Chapter 380 Oregon Laws 2001

AN ACT

SB 320

Relating to construction contractor discipline; amending ORS 701.102; and declaring an emergency.

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

SECTION 1. ORS 701.102 is amended to read:

701.102. (1) The Construction Contractors Board may suspend [a] the license of or refuse to license [any corporation, partnership or individual if any individual who is an owner, shareholder or officer of the business is or was the owner or officer of a business that:] a person if the person, or the owner or holder of a direct or indirect interest in the person:

(a) Owes any amount pursuant to a final order or arbitration award of the board;

[(b) Has an outstanding final judgment of a court that a bond under ORS 701.085 would have been subject to; or]

[(c)] (b) [Owes any amount pursuant to a court order] Owes any amount under final judgment of a court or civil penalty arising from construction business activities in Oregon or any other state of the United States[.]; or

(c) Has had a license to operate as a construction contractor revoked by a construction contractor licensing agency of any state.

(2) The board may hold the suspension or refusal of a license under subsection (1) of this section in abeyance if the person is adhering to a board-approved plan for restitution of the amount owed.

(3) The board shall adopt rules defining the ownership or holding of a direct or indirect interest for purposes of subsection (1) of this section. The rules may not define direct or indirect interest in a manner that includes the interest of an investor who has no right to manage a business, including but not limited to, the interest of:

(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.

[(2)] (4) The board may place a contractor on probation if a total of three or more claims are filed [against the contractor] with the board within a 12-month period against the contractor or a former licensed construction company 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 any education and training described under ORS 701.280 and to pass an examination on subjects relating to business practices and laws affecting construction contractors. 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.

SECTION 2. This 2001 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2001 Act takes effect on its passage.

Approved by the Governor June 15, 2001

Filed in the office of Secretary of State June 15, 2001

Effective date June 15, 2001

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