation, alteration or repair and to installation permits:

�� (a) Boilers that are not operated at gauge pressures of more than 15 pounds per square inch and that are located on farms and used solely for agricultural purposes except when used in connection with a greenhouse.

�� (b) Air tanks located on farms and used solely for agricultural purposes.

�� (c) Boilers and pressure vessels that are located in private residences and may be inspected only by a boiler inspector.

�� (d) Pressure vessels being operated at gauge pressures of less than 15 pounds per square inch and equipped with a pressure relief device set to open at a pressure that does not exceed the lesser of the pressure vessel�s maximum allowed working pressure or 15 pounds per square inch gauge pressure.

�� (4)(a) Beverage service tanks that have a product volume of five cubic feet or less are exempt from ORS 480.510 to 480.670.

�� (b) Except as provided in paragraph (c) of this subsection, beverage service tanks that have a product volume of more than five cubic feet are exempt from ORS 480.510 to

ORS 480.630

480.630. [1983 c.676 �24; 2005 c.758 �37; 2007 c.306 �4]

�� 480.634 Exemption of journeyman plumber for certain activities. (1) A person who has a valid journeyman plumber license does not have to obtain a license under ORS 480.630 (2) to work as an employee of a business engaged in installing or replacing by nonwelded means a potable domestic water heater that:

�� (a) Is not used for space heating;

�� (b) Has a capacity that does not exceed 180 gallons;

�� (c) Has a water temperature that does not exceed 210 degrees Fahrenheit;

�� (d) Has a pressure that does not exceed 150 pounds per square inch gauge pressure; and

�� (e) Has a heat input that does not exceed 750,000 Btu per hour.

�� (2) Subsection (1) of this section does not allow construction, repair or alteration of the domestic potable water heater. [1991 c.518 �15; 2005 c.758 �38]

�� 480.635 [1973 c.830 �5; 1983 c.676 �21; repealed by 2005 c.758 �56]

�� 480.640 When court action not available. A person providing services connected with boilers or pressure vessels may not bring or maintain an action in the courts of this state to recover for those services unless the person alleges and proves that, at the time the services were performed, the person performing the services held a license issued under ORS 480.630. This section does not apply to a person exempted from licensing by ORS 480.630 (7). [1983 c.676 �25; 1991 c.518 �11; 2005 c.758 �39; 2007 c.487 �14]

�� 480.645 Standardized examination; administration. (1) The Board of Boiler Rules shall cause to be prepared examinations that are standardized. In standardizing examinations under this subsection, the board may adopt standardized examinations prepared by nationally recognized bodies.

�� (2) The board shall allow any person who takes an examination to review the examination and test results of that person. [1983 c.676 �26; 1991 c.518 �12]

�� 480.647 Quality control procedures for welding on nonboiler external piping; rules. (1) The Board of Boiler Rules may adopt rules creating quality control procedures for welding on nonboiler external piping and may adopt its own Oregon welded stamp symbol.

�� (2) The board may not require the adoption of �R� stamp provisions of the National Board of Boiler and Pressure Vessel Inspectors or the American Society of Mechanical Engineers Certification of Authorization requirements related to boilers for welding on nonboiler external piping.

�� (3) The board shall accept an �R� stamp certificate of authorization by the National Board of Boiler and Pressure Vessel Inspectors or the American Society of Mechanical Engineers as meeting the requirements of subsection (1) of this section and may accept any other quality control program for welding that is at least equivalent to the Oregon quality control procedures adopted under subsection (1) of this section.

�� (4) All review by the Department of Consumer and Business Services for individual approval of quality control procedures and requirements shall be charged at the shop inspection rates under ORS 480.605. [1991 c.518 �16; 1993 c.744 �148; 2009 c.696 �22]

�� 480.660 Notice of violation; correction; when use prohibited; appeal. (1) If an inspector determines that any condition exists that is a violation of the safety standards prescribed pursuant to ORS 480.510 to 480.670, the inspector shall post a notice in plain view on or near the affected boiler or pressure vessel that specifies the defective condition, and shall provide a copy of the notice to the owner or user of the affected boiler or pressure vessel, or to a representative of the owner or user.

�� (2) If no immediate hazard to health and safety is evident, the notice shall state that correction of the defective condition is required within 30 days of the date of the inspection. If the correction is not completed within the 30-day period, the owner or user of the boiler or pressure vessel may apply to the chief boiler inspector for extension of the time for making the correction. If the chief boiler inspector determines that corrective action was commenced within the time period specified in the notice, an extension may be granted for such time as is required to complete corrective action.

�� (3) If an immediate hazard to health and safety is evident, the notice shall prohibit further use of the boiler or pressure vessel. The inspector immediately shall report that action to the chief boiler inspector.

�� (4) If any person is aggrieved by a determination made upon inspection under this section, the person first shall appeal that determination to the chief boiler inspector and then to the Board of Boiler Rules. Subsequent appeal shall be as provided in ORS 183.480 to 183.540. [1983 c.676 �28]

�� 480.665 [1983 c.676 �27; 1991 c.734 �47; 1999 c.846 �3; repealed by 2001 c.411 �31]

�� 480.670 Civil penalty for Boiler and Pressure Vessel Law violations; disposition of penalty moneys. The Board of Boiler Rules may impose a civil penalty for a violation of ORS 480.510 to

ORS 537.992

537.992, or any rule adopted pursuant thereto, applicable to such licensee.

�� (8) The requirement in subsection (3)(d) of this section does not apply to any person who, on July 1, 1981, holds the license required by this section and who continues thereafter to maintain the license in good standing.

�� (9) The requirement in subsection (3)(e) of this section does not apply to any person who, on July 1, 2023, holds the license required by this section and who continues thereafter to maintain the license in good standing.

�� (10) If the department observes a welding deficiency on a well, the department may order the licensee who welded the well to, within a reasonable time, complete an arc welding training course from a community college, acquire a professional welding certification, pass a welding proficiency test or otherwise complete professional welding training.

�� (11) The fees collected under subsection (6) of this section shall be paid into the Water Resources Department Water Right Operating Fund. Such moneys are continuously appropriated to the Water Resources Department to pay the department�s expenses in administering and enforcing the water well constructor�s licensing program. [1961 c.334 �2; 1971 c.591 �1; 1973 c.827 �58; 1981 c.416 �2; 1985 c.615 �2; 1985 c.673 �66; 1987 c.109 �1; 1989 c.758 �2; 1999 c.293 �2; 2001 c.496 ��5,8; 2003 c.594 ��9,10; 2007 c.221 �1; 2007 c.768 ��11,12; 2021 c.610 �6; 2023 c.542 �1; 2025 c.491 �2]

�� 537.750 Examination for license. (1) The written examination required under ORS 537.747 (3)(b) shall be prepared to test the applicant�s knowledge and understanding of the following subjects:

�� (a) Laws of the state pertaining to the appropriation and use of ground water, the licensing requirements of ORS 537.747 to 537.765, the construction of wells and the preparation and filing of well logs.

�� (b) Rules of the Water Resources Commission pertaining to the appropriation and use of ground water, the construction of wells and the preparation and filing of well logs.

�� (c) Basic information on ground water geology, the occurrence and movement of ground water, and the design, construction and development of wells.

�� (d) Types, uses and maintenance of drilling tools and equipment, drilling problems and corrective procedures, repair of faulty wells, sealing of wells and safety rules and practices.

�� (2) Examinations shall be given during the months of January, April, July and October. The date, time and place of the examination are to be established by the commission. The examination shall be given only to those applicants who have met the requirement set out in ORS 537.747 (3)(a) and have paid the $20 examination fee. An applicant who fails to pass the examination by not attaining a grade of 70 or better may retake the examination after three months and the payment of another $20 examination fee. [1961 c.334 �3; 1981 c.416 �3; 1985 c.673 �67]

�� Note: The amount of the application fee under 537.747 (6)(a) was increased from $20 to $25 by section 2, chapter 491, Oregon Laws 2025. 537.750 (2) was not amended to reflect the increase. Pursuant to 173.160, Legislative Counsel has not substituted the increased fee of $25 for the $20 fee in 537.750 (2).

�� 537.753 Bond or letter of credit; landowner�s permit and bond; fee. (1) Any person who contracts or offers services to contract to construct, alter, abandon or convert wells shall have in effect a surety bond or an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008, running to the State of Oregon in the sum of $20,000, ensuring that in the construction, alteration, abandonment or conversion of wells, the principal shall comply with all the provisions of ORS 537.505 to 537.795 and 537.992 that are applicable to such construction, alteration, abandonment or conversion and to the rules and standards of well construction, alteration, abandonment and conversion that have been prescribed by the Water Resources Commission. The bond or letter of credit shall be filed with the Water Resources Commission.

�� (2) The Water Resources Commission or any person injured by failure of a water well constructor to comply with the provisions of the bond or letter of credit has a right of action on the bond or letter of credit in the name of the injured person. However, the aggregate liability of the surety or letter of credit issuer to all such persons may not exceed the sum of the bond or letter of credit.

�� (3) A proceeding against the bond or letter of credit under subsection (2) of this section may not be commenced unless the commission notifies the water well constructor of the alleged violation within three years after the date the water well report is filed with the commission.

�� (4) If a well is to be constructed, altered, abandoned or converted by a person that is not licensed under ORS 537.747 on property owned by that person, the person shall obtain a permit from the commission before beginning work. Application for the permit shall be in the form prescribed by the commission and must be accompanied by a fee of $550. At the time of filing the permit, the applicant also shall submit to the commission a bond or an irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 running to the State of Oregon in the sum of $10,000, ensuring that in the construction, alteration, abandonment or conversion of the well the landowner shall comply with all the provisions of ORS 537.505 to 537.795 and 537.992 that are applicable to the construction, alteration, abandonment or conversion of wells and to the rules and standards of well construction, alteration, abandonment and conversion that have been prescribed by the commission. Before the person who constructs, alters, abandons or converts a well referred to in this subsection seals the well, the person must give 10 days� written notice to the Water Resources Department so department personnel can be present to observe the work. After expiration of the notice period, the well may be sealed even if the department has not caused the well to be inspected. [1961 c.334 �4; 1971 c.591 �2; 1981 c.416 �4; 1985 c.615 �1; 1985 c.673 �198; 1991 c.331 �78; 1997 c.631 �485; 1999 c.293 �3; 2003 c.144 �1; 2017 c.623 �1; 2021 c.610 �7; 2025 c.491 �3]

�� 537.756 [1961 c.334 �7; 1971 c.591 �3; repealed by 1981 c.416 �10]

�� 537.759 [1961 c.334 �8; repealed by 1981 c.416 �10]

�� 537.762 Submitting start card before beginning work on well; rules; fees. (1) As used in this section:

�� (a) �Licensed or permitted person� means a person licensed under ORS 537.747 or permitted under ORS 537.753 (4).

�� (b) �Start card� means a form containing all information required by the Water Resources Department as a notification that a licensed or permitted person will commence work on a well.

�� (2) Each licensed or permitted person who has entered into a contract to construct, alter, abandon or convert a well or cause a well to be constructed, altered, abandoned or converted shall, not earlier than 60 days and not later than 72 hours before beginning work on the well, submit a start card to the department containing:

�� (a) The name, telephone number, electronic mail address and post-office address of the owner of the well.

�� (b) The approximate location of the well by county tax lot number, township, range, section and nearest quarter-quarter section.

�� (c) The street address nearest to the proposed well.

�� (d) The latitude and longitude of the well as established by a global positioning system.

�� (e) The proposed depth and diameter of the well.

�� (f) The proposed purpose or use of the ground water from the proposed well.

�� (g) The time frame proposed for beginning and completing the construction, alteration, abandonment or conversion.

�� (h) The time frame proposed for annular seal placement.

�� (i) The well identification label number, if assigned.

�� (j) The water right application, permit or certificate number, if applicable.

�� (k) The original well log number, if applicable.

�� (L) The type of work proposed.

�� (m) Notification of any need for special standards.

�� (n) The signature and license number, if applicable, of the bonded and licensed or permitted person who would undertake the work.

�� (o) For an existing well, the current purpose or use of the well and the existing depth and diameter of the well.

�� (3) The department shall furnish a convenient means for licensed or permitted persons to submit start card information under this section.

�� (4) A separate start card is required for each well that is constructed, altered, abandoned or converted.

�� (5) A start card submitted under this section shall be confidential and maintained as such for one year or until the well log required under ORS 537.765 is received by the department, whichever is earlier. Nothing in this subsection prohibits the department from using a start card for enforcement actions during the period the start card is confidential.

�� (6) On the date that work on the well commences, the licensed or permitted person shall, before commencing work, notify the department that the work is about to commence. If the proposed date of seal placement is not the date proposed on the start card required by this section, the licensed or permitted person shall notify the department of the change at least four hours before placing the seal.

�� (7) The Water Resources Commission may adopt rules establishing precision requirements and standards for global positioning system equipment used to obtain information submitted under subsection (2) of this section.

�� (8) Unless the licensed or permitted person submitting a start card under this section has requested and received an extension, a start card expires if construction, alteration, abandonment or conversion of a well does not begin on or before 60 days after submission of the start card. If a start card expires, a new start card and fee must be submitted in compliance with this section before construction, alteration, abandonment or conversion of the well may occur. If a start card is withdrawn before expiring, the licensed or permitted person that submitted the start card may request that the fee paid for the withdrawn start card be transferred to a new start card.

�� (9) The commission may establish by rule an exception to any time frame established in this section for areas requiring special standards and for any other purpose identified by the commission.

�� (10) The requirement in subsection (2) of this section that a licensed or permitted person must submit a start card not earlier than 60 days and not later than 72 hours before beginning work on a well does not apply:

�� (a) To a second or additional water well drilled on the same or a contiguous tax lot for the same landowner and for which a valid unexpired start card has been submitted pursuant to this section, if a start card for the second or additional water well is filed not later than the day the work on the water well begins.

�� (b) During water emergencies or casing height adjustments, if a start card is submitted before work begins.

�� (11) The Water Resources Director may, for good cause in exigent circumstances, waive any time frame established by this section.

�� (12) Each start card submitted under this section for the construction of a new well, deepening of an existing well or conversion of a well shall be accompanied by a fee of $490. A start card shall be submitted to the department by electronic means, unless the department authorizes a different means of submission.

�� (13) The moneys paid to the department under subsection (12) of this section shall be paid into the Water Resources Department Operating Fund. All interest, if any, from moneys received under subsection (12) of this section shall inure to the benefit of the department. Such moneys and interest earned on such moneys are continuously appropriated to the department to be used to pay the costs of the department to employ personnel to inspect wells and well construction. [Formerly

ORS 650.130

650.130.

�� (e) Whether the manufacturer, distributor or importer, or the manufacturer�s, distributor�s or importer�s successor in interest, canceled, terminated or refused to continue a franchise without good cause under ORS 650.140.

�� (f) Whether there will be an unjustifiable adverse effect upon existing dealers because of the grant of the new franchise or the relocation of an existing franchise. For purposes of this paragraph, the court may consider all factors that the court determines relevant, but in any case shall consider the following factors:

�� (A) The extent, nature and permanency of the investment of the existing motor vehicle dealers and the proposed motor vehicle dealer.

�� (B) The effect on the retail motor vehicle business in the relevant market area.

�� (C) The growth or decline in population and in new motor vehicle registrations in the relevant market area.

�� (g) The effect on consumers in the relevant market area. For purposes of this paragraph, the court may consider all factors that the court determines relevant, but in any case shall consider the following factors in the relevant market area:

�� (A) The adequacy and convenience of existing motor vehicle sales facilities and service facilities.

�� (B) The supply of motor vehicle parts and qualified service personnel.

�� (C) The existence of competition among existing dealers.

�� (5)(a) Notwithstanding subsection (4) of this section, good cause as used in this section shall be deemed to exist without consideration of any other factors when a dealer or former dealer�s franchise was canceled, terminated or not continued for any reason other than good cause pursuant to the terms of the franchise agreement or as a result of the manufacturer, distributor or importer, or the manufacturer�s, distributor�s or importer�s successor in interest, having breached the terms of the franchise agreement.

�� (b) A manufacturer, distributor or importer, or a manufacturer�s, distributor�s or importer�s successor in interest, enjoined for good cause under this subsection shall offer the franchise sought to be granted or relocated to the dealer or former dealer whose franchise was canceled, terminated or not continued. The dealer or former dealer shall have 60 days within which to accept or reject the offer required under this paragraph. Only after a dealer or former dealer has declined, rejected or failed to respond to the offer required under this paragraph, may the manufacturer, distributor or importer, or the manufacturer�s, distributor�s or importer�s successor in interest, offer to grant the franchise to another dealer or replacement dealer or relocate an existing motor vehicle dealership.

�� (6) A manufacturer, distributor or importer must give a dealer or former dealer at least 60 days� written notice prior to franchising a new dealership of the same line-make or authorizing the relocation of another dealership of the same line-make within the relevant market area of the dealer�s or former dealer�s dealership. Notice under this subsection must be given to all dealers and former dealers of the same line-make within the relevant market area of the site of the proposed new or relocated dealership.

�� (7) If a dealer or former dealer enjoins or files an action to enforce rights arising under this section against a manufacturer, distributor or importer, or a manufacturer�s, distributor�s or importer�s successor in interest, the manufacturer, distributor or importer, or the manufacturer�s, distributor�s or importer�s successor in interest, shall pay the dealer�s or former dealer�s court costs and attorney fees if the dealer or former dealer prevails regardless of whether a new dealership was actually established. [1980 c.3 �4; 1985 c.67 �1; 1993 c.216 �2; 1999 c.660 �3; 2009 c.627 �5]

�� 650.153 Liability of franchisor for repair of motor vehicle that becomes inoperative prior to sale to consumer. (1) If a new motor vehicle becomes inoperative prior to being sold to a consumer, the franchisor is liable for the repair of the motor vehicle if the motor vehicle is inoperative due to a mechanical failure that is not the result of negligence on the part of the franchisee.

�� (2) Whenever a new motor vehicle becomes inoperative, the franchisee shall notify the franchisor and request authorization from the franchisor to repair the vehicle.

�� (3) If the franchisor refuses or fails to authorize repair of the inoperative motor vehicle within 30 business days after receiving notice under subsection (2) of this section, ownership of the new motor vehicle shall revert back to the franchisor, and the franchisee shall have no obligation, financial or otherwise, with respect to the motor vehicle.

�� (4) If the franchisor is unable to deliver to the franchisee the parts needed to repair an inoperative new motor vehicle within 30 business days after receiving notice under subsection (2) of this section, ownership of the new motor vehicle shall revert to the franchisor, and the franchisee shall have no obligation, financial or otherwise, with respect to the motor vehicle. [1999 c.660 �8; 2005 c.22 �453]

�� 650.155 Liability of manufacturer for damages to vehicles before delivery to carrier. (1) Notwithstanding the terms of any franchise, the manufacturer is liable for any and all damage to new motor vehicles before delivery to a carrier or transporter.

�� (2) Whenever a new motor vehicle is damaged in transit, the dealer shall:

�� (a) Notify the manufacturer of the damage within three business days from the date of delivery to the dealer or within any additional time as specified in the franchise; and

�� (b) Request from the manufacturer authorization to replace the components, parts and accessories damaged or to otherwise repair the damage.

�� (3) If the manufacturer refuses or fails to authorize repair of any damage within 10 days after receipt of notification under subsection (2) of this section, or within any additional time as specified in the franchise, ownership of the new motor vehicle shall revert to the manufacturer, and the new motor vehicle dealer shall have no obligation, financial or otherwise, with respect to the motor vehicle.

�� (4) A manufacturer shall disclose in writing to a dealer, at the time of delivery of a new motor vehicle, the nature and extent of any and all damage and post-manufacturing repairs.

�� (5) If the total value of repairs to a new motor vehicle by the manufacturer�s authorized agent and a dealer equals or exceeds the amount specified under subsection (6) of this section, the manufacturer may either repurchase the motor vehicle from the dealer, or provide reasonable and adequate compensation to the dealer to assist in sale or disposition of the new motor vehicle, as long as the dealer has complied with all other contractual agreements with regard to damaged vehicles. If the manufacturer repurchases the motor vehicle, the dealer shall have no obligation, financial or otherwise, with respect to the motor vehicle.

�� (6) A dealer shall disclose, in writing, to a purchaser of the new motor vehicle prior to entering into a sales contract that the new motor vehicle has been damaged and repaired if the damage to the new motor vehicle exceeds $1,000, as calculated at the rate of the dealer�s authorized warranty rate for labor and parts. Replacement of glass, tires, bumpers or any comparable nonwelded component is not considered damage and repair for purposes of this section. For purposes of this subsection, �comparable nonwelded component� does not include a fender, hood, trunk lid or door. [1989 c.716 �3; 1999 c.660 �4; 2003 c.411 �3; 2009 c.627 �2]

�� 650.158 Predelivery preparation and warranty service; notice to dealers; schedule of compensation; determination; claims by dealers; audits of dealers� claims. (1) Each manufacturer, distributor or importer shall specify in writing to each of the manufacturer�s, distributor�s or importer�s dealers in this state:

�� (a) The dealer�s obligations for predelivery preparation and warranty service on the manufacturer�s, distributor�s or importer�s motor vehicles;

�� (b) The schedule of compensation the manufacturer, distributor or importer will pay the dealer for diagnostic work, repair service, parts and labor in connection with predelivery preparation and warranty service; and

�� (c) The time allowances for performing predelivery preparation and warranty service.

�� (2)(a) A schedule of compensation must include reasonable compensation for diagnostic work, repair service, parts and labor and must reasonably, adequately and fairly compensate the dealer for the work, service, parts and labor. Time allowances for diagnosing and performing predelivery and warranty service must be reasonable and adequate for the work to be performed. A manufacturer, distributor or importer may not pay an hourly rate to a dealer that is less than the rate the dealer charges nonwarranty customers for nonwarranty service and repairs. Reimbursement for parts, other than parts used to repair the living facilities of motor homes, that the dealer purchases for use in performing predelivery and warranty service must be the amount the dealer charges nonwarranty customers, as long as the amount is not unreasonable.

�� (b)(A) For purposes of this subsection and subject to subparagraphs (B) to (D) of this paragraph, to determine compensation under this subsection, a dealer shall propose an hourly rate and an amount for parts that the dealer charges nonwarranty customers by submitting to the manufacturer, distributor or importer copies of 100 sequential nonwarranty service repair invoices that customers paid or 90 consecutive days� worth of nonwarranty service invoices that customers paid, whichever is less, for repairs the dealer made not more than 180 days before the dealer�s submission. If the manufacturer, distributor or importer does not contest the dealer�s proposal and the dealer otherwise complies with the provisions of this paragraph, the dealer�s proposal is presumed to be fair and reasonable.

�� (B) A manufacturer, distributor or importer may contest the dealer�s proposal with evidence that the dealer�s proposal is not accurate or on the basis that the dealer�s proposal does not reasonably conform with the hourly rate or the amount for parts that other dealers charge nonwarranty customers in the same line-make in market areas that are contiguous to the dealer�s market area or with other relevant evidence. In contesting a dealer�s proposal based on evidence from other dealers in the contiguous market area, a manufacturer, distributor or importer shall rely on evidence from at least three other dealers in the contiguous market area or three dealers in an economically similar market within the manufacturer�s, distributor�s or importer�s region.

�� (C) A manufacturer, distributor or importer shall use time allowances that are reasonable and adequate for a qualified technician to make a diagnosis and perform work or service. The manufacturer, distributor or importer may not unreasonably deny a written request from a dealer for a modification of the manufacturer�s, distributor�s or importer�s time allowance for a specific warranty repair, or for an additional time allowance for diagnostic work or repair work on a specific vehicle that is covered by a warranty, if the dealer includes with the request information and documentation that the manufacturer, distributor or importer reasonably requires to assess the merits of the request.

�� (D) A dealer may not include in a proposal described in subparagraph (A) of this paragraph:

�� (i) Repairs for a manufacturer�s, distributor�s or importer�s specials, special events or promotional discounts for retail customer repairs;

�� (ii) Parts sold at wholesale;

�� (iii) Routine maintenance that a retail customer warranty does not cover, such as fluids, filters and belts that a dealer uses in performing work other than repairs;

�� (iv) Nuts, bolts, fasteners and similar items that do not have an individual part number; and

�� (v) Vehicle reconditioning.

�� (c) A dealer�s proposal under paragraph (b)(A) of this subsection becomes effective 30 days after the manufacturer, distributor or importer approves the hourly rate or the amount for parts. For purposes of this paragraph, a manufacturer, distributor or importer approves the dealer�s proposal if the manufacturer, distributor or importer does not contest the proposed hourly rate or amount for parts within 30 days after the dealer submits the proposal.

�� (d) If a manufacturer, distributor or importer contests a dealer�s proposal, the manufacturer, distributor or importer shall propose an adjustment to the dealer�s proposal not later than 30 days after the dealer submits the dealer�s proposal.

�� (e) Not more than once per year, a manufacturer, distributor or importer may verify the dealer�s hourly rate or the amount for parts the dealer charges nonwarranty customers and a dealer may propose an increase in the manner provided in paragraph (b)(A) of this subsection in the hourly rate or the amount the dealer charges for parts. If the manufacturer, distributor or importer finds that the dealer�s hourly rate or the amount for parts has decreased, the manufacturer, distributor or importer may reduce the dealer�s compensation under this subsection prospectively. If the manufacturer, distributor or importer does not contest the dealer�s proposed increase in the manner provided in paragraph (b)(B) of this subsection, the increase becomes effective as provided in paragraph (c) of this subsection.

�� (3) A manufacturer, distributor or importer shall include, in written notices of vehicle recalls to motor vehicle owners and dealers, the expected date by which necessary parts and equipment will be available to the dealers to correct the defect or defects. A manufacturer, distributor or importer shall adequately compensate a dealer for repair service the dealer performs under the recall.

�� (4) A manufacturer, distributor or importer shall:

�� (a) Pay or credit a dealer for labor or parts the dealer claims under this section within 30 days after approving the dealer�s claim;

�� (b) Approve or disapprove, in the manner the manufacturer, distributor or importer specifies, all claims that a dealer makes for labor or parts within 30 days after receiving the claim;

�� (c) Allow a dealer to correct and resubmit a claim for labor or parts within 30 days after receiving the manufacturer�s, distributor�s or importer�s disapproval;

�� (d) Treat as approved any claim, or resubmission of a corrected claim, that a manufacturer, distributor or importer did not approve or disapprove within 30 days after the manufacturer, distributor or importer received the claim or resubmission and pay or credit the dealer for the claim within 60 days after receiving the claim or resubmission; and

�� (e) Notify the dealer in writing of the manufacturer�s, distributor�s or importer�s grounds for disapproving a claim.

�� (5) A manufacturer, distributor or importer may:

�� (a) Require reasonable documentation as substantiation for a dealer�s claim under this section;

�� (b) Audit a dealer�s claim under this section within one year after the date on which the manufacturer, distributor or importer paid the claim; and

�� (c) Charge back a dealer�s claim under this section that is unsubstantiated, false or fraudulent.

�� (6) A manufacturer, distributor or importer may not:

�� (a) Recover all or a portion of cost of compensating a dealer for warranty parts or service by reducing the amount due a dealer or by imposing a separate charge, surcharge, administrative fee or other fee.

�� (b) Deny or charge back a dealer�s claim solely because a dealer failed to comply with a specific claim processing procedure because of a clerical or administrative error that does not affect the legitimacy of the dealer�s claim, if the dealer resubmits the claim in compliance with the manufacturer�s, distributor�s or importer�s claim processing procedure within 45 days after the manufacturer, distributor or importer initially denies or charges back the claim.

�� (c) Deny a dealer�s claim solely because an owner who brought a motor vehicle to the dealer for a repair under warranty drove the motor vehicle for additional miles while awaiting service or a repair that the dealer could not complete because parts for the service or repair were not available.

�� (d) Reduce a payment for a dealer�s claim solely on the basis of a national market norm or market average.

�� (e) Limit or restrict the number of repairs a motor vehicle owner may obtain from a dealer on the basis of a national index or average of failure rates for the motor vehicle.

�� (7)(a) Except as provided in paragraph (b) of this subsection, if a manufacturer, distributor or importer supplies a part to a dealer for the purpose of replacing the part or making a repair under warranty to a motor vehicle in the manufacturer�s, distributor�s or importer�s line-make, but the manufacturer, distributor or importer does not sell the part to the dealer, the manufacturer, distributor or importer shall compensate the dealer at the equivalent of the dealer�s average percentage markup on the part as if the manufacturer, distributor or importer had sold the part to the dealer at the price listed for the part in the manufacturer�s, distributor�s or importer�s current parts catalog.

�� (b) The requirement set forth in paragraph (a) of this subsection does not apply to entire engine assemblies, propulsion engine assemblies, entire transmission assemblies or electric batteries. If the manufacturer, distributor or importer supplies the dealer with an assembly or battery described in this paragraph but does not sell the assembly or battery to the dealer, the manufacturer, distributor or importer shall compensate the dealer in an amount that is equivalent to 30 percent of what the dealer would have paid for the assembly or battery had the manufacturer, distributor or importer sold the assembly or battery to the dealer at the price listed in the manufacturer�s, distributor�s or importer�s current parts catalog. [1991 c.609 �3; 1999 c.660 �5; 2013 c.329 �3; 2015 c.584 �4; 2025 c.50 �5]

�� 650.160 [1980 c.3 �5; repealed by 1991 c.609 �4]

�� 650.161 Compensation for repairs to vehicles subject to recall; claims for compensation; prohibited practices; exclusivity of remedy. (1) As used in this section:

�� (a) �Do not drive order� means a notice in which a manufacturer advises owners of a vehicle not to drive the vehicle until the owner has obtained a repair for a safety defect in the vehicle.

�� (b) �Stop sale order� means a notice in which a manufacturer prohibits a franchisee from leasing or selling at wholesale or retail a vehicle in the franchisee�s inventory because of a federal recall for a safety defect or a failure to comply with a federal safety standard or a federal emissions standard.

�� (c) �Valuation� means the average trade-in value shown in an independent third-party guide for the year, make and model of a vehicle.

�� (2) A manufacturer shall compensate the manufacturer�s franchisees for all labor and parts the manufacturer requires the franchisees to use to perform repairs on vehicles that are subject to a recall. The manufacturer shall compensate franchisees in accordance with the standards and process for compensation set forth in ORS 650.158.

�� (3)(a) Subject to the conditions set forth in paragraphs (b) and (c) of this subsection, a manufacturer shall compensate a dealer at a prorated rate of least 1.5 percent of the valuation of a vehicle that is subject to a recall during each month in which the dealer holds the vehicle for sale while awaiting parts or a remedy that is necessary to repair or service the vehicle.

�� (b) The manufacturer shall pay the compensation described in paragraph (a) of this subsection:

�� (A) If the vehicle is subject to a federal recall for a safety defect or a failure to comply with a federal safety standard or a federal emissions standard;

�� (B) If the manufacturer issued a do not drive order or stop sale order for the vehicle;

�� (C) If the manufacturer has authorized the dealer to sell and service new vehicles of the same line-make as the vehicle that is subject to the recall;

�� (D) If the dealer had the vehicle in the dealer�s inventory at the time the manufacturer issued the do not drive order or stop sale order or if the dealer received the vehicle as a trade-in as part of a consumer�s purchase of another vehicle after the manufacturer issued the do not drive order or stop sale order;

�� (E) If a part or remedy necessary to repair or service the vehicle is not reasonably available within 30 days after the manufacturer issued an initial recall notice; and

�� (F) For a period that begins 30 days after the date on which the manufacturer issued the do not drive order or stop sale order and that ends on the earlier of the following dates:

�� (i) The date on which the manufacturer makes available to the dealer a part or remedy that is necessary to repair the vehicle that is subject to the recall; or

�� (ii) The date on which the dealer sells, trades or otherwise disposes of the vehicle that is subject to the recall.

�� (c) A manufacturer may direct the manner and method by which a dealer must demonstrate that the dealer had a vehicle that was subject to a recall in the dealer�s inventory as required under paragraph (b)(D) of this subsection. The manufacturer may not require a demonstration that is unreasonable or unduly burdensome or require information that is unreasonably or unduly burdensome for the dealer to provide.

�� (d) This subsection does not require a manufacturer to provide total compensation to a dealer that exceeds the valuation of a vehicle that is subject to a recall.

�� (4) A claim for compensation that a franchisee makes under subsection (2) of this section or that a dealer makes under subsection (3) of this section is subject to the same requirements and limitations to which a claim for compensation under ORS

The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)