Chapter 207 Oregon Laws 2005

AN ACT

HB 2072

Relating to construction claims; creating new provisions; and amending ORS 701.147.

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

SECTION 1. Section 2 of this 2005 Act is added to and made a part of ORS chapter 701.

SECTION 2. (1) An arbitration conducted under ORS 701.148 must be held before an administrative law judge assigned under ORS 183.600 to 183.690 to act as arbitrator on behalf of the Construction Contractors Board. The assignment of an administrative law judge to act as arbitrator is subject to a request for a different arbitrator under ORS 183.645 or a rule adopted pursuant to ORS 183.645.

(2) If a party to a claim under ORS 701.145 requests a contested case hearing, the board shall schedule the hearing.

(3) The board may adopt rules governing the avoidance of a contested case hearing. The rules may include, but need not be limited to, a limit on the time period during which a party to a claim may avoid a contested case hearing by filing a complaint in a court.

(4) Contested case hearings before the board must be conducted by an administrative law judge assigned under ORS 183.600 to 183.690. Notwithstanding ORS 670.325, the board may delegate authority to the administrative law judge to issue a final order in any matter.

(5) In assigning administrative law judges for arbitration and contested case hearings conducted under this section, the chief administrative law judge of the Office of Administrative Hearings established under ORS 183.605 shall defer to board requests.

(6) If a claim is submitted for determination by a court, the board may require that the claimant provide status reports on the pending action. The board may dismiss or close a claim filed under ORS 701.139 if the claimant fails to submit status reports on a pending action.

(7) ORS 183.600 to 183.690 do not limit in any way the ability of the board to make full use of alternative dispute resolution, including mediation or arbitration, to resolve claims against contractors filed under ORS 701.139.

SECTION 3. ORS 701.147 is amended to read:

701.147. [(1) If a party to a claim under ORS 701.145 requests a contested case hearing, the Construction Contractors Board shall schedule the hearing.]

[(2) If the claim is submitted for determination by a court, the board may require that the claimant provide status reports on the pending action. The board may dismiss or close a claim filed under ORS 701.139 if the claimant fails to submit status reports on a pending action.]

[(3) An arbitration conducted under ORS 701.148 (1) or (2) must be held before an administrative law judge acting as arbitrator. The administrative law judge assigned to act as arbitrator of the case on behalf of the board must be from the Office of Administrative Hearings established under ORS 183.605. The assignment of an administrative law judge to act as arbitrator is subject to a request for a different arbitrator under ORS 183.645 or a rule adopted pursuant to ORS 183.645.]

[(4) Contested case hearings before the board must be conducted by an administrative law judge assigned from the Office of Administrative Hearings established by ORS 183.605. Notwithstanding ORS 670.325, the board may delegate authority to the administrative law judge to issue a final order in any matter.]

[(5) ORS 183.600 to 183.690 do not limit in any way the ability of the board to make full use of alternative dispute resolution, including mediation or arbitration, to resolve claims against contractors filed under ORS 701.143.]

[(6) In assigning administrative law judges for arbitration and contested case hearings conducted under the provisions of this section, the chief administrative law judge of the Office of Administrative Hearings established under ORS 183.605 shall defer to board requests.]

(1) Unless otherwise provided by the Construction Contractors Board by rule, before filing a claim under ORS 701.139, a person must send notice to the contractor that the person intends to file the claim. The person must send the notice at least 30 days before filing the claim. The notice must be mailed by certified mail to the last known address of the contractor as shown in board records. The board by rule may:

(a) Specify the manner in which the person may show compliance with this subsection at the time of filing the claim.

(b) Provide that all or part of the requirements for sending a notice under this subsection may be waived if the contractor, by other means, has actual notice of the dispute with the person filing the claim.

(2) If the notice described in subsection (1) of this section is mailed to the contractor fewer than 45 days before expiration of the time limitation under ORS 701.143 for the board to receive the claim, the time limitation for the board to receive the claim does not expire until 60 days after the notice is mailed.

[(7)] (3) The board by rule may impose a processing fee for claims filed under ORS 701.139. The fee amount may not exceed the amount of the filing fee provided by ORS 21.110 (1) for a plaintiff filing a civil action in circuit court. The board may impose different processing fees for claims processed under ORS 701.145 than for claims processed under ORS 701.146.

[(8)] (4) If the board adopts rules under subsection [(7)] (3) of this section, the rules:

(a) Except as provided in [paragraph (b)] paragraphs (b) and (c) of this subsection, must provide that a prevailing claimant recover processing fees as damages in the final order of the board.

(b) Must provide that the board may waive or defer all or part of the processing fee upon application by the person filing the claim that shows the person is unable to pay all or part of the fee. The application must be made under oath and notarized. The application must show the average monthly income and expenses of the claimant, assets and liabilities of the claimant and any other information required by board rule.

(c) May provide for the processing fee to be waived for all claims that are based on the furnishing of labor by a claimant to a contractor. The board may provide for processing fee waiver under this paragraph only if, in the opinion of the board, a majority of claimants who file claims based on the furnishing of labor to contractors are eligible for fee waivers as described in paragraph (b) of this subsection.

[(9) Before filing a claim under ORS 701.139, a person must send notice to the contractor that the person intends to file the claim. The person must send the notice at least 30 days before filing the claim. The notice must be mailed by certified mail to the last known address of the contractor as shown in board records. The board by rule may specify the manner in which the person may show compliance with this subsection at the time of filing the claim.]

[(10) If the notice described in subsection (9) of this section is mailed to the contractor less than 45 days before expiration of the time limitation under ORS 701.143 for the board to receive the claim, the time limitation for the board to receive the claim does not expire until 60 days after the notice is mailed.]

Approved by the Governor June 13, 2005

Filed in the office of Secretary of State June 13, 2005

Effective date January 1, 2006

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