71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 493
 
                           A-Engrossed
 
                         House Bill 2322
                   Ordered by the House May 15
             Including House Amendments dated May 15
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Representative Jeff Kropf)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
    { - Increases maximum amount of contractor bond claim based
on furnishing of materials used in construction of residential
structure. - }
   { +  Allows Construction Contractors Board to discipline
licensee notwithstanding lapse or other change in license status.
Prohibits contract for work on residential structure from
limiting right of person to file certain claims with board.
Expands grounds for revocation, suspension or refusal to reissue
license and for assessing civil penalties against contractors.
Increases criminal penalty for certain violations of construction
contractor licensing provisions. + }
 
                        A BILL FOR AN ACT
Relating to construction contractors; creating new provisions;
  amending ORS 701.100, 701.135 and 701.990; and repealing ORS
  701.290.
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.
  (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;
  (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;
  (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 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. + }
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