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. + }
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