Chapter 35 Oregon Laws 1999

Session Law

AN ACT

HB 2058

Relating to construction contractor consumer protection; amending ORS 701.055.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 701.055 is amended to read:

701.055. (1) A person shall not undertake, offer to undertake or submit a bid to do work as a contractor unless that person has a current, valid certificate of registration issued by the Construction Contractors Board. A partnership, corporation or joint venture may do such work, offer to undertake such work or submit a bid to do such work only if that partnership, corporation or joint venture is registered. A partnership or joint venture shall be deemed registered for the purpose of offering to undertake work as a contractor on a nonresidential structure if any one of the partners or joint venturers whose name appears in the name under which the partnership or joint venture does business is registered.

(2) A registered partnership or corporation shall notify the board immediately upon any change in partners or corporate officers. Upon a change in partners, a registered partnership immediately shall register again.

(3) A city, county or the State of Oregon shall not issue a building permit to anyone required to be registered under this chapter [who] that does not have a current, valid certificate of registration. Each county, city or the State of Oregon [which] that requires the issuance of a permit as a condition precedent to construction, alteration, improvement, demolition, movement or repair of any building or structure or the appurtenances to the structure shall also require that each applicant for such permit file as a condition to issuing the permit a written statement, subscribed by the applicant, that the applicant is registered under the provisions of this chapter, giving the number of the registration and stating that the registration is in full force and effect, or, if the applicant is exempt from the provisions of this chapter, listing the basis for the exemption. The city, county or the State of Oregon shall list the contractor's registration number on the permit obtained by that contractor.

(4) If the applicant for a building permit is exempt from registration under the provisions of ORS 701.010 (6), the city, county or State of Oregon shall supply the applicant with an Information Notice to Property Owners About Construction Responsibilities. The city, county or State of Oregon shall not issue a building permit for a residential structure to the applicant until the applicant signs a statement in substantially the following form:

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(a) I have read and understand the Information Notice to Property Owners About Construction Responsibilities; and

(b) I own, reside in or will reside in the completed dwelling. My general contractor is _______, Construction Contractors Board registration no. _____, registration expiration date ______. I will instruct my general contractor that all subcontractors who work on this dwelling must be registered with the Construction Contractors Board; or

(d) I will be my own general contractor and, if I hire subcontractors, I will hire only subcontractors registered with the Construction Contractors Board.

(e) If I change my mind and do hire a general contractor, I will contract with a general contractor who is registered with the Construction Contractors Board and I will immediately notify the office issuing this building permit of the name of the general contractor _______.

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(5) The board shall adopt by rule a form entitled "Information Notice to Property Owners About Construction Responsibilities" [which] that shall describe, in nontechnical language and in a clear and coherent manner using words in their common and everyday meaning, the responsibilities property owners are undertaking by acting as their own general contractor and the problems that could develop. The responsibilities described in the form shall include, but not be limited to:

(a) Compliance with State of Oregon and federal laws regarding social security tax, income tax and unemployment tax.

(b) Workers' compensation insurance on workers.

(6) The board shall develop and furnish to the city, county and State of Oregon building permit offices, at no cost to these offices, the Information Notice to Property Owners About Construction Responsibilities and the statement to be signed by the permit applicant.

(7) Every city and county [which] that requires the issuance of a business license as a condition precedent to engaging, within the city or city and county, in a business which is subject to regulation under this chapter, shall require that each licensee and each applicant for issuance or renewal of such license file, or have on file, with such city or city and county, a signed statement that such licensee or applicant is registered under the provisions of this chapter and stating that the registration is in full force and effect.

(8) It shall be prima facie evidence of doing business as a contractor when a person for that person's own use performs, employs others to perform, or for compensation and with the intent to sell the structure, arranges to have performed any work described in ORS 701.005 (2) if within any one 36-month period that person offers for sale two or more newly built structures on which that work was performed.

(9) Registration under this chapter is prima facie evidence that the registrant conducts a separate, independent business.

(10) The provisions of this chapter shall be exclusive and no city, county or other political subdivision shall require or issue any registrations, licenses or surety bonds, nor charge any fee for the regulatory or surety registration of any contractor registered with the board. However, nothing in this subsection shall limit or abridge the authority of any city or county to:

(a) License and levy and collect a general and nondiscriminatory license fee levied upon all businesses, or to levy a tax based upon business conducted by any firm within said jurisdiction, or to limit the authority of any city or county with respect to contractors not required to be registered under this chapter; or

(b) Require a contractor to pay a fee, post a bond or require insurance when the city, county or political subdivision is contracting for the service of the contractor.

(11)(a) Every contractor shall maintain a list [which] that includes the following information about all subcontractors or other contractors performing work on a project for that contractor:

(A) Names and addresses.

(B) Registration numbers.

(b) The list referred to in paragraph (a) of this subsection shall be delivered to the board within 72 hours after a request made during reasonable working hours.

(12) A contractor shall not hire any subcontractor or other contractor to perform work unless the subcontractor or contractor is registered under this chapter or exempt from registration under the provisions of ORS 701.010.

(13) [A summary of this chapter, prepared by the board and provided at cost to all registered contractors, shall be delivered by the contractor to the owner when the contractor begins work on a residential structure. The summary prepared by the board shall include an explanation of the meaning of registration, including a statement that registration is not an indorsement of the quality of work.] A consumer notification form designed to specifically inform a property owner what the property owner should do to protect themselves in a residential repair, remodel or construction project shall be prepared by the board and provided at no cost to all registered contractors. The form shall be delivered by a contractor to the property owner when the contractor submits a bid or proposal for work on a residential structure. The form shall include an explanation of the meaning of registration, including a statement that registration is not an endorsement of a contractor's work, and an explanation of the bond and insurance levels required of contractors for the benefit of property owners. The form shall not be larger than one side of a sheet of paper that is 8-1/2 inches by 11 inches, and the contractor may reproduce the form on the contractor's bid proposal.

(14) A contractor shall not perform work subject to this section for an owner of a residential structure without a written contract if the aggregate contract price exceeds $2,500. If the price of such contract was initially less than $2,500, but during the course of performance of the contract exceeds that amount, the contractor shall mail or otherwise deliver a written contract to the owner not later than five days after the contractor knows or should reasonably know that the contract price will exceed $2,500. Failure to have a written contract will not void the contract.

(15) Except as provided in ORS 671.540, a contractor that is not licensed under ORS 671.560 shall hire a person licensed under ORS 671.560 to perform landscaping work.

Approved by the Governor April 16, 1999

Filed in the office of Secretary of State April 19, 1999

Effective date October 23, 1999

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