Chapter 196 Oregon Laws 2001

AN ACT

HB 2186

Relating to licenses; amending ORS 674.100, 701.005, 701.010, 701.055, 701.075, 701.085, 701.105, 701.115, 701.135, 701.350 and 701.355; and repealing section 19, chapter 402, Oregon Laws 1999, and section 280, chapter 104, Oregon Laws 2001 (Enrolled House Bill 2609).

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

SECTION 1. ORS 674.100 is amended to read:

674.100. (1)(a) No person shall engage in, carry on, advertise or purport to engage in or carry on real estate appraisal activity within this state without first obtaining certification or licensure as provided for in ORS 674.310.

(b) Real estate appraisal activity is the preparation, completion and issuance of an opinion as to the value on a given date or at a given time of real property or any interest in real property, whether such activity is performed in connection with a federally related transaction or is not performed in connection with a federally related transaction. Notwithstanding any other provision of law, a state certified appraiser or a state licensed appraiser:

(A) Is not required to be licensed under ORS 696.025 to perform any real estate appraisal activity or any other activity that constitutes the giving of an opinion as to the value of real property or any interest in real property; and

(B) Is not subject to regulation under ORS 696.010 to 696.495 and 696.600 to 696.995 in connection with the performance of any real estate appraisal activity or the performance of any activity which constitutes the giving of an opinion as to the value of real estate or any interest in real estate.

(2) Real estate appraisal activity excludes any activity that is not performed in connection with a federally related transaction and that:

(a) Is performed by a nonlicensed regular full-time employee of a single owner of real estate, if the activity involves the real estate of the employer and is incidental to the employee’s normal, nonreal estate activities;

(b) Is performed by a nonlicensed regular full-time employee whose activity involves the real estate of the employer, when such activity is the employee’s principal activity, but the employer’s principal activity or business is not the appraisal of real estate;

(d) Is performed by any registered geologist, registered professional engineer or architect rendering services as a registered geologist, registered professional engineer or architect;

(e) Is performed by a certified public accountant rendering services as a certified public accountant;

(f) Is performed by a mortgage banker rendering services as a mortgage banker;

(g) Constitutes a letter opinion or a competitive market analysis as those terms are defined in ORS 696.010 that, by administrative or judicial order or subpoena, is compelled from a person licensed to engage in real estate activity under the provisions of ORS 696.007 to 696.495, 696.600 to 696.627 and 696.800 to 696.855;

(h) Is performed by any salaried employee of the State of Oregon or any of its political subdivisions while engaged in the performance of the duties of such employee;

(i) Is limited to analyzing or advising of permissible land use alternatives, environmental impact, building and use permit procedures or demographic market studies, if the performance of such activities does not involve the rendering of an opinion as to the value of the real estate in question;

(j) Is performed by a professional forester appraising or valuing timber, timberland or both as part of services performed as a private consultant in forest management, but only if, in the case of timberland, the appraisal or valuation is limited to the use of the land as forestland;

(k) Is limited to the giving of an opinion in any administrative or judicial proceeding regarding the value of real estate for taxation;

(L) Is limited to a person not licensed under ORS chapter 696 who is giving an opinion regarding the value of real estate if the person’s business is not the appraisal, selling or listing of real estate, and such activity is performed without compensation. This paragraph does not apply to a person conducting transactional negotiations on behalf of another person for transfer of an interest in real property; [or]

(m) Is limited to a person not licensed under ORS chapter 696 who is transferring or acquiring an interest in real estate[.]; or

(n) Is performed by a home inspector acting within the scope of a certificate or license issued under ORS chapter 701.

(3)(a) “Real estate appraisal activity” does not include an analysis, evaluation, opinion, conclusion, notation or compilation of data prepared by a financial institution or affiliate, a consumer finance company licensed under ORS chapter 725, or by an insurance company or affiliate, made for internal use only by the financial institution or affiliate, consumer finance company or by the insurance company or affiliate, concerning an interest in real estate for ownership or collateral purposes by the financial institution or affiliate, by the consumer finance company licensed under ORS chapter 725, or by the insurance company or affiliate. Nothing in this subsection shall be construed to excuse a financial institution or affiliate from complying with the provisions of Title XI of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (12 U.S.C. 3310 et seq.).

(b) As used in this section, “evaluation” means a study of the nature, quality or utility of a parcel of real estate or interests in, or aspects of, real property in which a value estimate is not necessarily required.

(4)(a) As used in this section, “purport to engage in or carry on real estate appraisal activity” means the display of a card, sign, advertisement or other printed, engraved or written instrument bearing the person’s name in conjunction with the term “appraiser,” “licensed appraiser,” “certified appraiser” or “appraisal” or any oral statement or representation of certification or licensure by the Appraiser Certification and Licensure Board made by a person.

(b) Each display or statement described in paragraph (a) of this subsection by a person not licensed or certified by the board is a separate violation under ORS 674.990.

(c) In any proceeding under ORS 674.990, a display or statement described in paragraph (a) of this subsection shall be considered prima facie evidence that the person named in the display or making the statement purports to engage in or carry on real estate appraisal activity.

SECTION 2. ORS 701.005 is amended to read:

701.005. As used in this chapter:

(1) “Board” means the Construction Contractors Board.

[(2) “Consultant” means a person registered as a contractor with the board who inspects or otherwise provides services to a property owner or other contractor but who does not substantively add to or subtract from a structure. “Consultant” includes but is not limited to home inspectors certified under ORS 701.350, lead-based paint inspectors licensed under ORS 701.515, and cross connection and backflow prevention device inspectors certified under ORS 448.279.]

[(3)] (2) “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)] (3) “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, as defined in subsection (8) of this section, or limited contractors, as described in ORS 701.085.

[(5)] (4) “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.

(5) “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 or licensed under ORS 701.350, a lead-based paint inspector licensed under ORS 701.515 and a cross connection and backflow prevention device inspector 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.

(6) “Residential-only contractor” means a general contractor or specialty contractor who performs work exclusively in connection with residential 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 with the intent of selling the [residential structure or] structures;

(b) A school district, as defined in ORS 332.002, that permits students to construct a residential structure as an educational experience to learn building techniques and[, upon completion of the residential structure, the district] sells the completed [residential] structure;

(c) A community college district, as defined in ORS 341.005, that permits students to construct a residential structure as an educational experience to learn building techniques and [upon completion of the residential structure, the district] 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.

(7) “Residential structure” means a residence, including a site-built home, [a] modular home constructed off-site, [a] floating home as defined in ORS 830.700, [a] condominium, [and a] manufactured dwelling[, a] or duplex, or a multiunit residential building consisting of four units or less. “Residential structure” includes any nonresidential structure [with] that has a ground area of 4,000 square feet or less and is not more than 20 feet in height from the top surface of the lowest flooring to the highest interior overhead finish of the building.

(8) “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.

SECTION 2a. Section 280, chapter 104, Oregon Laws 2001 (Enrolled House Bill 2609) (amending ORS 701.005), is repealed.

SECTION 3. ORS 701.010 is amended to read:

701.010. The Construction Contractors Board may adopt rules to make licensure optional for persons who offer, bid or undertake to perform work peripheral to construction, as defined by administrative rule of the Construction Contractors Board. The following persons are exempt from licensure under this chapter:

(1) A person who is constructing, altering, improving or repairing personal property.

(2) A person who is constructing, altering, improving or repairing a structure located within the boundaries of any site or reservation under the jurisdiction of the federal government.

(3) A person who furnishes materials, supplies, equipment or finished product and does not fabricate them into, or consume them, in the performance of the work of a contractor.

(4) A person working on one structure or project, under one or more contracts, when the aggregate price of all of that person’s contracts for labor, materials and all other items is less than $500 and such work is of a casual, minor or inconsequential nature. This subsection does not apply to a person who advertises or puts out any sign or card or other device [which] that might indicate to the public that [that] the person is a contractor.

(5) An owner who contracts for work to be performed by a licensed contractor. This subsection does not apply to a person who, in the pursuit of an independent business, constructs, remodels, repairs or for compensation and with the intent to sell the structure, arranges to have constructed, remodeled or repaired a structure with the intent of offering the structure for sale before, upon or after completion. It [shall be] is prima facie evidence that there was an intent of offering the structure for sale if the person who constructed, remodeled or repaired the structure or arranged to have the structure constructed, remodeled or repaired does not occupy the structure after its completion.

(6) A person performing work on a property that person owns or performing work as the owner’s employee, whether the property is occupied by the owner or not, or a person performing work on that person’s residence, whether or not that person owns the residence. This subsection does not apply to a person performing work on a structure owned by that person or the owner’s employee if [such] the work is performed, in the pursuit of an independent business, with the intent of offering the structure for sale before, upon or after completion.

(7) A person licensed in one of the following trades or professions when operating within the scope of that license:

(a) An architect licensed by the State Board of Architect Examiners.

(b) A registered professional engineer licensed by the State Board of Examiners for Engineering and Land Surveying.

(d) A sewage disposal system installer licensed by the Department of Environmental Quality.

(e) A landscaping business licensed under ORS 671.510 to 671.710 that constructs fences, decks, arbors, driveways, walkways or retaining walls when:

(A) Performed in conjunction with landscaping work; or

(B) Not performed in conjunction with landscaping work and that has filed a bond under ORS 671.690 (1)(b).

(f) A pesticide operator licensed under ORS 634.116 who does not conduct inspections for wood destroying organisms for the transfer of real estate.

(g) An appraiser certified or licensed under ORS chapter 674 by the Appraiser Certification and Licensure Board.

(8) A person who performs work subject to this chapter as an employee of a contractor.

(9) A manufacturer of a manufactured home constructed under standards established by the federal government.

(10) A person involved in the movement of:

(a) Modular buildings or structures other than manufactured structures not in excess of 14 feet in width.

(b) Structures not in excess of 16 feet in width when [they] the structures are being moved by their owner if [such] the owner is not a contractor required to be licensed under this chapter.

(11) A commercial lending institution or surety company that arranges for the completion, repair or remodeling of a structure. As used in this subsection, “commercial lending institution” means any bank, mortgage banking company, trust company, savings bank, savings and loan association, credit union, national banking association, federal savings and loan association, insurance company or federal credit union maintaining an office in this state.

(12) A real estate licensee as defined in ORS 696.010 or the employee of that licensee when performing work on a structure that the real estate licensee manages under a contract.

(13) Units of government other than those specified in ORS 701.005 (6)(b) and (c).

SECTION 4. ORS 701.055 is amended to read:

701.055. (1) A person [shall] 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 [do such work] not undertake, offer to undertake [such work] or submit a bid to do [such] work [only if] as a contractor unless that partnership, corporation or joint venture is licensed under this chapter. A partnership or joint venture [shall be deemed] is licensed 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 business name [under which] of the partnership or joint venture [does business] 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 Oregon shall not issue a building permit to [anyone] any person required to be licensed under this chapter that does not have a current, valid license. [Each] A county, city or [the State of Oregon] state agency 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] as a condition for issuing the permit, require that [each] the applicant for [such] a permit file [as a condition to issuing the permit] a written statement, subscribed by the applicant[,]. The statement must affirm that the applicant is licensed under [the provisions of] this chapter, [giving] give the license number and [stating] state that the license is in full force and effect, or, if the applicant is exempt from [the provisions of] licensing under this chapter, [listing] list the basis for the exemption. The city, county or [the State of Oregon] state agency shall list the contractor’s license number on the permit obtained by that contractor.

(4) If the applicant for a building permit is exempt from licensure 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:

______________________________________________________________________________

(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

(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 [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] the offices, the Information Notice to Property Owners About Construction Responsibilities and the statement to be signed by the permit applicant.

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

(8) It [shall be] is prima facie evidence of doing business as a contractor [when] 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)] (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) Licensure under this chapter is prima facie evidence that the licensee conducts a separate, independent business.

(10) The provisions of this chapter [shall be] are exclusive and [no] a city, county or other political subdivision [shall] 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. [However, nothing in] This subsection [shall] 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 [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 licensed under this chapter] the city or county; [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[.]; or

(c) Regulate a contractor that is not required to be licensed under this chapter.

(11)(a) [Every] 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 [shall be delivered] to the board within 72 hours after a board 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 licensed under this chapter or exempt from licensure under [the provisions of] 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 [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 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 [shall] must 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] 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 $2,500. If the price of [such] a 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.

SECTION 5. ORS 701.075 is amended to read:

701.075. (1) [A person who wishes to obtain] An applicant for a construction contractor license [shall] must submit [an] the application [upon] on a form prescribed by the Construction Contractors Board. The application shall include, but not be limited to, at least the following information regarding the applicant:

(a) Classification of the license being sought.

(b) A list of unsatisfied judgments resulting from bond claims and litigation involving the applicant or its principals within the prior five years.

(d) Workers’ compensation insurance account number if help is hired or traded.

(e) Unemployment insurance account number if help is hired.

(f) State withholding tax account number if help is hired.

(g) Federal employer identification number, if help is hired or if self-employed and participating in a retirement plan.

(h) The name and address of:

(A) Each partner or venturer, if the applicant is a partnership or joint venture.

(B) The owner, if the applicant is an individual proprietorship.

(2) An applicant shall conform to the information provided by the applicant on the application and to the terms of the application.

(3) The board shall adopt by rule an application form that requires an applicant to indicate, as set forth in ORS 670.600, the basis under which the applicant qualifies as an independent contractor.

(4) Prior to licensure, an applicant shall demonstrate compliance with ORS 701.280 (2) and pass an examination based on the licensure education requirements of ORS 701.280 (2).

(5) Prior to licensure, an applicant shall submit proof satisfactory to the board that the applicant has the legal capacity to contract.

(6) Notwithstanding subsection (4) of this section, the examination requirement for licensure does not apply to a person registered with the board prior to July 1, 2000, unless the person’s license has lapsed more than two years prior to the application date.

(7) A business licensed under this chapter must at all times have at least one owner or employee who:

(a) Has passed an examination under subsection (4) of this section; or

(b) Is exempt under subsection (6) of this section from examination and was, at any time prior to July 1, 2000, an owner of the business or an employee designated by an owner to exercise management or supervisory authority over the construction activities of the business.

SECTION 6. ORS 701.085 is amended to read:

701.085. (1) [A person who wishes to obtain a license as a contractor or renew a] 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.[, conditioned] 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 701.140. Bonds filed under this subsection shall remain in effect for at least one year or until depleted by claims paid under ORS 701.140, 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. The aggregate liability of the surety under the bond for claims against the bond shall not exceed the penal sum of the bond no matter how many years the bond is in force. No extension by continuation certificate, reinstatement, reissue or renewal of the bond shall increase the liability of the surety.

(2) A general contractor shall obtain a surety bond in the amount of $15,000.

(3) A specialty contractor shall obtain a surety bond in the amount of $10,000.

(4) [A consultant] An inspector shall obtain a surety bond in the amount of $10,000.

(5) The board may reduce the amount of the surety bond required by this section to $5,000 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. [These contractors shall be designated as limited contractors.] The board shall designate the contractor as a limited contractor.

(6) 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.

(7) 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.

(8) 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.

(9) Upon determination of a claim under ORS 701.140 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.

(10) [No] 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 701.140 that payment is due on the claim.

(11) 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) [If the surety is ordered to pay a claim on the bond that] 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[, twice the amount of damages against the surety as ordered by the board].

SECTION 7. ORS 701.105 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, for an amount not less than:

(a) $500,000 for a general contractor.

(b) $300,000 for a residential-only specialty contractor.

(d) $100,000 for a limited contractor.

(e) $300,000 for a [consultant] 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 8. ORS 701.115 is amended to read:

701.115. (1) A license is valid for two years or four years, at the discretion of the applicant, from the date of issuance unless the license is revoked or suspended as set forth in ORS 701.135. Upon application, a license may be renewed by the same procedure provided for an original license if the applicant:

(a) Submits any additional supplemental information or completes any required education as the Construction Contractors Board may require by rule; and

(b) Passes the examination required in ORS 701.075 (4), if the applicant has not previously satisfied the examination requirement and is not exempt under ORS 701.075 (6).

(2) The board shall issue a pocket-card certificate of licensure to a contractor licensed under this chapter indicating the type of license.

(3) The board may vary the dates of license renewal by giving to the licensee written notice of the renewal date assigned and by making appropriate adjustments in the renewal fee.

(4) If a contractor applies for renewal not more than one year after the contractor’s license lapses, upon the contractor’s compliance with the requirements of subsection (1) of this section, the board may renew the lapsed license. The board may designate the effective date of renewal as the last date on which the contractor was licensed.

(5) A contractor may convert a license to inactive status if the contractor is not engaged in work as a contractor. A contractor having an inactive license is subject to board licensing requirements and fees, but is not subject to the bonding requirement of ORS 701.085 or the insurance requirement of ORS 701.105. An inactive license is not considered a valid license for purposes of offering to undertake construction work, submitting a bid for construction work, obtaining a building permit or performing construction work. A license may not be placed or maintained in inactive status more than once during any two-year period.

SECTION 9. 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 it determines after notice and opportunity for hearing:

(a) That the licensee or applicant has violated ORS 701.055.

(b) That the licensee or applicant has failed to pay in full any final judgment on claims adjudged by the board or by a court of competent jurisdiction referred to in ORS [701.085] 701.102.

(d) That the licensee has knowingly assisted an unlicensed person to act in violation of this chapter.

(e) 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.

(f) That the licensee has knowingly provided false information to the board.

(g) That the licensee has worked without a construction permit where such permit is required and such work resulted in a claim filed with the board. For purposes of this paragraph, “construction permit” includes a building permit, electrical permit, mechanical permit or plumbing permit.

(h) 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;

(D) One limited liability company.

(i) Consistent with the provisions of ORS 670.280, that the licensee or applicant has been convicted of one of the following crimes:

(A) Murder;

(B) Assault in the first degree;

(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.

(j) 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.

(k) That the licensee or applicant has repeatedly reported bad faith or false claims of nonpayment against contractors or subcontractors.

(2)(a) The administrator of the board, in accordance with administrative rules adopted by the board and after setting forth specific reasons for such 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;

(D) Conduct as a construction contractor that is dishonest or fraudulent.

(b) If the licensee or applicant demands a hearing within 90 days after the date of notice to the licensee or applicant of such suspension or refusal to renew, then a hearing must be granted to the licensee or applicant as soon as practicable after such demand, and the administrator shall issue an order pursuant to such hearing as required by ORS 183.310 to 183.550 confirming, altering or revoking the administrator’s earlier order. Such 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 which 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.

(3) In addition to all other remedies, when it appears to the board that a person has engaged in, or is engaging in, any act, practice or transaction which 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 shall 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) A certified copy of the record of conviction shall be conclusive evidence of a conviction under subsection (1)(i) of this section.

SECTION 10. ORS 701.350 is amended to read:

701.350. (1) An individual [shall] may not undertake, offer to undertake or submit a bid to do work as a home inspector unless the individual is certified as a home inspector under this section by the Construction Contractors Board and is an owner of, or employed by, a business that is licensed by the board.

(2) A business entity shall not undertake, offer to undertake or submit a bid to do work as a home inspector unless the business entity is licensed by the Construction Contractors Board under this chapter and has an owner or an employee who is certified as a home inspector under this section.

(3) The Construction Contractors Board shall adopt education, training and examination requirements for certification of home inspectors.

(4) The Construction Contractors Board by rule shall adopt procedures for the issuance, renewal and revocation of home inspector certification.

(5) The board by rule may adopt fees necessary for the administration of this section.[, which] The fees shall not exceed the following:

(a) $50 for application;

(b) $50 for examination; and

(6) This section does not apply to a person acting within the scope of a license or certificate issued to the person by the Appraiser Certification and Licensure Board under ORS chapter 674.

SECTION 11. ORS 701.355 is amended to read:

701.355. A business entity [certified] licensed as a home inspector with the Construction Contractors Board under this chapter [shall] may not offer to undertake or offer to submit a bid to undertake work to repair a structure inspected by an owner or employee of the business entity within the 12 months following the inspection.

SECTION 12. Section 19, chapter 402, Oregon Laws 1999, is repealed.

Approved by the Governor May 25, 2001

Filed in the office of Secretary of State May 25, 2001

Effective date January 1, 2002

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