Relating to bonding requirements for landscape contracting businesses.

Higher landscape business bonds protect customer claims

Oregon landscape contracting businesses must keep a $20,000 surety bond or irrevocable letter of credit with the state licensing board. This replaces lower, tiered amounts for some businesses; the board can accept cash or negotiable securities instead. Bonds must come from authorized sureties, and letters of credit must come from insured institutions. The security covers state taxes and contributions, unpaid labor, materials and equipment, and awards for faulty work or broken contracts. Covered work also includes certified backflow testing, irrigation backflow work, irrigation wiring, outdoor landscape lighting, and tree work. Security pays only final board orders and arbitration awards under the law's claims process. Businesses must immediately replace security that ends, is withdrawn, or falls below requirements—or surrender their license and stop operating. They must immediately add security when project costs trigger, or foreseeably will trigger, a higher requirement. Businesses remain responsible for all covered work they perform or contract to provide.