75th OREGON LEGISLATIVE ASSEMBLY--2009 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 335
 
                         Senate Bill 203
 
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 as
introduced.
 
  Makes construction contractor obligation to provide
Construction Lien Law information notice to owner applicable only
for construction that requires written contract.
 
                        A BILL FOR AN ACT
Relating to construction contractors; creating new provisions;
  and amending ORS 87.093.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 87.093 is amended to read:
  87.093. (1) The Construction Contractors Board shall adopt by
rule a form entitled 'Information Notice to Owner' which shall
describe, in nontechnical language and in a clear and coherent
manner using words in their common and everyday meanings, the
pertinent provisions of the Construction Lien Law of this state
and the rights and responsibilities of an owner of property and
an original contractor under that law. The 'Information Notice to
Owner' shall include signature lines for the contractor and the
property owner. The rights and responsibilities described in the
form shall include, but not be limited to:
  (a) Methods by which an owner may avoid multiple payments for
the same materials and labor;
  (b) The right to file a complaint against a licensed contractor
with the board and, if appropriate, to be reimbursed from the
contractor's bond filed under ORS chapter 701; and
  (c) The right to receive, upon written request therefor, a
statement of the reasonable value of materials, equipment,
services or labor provided from the persons providing the
materials, equipment, services or labor at the request of an
original contractor and who have also provided notices of right
to a lien.
    { - (2)(a) - }   { + (2) + } Each original contractor shall
deliver a copy of the 'Information Notice to Owner' adopted by
the board under this section to:
    { - (A) - }  { +  (a) + } The first purchaser of residential
property constructed by the contractor and sold before or within
the 75-day period immediately following the completion of
construction; and
    { - (B) - }  { +  (b) + } The owner or an agent of the owner,
other than an original contractor, at the time of signing a
 { - written - } residential construction or improvement contract
with the owner.
    { - (b) If the residential construction or improvement
contract is an oral contract, the original contractor shall mail
or otherwise deliver the 'Information Notice to Owner' not later
than five days after the contract is made. - }
  (3) The contractor shall deliver the 'Information Notice to
Owner' personally, by registered or certified mail or by first
class mail with certificate of mailing.
  (4) This section applies only to a residential construction or
improvement contract for which the aggregate contract price
exceeds   { - $1,000 - }  { +  $2,000 + }. If the price of a
residential  { +  construction or + } improvement contract was
initially less than
  { - $1,000 - }  { +  $2,000 + }, but during the course of the
performance of the contract exceeds that amount, the original
contractor shall mail or otherwise deliver the 'Information
Notice to Owner' not later than five days after the contractor
knows or should reasonably know that the contract price will
exceed   { - $1,000 - }  { +  $2,000 + }.
  (5) Notwithstanding subsections (2) and (4) of this section,
the original contractor need not send the owner an 'Information
Notice to Owner' if the owner is a contractor licensed with the
board under ORS chapter 701.
  (6) Notwithstanding ORS 87.010 and 87.030, if an original
contractor does not deliver an owner or agent with an '
Information Notice to Owner' as required under subsections (2) to
(4) of this section, the original contractor may not claim any
lien created under ORS 87.010 upon any improvement, lot or parcel
of land of the owner for labor, services or materials supplied
under the residential construction or improvement contract for
which the original contractor failed to deliver the required '
Information Notice to Owner'.
  (7) If an original contractor does not deliver an ' Information
Notice to Owner' to an owner or agent as required under
subsection (2) of this section, the board may suspend the license
of the original contractor for any period of time that the board
considers appropriate or impose a civil penalty of not more than
$5,000 upon the original contractor as provided in ORS 701.992.
  (8) As used in this section:
  (a) 'Residential construction or improvement' means the
original construction of residential property and
 { - constructing, repairing, remodeling or altering residential
property and includes, but is not limited to, the construction,
repair, replacement or improvement of driveways, swimming pools,
terraces, patios, fences, porches, garages, basements and other
structures or land adjacent to a residential dwelling - }
 { + the repair, replacement, remodeling, alteration or
improvement of residential property + }.
  (b) 'Residential construction or improvement contract ' means
 { - an - }  { +  a written + } agreement  { - , oral or
written, - }  between an original contractor and an owner for the
performance of a   { - home improvement - }  { +  residential
construction or improvement + } and
  { - includes - }  all labor, services and materials furnished
and performed   { - thereunder - }  { +  under the agreement + }.
   { +  (c) 'Residential property' includes, but is not limited
to, a residential dwelling and the driveways, swimming pools,
terraces, patios, fences, porches, garages, basements, other
structures and land that are adjacent or appurtenant to a
residential dwelling. + }
  SECTION 2.  { + The amendments to ORS 87.093 by section 1 of
this 2009 Act apply to residential construction or improvement
 
contracts that a contractor enters into on or after the effective
date of this 2009 Act. + }
                         ----------