71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2186
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor John A. Kitzhaber,
M.D., for Construction Contractors Board)
CHAPTER ................
AN ACT
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;
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(c) Is performed by any attorney at law rendering services in
the performance of duties as an attorney at law;
(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.).
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(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
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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.
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(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.
(c) A water well contractor licensed by the Water Resources
Department.
(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.
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(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
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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
(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 { - of Oregon - } 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 { - 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
Enrolled House Bill 2186 (HB 2186-A) Page 7
{ - 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 { + . + }
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{ - , 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.
(c) Social Security number.
(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.
(C) The corporate officers, if the applicant is a corporation.
(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.
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(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.
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(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.
(c) $500,000 for all other specialty contractors.
(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.
Enrolled House Bill 2186 (HB 2186-A) Page 11
(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 + }.
(c) That the licensee has violated a rule or order of the
board.
(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;
(C) One corporation; or
(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;
(C) Kidnapping;
(D) Rape, sodomy or unlawful sexual penetration;
(E) Sexual abuse;
(F) Arson in the first degree;
(G) Robbery in the first degree;
Enrolled House Bill 2186 (HB 2186-A) Page 12
(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;
(C) Hiring employees while licensed as exempt under ORS
701.035; or
(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.
Enrolled House Bill 2186 (HB 2186-A) Page 13
(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
(c) $75 for annual license renewal.
{ + (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. + }
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Passed by House February 9, 2001
Repassed by House May 11, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 9, 2001
...........................................................
President of Senate
Enrolled House Bill 2186 (HB 2186-A) Page 14
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 2186 (HB 2186-A) Page 15