69th OREGON LEGISLATIVE ASSEMBLY--1997 Regular Session NOTE: Matter within { + braces and plus signs + } in an amended section is new. Matter within { - braces and minus signs - } is existing law to be omitted. New sections are within { + braces and plus signs + } . LC 704 A-Engrossed House Bill 2040 Ordered by the House March 18 Including House Amendments dated March 18 Ordered printed by the Speaker pursuant to House Rule 12.00A (5). Presession filed (at the request of Construction Contractors Board) SUMMARY The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly. It is an editor's brief statement of the essential features of the measure. Allows contractor to pursue legal claim despite { + lack of or + } lapse in contractor registration. Allows Construction Contractors Board to retroactively renew contractor registration. { + Creates staggered renewal periods for registrations. Declares emergency, effective July 1, 1997. + } A BILL FOR AN ACT Relating to lapse in contractor registration; creating new provisions; amending ORS 701.065 and 701.115; and declaring an emergency. Be It Enacted by the People of the State of Oregon: SECTION 1. ORS 701.065 is amended to read: 701.065. (1) { + Except as provided in subsection (2) of this section, + } a contractor may not { - file - } { + perfect + } a { + claim of a construction + } lien, { + or commence + } { - file - } a claim with the { + Construction Contractors + } Board { + , in arbitration + } or { - bring or maintain - } in any court of this state { - a suit or action - } for compensation for the performance of any work or for the breach of any contract for work { - which - } { + that + } is subject to this chapter, unless the contractor { - was - } { + had a valid certificate of registration issued by the board + }: (a) { - Registered under this chapter - } At the time the contractor bid or entered into the contract for performance of the work; and (b) { - Registered - } Continuously while performing the work for which compensation is sought. (2) { - If - } The { + board, arbitrator or + } court { + shall not apply the provisions of subsection (1) of this section to a lien or claim if the board, arbitrator or court + } determines that { + : + } { - the contractor was not aware of the requirement that the contractor be registered, a court may choose not to apply subsection (1) of this section if the court finds that to do so would result in a substantial injustice to the unregistered contractor. - } { + (a) The contractor either did not have a valid certificate of registration at any time required under subsection (1) of this section, or had an initial issuance thereof, and: (A) The contractor was not aware of the requirement that the contractor be registered and the contractor submitted a completed application for registration within a number of days established by the board, but not more than 90 days, of the date the contractor became aware of the requirement; (B) At the time the contractor perfected a claim of construction lien or commenced any other claim subject to the provisions of subsection (1) of this section, the contractor was registered with the board; and (C) Enforcement of the provisions of subsection (1) of this section would result in substantial injustice to the contractor; or (b) The contractor was registered with the board for some but not all of the times required under subsection (1) of this section and had a lapse in such registration and: (A) The contractor was not aware of the lapse in registration for more than a period established by the board, but not to exceed 90 days, before submitting a completed application for registration renewal with the board; (B) Except as perfection of a claim of a construction lien and a suit to foreclose the lien, at the time the contractor commences any other claim subject to the provisions of subsection (1) of this section the contractor's registration was renewed under ORS 701.115 to include the entire time period for which registration was required under subsection (1) of this section; and (C) For perfection of a claim of construction lien and a suit to foreclose the lien, the contractor's registration was renewed under ORS 701.115 for the entire time period for which registration was required under subsection (1) of this section, but not later than 90 days following perfection of the lien. + } (3) If a contractor falsely swears to information provided under ORS 701.075 or knowingly violates the provisions of ORS 656.029, 670.600 or 701.075, the contractor may not { - file - } { + perfect + } a { + claim of a construction + } lien, { - file - } { + or commence + } a claim with the { - Construction Contractors - } board { + , in arbitration + } or { - bring or maintain - } in any court of this state { - a suit or action - } for compensation for the performance of any work on a residential structure or for the breach of any contract for work on a residential structure { - which - } { + that + } is subject to this chapter. SECTION 2. ORS 701.115 is amended to read: 701.115. (1) A certificate of registration is valid for { - up to - } { + two years or + } four years { + , at the discretion of the registrant, + } from the date of issuance unless the registration is revoked or suspended as set forth in ORS 701.135. It may be renewed by the same procedure provided for an original registration upon application and furnishing of any additional supplemental information as the { + Construction Contractors + } Board may require by rule. (2) The board shall issue a pocket-card certificate of registration to a contractor registered under this chapter indicating the type of registration. (3) The board may vary the dates of registration renewal by giving to the registrant written notice of the renewal date assigned and by making appropriate adjustments in the renewal fee. (4) The board may renew a registration that has lapsed { + provided the contractor applies for renewal not more than one year after the registration lapsed. The board + } { - and, solely for purposes of claims under ORS 701.140, - } may designate the effective date of renewal as the last date on which the registrant was registered. SECTION 3. { + Section 4 of this Act is added to and made a part of ORS chapter 701. + } SECTION 4. { + (1) Notwithstanding ORS 701.115, a certificate of registration that has a registration number that ends in an even number and that is submitted to the Construction Contractors Board for renewal between July 1, 1997, and June 30, 1998, shall be renewed, at the discretion of the registrant, for a period of one year or three years. Subsequent renewal of a certificate of registration described in this subsection shall be, at the discretion of the registrant, for a period set forth in ORS 701.115. (2) A certificate of registration that has a registration number that ends in an odd number and that is submitted to the board for renewal between July 1, 1997, and June 30, 1998, shall be renewed, at the discretion of the registrant, for a period of two years or four years. + } SECTION 5. { + The amendments to ORS 701.065 by section 1 of this Act apply to liens perfected and claims commenced on or after July 1, 1997. + } SECTION 6. { + This Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this Act takes effect July 1, 1997. + } ----------