A claim against a licensed landscape contracting business is payable from the bond, letter of credit or deposit required of the landscape contracting business under ORS 671.690 only if the claim arises from the performance, or a contract for the performance, of work that is subject to ORS 671.510 to 671.760. The claim must be of one or more of the following types:

1. (1) A claim against the landscape contracting business by the property owner or the owner’s agent for any of the following:

   1. (a) Negligent work.
   2. (b) Improper work.
   3. (c) Breach of an oral or written contract.

2. (2) A claim against the landscape contracting business by the property owner or the owner’s agent to discharge, or to recoup funds expended in discharging, a lien established under ORS 87.010 to 87.060 or 87.075 to 87.093. The State Landscape Contractors Board may reduce a claim described in this subsection by any amount the claimant owes the landscape contracting business. The board shall process claims described in this subsection only if:

   1. (a) The owner paid the landscape contracting business for work subject to ORS 671.510 to 671.760; and
   2. (b) A lien established against the property of the owner under ORS 87.010 to 87.060 or 87.075 to 87.093 is filed because the landscape contracting business failed to pay the person claiming the lien for that person’s contribution toward completion of the improvement.

3. (3) A claim against a licensed subcontractor by a licensed landscape contracting business or by a construction contractor licensed under ORS chapter 701, for any of the following:

   1. (a) Negligent work.
   2. (b) Improper work.
   3. (c) Breach of an oral or written contract.
4. (4) A claim by a person furnishing labor to a landscape contracting business.
5. (5) A claim, as limited by rule of the board, by a person furnishing material or renting or supplying equipment to the landscape contracting business. The minimum limit set by the board may not be more than $150.
6. (6) A claim by a subcontractor against the landscape contracting business for unpaid labor or materials arising out of a contract.

[2007 c.149 §2; 2007 c.541 §37b; 2015 c.672 §14]