Chapter 114
AN ACT
HB 2109
Relating to construction contractors; creating new provisions; amending
ORS 454.715, 701.055, 701.060, 701.135, 701.138 and 701.590; and repealing ORS
701.100.
Be It Enacted by the People of
the State of
SECTION 1. Sections 2 to 7 and 14 of this 2007 Act are
added to and made a part of ORS chapter 701.
SECTION 2. (1) If a person is required under this
chapter to be licensed as a contractor, a city, county or state agency may not
issue the person a building permit unless the person has a current, valid
contractor license. A city, county or state agency that requires the issuance
of a permit for the construction, alteration, improvement, demolition, movement
or repair of a building, structure or appurtenances to a structure shall, as a
condition for issuing the permit, require the applicant for a permit to file a
written statement signed by the applicant. The statement must affirm that the
applicant is licensed under this chapter, give the license number and state
that the license is in full force and effect, or, if the applicant is exempt
from licensing under this chapter, list the basis for the exemption. The city,
county or state agency shall list the contractor’s license number on the permit
issued to that contractor.
(2) If the applicant for
a building permit is exempt from licensure under ORS 701.010 (6), the city,
county or state agency shall supply the applicant with an Information Notice to
Property Owners About Construction Responsibilities. The
city, county or state agency may 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 __________.
______________________________________________________________________________
(3) The Construction
Contractors Board shall adopt by rule a form titled “Information Notice to
Property Owners About Construction Responsibilities”
that clearly describes in everyday language 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 and federal laws regarding Social Security tax, income tax and
unemployment tax.
(b) Workers’
compensation insurance on workers.
(c) Liability and
property damage insurance.
(4) The board shall
develop and furnish to city, county and state building permit offices, at no
cost to the offices, the Information Notice to Property Owners About Construction Responsibilities and the statement to be
signed by the permit applicant.
(5) A city or county
that requires a business license for engaging in a business subject to regulation
under this chapter shall require that the licensee or applicant for issuance or
renewal of the business license file, or have on file, with the city or county,
a signed statement that the licensee or applicant is licensed under this
chapter.
(6) The provisions of
this chapter are exclusive and a city, county or other political subdivision
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. This subsection does not affect the authority of a
city, county or political subdivision to:
(a) License and levy and
collect a general and nondiscriminatory license fee levied upon all businesses
or upon business conducted by any firm within the city, county or political
subdivision;
(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 services of the contractor; or
(c) Regulate a
contractor that is not required to be licensed under this chapter.
SECTION 3. (1) It is prima facie evidence that a person
is doing business as a contractor if:
(a) The 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, work
described in ORS 701.005 (3); and
(b) Within any 36-month
period the person offers for sale two or more newly built structures on which
work described in paragraph (a) of this subsection was performed.
(2) Licensure under this
chapter is prima facie evidence that the licensee conducts a separate,
independent business.
SECTION 4. (1) A contractor shall maintain a list that
includes the names, addresses and license numbers for all subcontractors or other
contractors performing work on a project for that contractor.
(2) The contractor must
deliver the list referred to in subsection (1) of this section to the
Construction Contractors Board within 72 hours after a board request made
during reasonable working hours.
SECTION 5. (1) The Construction Contractors Board shall
prepare, and provide at no cost to all licensed contractors, a consumer
notification form designed to specifically inform property owners what the
property owners should do to protect themselves in a residential repair,
remodel or construction project. 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
must not be larger than one side of a sheet of paper that is 8-1/2 inches by 11
inches.
(2) A contractor shall
deliver the consumer notification form to the property owner when the
contractor submits a bid or proposal for work on a residential structure. The
contractor may reproduce the form on the contractor’s bid proposal.
SECTION 6. A contractor may not perform work subject to
this chapter for an owner of a residential structure without a written contract
if the aggregate contract price exceeds $2,000. If the price of a contract was
initially less than $2,000, but during the course of performance 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 $2,000. Failure to
have a written contract does not void the contract.
SECTION 7. A partnership or corporation licensed under
this chapter shall notify the Construction Contractors 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.
SECTION 8. ORS 701.055 is amended to read:
701.055. (1) A person or
joint venture may not undertake, offer to undertake or submit a bid to do
work as a contractor unless that person or joint venture has a current,
valid license issued under this chapter by the Construction Contractors
Board. [A partnership, corporation or
joint venture may not undertake, offer to undertake or submit a bid to do work
as a contractor unless that partnership, corporation or joint venture is
licensed under this chapter.] A partnership or joint venture is
licensed for the purpose of offering to undertake work as a contractor on a
structure if any of the partners or joint venturers whose name appears in the
business name of the partnership or joint venture 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 may not issue a building
permit to any person required to be licensed under this chapter that does not
have a current, valid license. A county, city or 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, as a condition for issuing the permit,
require that the applicant for a permit file a written statement, subscribed by
the applicant. The statement must affirm that the applicant is licensed under
this chapter, give the license number and state that the license is in full
force and effect, or, if the applicant is exempt from licensing under this
chapter, list the basis for the exemption. The city, county or state 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 ORS 701.010 (6), the city, county or state shall supply the applicant
with an Information Notice to Property Owners About
Construction Responsibilities. The city, county or state may 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 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 city, county and state
building permit offices, at no cost to the offices, the Information Notice to
Property Owners About Construction Responsibilities
and the statement to be signed by the permit applicant.]
[(7) A city or county that requires a business license for engaging in a
business subject to regulation under this chapter shall require that the
licensee or applicant for issuance or renewal of the
business license file, or have on file, with the city or county, a signed
statement that the licensee or applicant is licensed under this chapter.]
[(8) It is prima facie evidence of doing business as a contractor 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) if within any 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 are exclusive and a city, county or
other political subdivision 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. This subsection 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 upon business
conducted by any firm within the city or county;]
[(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) 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 to the board within 72 hours
after a board request made during reasonable working hours.]
[(12)] (2) A contractor may 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 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 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 must not be larger than one side of a sheet of paper that is
8-1/2 inches by 11 inches. The contractor may reproduce the form on the
contractor’s bid proposal.]
[(14) A contractor 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 $2,000. If the price of a contract was initially less
than $2,000, but during the course of performance 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 $2,000. Failure to have a
written contract will not void the contract.]
[(15)] (3) 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 9. ORS 701.060 is amended to read:
701.060. (1) Any contractor licensed under this chapter may at any time
apply for a license in another category. The Construction Contractors Board may
charge a transfer fee not to exceed $20 for each additional license.
(2) If a contractor
applies for a license pursuant to subsection (1) of this section, all
construction, alteration, improvement, moving over public highways, roads or
streets, demolition or repair performed by that contractor on buildings of all
types shall be subject to the provisions of this chapter and to regulation by
the board. [Such] Licensure under
subsection (1) of this section shall be exclusive as provided in [ORS 701.055 (10)] section 2 (6) of
this 2007 Act.
SECTION 10. 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 the
board determines after notice and opportunity for hearing:
(a) That the licensee or
applicant has violated ORS 701.055 or 701.078 or section 4, 5, 6 or 7 of
this 2007 Act.
(b) That the licensee
has violated a rule or order of the board.
(c) That the licensee
has knowingly assisted an unlicensed person to act in violation of this
chapter.
(d) 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.
(e) That the licensee
has knowingly provided false information to the board.
(f) That the licensee
has worked without a construction permit where a permit is required and the
work resulted in a claim being filed with the board. For purposes of this
paragraph, “construction permit” includes a building permit, electrical permit,
mechanical permit or plumbing permit.
(g) 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.
(h)
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.
(i) 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.
(j) That the licensee or
applicant has repeatedly reported bad faith or false claims of nonpayment
against contractors or subcontractors.
(k) 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 the 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 the suspension or refusal to renew, then a hearing
must be granted to the licensee or applicant as soon as practicable after the
demand, and the administrator shall issue an order pursuant to the hearing as
required by ORS chapter 183 confirming, altering or revoking the administrator’s
earlier order. Notwithstanding ORS 670.325, 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 that 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, if it appears to the board that a person has engaged in, or is
engaging in, any act, practice or transaction that 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 may not issue for failure to maintain
the list provided for in [ORS 701.055
(11)] section 4 of this 2007 Act 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)(h) of this section.
(5) If the board
suspends or revokes the license of an individual contractor or contractor
business for a violation of subsection (1)(g) of this
section, the board may not restore or reissue the license unless the individual
contractor or a responsible managing individual, as defined in ORS 701.078, for
the contractor business has successfully completed the training and testing
described in ORS 701.072.
SECTION 11. ORS 701.138 is amended to read:
701.138. (1) Every person offering to undertake or undertaking
construction of building sewer piping shall comply with the requirements of ORS
chapter 701.
(2) Every person
submitting a bid or a written estimate of the costs to construct building sewer
piping shall provide to potential customers, prior to an agreement to perform,
the following:
(a) The person’s
Construction Contractors Board license number and category;
(b) The applicable
bonding and liability coverage; and
(c) The statement
described in [ORS 701.055 (3)]
section 2 (1) of this 2007 Act.
(3) Any person licensed
under ORS 701.055 may install a building sewer after obtaining a permit for
plumbing inspection under ORS 447.095.
(4) As used in this
section, “building sewer” means that part of the system of drainage piping that
conveys sewage into a septic tank, cesspool or other treatment unit that begins
five feet outside the building or structure within which the sewage originates.
SECTION 12. ORS 701.590 is amended to read:
701.590. (1) A
contractor shall deliver a notice of the procedure contained in ORS 701.565 to
701.580 to an owner along with the consumer notification form required to be
delivered to an owner under [ORS 701.055
(13)] section 5 of this 2007 Act. The notice must be conspicuous and
may be included as part of the underlying contract.
(2) The notice required
by subsection (1) of this section must be in substantially the following form:
______________________________________________________________________________
______________________________________________________________________________
SECTION 13. The amendments to ORS 701.055, 701.138 and
701.590 by sections 8, 11 and 12 of this 2007 Act do not:
(1) Invalidate or impair
any act done prior to the effective date of this 2007 Act.
(2) Relieve
any person from civil penalty or other sanction for a violation of ORS 701.055
committed prior to the effective date of this 2007 Act.
SECTION 14. (1) A contractor that violates or fails to
comply with any of the following provisions or any rules adopted under those
provisions is subject to the suspension of, revocation of, refusal to issue or
refusal to renew a license, imposition of a civil penalty under ORS 701.992, or
a combination of those sanctions:
(a)
ORS 87.007 (2).
(b) ORS chapter 316 or
317.
(c) ORS 446.225 to
446.285.
(d) ORS 446.395 to
446.420.
(e) ORS 447.010 to
447.156.
(f) ORS chapter 455.
(g) ORS 460.005 to
460.175.
(h) ORS 479.510 to
479.945.
(i) ORS 480.510 to
480.670.
(j) ORS chapter 656.
(k) ORS chapter 657.
(L) ORS 670.600.
(m) ORS 671.510 to
671.710.
(n) ORS chapter 693.
(2) The imposition of a
sanction under this section is subject to ORS 183.413 to 183.497.
SECTION 15. ORS 454.715 is amended to read:
454.715. Subject to ORS
chapter 183, the Department of Environmental Quality at any time may suspend or
revoke any license issued pursuant to ORS 454.695 if it finds:
(1) A material
misrepresentation or false statement in the application for the license.
(2) Failure to comply
with the applicable provisions of this chapter.
(3) Violation of any
rule of the Environmental Quality Commission regarding sewage disposal
services.
(4) The licensee was
licensed by the Construction Contractors Board at the time of licensing under
ORS 454.695 and the license issued by the board was revoked or suspended as
provided under ORS [701.100 or]
701.102 or section 14 of this 2007 Act and rules adopted by the board.
SECTION 16. ORS 701.100 is repealed.
Approved by the Governor May 9, 2007
Filed in the office of Secretary of State May 10, 2007
Effective date January 1, 2008
__________