Chapter 521 Oregon Laws 1999

Session Law

AN ACT

SB 180

Relating to claims against public works contractor's bonds; amending ORS 279.526, 279.528 and 279.536.

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

SECTION 1. ORS 279.526 is amended to read:

279.526. (1) A person claiming to have supplied labor or materials for the prosecution of the work provided for in the contract, including any person having direct contractual relationship with the contractor furnishing the bond or direct contractual relationship with any subcontractor, or an assignee of such person, or a person claiming moneys due the State Accident Insurance Fund Corporation, the State Department of Employment Trust Fund or the Department of Revenue in connection with the performance of the contract, has a right of action on the contractor's bond, cashier's check or certified check as provided for in ORS 279.029 only if:

[(1)] (a) The person or the assignee of the person has not been paid in full; and

[(2)] (b) The person gives written notice of claim, as prescribed in ORS 279.528, to the contractor and the state agency, if the contract is with a state agency, or the clerk or auditor of the public body [which] that let the contract if the public body is other than a state agency.

(2) When, upon investigation, the Commissioner of the Bureau of Labor and Industries has received information indicating that one or more workers providing labor on a public work have not been paid in full at the prevailing rate of wage or overtime wages, the commissioner has a right of action on the contractor's bond, cashier's check or certified check as provided in ORS 279.029. The commissioner's right of action exists without necessity of an assignment and extends to workers on the project who are not identified when the written notice of claim is given, but for whom the commissioner has received information indicating that the workers have provided labor on the public work and have not been paid in full. The commissioner shall give written notice of the claim, as prescribed in ORS 279.528, to the contractor and the state agency, if the contract is with a state agency, or to the clerk or auditor of the public body that let the contract if the public body is other than a state agency.

SECTION 2. ORS 279.528 is amended to read:

279.528. (1) The notice of claim required by ORS 279.526 shall be sent by registered or certified mail or hand delivered no later than 120 days after the day the person last provided labor or furnished materials or 120 days after the worker listed in the notice of claim by the Commissioner of the Bureau of Labor and Industries last provided labor. The notice may be sent or delivered to the contractor at any place the contractor maintains an office[,] or conducts business or at the residence of the contractor.

(2) Notwithstanding subsection (1) of this section, if the claim is for a required contribution to a fund of any employee benefit plan, the notice required by ORS 279.526 shall be sent or delivered within 150 days after the employee last provided labor or materials.

(3) The notice shall be in writing substantially as follows:

___________________________________________________________________

To (here insert the name of the contractor and the name of the state agency or public body):

Notice hereby is given that the undersigned (here insert the name of the claimant) has a claim for (here insert a brief description of the labor or materials performed or furnished and the person by whom performed or furnished; if the claim is for other than labor or materials, insert a brief description of the claim) in the sum of (here insert the amount) dollars against the bond taken from (here insert the name of the principal and, if known, the surety or sureties upon the bond) for the work of (here insert a brief description of the work concerning which the bond was taken). Such material or labor was supplied to (here insert the name of the contractor or subcontractor).

_________ (here to be signed)

___________________________________________________________________

(4) When notice of claim is given by the commissioner and if the claim includes a worker who is then unidentified, the commissioner shall include in the notice a statement that the claim includes an unidentified worker for whom the commissioner has received information indicating that the worker has not been paid in full at the prevailing rate of wage required by ORS 279.350 or overtime wages required by ORS 279.334.

[(4)] (5) The notice shall be signed by the person making the claim or giving the notice.

SECTION 3. ORS 279.536 is amended to read:

279.536. (1) The Commissioner of the Bureau of Labor and Industries or a person who has a right of action on the bond [pursuant to] under ORS 279.526 and, where required, who has filed and served the notice or notices of claim, as required under ORS 279.526 and 279.528, or that person's assignee, may institute an action on the contractor's bond, cashier's check or certified check as provided for in ORS 279.029 in the circuit court of this state or the federal district court of this district.

(2) The action shall be on the relation of the commissioner, the claimant, or that person's assignee, as the case may be, and shall be in the name of the public body [which] that let the contract. It may be prosecuted to final judgment and execution for the use and benefit of the commissioner, the claimant, or that person's assignee, as the fact may appear.

(3) The action [must] shall be instituted no later than the expiration of two years after the person last provided labor or materials or two years after the worker listed in the commissioner's notice of claim last provided labor.

Approved by the Governor July 8, 1999

Filed in the office of Secretary of State July 8, 1999

Effective date October 23, 1999

__________