Chapter 850 Oregon Laws 2001

AN ACT

HB 2322

Relating to construction contractors; creating new provisions; amending ORS 701.100, 701.135 and 701.990; repealing ORS 701.290; limiting expenditures; and declaring an emergency.

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

SECTION 1. Sections 2 to 4 of this 2001 Act are added to and made a part of ORS chapter 701.

SECTION 2. A lapse, surrender, suspension or other change in license status does not affect any authority otherwise granted the Construction Contractors Board to proceed with an investigation, conduct a disciplinary hearing or take disciplinary action against a person for a violation of this chapter or rules of the board, or to determine a timely claim described in ORS 701.140.

SECTION 3. A contract that is for the performance of work on a residential structure and that is subject to this chapter may not contain a provision that limits the right of a person to file a claim described in ORS 701.140 with the Construction Contractors Board. A contract described in this section may contain a provision requiring mediation or arbitration of a dispute arising from the contract.

SECTION 4. The Construction Contractors Board shall investigate allegations of illegal activity in the construction industry and seek civil or criminal prosecution of illegal activity that warrants more than an administrative sanction.

SECTION 5. ORS 701.100 is amended to read:

701.100. (1) The failure of a contractor to comply with the provisions of this section and ORS 656.021, 657.665, 670.600, 701.035, 701.065 to 701.075, 701.135, 701.240 and 701.250 or to be in conformance with the provisions of ORS chapter 316, 656 or 657 is a basis for suspension of the contractor’s license, revocation of the contractor’s license, refusal to issue or reissue a contractor’s license, assessment of a civil penalty as set forth in ORS 701.992 or a combination of these sanctions.

(2) Any action against a contractor under this section shall be conducted in conformance with the provisions of ORS 183.413 to 183.497.

[(3) When imposing a sanction for a violation of ORS 701.055 (1), if the Construction Contractors Board does not have evidence that a contractor has worked without a license, and no consumer has suffered damages from the work of the contractor, the civil penalty imposed by the Construction Contractors Board shall not exceed $1,000.]

SECTION 6. 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.

(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.

(L) 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)(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 7. ORS 701.990 is amended to read:

701.990. (1) Violation of ORS 701.055 (1) is a Class [B] A misdemeanor.

(2) The intentional use of a contractor’s registration number without the authorization of the registered contractor is a Class [B] A misdemeanor.

(3) Use of a contractor’s registration number, with or without the authorization of the registered contractor, with the intent to deceive the public is a Class [B] A misdemeanor.

SECTION 8. ORS 701.290 is repealed.

SECTION 9. Notwithstanding any other law, the limitation on expenditures established by section 2, chapter 58, Oregon Laws 2001 (Enrolled House Bill 5022), for the biennium beginning July 1, 2001, as the maximum limit for the payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts, but excluding lottery funds and federal funds, collected or received by the Department of Justice is increased by $365,600 for the purpose of carrying out an intergovernmental agreement between the department and the Construction Contractors Board for mutual cooperation in the enforcement of laws governing construction contractors.

SECTION 10. Notwithstanding any other law, the limitation on expenditures established by section 1, chapter 469, Oregon Laws 2001 (Enrolled Senate Bill 5532), for the biennium beginning July 1, 2001, as the maximum limit for the payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts, but excluding lottery funds and federal funds, collected or received by the Construction Contractors Board is increased by $682,140 for the purpose of carrying out an intergovernmental agreement between the board and the Department of Justice for mutual cooperation in the enforcement of laws governing construction contractors.

SECTION 11. 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 July 1, 2001.

Approved by the Governor July 27, 2001

Filed in the office of Secretary of State July 27, 2001

Effective date July 27, 2001

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