74th OREGON LEGISLATIVE ASSEMBLY--2007 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 342
(To Resolve Conflicts)
A-Engrossed
Senate Bill 91
Ordered by the House May 15
Including House Amendments dated May 15 to resolve conflicts
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor Theodore R.
Kulongoski for Construction Contractors Board)
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.
Requires construction contractor to immediately notify
Construction Contractors Board of changes in identity, name or
address of partners, joint venturers, owners, officers, managers,
members, trustees or other persons controlling contractor and of
responsible managing individuals for contractor. Requires that
construction contractor license application include name and
address of trustees if applicant is trust.
A BILL FOR AN ACT
Relating to construction contractors; creating new provisions;
and amending ORS 701.055 and 701.075 and section 7, chapter
___, Oregon Laws 2007 (Enrolled House Bill 2109).
Be It Enacted by the People of the State of Oregon:
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 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) 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 ___, 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 ___,
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 ___, 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.
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