71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
SA to RC to A-Eng. HB 2728
 
LC 2288/HB 2728-A4
 
            SENATE AMENDMENTS TO RESOLVE CONFLICTS TO
                   A-ENGROSSED HOUSE BILL 2728
 
    By COMMITTEE ON BUSINESS, LABOR, AND ECONOMIC DEVELOPMENT
 
                             May 16
 
  On page 2 of the printed A-engrossed bill, after line 25,
insert:
  '  { +  SECTION 1a. + }  { + If House Bill 2189 becomes law,
section 1 of this 2001 Act (amending ORS 701.150) is repealed and
ORS 701.150, as amended by section 16, chapter ___, Oregon Laws
2001 (Enrolled House Bill 2189), is amended to read: + }
  ' 701.150. (1) If a Construction Contractors Board final order
is not paid by the contractor, the board shall notify the surety
on the bond. The surety may not pay a claim until the surety
receives notice from the board that the claim is ready for
payment.
  ' (2) If an order of the board that determines a claim under
ORS 701.145 becomes final by operation of law or on appeal and
remains unpaid 10 days after the date the order becomes final,
the claimant may file the order with the county clerk in any
county of this state.
  ' (3) Upon receipt, the clerk shall record the order in the
County Clerk Lien Record. In addition to any other remedy
provided by law, recording an order in the County Clerk Lien
Record pursuant to the provisions of this section has the effect
provided for in ORS 205.125 and 205.126, and the order may be
enforced as provided in ORS 205.125 and 205.126.
  ' (4) Payments from the surety bond of a contractor pursuant to
board order and notice are satisfied in the following priority in
any 90-day period. A 90-day period begins on the date the first
claim is filed with the board. Subsequent 90-day periods begin on
the date the first claim is filed with the board after the close
of the preceding 90-day period. Within a 90-day period:
  ' (a) Board orders as a result of claims against a contractor
by the owner of a residential or small commercial structure have
payment priority to the full extent of the bond over all other
types of claims.
  ' (b) If the claims described in paragraph (a) of this
subsection do not exhaust the bond, then amounts due as a result
of all other types of residential or small commercial structure
claims filed within that 90-day period may be satisfied from the
bond, except that the total amount paid from any one bond to
nonowner claimants may not exceed   { - $2,000 - }  { +
$3,000 + }.
  ' (c) If payments involving residential and small commercial
structures do not exhaust the bond, board orders and notice
involving large commercial structure claims are satisfied in the
following priority, except that the total amount paid from any
one bond to nonowner claimants may not exceed   { - $2,000 - }
 { +  $3,000 + }:
  ' (A) Labor, including employee benefits.
  ' (B)   { - Claims for breach of contract by a party to the
construction contract - }  { +  All other claims involving large
commercial structures except costs, interest and attorney
fees + }.
  ' (C) Any costs, interest and attorney fees the plaintiff may
be entitled to recover.
  ' (d) If the total claims filed with the board against a
contractor within 90 days after the board receives notice of the
first claim against the contractor exceed the amount of the bond
available for those claims, the bond shall be apportioned as the
board determines, subject to the priorities established under
this section.
  ' (e) If the total amounts due as a result of claims filed with
the board within 90 days after the first claim is filed do not
exceed the amount of the bond available for those claims, all
amounts due as a result of claims filed within the 90-day period
shall have priority over all claims subsequently filed until the
amount of the bond available for the payment of claims is
exhausted.
  ' (5) Notwithstanding subsection (4) of this section, a bond is
not subject to payment for a claim that is filed more than 14
months after the earlier of:
  ' (a) The expiration or cancellation date of the license that
was in force when the work that is the subject of the claim was
completed or abandoned; or
  ' (b) The date that the surety canceled the bond.
  ' (6) The total amount paid from any one bond for costs,
interest and attorney fees may not exceed   { - $2,000 - }  { +
$3,000 + }.'.
  After line 33, insert:
  '  { +  SECTION 3. + } If House Bill 2189 becomes law, section
2 of this 2001 Act is amended to read:
  '  { +  Sec. 2. + } The amendments to ORS 701.150 by section
 { - 1 - }   { + 1a + } of this 2001 Act shall not apply to a
determination by the Construction Contractors Board, an
arbitration award or a judgment against the surety bond of a
contractor if:
  ' (1) The determination, award or judgment resulted from a
claim filed with the board prior to the effective date of this
2001 Act; or
  ' (2) The board notified the surety under ORS 701.145 prior to
the effective date of this 2001 Act that payment was due from the
bond that is available for satisfaction of the determination,
award or judgment.'.
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