Oregon News

CCB PROPOSED FEE INCREASE BULLETIN

 

Summary:

At its December 2023 meeting the Construction Contractors Board (CCB) approved for public comment a proposal to increase the two-year contractor license fee by $75. The proposed increase would begin July 2024 and would be implemented over a two-year period. After full implementation, the two-year fee for both a new license and renewal of an existing license would be $400.

CCB programs support a level playing field in the construction industry and consumer protection throughout Oregon. Fees paid by contractors are the primary financial support for licensing, enforcement, dispute resolution and other agency services. Through CCB’s nine-member board, CCB is accountable for ensuring service delivery to our customers through changing market conditions.

The license fee was set at $325 in 2010. Since 2010, costs have increased significantly and the industry has grown in size. At the same time CCB has held the line on staffing and sought ways to be more efficient with existing staff. The fee paid by contractors has remained at or below the rate established in 2010. The board proposed the increase to ensure the agency will have the resources needed to deliver accountable customer service to the contractors and consumers of Oregon.

The board considered whether program cuts were appropriate but determined that additional reductions would negatively impact service delivery. The board’s finding is that the proposed fee increase is needed to maintain financial stability and ensure the agency is able to meet service demands.

The board encourages public comment on the proposal as well as feedback on how the agency can improve service delivery to consumers and contractors. See below for details on providing public comment.  

Agency Background:

The two-year license fee paid by Oregon contractors is the primary source of financial support for programs carried out by the CCB. The CCB does not receive financial support from any other external source such as the state general fund, lottery funds or federal funds.

Agency programs are designed to support responsible licensed contractors and ensure consumer protections throughout the state. This is achieved through the following services:

  • Licensing: Provides direct customer service, ensures all contractors meet minimum requirements for liability insurance, bond, workers’ compensation insurance and other requirements.
  • Enforcement: Delivers proactive statewide enforcement of licensing standards. CCB visits nearly 8,000 construction sites each year to enforce licensing requirements.
  • Dispute Resolution Services: Offers alternative dispute resolution services to address situations where a project runs into difficulty, avoiding costly court proceedings.
  • Education: Educates consumers on importance of using licensed contractors, partners with other agencies (OSHA, DEQ, DCBS) to provide comprehensive regulatory picture.

Background on Fee Proposal:

As with almost every private and public organization, CCB’s operational costs have increased significantly since the fee rate was set at $325 in 2010. The agency has managed costs by holding the line on staffing even as workload has increased due to growth in the industry. In addition, the agency discounted fee rates from 2017-2021, relying on accumulated reserves and providing a discounted fee rate (from $325 to $250) to contractors.

The cost increases, particularly over the last several years, are projected to create an ongoing financial deficit for the agency. Since 2010, the agency has experienced:

  • 55% increase in labor costs
  • 14% increase in the number of licensees

After staff reductions resulting from the prior economic recession, the agency has held staffing relatively stable to manage expenses. While every effort is made to hold costs stable over time, the agency is responsive to market and economic conditions. Adjustments are needed to ensure continuity of agency services.

CCB Fee Proposal Web Page

https://www.oregon.gov/ccb/Pages/Proposed-Fee-Increase.aspx

FAQ

Review a Frequently Asked Questions document related to the board’s proposal.

Informational Webinars

The agency will hold two informational webinars to provide background information and an overview of the board’s proposal. A recording of the webinar will also be posted to the CCB’s website for those not able to attend either live session. Webinars will be held:

  • Tuesday, January 23 at 12:00 p.m.
  • Friday, January 26 at 8:30 a.m.

Click Here to register.

The webinars are informational – public comment will not be taken during the webinar. (See below for more information on how to submit public comment).

Public Comment

The public comment period for this proposal is currently open for submitting written comments. Public comment may be submitted via email at the address below.  There will also be a public hearing to provide in-person comment on March 13th at 2:00 p.m. You may pre-register to provide public comment at the hearing by submitting an email request to the email below. You may also register in person on the day of the hearing.

The public comment period will close March 14th at 5:00 p.m.

Submit written comment or register to provide comment during public hearing:

Location for March 13th public hearing:

  • 201 High Street SE, Salem Oregon, First Floor Hearing Room
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