Chapter 648
AN ACT
HB 2654
Relating to construction contractors; creating new provisions; amending
ORS 87.018, 87.030, 87.093, 701.005, 701.055, 701.075, 701.077, 701.078,
701.085, 701.102, 701.105, 701.135 and 701.605; and repealing ORS 701.590 and
sections 5 and 6, chapter 114, Oregon Laws 2007 (Enrolled House Bill 2109).
Be It Enacted by the People of
the State of
CONTINUING EDUCATION
SECTION 1. Sections 2 and 3 of this 2007 Act are added
to and made a part of ORS chapter 701.
SECTION 2. (1) The Construction Contractors Board shall
adopt rules establishing a continuing education system for all persons licensed
by the board. The rules adopted by the board shall include, but need not be
limited to, rules establishing the required number of hours and course content
for continuing education. The board may establish reasonable fees for courses
and instruction provided by the board, or for approving the course content and
instruction for continuing education provided by other sources.
(2) The continuing
education required for a contractor may include training in construction means
and methods, compliance with the state building code and business practices.
(3) A person may not
renew a license issued by the board unless the person certifies to the board at
the time of license renewal that the licensee has completed the amount and type
of continuing education required by the board.
(4) Subsections (1) to
(3) of this section do not apply to a licensed developer.
SECTION 3. (1) The Construction Contractors Board shall
adopt rules establishing the date by which a licensee must first complete
continuing education under section 2 of this 2007 Act for persons that:
(a) Are licensed by the
board prior to the effective date of this 2007 Act; and
(b) Do not complete
training described in ORS 701.072 prior to January 1, 2010.
(2) The date established
by the board under subsection (1) of this section may not be earlier than
January 1, 2010, or later than January 1, 2014.
WRITTEN CONTRACTS
SECTION 4. Section 5 of this 2007 Act is added to and
made a part of ORS 87.001 to 87.060.
SECTION 5. An original contractor may not claim a lien
arising from the improvement of real property if a written contract for the
work is required by section 7 of this 2007 Act and the contractor does not have
a written contract.
SECTION 6. Sections 7 and 8 of this 2007 Act are added
to and made a part of ORS chapter 701.
SECTION 7. (1) A contractor may not perform work
subject to this section for an owner of a residential structure or
zero-lot-line dwelling without a written contract if the aggregate contract
price exceeds $2,000. If the price of a contract was initially less than
$2,000, but during the course of performance 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 $2,000. Failure to have a written contract
will not void the contract.
(2) The Construction
Contractors Board shall adopt rules that require a contractor to use standard
contractual terms in a construction contract for which subsection (1) of this
section requires a written contract. The standard contractual terms shall be
clear, use words of common understanding and shall include but need not be
limited to:
(a) A statement that the
contractor is licensed by the board;
(b) The name, license
number, address and telephone number of the contractor as shown on board records
on the date the contract is entered into;
(c) An acknowledgment of
a written offer of a warranty, if an offer is required by section 11 of this
2007 Act, and indication of the acceptance or rejection of the offered
warranty;
(d) For a residential
structure contract, a summary of the notices required under ORS 87.093 or under
rules adopted under sections 13 (2) and 14 of this 2007 Act on the contractor’s
bid proposal;
(e) Acknowledgment of
the receipt of the maintenance information required by the board under section
13 of this 2007 Act; and
(f) An explanation of
the property owner’s rights under the contract, including, but not limited to,
the ability to file a claim with the board and the existence of any mediation
or arbitration provision in the contract, set forth in a conspicuous manner as
defined by the board by rule.
SECTION 8. (1) A property owner who enters into an
initial written contract for the construction, improvement or repair of a
residential structure or zero-lot-line dwelling may cancel the contract by
delivery of a written notice of cancellation anytime prior to 12 midnight at
the end of the next business day. The notice of cancellation may be delivered
in any written form or by any means that can readily be converted to written
form, including, but not limited to, facsimile, electronic mail and regular
mail. The notice must state the intention of the property owner to cancel the
contract.
(2) Subsection (1) of
this section does not allow a property owner to cancel a contract:
(a) If both parties
agree that work is to begin before the cancellation period has expired;
(b) After a contractor
substantially begins the residential construction, improvement or repair; or
(c) When an initial
contract is being modified after expiration of the initial cancellation period.
SECTION 9. ORS 87.030 is amended to read:
87.030. (1) Every
improvement except an improvement made by a person other than the landowner in
drilling or boring for oil or gas, constructed upon lands with the knowledge of
the owner shall be deemed constructed at the instance of the owner, and the
interest owned shall be subject to any lien perfected pursuant to the
provisions of ORS 87.001 to 87.060 and 87.075 to 87.093, unless the owner
shall, within three days after the owner obtains knowledge of the construction,
give notice that the owner will not be responsible for the same by posting a
notice in writing to that effect in some conspicuous place upon the land or the
improvement situated thereon.
(2) Subsection (1) of
this section does not apply to a lien prohibited under section 5 of this 2007
Act.
WARRANTY
SECTION 10. Section 11 of this 2007 Act is added to and
made a part of ORS chapter 701.
SECTION 11. (1) A licensee that enters into a contract
to construct a new residential structure or zero-lot-line dwelling shall make a
written offer to the first purchaser or owner of the structure or dwelling of a
warranty against defects in materials and workmanship for the structure or
dwelling. The first purchaser or owner of the structure or dwelling may accept
or refuse the offer of a warranty by the contractor. If a contractor makes the
written offer of a warranty before the contractor and owner both sign a written
construction contract and the owner refuses the offered warranty, the
contractor may withdraw the offer to construct the structure or dwelling.
(2) Subsection (1) of
this section does not apply to a residential structure that is a manufactured
dwelling as defined in ORS 446.003.
REQUIRED DELIVERIES
SECTION 12. Sections 13 and 14 of this 2007 Act are
added to and made a part of ORS chapter 701.
SECTION 13. (1) A contractor that constructs a new
residential structure or zero-lot-line dwelling shall provide a recommended
maintenance schedule to the first purchaser or owner of the structure or
dwelling.
(2) The Construction
Contractors Board shall adopt rules specifying the minimum information that a
contractor shall provide to a first purchaser or owner under subsection (1) of
this section. The minimum information shall include, but need not be limited
to, the following:
(a) Definitions and
descriptions of moisture intrusion and water damage.
(b) An explanation of
how moisture intrusion and water damage can occur.
(c) A description and
recommended schedule for maintenance to prevent moisture intrusion.
(d) Advice on how to
recognize the signs of water damage.
(e) Appropriate steps to
take when water damage is discovered.
(3) The board shall make
the information developed under this section available without charge to
contractors that construct new residential structures or zero-lot-line
dwellings.
SECTION 14. (1) The Construction Contractors Board
shall adopt by rule a consumer notice form designed to inform a property owner
of the actions the property owner should take to protect the owner in a
residential repair, remodel or construction project. The form shall briefly
describe and identify additional sources of information regarding:
(a) Contractor licensing
standards;
(b) Contractor bond and
insurance requirements;
(c) The requirement to
offer a warranty under section 11 of this 2007 Act; and
(d) Other information
specified by the board.
(2) The board shall
adopt by rule a notice of procedure form that briefly describes and identifies
additional sources of information regarding the procedure described under ORS
701.560 to 701.595 and other information specified by the board.
(3) The consumer notice
form and notice of procedure form adopted by the board shall include signature
lines for the contractor and the property owner.
(4) The board shall
adopt rules specifying the time and manner for a contractor to deliver a
consumer notice form and notice of procedure form to a property owner.
(5) The board may adopt
rules that require a contractor to maintain evidence of delivery of the
consumer notice form and notice of procedure form and that specify the
retention period for and the form of that evidence.
SECTION 15. ORS 87.018 is amended to read:
87.018. Except as
provided in ORS 87.093, all notices required under ORS 87.001 to 87.060 and
87.075 to 87.093 shall be in writing and delivered in person or delivered by
registered or certified mail. [except for the “Information
Notice to Owner” described in ORS 87.093 which may also be proved by a
SECTION 16. ORS 87.093 is amended to read:
87.093. (1) The
Construction Contractors Board shall adopt by rule a form entitled “Information
Notice to Owner” which shall describe, in nontechnical language and in a clear
and coherent manner using words in their common and everyday meanings, the
pertinent provisions of the Construction Lien Law of this state and the rights
and responsibilities of an owner of property and an original contractor under
that law. The “Information Notice to Owner” shall include signature lines
for the contractor and the property owner. The rights and responsibilities
described in the form shall include, but not be limited to:
(a) Methods by which an
owner may avoid multiple payments for the same materials and labor;
(b) The right to file a
claim against a licensed contractor with the [Construction Contractors] board and, when appropriate, to be
reimbursed from the contractor’s bond filed under ORS chapter 701; and
(c) The right to receive,
upon written request therefor, a statement of the reasonable value of
materials, equipment, services or labor provided from the persons providing the
materials, equipment, services or labor at the request of an original
contractor and who have also provided notices of right to a lien.
(2)(a) Each original
contractor shall [provide] deliver
a copy of the “Information Notice to Owner” adopted by the [Construction Contractors] board under
this section to:
(A) The first purchaser
of residential property constructed by the contractor and sold before or within
the 75-day period immediately following the completion of construction; and
(B) The owner or an
agent of the owner, other than an original contractor, at the time of signing a
written residential construction or improvement contract with the owner.
(b) When the residential
construction or improvement contract is an oral contract, the original
contractor shall mail or otherwise deliver the “Information Notice to Owner”
not later than five days after the contract is made.
(3) The contractor
shall deliver the “Information Notice to Owner” personally, by registered or
certified mail or by first class mail with certificate of mailing.
[(3)] (4) This section applies only
to a residential construction or improvement contract for which the aggregate
contract price exceeds $1,000. If the price of a home improvement contract was
initially less than $1,000, but during the course of the performance of the
contract exceeds that amount, the original contractor shall mail or otherwise
deliver the “Information Notice to Owner” not later than five days after the
contractor knows or should reasonably know that the contract price will exceed
$1,000.
[(4)] (5) An “Information Notice to Owner” need not be sent
when the owner is a contractor licensed with the [Construction Contractors] board under ORS chapter 701.
[(5)] (6) Notwithstanding ORS 87.010 and 87.030, if an
original contractor does not [provide]
deliver an owner or agent with an “Information Notice to Owner” as required
under subsections (2) [and (3)] to
(4) of this section, the original contractor may not claim any lien created
under ORS 87.010 upon any improvement, lot or parcel of land of the owner for
labor, services or materials supplied under the residential construction or
improvement contract for which the original contractor failed to deliver the
required “Information Notice to Owner” [was
not provided].
[(6)] (7) If an original contractor does not [provide an owner or agent with] deliver
an “Information Notice to Owner” to an owner or agent as required under
subsection (2) of this section, the [Construction
Contractors] board may suspend the license of the original contractor for
any period of time that the board considers appropriate or impose a civil
penalty of not more than $5,000 upon the original contractor as provided in ORS
701.992.
[(7)] (8) As used in this section:
(a) “Residential
construction or improvement” means the original construction of residential
property and constructing, repairing, remodeling or altering residential
property and includes, but is not limited to, the construction, repair,
replacement or improvement of driveways, swimming pools, terraces, patios,
fences, porches, garages, basements and other structures or land adjacent to a
residential dwelling.
(b) “Residential
construction or improvement contract” means an agreement, oral or written,
between an original contractor and an owner for the performance of a home
improvement and includes all labor, services and materials furnished and
performed thereunder.
SECTION 17. ORS 701.055 is amended to read:
701.055. (1) A person
may not undertake, offer to undertake or submit a bid to do work as a
contractor unless that person has a current, valid license issued by the Construction
Contractors Board. A partnership, corporation or joint venture may not
undertake, offer to undertake or submit a bid to do work as a contractor unless
that partnership, corporation or joint venture is licensed under this chapter.
A partnership or joint venture is licensed for the purpose of offering to
undertake work as a contractor on a structure if any of the partners or joint
venturers whose name appears in the business name of the partnership or joint
venture is licensed under this chapter.
(2) A licensed
partnership or corporation shall notify the board immediately upon any change
in licensed partners or corporate officers. If a partnership no longer has a
licensed partner, the partnership may not conduct activities that require a
license under this chapter.
(3) A city, county or
the State of
(4) If the applicant for
a building permit is exempt from licensure under ORS 701.010 (6), the city,
county or state shall supply the applicant with an Information Notice to
Property Owners About Construction Responsibilities.
The city, county or state may not issue a building permit for a residential
structure to the applicant until the applicant signs a statement in
substantially the following form:
______________________________________________________________________________
(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 license no. ______, license
expiration date ________. I will instruct my general contractor that all
subcontractors who work on this dwelling must be licensed with the Construction
Contractors Board; or
(c) I am performing work
on property I own, a residence that I reside in or a residence that I will
reside in.
(d) I will be my own
general contractor and, if I hire subcontractors, I will hire only
subcontractors licensed 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 licensed with the Construction Contractors Board and I will immediately
notify the office issuing this building permit of the name of the general
contractor _________.
______________________________________________________________________________
(5) The board shall
adopt by rule a form entitled “Information Notice to Property Owners About Construction Responsibilities” 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 and federal laws regarding Social Security tax, income tax and
unemployment tax.
(b) Workers’
compensation insurance on workers.
(c) Liability and
property damage insurance.
(6) The board shall
develop and furnish to city, county and state building permit offices, at no
cost to the offices, the Information Notice to Property Owners About Construction Responsibilities and the statement to be
signed by the permit applicant.
(7) A city or county
that requires a business license for engaging in a business subject to
regulation under this chapter shall require that the licensee or applicant for
issuance or renewal of the business license file, or have on file, with the
city or county, a signed statement that the licensee or applicant is licensed
under this chapter.
(8) It is prima facie
evidence of doing business as a contractor if 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 (3) if within any 36-month period that person offers for sale two
or more newly built structures on which that work was performed.
(9) Licensure under this
chapter is prima facie evidence that the licensee conducts a separate,
independent business.
(10) The provisions of
this chapter are exclusive and a city, county or other political subdivision
may not require or issue any registrations, licenses or surety bonds, nor
charge any fee for the regulatory or surety registration of any contractor
licensed with the board. This subsection does not 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 upon business conducted by any firm within the city or county;
(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; or
(c) Regulate a
contractor that is not required to be licensed under this chapter.
(11)(a) A contractor
shall maintain a list that includes the following information about all
subcontractors or other contractors performing work on a project for that
contractor:
(A) Names and addresses.
(B) License numbers.
(b) The contractor must
deliver the list referred to in paragraph (a) of this subsection to the board
within 72 hours after a board request made during reasonable working hours.
(12) A contractor may
not hire any subcontractor or other contractor to perform work unless the
subcontractor or contractor is licensed under this chapter or exempt from
licensure under ORS 701.010.
[(13) 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 licensed contractors. The contractor shall
deliver the form 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 licensure, including a statement that licensure
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 must not be larger than one side of a sheet of paper that is
8-1/2 inches by 11 inches. The contractor may reproduce the form on the
contractor’s bid proposal.]
[(14) A contractor may not perform work subject to this section for an
owner of a residential structure without a written contract if the aggregate
contract price exceeds $2,000. If the price of a contract was initially less
than $2,000, but during the course of performance 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 $2,000. Failure to have a
written contract will not void the contract.]
[(15)] (13) 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.
SECTION 18. ORS 701.590 is repealed.
INSURANCE
SECTION 19. ORS 701.105 is amended to read:
701.105. (1) Except as
provided in subsection (2) of this section, a contractor who possesses a
license as required under this chapter shall have in effect public liability,
personal injury and property damage insurance covering the work of the
contractor that is subject to this chapter, including the covering of
liability for products and completed operations according to the terms of the
policy and subject to applicable policy exclusions, for an amount not less
than:
(a)
$500,000 for a general contractor or licensed developer.
(b)
$300,000 for a residential-only specialty contractor.
(c) $500,000 for all other specialty contractors.
(d)
$100,000 for a limited contractor.
(e)
$300,000 for an inspector.
(2) The Construction
Contractors Board by rule, in consultation with the Department of Consumer and
Business Services, may allow a general or specialty contractor that is a
residential-only contractor to provide an alternative form of security approved
by the board instead of procuring a public liability, personal injury and
property damage insurance policy. The board may approve an alternative form of
security if the board determines that the alternative form of security provides
protection to the public equivalent to the protection provided by an insurance
policy in the amounts otherwise applicable to the residential-only contractor
under subsection (1) of this section. A board-approved alternative form of
security may consist of a combination of financial resources.
(3) A residential-only
contractor who provides a board-approved alternative form of security under
subsection (2) of this section is considered for purposes of this chapter to
have obtained insurance described in subsection (1) of this section. This
subsection does not subject to regulation as an insurer a person who issues all
or part of an alternative form of security, unless the alternative form of
security otherwise qualifies as an insurance product.
(4) The contractor shall
provide satisfactory evidence to the board at the time of licensure and renewal
that the insurance policy or board-approved alternative form of security
required by this section has been procured and is in effect.
SECTION 20. ORS 701.105, as amended by section 2, chapter
766, Oregon Laws 2003, is amended to read:
701.105. (1) A
contractor who possesses a license as required under this chapter shall have in
effect public liability, personal injury and property damage insurance covering
the work of the contractor that is subject to this chapter, including the
covering of liability for products and completed operations according to the
terms of the policy and subject to applicable policy exclusions, for an
amount not less than:
(a)
$500,000 for a general contractor or licensed developer.
(b)
$300,000 for a residential-only specialty contractor.
(c) $500,000 for all other specialty contractors.
(d)
$100,000 for a limited contractor.
(e)
$300,000 for an inspector.
(2) The contractor shall
provide satisfactory evidence to the Construction Contractors Board at the time
of licensure and renewal that the insurance required by subsection (1) of this
section has been procured and is in effect.
SECTION 21. The amendments to ORS 701.105 by sections
19 and 20 of this 2007 Act apply to coverage provided under insurance policies
issued or renewed on or after the effective date of this 2007 Act.
BONDING
SECTION 22. ORS 701.085 is amended to read:
701.085. (1) An
applicant for issuance or renewal of a contractor license shall file with the
Construction Contractors Board a surety bond with one or more corporate sureties
authorized to do business in this state in the amount set forth in subsections
(2) to (5) of this section. The surety bond must provide that the applicant,
with regard to work subject to this chapter, will pay claims ordered paid by
the board under ORS 701.145 or 701.146. Bonds filed under this subsection shall
remain in effect for at least one year or until depleted by claims paid under
ORS 701.150, unless the surety sooner cancels the bond. At the discretion of
the surety the bond may be continued for an additional period by continuation
certificate. Except as provided in subsection (6) of this section, the
aggregate liability of the surety under the bond for claims against the bond
may not exceed the penal sum of the bond no matter how many years the bond is
in force. Except as provided in subsection (6) of this section, an extension by
continuation certificate, reinstatement, reissue or renewal of the bond may not
increase the liability of the surety.
(2) A general contractor
or licensed developer shall obtain a surety bond in the amount of [$15,000] $20,000.
(3) A specialty
contractor shall obtain a surety bond in the amount of [$10,000] $15,000.
(4) An inspector shall
obtain a surety bond in the amount of [$10,000]
$15,000.
(5) The board may reduce
the amount of the surety bond required by this section to [$5,000] $10,000 for a contractor upon a showing that the
contractor does not perform work as a contractor exceeding $40,000 in gross
annual volume and does not enter into contracts that exceed $5,000. The board
shall designate the contractor as a limited contractor.
(6) The board, by rule,
may require a licensee to obtain a new surety bond if, pursuant to a board
order for payment of a claim described in ORS 701.140, the surety pays a claim
out of the bond of the licensee. The new surety bond must be in the amount set
forth in subsections (2) to (5) of this section unless a higher amount is
required by a board condition or rule described in subsection (7) or (8) of
this section. The board may allow a licensee to obtain, instead of a new bond,
a certification that the surety remains liable for the full penal sum of the
bond, notwithstanding payment by the surety on the claim.
(7) If the amount the
licensee must pay against the bond under this section exceeds the amount of the
bond, the board shall suspend the contractor’s license until the amount owed is
paid. The board, as a condition of ending the suspension, may require a
contractor requesting reinstatement of a license to file a bond of an amount up
to five times as much as the amount required ordinarily of a licensee under
this section.
(8) The board by rule
may establish conditions for applicants or persons licensed under this chapter
under which the applicant or licensee must file a bond of an amount up to five
times as much as the amount required ordinarily of an applicant or licensee
under this section. The board may reduce the amount of bond it would otherwise
require if the contractor demonstrates satisfactory completion of approved elective
classes on dispute resolution and prevention, basic accounting and record
keeping or such other classes as the board may prescribe.
(9) The bond required
under this section is for the exclusive purpose of payment of final orders and
arbitration awards of the board in accordance with this chapter.
(10) Upon determination
under ORS 701.145 or 701.146 of a claim against a contractor who holds a bond
required under this section, the board shall notify the surety on the bond of
the final order in a manner determined by the board by rule. The notification
shall include a list of all claims upon which a final order has been issued.
(11) A suit or action
may not be commenced against a surety on a bond required under this section
until 30 days after the date that the surety is notified by the board under ORS
701.150 that payment is due on the claim.
(12) In any action
against a surety on a bond under this section that is based on the failure of
the surety to pay a claim or on the denial of a claim by the surety, the court
may award:
(a) Costs;
(b) Reasonable attorney
fees to the prevailing party as part of the costs; and
(c) Twice the amount of
any damages that the board ordered the surety to pay on the claim, if the
surety arbitrarily and capriciously refused to pay upon order of the board.
OWNERSHIP/MANAGEMENT
SECTION 23. ORS 701.005 is amended to read:
701.005. As used in this
chapter:
(1) “Board” means the
Construction Contractors Board.
(2) “Construction debt”
means an amount owed under:
(a) [A final] An
order or arbitration award issued by the board that has become final by
operation of law; [or]
(b) A judgment or civil
penalty that has become final by operation of law arising from
construction activities within the
(c) A judgment or civil
penalty that has become final by operation of law arising from a failure to
comply with ORS 656.017.
(3) “Contractor” means a
person who, for compensation or with the intent to sell, arranges or undertakes
or offers to undertake or submits a bid to construct, alter, repair, add to,
subtract from, improve, inspect, move, wreck or demolish, for another, any
building, highway, road, railroad, excavation or other structure, project,
development or improvement attached to real estate or to do any part thereof. “Contractor”
includes general contractors, residential-only contractors and specialty
contractors as defined in this section.
(4) “General contractor”
means a contractor whose business operations require the use of more than two
unrelated building trades or crafts that the contractor supervises or performs
in whole or part, whenever the sum of all contracts on any single property,
including materials and labor, exceeds an amount established by rule by the
board. “General contractor” does not include specialty contractors or limited
contractors, as described in ORS 701.085.
(5) “Home inspector”
means a person who, for a fee, inspects and provides written reports on the
overall physical condition of a residential structure and the appurtenances thereto.
“Home inspector” does not include persons certified under ORS chapter 455 to
inspect new, repaired or altered structures for compliance with the state
building code.
(6) “Inspector” means a
contractor registered with the board who inspects or
otherwise provides services to a property owner or other contractor but does
not substantively add to or subtract from a structure. “Inspector” includes but
is not limited to a home inspector certified under ORS 701.350, a lead-based
paint inspector licensed under ORS 701.515 and a cross connection inspector and
backflow assembly tester certified under ORS 448.279. “Inspector” does not
include city or county inspectors acting under ORS 701.225 or an inspector as
defined in ORS 455.715.
(7) “Large commercial structure”
means a structure that is not a residential structure or small commercial
structure.
(8) “Licensed developer”
means a contractor who owns property or an interest in property and arranges
for construction work, if the contractor:
(a) Engages in the
business of arranging for construction work and performing other activities
associated with the improvement of real property, with the intent to sell the
property;
(b) Acts in association
with one or more licensed general contractors and the general contractor or
combination of general contractors have sole responsibility for overseeing all
phases of construction activity on the property; and
(c) Does not perform any
construction work on the property.
(9) “Officer” means any
of the following persons:
(a) A president, vice
president, secretary, treasurer or director of a corporation.
(b) A general partner in
a limited partnership.
(c) A manager in a
manager-managed limited liability company.
(d) A member of a
member-managed limited liability company.
(e) A trustee.
(f) A person defined as
an officer under board rules. The definition of officer adopted by board rule
may include persons not listed in this subsection who may exercise substantial
control over a business.
(10) “Residential-only
contractor” means a general contractor or specialty contractor who performs
work exclusively in connection with residential structures and small commercial
structures, and the appurtenances thereto. “Residential-only contractor”
includes, but is not limited to:
(a) A person who
purchases or owns property and constructs or for compensation arranges for the
construction of one or more residential structures or small commercial
structures with the intent of selling the structures;
(b) A school district,
as defined in ORS 332.002, that permits students to construct a residential
structure or small commercial structure as an educational experience to learn
building techniques and sells the completed structure;
(c) A community college
district, as defined in ORS 341.005, that permits students to construct a
residential structure or small commercial structure as an educational
experience to learn building techniques and sells the completed structure; or
(d) Any person except a
landscape contractor, nurseryman, gardener or person engaged in the commercial
harvest of forest products who is engaged as an independent contractor to
remove trees, prune trees, remove tree limbs or stumps
or to engage in tree or limb guying.
(11) “Residential
structure” means a residence, including a site-built home, modular home
constructed off-site, floating home as defined in ORS 830.700, condominium
unit, manufactured dwelling or duplex, or a multiunit residential building
consisting of four units or less that is not part of a multistructure complex
of buildings.
(12) “Responsible
managing individual” means an individual who:
(a)(A) Is an owner
described in ORS 701.077; or
(B) Is an employee of a
business, designated by the owner, who exercises management or supervisory
authority over the construction activities of the business; and
(b)(A) Has successfully
completed the training and testing required for licensing under ORS 701.072
within a period identified by the board by rule;
(B) Has demonstrated
experience required by the board by rule; or
(C) Has complied with
the licensing requirements of ORS 446.395.
[(12)] (13) “Small commercial structure” means a
nonresidential structure that has a ground area of 4,000 square feet or less,
including exterior walls, and a height of not more than 20 feet from the top
surface of the lowest flooring to the highest interior overhead finish of the
structure.
[(13)] (14) “Specialty contractor” means a contractor who
performs work on a structure, project, development or improvement and whose
operations as such do not fall within the definition of “general contractor.” “Specialty
contractor” includes a person who performs work regulated under ORS chapter
446.
(15) “Zero-lot-line
dwelling” means a single-family dwelling unit constructed in a group of attached
units in which:
(a) Each attached unit
extends from foundation to roof with open space on two sides; and
(b) Each dwelling unit
is separated by a property line.
SECTION 23a. If House Bill 2111 becomes law, ORS 701.005,
as amended by section 23 of this 2007 Act, is amended to read:
701.005. As used in this
chapter:
(1) “Board” means the
Construction Contractors Board.
(2) “Construction debt”
means an amount owed under:
(a) An order or
arbitration award issued by the board that has become final by operation of
law;
(b) A judgment or civil
penalty that has become final by operation of law arising from construction
activities within the
(c) A judgment or civil
penalty that has become final by operation of law arising from a failure to
comply with ORS 656.017.
(3) “Contractor” means a
person who, for compensation or with the intent to sell, arranges or undertakes
or offers to undertake or submits a bid to construct, alter, repair, add to,
subtract from, improve, inspect, move, wreck or demolish, for another, any
building, highway, road, railroad, excavation or other structure, project,
development or improvement attached to real estate or to do any part thereof. “Contractor”
includes general contractors, residential-only contractors and specialty
contractors as defined in this section.
(4) “General contractor”
means a contractor whose business operations require the use of more than two
unrelated building trades or crafts that the contractor supervises or performs
in whole or part, whenever the sum of all contracts on any single property,
including materials and labor, exceeds an amount established by rule by the
board. “General contractor” does not include specialty contractors or limited
contractors, as described in ORS 701.085.
(5) “Home inspector”
means a person who, for a fee, inspects and provides written reports on the
overall physical condition of a residential structure and the appurtenances
thereto. “Home inspector” does not include persons certified under ORS chapter
455 to inspect new, repaired or altered structures for compliance with the
state building code.
(6) “Inspector” means a
contractor registered with the board who inspects or
otherwise provides services to a property owner or other contractor but does
not substantively add to or subtract from a structure. “Inspector” includes but
is not limited to a home inspector certified under ORS 701.350, a lead-based
paint inspector licensed under ORS 701.515 and a cross connection inspector and
backflow assembly tester certified under ORS 448.279. “Inspector” does not
include city or county inspectors acting under ORS 701.225 or an inspector as
defined in ORS 455.715.
(7) “Large commercial
structure” means a structure that is not a residential structure or small
commercial structure.
(8) “Licensed developer”
means a contractor who owns property or an interest in property and arranges
for construction work, if the contractor:
(a) Engages in the
business of arranging for construction work and performing other activities associated
with the improvement of real property, with the intent to sell the property;
(b) Acts in association
with one or more licensed general contractors and the general contractor or
combination of general contractors have sole responsibility for overseeing all
phases of construction activity on the property; and
(c) Does not perform any
construction work on the property.
(9) “Officer” means any
of the following persons:
(a) A president, vice
president, secretary, treasurer or director of a corporation.
(b) A general partner in
a limited partnership.
(c) A manager in a
manager-managed limited liability company.
(d) A member of a
member-managed limited liability company.
(e) A trustee.
(f) A person defined as
an officer under board rules. The definition of officer adopted by board rule
may include persons not listed in this subsection who may exercise substantial
control over a business.
(10) “Residential-only
contractor” means a general contractor or specialty contractor who performs
work exclusively in connection with residential structures and small commercial
structures, and the appurtenances thereto. “Residential-only contractor”
includes, but is not limited to:
(a) A person who
purchases or owns property and constructs or for compensation arranges for the
construction of one or more residential structures or small commercial
structures with the intent of selling the structures;
(b) A school district,
as defined in ORS 332.002, that permits students to construct a residential
structure or small commercial structure as an educational experience to learn
building techniques and sells the completed structure;
(c) A community college
district, as defined in ORS 341.005, that permits students to construct a
residential structure or small commercial structure as an educational
experience to learn building techniques and sells the completed structure; or
(d) Any person except a
landscape contractor, nurseryman, gardener or person engaged in the commercial
harvest of forest products who is engaged as an independent contractor to
remove trees, prune trees, remove tree limbs or stumps
or to engage in tree or limb guying.
(11) “Residential
structure” means a residence, including a site-built home, modular home
constructed off-site, floating home as defined in ORS 830.700, condominium
unit, manufactured dwelling or duplex, or a multiunit residential building
consisting of four units or less that is not part of a multistructure complex
of buildings.
(12) “Responsible
managing individual” means an individual who:
(a)[(A)] Is an owner described in ORS 701.077
or an employee of the business; [or]
[(B)] (b) [Is an
employee of a business, designated by the owner, who] Exercises management
or supervisory authority, as defined by the board by rule, over the construction
activities of the business; and
[(b)] (c)(A) Has successfully
completed the training and testing required for licensing under ORS 701.072
within a period identified by the board by rule;
(B) Has demonstrated
experience required by the board by rule; or
(C) Has complied with
the licensing requirements of ORS 446.395.
(13) “Small commercial
structure” means a nonresidential structure that has a ground area of 4,000
square feet or less, including exterior walls, and a height of not more than 20
feet from the top surface of the lowest flooring to the highest interior
overhead finish of the structure.
(14) “Specialty
contractor” means a contractor who performs work on a structure, project,
development or improvement and whose operations as such do not fall within the
definition of “general contractor.” “Specialty contractor” includes a person
who performs work regulated under ORS chapter 446.
(15) “Zero-lot-line
dwelling” means a single-family dwelling unit constructed in a group of
attached units in which:
(a) Each attached unit
extends from foundation to roof with open space on two sides; and
(b) Each dwelling unit
is separated by a property line.
SECTION 24. ORS 701.075 is amended to read:
701.075. (1) An applicant for a construction contractor license must
submit the application on a form prescribed by the Construction Contractors
Board. The application shall include, but not be limited to, the following
information [regarding the applicant]:
(a) Classification of
the license being sought.
(b) A list of
construction debts involving the applicant, or an owner or officer of the
applicant, if the order, award, penalty or judgment that establishes the debt
was issued within the preceding five years.
(c) For each person
described in paragraphs (h) and (i) of this subsection, a Social Security
number.
(d) Workers’
compensation insurance account number, if the applicant is required to have
workers’ compensation insurance.
(e) Unemployment
insurance account number, if the applicant is required to have unemployment
insurance.
(f) State withholding
tax account number, if the applicant is required to withhold state income tax.
(g) Federal employer
identification number, if the applicant is required to have a federal employer
identification number.
(h) The name and address
of:
(A) Each partner, if the
applicant is a partnership, limited liability partnership or foreign limited
liability partnership.
(B) The general partner,
if the applicant is a limited partnership.
(C) Each joint venturer,
if the applicant is a joint venture.
(D) The owner, if the
applicant is a sole proprietorship.
(E) The officers, if the
applicant is a corporation.
(F) The manager and each
member, if the applicant is a manager-managed limited liability company.
(G) Each member, if the
applicant is a member-managed limited liability company.
(H) The responsible
managing individual designated by the applicant.
(i) The name and address
of the following if the applicant is a partnership, limited liability
partnership, foreign limited liability partnership, joint venture,
manager-managed limited liability company or member-managed limited liability
company:
(A) Each partner in a
partnership, limited liability partnership or foreign limited liability
partnership that is a partner, joint venturer or member of the applicant.
(B) Each general partner
in a limited partnership that is a partner, joint venturer or member of the
applicant.
(C) Each joint venturer
in a joint venture that is a partner, joint venturer or member of the applicant.
(D) The manager and each
member of a manager-managed limited liability company that is a partner, joint
venturer or member of the applicant.
(E) Each member of a
member-managed limited liability company that is a partner, joint venturer or
member of the applicant.
(F) Each officer of a
corporation that is a partner, joint venturer or member of the applicant.
(G) The general partner
in a limited partnership that is a partner, joint venturer or member of the
applicant.
(H) Each individual who
has a controlling ownership interest in, or management authority over, the
applicant and who meets criteria adopted by the board by rule.
(j) For each person
described in paragraphs (h) and (i) of this subsection, information as required
by board rule regarding the following if related to construction activities:
(A) A final judgment
against the person by a court in any state entered within five years preceding the application date that requires the person to
pay money to another person or to a public body if the judgment remains
unsatisfied on the application date.
(B) A final order
against the person by an administrative agency in any state issued within five
years preceding the application date that requires the
person to pay money to another person or to a public body if the order remains
unsatisfied on the application date.
(C) A court action
against the person in any state pending on the application date that alleges
the person owes money to another person or to a public body.
(D) An action by an administrative
agency in any state pending on the application date that seeks an order that
the person pay money to another person or to a public body.
(E) A conviction for a
crime listed in ORS 701.135 (1)(h) entered within five
years preceding the application date.
(F) An indictment for a
crime listed in ORS 701.135 (1)(h) filed within five
years preceding the application date.
[(j)] (k) The basis on which the
applicant meets the standards for independent contractor status under ORS
670.600.
(2) The application
described in subsection (1) of this section must be accompanied by proof
satisfactory to the board that the applicant:
(a) Is in compliance
with ORS 701.078.
(b) Has the legal
capacity to enter into contracts.
(3) Subsection (2)(a) of this section does not apply to a licensed developer.
(4) An applicant shall
conform to the information provided by the applicant on the application and to
the terms of the application.
SECTION 25. ORS 701.077 is amended to read:
701.077. (1) As used in ORS [701.078
and] 701.102 and 701.135, “owner” means:
(a) A sole proprietor
of, partner in or holder of a controlling interest in a business; or
(b) A person defined as
an owner by Construction Contractors Board rule.
(2) The board shall
adopt rules defining an owner for purposes of subsection (1) of this section.
The rules may not define an owner in a manner that includes an investor who has
no right to manage a business, including but not limited to:
(a) A person who is
solely a minority shareholder in a corporation;
(b) A member of a
manager-managed limited liability company; or
(c) A limited partner in
a limited partnership who does not participate in the control of the business
of the limited partnership.
SECTION 26. ORS 701.078 is amended to read:
701.078. [(1) As used in this
section, “responsible managing individual” means an individual who:]
[(a)(A) Is an owner; or]
[(B) Is an employee of a business, designated by the owner, who
exercises management or supervisory authority over the construction activities
of the business; and]
[(b)(A) Has successfully completed the training
and testing required for licensing under ORS 701.072 within a period identified
by the Construction Contractors Board by rule;]
[(B) Has demonstrated experience required by the board by rule; or]
[(C) Has complied with the licensing
requirements of ORS 446.395.]
[(2)] (1) A business licensed under this chapter must at all
times have at least one responsible managing individual.
[(3)] (2) Subsection [(2)]
(1) of this section does not apply to a licensed developer.
SECTION 27. ORS 701.102 is amended to read:
701.102. (1) As used in this section, “construction contractor license”
means a license issued within the
(2) The Construction
Contractors Board may revoke, suspend or refuse to issue a license
required under this chapter to a business if:
(a) The business owes a
construction debt or has had a construction contractor license revoked or
suspended;
(b) An owner, [or] officer or responsible managing individual
of the business owes a construction debt or has had a construction contractor
license revoked or suspended; [or]
(c) An owner, [or] officer or responsible managing individual
of the business was an owner, [or]
officer or responsible managing individual of another business at the
time the other business incurred a construction debt that is owing or at the
time of an event that resulted in the revocation or suspension of the other
business’s construction contractor license[.];
or
(d) The board determines
that an owner, officer or responsible managing individual of the business is
not fit for licensure, based upon information submitted under ORS 701.075 or
discovered by a board investigation under ORS 701.225.
(3) The board may place
a contractor on probation if a total of three or more claims are filed with the
board within a 12-month period against the contractor or a former licensed
construction contracting business in which the contractor held at least a 10
percent ownership interest, measured as determined by board rule. A contractor
may not be placed on probation unless the board determines after investigation
that it is likely that the contractor has caused harm to the claimants. The
board may require a contractor that is placed on probation to develop a
corrective action plan, to attend specific classes and to resolve outstanding
claims. The board may require a contractor that is placed on probation to take
training and pass a test, both as described in ORS 701.072. The board shall
take action to terminate the contractor’s license if the contractor is
unwilling or unable to comply with the conditions of probation.
SANCTIONS
SECTION 28. ORS 701.135 is amended to read:
701.135. (1) The
Construction Contractors Board may revoke, suspend or refuse to issue or
reissue a license and the board may assess a civil penalty as provided in ORS
701.992 if the board determines after notice and opportunity for hearing:
(a) That the licensee or
applicant has violated a provision of ORS 701.055 (1) to (3) or (11)
to (13) or 701.078 or section 7, 11 or 13 of this 2007 Act or a rule
adopted under section 14 (4) of this 2007 Act.
(b) That the licensee
has violated a rule or order of the board.
(c) That the licensee
has knowingly assisted an unlicensed person to act in violation of this
chapter.
(d) That a lien was
filed on a structure under ORS 87.010 to 87.060 and 87.075 to 87.093 because
the licensee or applicant wrongfully failed to perform a contractual duty to
pay money to the person claiming the lien.
(e) That the licensee
has knowingly provided false information to the board.
(f) That the licensee
has worked without a construction permit where a permit is required and the
work resulted in a claim being filed with the board. For purposes of this
paragraph, “construction permit” includes a building permit, electrical permit,
mechanical permit or plumbing permit.
(g) That the number of
licensed contractors working together on the same task on the same job site,
where one of the contractors is licensed as exempt under ORS 701.035 (2)(b),
exceeded the following:
(A) Two sole
proprietors;
(B) One partnership;
(C) One corporation; or
(D) One limited liability company.
(h) Consistent with the
provisions of ORS 670.280, that the licensee or applicant, or an owner or
officer of the licensee or applicant has been convicted of one of the
following crimes in this state or an equivalent crime in another state:
(A) Murder;
(B) Assault in the first
degree;
(C) Kidnapping;
(D) Rape, sodomy or
unlawful sexual penetration;
(E) Sexual abuse;
(F) Arson in the first
degree;
(G) Robbery in the first
degree;
(H) Theft in the first
degree; or
(I)
Theft by extortion.
(i) That the licensee or
applicant has not, within 90 days after the date when payment was received from
the public contracting agency, or contractor in the case of a subcontractor,
made payment to any person for supplying labor or materials contracted for with
a public contract for a public improvement plus the amount of interest due.
(j) That the licensee or
applicant has repeatedly reported bad faith or false claims of nonpayment
against contractors or subcontractors.
(k) That the licensee or
applicant has engaged in conduct as a contractor that is dishonest or
fraudulent and that the board finds injurious to the welfare of the public.
(2) The board may
revoke, suspend or refuse to issue or reissue a license if the board determines
after notice and opportunity for hearing that an applicant or licensee is unfit
for licensure based upon information submitted under ORS 701.075 or discovered
by a board investigation under ORS 701.225.
(3) The board may assess
a civil penalty as provided in ORS 701.992 if the board determines after notice
and opportunity for hearing that any person has violated ORS 701.055 (1).
[(2)(a)] (4)(a) The administrator of
the board, in accordance with administrative rules adopted by the board and
after setting forth specific reasons for the findings, may suspend or refuse to
renew a license without hearing in any case where the administrator finds a
serious danger to the public welfare, including but not limited to:
(A) Lack of a surety
bond required by ORS 701.085;
(B) Lack of liability
insurance required by ORS 701.105;
(C) Hiring employees
while licensed as exempt under ORS 701.035; [or]
(D) Conduct as a
construction contractor that is dishonest or fraudulent[.]; or
(E) Failure to pay a
construction debt.
(b) If the licensee or
applicant demands a hearing within 90 days after the date of notice to the
licensee or applicant of the suspension or refusal to renew, then a hearing
must be granted to the licensee or applicant as soon as practicable after the
demand, and the administrator shall issue, [an order] pursuant to the hearing as required by ORS chapter 183,
an order confirming, altering or revoking the administrator’s earlier
order. Notwithstanding ORS 670.325, a hearing need not be held where the order
of suspension or refusal to renew is accompanied by or is pursuant to a
citation for violation that is subject to judicial determination in any court
of this state, and the order by its terms will terminate in case of final
judgment in favor of the licensee or applicant.
(5)(a) In addition to
all other remedies, if the board has reason to believe that a person is
engaging in an act, practice or transaction that violates this chapter or a
board rule, the board may issue an order directing the person to cease the act
or to take corrective action.
(b) The board shall mail
a copy of an order issued under this subsection to the person by first class
mail with certificate of mailing. The board shall include with the order a
notice informing the person of the right to request a hearing concerning the
order. The notice shall inform the person that any hearing request must be
received by the board no later than 21 days after the date the order was mailed
by the board.
(c) If the board
receives a timely request for a hearing concerning an order issued under this
subsection, the board shall schedule the hearing no later than 30 days after
receiving the request. The board shall mail written notice of the hearing to
the person by first class mail with certificate of mailing no later than seven
days before the scheduled hearing date.
(d) An order described
in this subsection becomes final if the person does not file a timely request
for a hearing concerning the order or fails to appear at the requested hearing
as scheduled.
(e) The issuance of a
board order under this subsection is subject to ORS 183.413 to 183.497.
[(3)] (6) In addition to all other remedies, if it appears to
the board that a person has engaged in, or is engaging in, any act, practice or
transaction that violates the provisions of this chapter, the board may direct
the Attorney General or the district attorney of the county in which the act,
practice or transaction occurs, to apply to the court for an injunction
restraining the person from violating the provisions of this chapter. An
injunction may not issue for failure to maintain the list provided for in ORS
701.055 (11) unless the court determines that the failure is intentional.
[(4)] (7) A certified copy of the record of conviction shall
be conclusive evidence of a conviction under subsection (1)(h)
of this section.
[(5)] (8) If the board suspends or revokes the license of an
individual contractor or contractor business for a violation of subsection (1)(g) of this section, the board may not restore or reissue
the license unless the individual contractor or a responsible managing
individual[, as defined in ORS 701.078,]
for the contractor business has successfully completed the training and testing
described in ORS 701.072.
SECTION 28a. If House Bill 2109 becomes law, sections 5
and 6, chapter 114,
SECTION 28b. If House Bill 2109 becomes law, section 28
of this 2007 Act (amending ORS 701.135) is repealed and ORS 701.135, as amended
by section 10, chapter 114, Oregon Laws 2007 (Enrolled House Bill 2109), is amended
to read:
701.135. (1) The
Construction Contractors Board may revoke, suspend or refuse to issue or
reissue a license and the board may assess a civil penalty as provided in ORS
701.992 if the board determines after notice and opportunity for hearing:
(a) That the licensee or
applicant has violated a provision of ORS 701.055 or 701.078 or section 2
(1), 4[, 5, 6] or 7 [of this 2007 Act], chapter 114,
(b) That the licensee
has violated a rule or order of the board.
(c) That the licensee
has knowingly assisted an unlicensed person to act in violation of this
chapter.
(d) That a lien was
filed on a structure under ORS 87.010 to 87.060 and 87.075 to 87.093 because
the licensee or applicant wrongfully failed to perform a contractual duty to
pay money to the person claiming the lien.
(e) That the licensee
has knowingly provided false information to the board.
(f) That the licensee
has worked without a construction permit where a permit is required and the
work resulted in a claim being filed with the board. For purposes of this
paragraph, “construction permit” includes a building permit, electrical permit,
mechanical permit or plumbing permit.
(g) That the number of
licensed contractors working together on the same task on the same job site,
where one of the contractors is licensed as exempt under ORS 701.035 (2)(b),
exceeded the following:
(A) Two sole proprietors;
(B) One partnership;
(C) One corporation; or
(D) One limited liability company.
(h) Consistent with the
provisions of ORS 670.280, that the licensee or applicant, or an owner or
officer of the licensee or applicant has been convicted of one of the following
crimes in this state or an equivalent crime in another state:
(A) Murder;
(B) Assault in the first
degree;
(C) Kidnapping;
(D) Rape, sodomy or
unlawful sexual penetration;
(E) Sexual abuse;
(F) Arson in the first
degree;
(G) Robbery in the first
degree;
(H) Theft in the first
degree; or
(I)
Theft by extortion.
(i) That the licensee or
applicant has not, within 90 days after the date when payment was received from
the public contracting agency, or contractor in the case of a subcontractor,
made payment to any person for supplying labor or materials contracted for with
a public contract for a public improvement plus the amount of interest due.
(j) That the licensee or
applicant has repeatedly reported bad faith or false claims of nonpayment
against contractors or subcontractors.
(k) That the licensee or
applicant has engaged in conduct as a contractor that is dishonest or
fraudulent and that the board finds injurious to the welfare of the public.
(2) The board may
revoke, suspend or refuse to issue or reissue a license if the board determines
after notice and opportunity for hearing that an applicant or licensee is unfit
for licensure based upon information submitted under ORS 701.075 or discovered
by a board investigation under ORS 701.225.
(3) The board may assess
a civil penalty as provided in ORS 701.992 if the board determines after notice
and opportunity for hearing that any person has violated ORS 701.055 (1).
[(2)(a)] (4)(a) The administrator of
the board, in accordance with administrative rules adopted by the board and
after setting forth specific reasons for the findings, may suspend or refuse to
renew a license without hearing in any case where the administrator finds a
serious danger to the public welfare, including but not limited to:
(A) Lack of a surety
bond required by ORS 701.085;
(B) Lack of liability
insurance required by ORS 701.105;
(C) Hiring employees
while licensed as exempt under ORS 701.035; [or]
(D) Conduct as a
construction contractor that is dishonest or fraudulent[.]; or
(E) Failure to pay a
construction debt.
(b) If the licensee or
applicant demands a hearing within 90 days after the date of notice to the
licensee or applicant of the suspension or refusal to renew, then a hearing
must be granted to the licensee or applicant as soon as practicable after the
demand, and the administrator shall issue, [an order] pursuant to the hearing as required by ORS chapter 183,
an order confirming, altering or revoking the administrator’s earlier
order. Notwithstanding ORS 670.325, a hearing need not be held where the order
of suspension or refusal to renew is accompanied by or is pursuant to a
citation for violation that is subject to judicial determination in any court
of this state, and the order by its terms will terminate in case of final
judgment in favor of the licensee or applicant.
(5)(a) In addition to
all other remedies, if the board has reason to believe that a person is
engaging in an act, practice or transaction that violates this chapter or a
board rule, the board may issue an order directing the person to cease the act
or to take corrective action.
(b) The board shall mail
a copy of an order issued under this subsection to the person by first class
mail with certificate of mailing. The board shall include with the order a
notice informing the person of the right to request a hearing concerning the
order. The notice shall inform the person that any hearing request must be
received by the board no later than 21 days after the date the order was mailed
by the board.
(c) If the board
receives a timely request for a hearing concerning an order issued under this
subsection, the board shall schedule the hearing no later than 30 days after
receiving the request. The board shall mail written notice of the hearing to
the person by first class mail with certificate of mailing no later than seven
days before the scheduled hearing date.
(d) An order described
in this subsection becomes final if the person does not file a timely request
for a hearing concerning the order or fails to appear at the requested hearing
as scheduled.
(e) The issuance of a
board order under this subsection is subject to ORS 183.413 to 183.497.
[(3)] (6) In addition to all other remedies, if it appears to
the board that a person has engaged in, or is engaging in, any act, practice or
transaction that violates the provisions of this chapter, the board may direct
the Attorney General or the district attorney of the county in which the act,
practice or transaction occurs, to apply to the court for an injunction
restraining the person from violating the provisions of this chapter. An
injunction may not issue for failure to maintain the list provided for in
section 4 [of this 2007 Act],
chapter 114,
[(4)] (7) A certified copy of the record of conviction shall
be conclusive evidence of a conviction under subsection (1)(h)
of this section.
[(5)] (8) If the board suspends or revokes the license of an
individual contractor or contractor business for a violation of subsection (1)(g) of this section, the board may not restore or reissue
the license unless the individual contractor or a responsible managing
individual[, as defined in ORS 701.078,]
for the contractor business has successfully completed the training and testing
described in ORS 701.072.
SECTION 29. ORS 701.605 is amended to read:
701.605. (1) To
facilitate the handling of warranty work or remediation of defects to a new
commercial or residential structure or a zero-lot-line dwelling, a
contractor who builds the structure may present for recording in the deed
records of the county in which the new structure is built a written warranty
agreement that:
(a) Is signed by the
contractor and the original owner of the new structure;
(b) Sets forth any
express warranties furnished by the contractor; and
(c) Contains the names
of the contractor and the original property owner, the title of the document, a
legal description of the property and acknowledgment of the signatures of the
parties in the same manner as the parties to a deed are acknowledged.
(2) The warranties set
forth in the recorded warranty agreement:
(a) Benefit and burden
subsequent owners of the structure.
(b) Cease to affect title
to the property 10 years after the date the instrument is recorded.
APPLICABILITY
SECTION 30. (1) Section 11 of this 2007 Act and
the amendments to ORS 701.605 by section 29 of this 2007 Act apply
to new residential structures and zero-lot-line dwellings for which the
contractor enters into a written construction contract on or after July 1,
2008.
(2) Section 13 of this
2007 Act applies to new residential structures and zero-lot-line dwellings for
which the contractor completes construction on or after July 1, 2008.
(3) The amendments to
ORS 87.018 and 87.093 by sections 15 and 16 of this 2007 Act apply to notices
that a contractor delivers on or after the effective date of this 2007 Act.
(4) The amendments to
ORS 701.085 by section 22 of this 2007 Act apply:
(a) To applicants whose properly completed application for the issuance of an
initial license is received by the Construction Contractors Board on or after
January 1, 2008.
(b) To applicants whose properly completed application for the renewal of a
license is received by the board on or after July 1, 2009.
(5) The amendments to
ORS 87.018, 87.093 and 701.055 by sections 15 to 17 of this 2007 Act and the
repeal of ORS 701.590 by section 18 of this 2007 Act do not relieve any person
from a civil penalty or other sanction for a violation of ORS 87.018, 87.093,
701.055 or 701.590 as set forth in the 2005 Edition of Oregon Revised Statutes
committed prior to the effective date of this 2007 Act.
CAPTIONS
SECTION 31. The unit captions used in this 2007 Act are
provided only for the convenience of the reader and do not become part of the
statutory law of this state or express any legislative intent in the enactment
of this 2007 Act.
Approved by the Governor June 26, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date January 1, 2008
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