Chapter 478
AN ACT
SB 91
Relating to construction contractors;
creating new provisions; and amending ORS 701.055 and 701.075 and section 7,
chapter 114, Oregon Laws 2007 (Enrolled House Bill 2109).
Be It Enacted by the People of
the State of
SECTION 1. 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 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] A contractor licensed under this chapter shall
immediately notify the board of any change in the identity, name or address of
a person who holds a position with the contractor that is described in ORS
701.075 (1)(h) or (i) or of a responsible managing
individual for the contractor as defined in ORS 701.078. If a partner or joint
venturer departs from a contractor that is a partnership or joint venture, the
contractor must obtain a new license before continuing to conduct activities
that require a license under this chapter.
(3) A city, county or
the State of
(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) 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) 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 1a. If House Bill 2109 becomes law, section 1
of this 2007 Act (amending ORS 701.055) is repealed and section 7,
chapter 114, Oregon Laws 2007 (Enrolled House Bill 2109), is amended to
read:
Sec.
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.] A
contractor licensed under this chapter shall immediately notify the
Construction Contractors Board of any change in the identity, name or address
of a person who holds a position with the contractor that is described in ORS
701.075 (1)(h) or (i) or of a responsible managing individual for the
contractor as defined in ORS 701.078. If a partner or joint venturer departs
from a contractor that is a partnership or joint venture, the contractor must
obtain a new license before continuing to conduct activities that require a
license under this chapter.
SECTION 2. ORS 701.075 is amended to read:
701.075. (1) An applicant for a construction contractor license must
submit the application on a form prescribed by the Construction Contractors
Board. The application shall include, but not be limited to, the following
information regarding the applicant:
(a) Classification of
the license being sought.
(b) A list of construction
debts involving the applicant, or an owner or officer of the applicant, if the
order, award, penalty or judgment that establishes the debt was issued within
the preceding five years.
(c) Social Security
number.
(d) Workers’
compensation insurance account number, if the applicant is required to have
workers’ compensation insurance.
(e) Unemployment
insurance account number, if the applicant is required to have unemployment
insurance.
(f) State withholding
tax account number, if the applicant is required to withhold state income tax.
(g) Federal employer
identification number, if the applicant is required to have a federal employer
identification number.
(h) The name and address
of:
(A) Each partner, if the
applicant is a partnership, limited liability partnership or foreign limited
liability partnership.
(B) The general partner,
if the applicant is a limited partnership.
(C) Each joint venturer,
if the applicant is a joint venture.
(D) The owner, if the
applicant is a sole proprietorship.
(E) The officers, if the
applicant is a corporation.
(F) The manager and each
member, if the applicant is a manager-managed limited liability company.
(G) Each member, if the
applicant is a member-managed limited liability company.
(H) Each trustee, if
the applicant is a trust.
(i) The name and address
of the following if the applicant is a partnership, limited liability
partnership, foreign limited liability partnership, joint venture,
manager-managed limited liability company or member-managed limited liability
company:
(A) Each partner in a
partnership, limited liability partnership or foreign limited liability
partnership that is a partner, joint venturer or member of the applicant.
(B) Each general partner
in a limited partnership that is a partner, joint venturer or member of the
applicant.
(C) Each joint venturer
in a joint venture that is a partner, joint venturer or member of the
applicant.
(D) The manager and each
member of a manager-managed limited liability company that is a partner, joint
venturer or member of the applicant.
(E) Each member of a
member-managed limited liability company that is a partner, joint venturer or
member of the applicant.
(F) Each officer of a
corporation that is a partner, joint venturer or member of the applicant.
(G) The general partner
in a limited partnership that is a partner, joint venturer or member of the
applicant.
(H) Each individual who
has a controlling ownership interest in, or management authority over, the
applicant and who meets criteria adopted by the board by rule.
(j) The basis on which
the applicant meets the standards for independent contractor status under ORS
670.600.
(2) The application
described in subsection (1) of this section must be accompanied by proof
satisfactory to the board that the applicant:
(a) Is in compliance
with ORS 701.078.
(b) Has the legal
capacity to enter into contracts.
(3) Subsection (2)(a) of this section does not apply to a licensed developer.
(4) An applicant shall
conform to the information provided by the applicant on the application and to
the terms of the application.
SECTION 3. (1) The amendments to ORS 701.055 by section
1 of this 2007 Act requiring the reporting of identity, name or address changes
apply to identity, name and address changes occurring on or after January 1,
2008. The amendments to ORS 701.055 by section 1 of this 2007 Act restricting
contractor activity following the departure of a partner or joint venturer
apply if the departure of the partner or joint venturer occurs on or after
January 1, 2008.
(2) The amendments to
ORS 701.075 by section 2 of this 2007 Act apply to license applications
received by the Construction Contractors Board on or after January 1, 2008.
SECTION 3a. If House Bill 2109 becomes law, section 3 of
this 2007 Act is amended to read:
Sec.
3. (1) The amendments to [ORS
701.055 by section 1 of this 2007 Act] section 7, chapter 114, Oregon
Laws 2007 (Enrolled House Bill 2109), by section 1a of this 2007 Act
requiring the reporting of identity, name or address changes apply to identity,
name and address changes occurring on or after January 1, 2008. The amendments
to [ORS 701.055 by section 1 of this 2007
Act] section 7, chapter 114, Oregon Laws 2007 (Enrolled House Bill
2109), by section 1a of this 2007 Act restricting contractor activity
following the departure of a partner or joint venturer apply if the departure
of the partner or joint venturer occurs on or after January 1, 2008.
(2) The amendments to
ORS 701.075 by section 2 of this 2007 Act apply to license applications
received by the Construction Contractors Board on or after January 1, 2008.
Approved by the Governor June 20, 2007
Filed in the office of Secretary of State June 21, 2007
Effective date January 1, 2008
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