Bill Text: OR SB207 | 2013 | Regular Session | Enrolled
Bill Title: Relating to applications for licensing by the Construction Contractors Board.
Spectrum: Unknown
Status: (Passed) 2013-06-06 - Effective date, January 1, 2014. [SB207 Detail]
Download: Oregon-2013-SB207-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 207
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 John A. Kitzhaber,
M.D., for Construction Contractors Board)
CHAPTER ................
AN ACT
Relating to applications for licensing by the Construction
Contractors Board; creating new provisions; and amending ORS
701.005, 701.021, 701.035, 701.046, 701.081, 701.098 and
701.114.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 701.046 is amended to read:
701.046. (1) Except as provided in subsection (2) of this
section, 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:
(a) The endorsement 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) For each person described in paragraphs (h) { + , + }
{ - and - } (i) { + and (j) + } of this subsection, a 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.
Enrolled Senate Bill 207 (SB 207-B) Page 1
(G) Each member, if the applicant is a member-managed limited
liability company.
(H) The responsible managing individual designated by the
applicant.
(I) 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) - } { + (G) + } 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 name and address of the following if the
applicant is a limited partnership:
(A) Each partner of any partnership, limited liability
partnership or foreign limited liability partnership that is the
general partner of the applicant.
(B) Each general partner of any limited partnership that is the
general partner of the applicant.
(C) Each joint venturer in any joint venture that is the
general partner of the applicant.
(D) The manager and each member of any manager-managed limited
liability company that is the general partner of the applicant.
(E) Each member of any member-managed limited liability company
that is the general partner of the applicant.
(F) Each officer of any corporation that is the general partner
of the applicant. + }
{ - (j) - } { + (k) + } For each person described in
paragraphs (h) { + , + } { - and - } (i) { + and (j) + }of
this subsection, information as required by board rule regarding
the following if related to construction activities:
(A) A final judgment against the person by a court in any state
entered within five years preceding the application date that
requires the person to pay money to another person or to a public
body if the judgment remains unsatisfied on the application date.
(B) A final order against the person by an administrative
agency in any state issued within five years preceding the
application date that requires the person to pay money to another
person or to a public body if the order remains unsatisfied on
the application date.
(C) A court action against the person in any state pending on
the application date that alleges the person owes money to
another person or to a public body.
Enrolled Senate Bill 207 (SB 207-B) Page 2
(D) An action by an administrative agency in any state pending
on the application date that seeks an order that the person pay
money to another person or to a public body.
(E) A conviction for a crime listed in ORS 701.098 (1)(i)
entered within five years preceding the application date.
(F) An indictment for a crime listed in ORS 701.098 (1)(i)
filed within five years preceding the application date.
{ - (k) - } { + (L) + } The basis on which the applicant
meets the standards for independent contractor status under ORS
670.600.
(2) Subsection (1)(h) { + , + } { - and - } (i) { + and (j)
+ }of this section does not apply if the applicant is a company
that offers securities registered with the United States
Securities and Exchange Commission for sale to the general
public.
(3) 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 701.091.
(b) Has the legal capacity to enter into contracts.
(4) Subsection (3)(a) of this section does not apply to an
applicant for licensing with endorsement solely as a residential
or commercial developer.
(5) An applicant shall conform to the information provided by
the applicant on the application and to the terms of the
application.
SECTION 2. ORS 701.114 is amended to read:
701.114. (1) Except as provided in this subsection, 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 701.046 (1)(h) { + , + }
{ - or - } (i) { + or (j) + }or of a responsible managing
individual for the contractor as defined in ORS 701.091. A
contractor described in ORS 701.046 (2) is not required to report
a change in the identity, name or address of a person described
in ORS 701.046 (1)(h) { + , + } { - or - } (i) { + or
(j) + }.
(2) Except as provided in this subsection, 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. A contractor described in ORS 701.046 (2) that is a
partnership or joint venture is not required to obtain a new
license upon departure of a partner or joint venturer.
SECTION 3. { + Sections 4, 5 and 5a of this 2013 Act are added
to and made a part of ORS chapter 701. + }
SECTION 4. { + (1) A residential locksmith services contractor
license authorizes the holder to operate a business providing the
services of locksmiths as defined in ORS 701.475 for residential
or small commercial structures, but does not authorize the holder
to engage in other contractor activities.
(2) Notwithstanding ORS 701.126, the Construction Contractors
Board may not impose a continuing education requirement for a
residential locksmith services contractor. This subsection does
not exempt a responsible managing individual for the business
from compliance with any continuing education requirements
established by the board under ORS 701.485 for a certified
locksmith.
Enrolled Senate Bill 207 (SB 207-B) Page 3
(3) Notwithstanding ORS 701.122, the board may not require a
residential locksmith services contractor or the responsible
managing individual for the business to take a test measuring the
knowledge of the contractor or responsible managing individual
regarding business practices and laws affecting construction
contractors. + }
SECTION 5. { + (1) A home inspector services contractor
license authorizes the holder to operate a business providing the
services of home inspectors as defined in ORS 701.005, but does
not authorize the holder to engage in other contractor
activities.
(2) Notwithstanding ORS 701.126, the Construction Contractors
Board may not impose a continuing education requirement for a
home inspector services contractor. This subsection does not
exempt a responsible managing individual for the business from
compliance with any continuing education requirements established
by the board under ORS 701.350 for a certified home inspector.
(3) Notwithstanding ORS 701.122, the board may not require a
home inspector services contractor or the responsible managing
individual for the business to take a test measuring the
knowledge of the contractor or responsible managing individual
regarding business practices and laws affecting construction
contractors. + }
SECTION 5a. { + (1) As used in this section, 'home' and 'home
service agreement' have the meanings given those terms in ORS
731.164.
(2) A home services contractor license authorizes the holder to
operate a business providing service, repair or replacement for
homes through a licensed contractor under a home service
agreement.
(3) Notwithstanding ORS 701.126, the Construction Contractors
Board may not impose a continuing education requirement for a
home services contractor.
(4) Notwithstanding ORS 701.122, the board may not require a
home services contractor to take a test measuring the knowledge
of the contractor or responsible managing individual regarding
business practices and laws affecting construction
contractors. + }
SECTION 6. ORS 701.005 is amended to read:
701.005. As used in this chapter:
(1) 'Board' means the Construction Contractors Board.
(2) 'Commercial contractor' means a licensed contractor that
holds an endorsement as a:
(a) Commercial general contractor level 1;
(b) Commercial specialty contractor level 1;
(c) Commercial general contractor level 2;
(d) Commercial specialty contractor level 2; or
(e) Commercial developer.
(3) 'Commercial developer' means a developer of property that
is zoned for or intended for use compatible with a small
commercial or large commercial structure.
(4) 'Construction debt' means an amount owed under:
(a) An order or arbitration award issued by the board that has
become final by operation of law;
(b) A judgment, arbitration award or civil penalty that has
become final by operation of law arising from construction
activities within the United States; or
(c) A judgment or civil penalty that has become final by
operation of law arising from a failure to comply with ORS
656.017.
Enrolled Senate Bill 207 (SB 207-B) Page 4
(5) 'Contractor' means any of the following:
(a) A person that, for compensation or with the intent to sell,
arranges or undertakes or offers to undertake or submits a bid to
construct, alter, repair, add to, subtract from, improve,
inspect, move, wreck or demolish, for another, a building,
highway, road, railroad, excavation or other structure, project,
development or improvement attached to real estate, or to do any
part thereof.
(b) A person that purchases or owns property and constructs or
for compensation arranges for the construction of one or more
residential structures or small commercial structures with the
intent of selling the structures.
(c) A school district, as defined in ORS 332.002, that permits
students to construct a residential structure or small commercial
structure as an educational experience to learn building
techniques and sells the completed structure.
(d) A community college district, as defined in ORS 341.005,
that permits students to construct a residential structure or
small commercial structure as an educational experience to learn
building techniques and sells the completed structure.
(e) A person except a landscape contracting business,
nurseryman, gardener or person engaged in the commercial harvest
of forest products, that is engaged as an independent contractor
to remove trees, prune trees, remove tree limbs or stumps or to
engage in tree or limb guying.
(f) A business that supplies the services of a home inspector
certified under ORS 701.350 or a cross-connection inspector and
backflow assembly tester certified under ORS 448.279.
(g) A person that for compensation arranges, undertakes, offers
to undertake or submits a bid to clean or service chimneys.
(6) 'Developer' means a contractor that owns property or an
interest in property and engages in the business of arranging for
construction work or performing other activities associated with
the improvement of real property, with the intent to sell the
property.
(7)(a) 'General contractor' means a contractor whose business
operations require the use of more than two unrelated building
trades or crafts that the contractor supervises or performs in
whole or part, whenever the sum of all contracts on any single
property, including materials and labor, exceeds an amount
established by rule by the board.
(b) 'General contractor' does not mean a specialty contractor
or a residential limited contractor.
(8)(a) 'Home improvement' means a renovation, remodel, repair
or alteration by a residential contractor to an existing
owner-occupied:
(A) Residence that is a site-built home;
(B) Condominium, rental residential unit or other residential
dwelling unit that is part of a larger structure, if the property
interest in the unit is separate from the property interest in
the larger structure;
(C) Modular home constructed off-site;
(D) Manufactured dwelling; or
(E) Floating home, as defined in ORS 830.700.
(b) 'Home improvement' does not include a renovation, remodel,
repair or alteration by a residential contractor:
(A) To a structure that contains one or more dwelling units and
is four stories or less above grade; or
(B) That the residential contractor performed in the course of
constructing a new residential structure.
Enrolled Senate Bill 207 (SB 207-B) Page 5
(9)(a) 'Home inspector' means a person who, for a fee, inspects
and provides written reports on the overall physical condition of
a residential structure.
(b) 'Home inspector' does not include persons certified under
ORS chapter 455 to inspect new, repaired or altered structures
for compliance with the state building code.
(10) 'Key employee' means an employee or owner of a contractor
who is a corporate officer, manager, superintendent, foreperson
or lead person or any other employee the board identifies by
rule.
(11) 'Large commercial structure' means a structure that is not
a residential structure or small commercial structure.
(12) 'Officer' means any of the following persons:
(a) A president, vice president, secretary, treasurer or
director of a corporation.
(b) A general partner in a limited partnership.
(c) A manager in a manager-managed limited liability company.
(d) A member of a member-managed limited liability company.
(e) A trustee.
(f) A person the board defines by rule as an officer. The
definition of officer adopted by board rule may include persons
not listed in this subsection who may exercise substantial
control over a business.
(13) 'Residential contractor' means a licensed contractor that
holds an endorsement as a:
(a) Residential general contractor;
(b) Residential specialty contractor;
(c) Residential limited contractor; { - or - }
(d) Residential developer { - . - } { + ;
(e) Residential locksmith services contractor;
(f) Home inspector services contractor; or
(g) Home services contractor. + }
(14) 'Residential developer' means a developer of property that
is zoned for or intended for use compatible with a residential or
small commercial structure.
(15)(a) 'Residential structure' means:
(A) A residence that is a site-built home;
(B) A structure that contains one or more dwelling units and is
four stories or less above grade;
(C) A condominium, rental residential unit or other residential
dwelling unit that is part of a larger structure, if the property
interest in the unit is separate from the property interest in
the larger structure;
(D) A modular home constructed off-site;
(E) A manufactured dwelling;
(F) A floating home as defined in ORS 830.700; or
(G) An appurtenance to a home, structure, unit or dwelling
described in subparagraphs (A) to (F) of this paragraph.
(b) 'Residential structure' does not mean:
(A) Subject to paragraph (a)(C) of this subsection, a structure
that contains both residential and nonresidential units;
(B) Transient lodging;
(C) A residential school or residence hall;
(D) A state or local correctional facility other than a local
facility for persons enrolled in work release programs maintained
under ORS 144.460;
(E) A youth correction facility as defined in ORS 420.005;
(F) A youth care center operated by a county juvenile
department under administrative control of a juvenile court
pursuant to ORS 420.855 to 420.885;
Enrolled Senate Bill 207 (SB 207-B) Page 6
(G) A detention facility as defined in ORS 419A.004;
(H) A nursing home;
(I) A hospital; or
(J) A place constructed primarily for recreational activities.
(16) 'Responsible managing individual' means an individual who:
(a) Is an owner described in ORS 701.094 or an employee of the
business;
(b) Exercises management or supervisory authority, as defined
by the board by rule, over the construction activities of the
business; and
(c)(A) Successfully completed the training and testing required
for licensing under ORS 701.122 within a period the board
identifies by rule;
(B) Demonstrated experience the board requires by rule; or
(C) Complied with the licensing requirements of ORS 446.395.
(17) 'Small commercial structure' means:
(a) A nonresidential structure that has a ground area of 10,000
square feet or less, including exterior walls, and a height of
not more than 20 feet from the top surface of the lowest flooring
to the highest interior overhead finish of the structure;
(b) A nonresidential leasehold, rental unit or other unit that
is part of a larger structure, if the unit has a ground area of
12,000 square feet or less, excluding exterior walls, and a
height of not more than 20 feet from the top surface of the
lowest flooring to the highest interior overhead finish of the
unit;
(c) A nonresidential structure of any size for which the
contract price of all construction contractor work to be
performed on the structure as part of a construction project does
not total more than $250,000; or
(d) An appurtenance to a structure or unit described in
paragraphs (a) to (c) of this subsection.
(18) 'Specialty contractor' means a contractor who performs
work on a structure, project, development or improvement and
whose operations as such do not fall within the definition of
'general contractor.' 'Specialty contractor' includes a person
who performs work regulated under ORS 446.395.
{ + (19) 'Worker leasing company' means a person licensed
under ORS 656.850 (2) to perform the service of providing
nontemporary workers by contract and for a fee to work for a
client. + }
{ - (19) - } { + (20) + } 'Zero-lot-line dwelling' means a
single-family dwelling unit constructed in a group of attached
units in which:
(a) Each attached unit extends from foundation to roof with
open space on two sides; and
(b) Each dwelling unit is separated by a property line.
SECTION 7. ORS 701.005, as amended by section 59, chapter 630,
Oregon Laws 2011, is amended to read:
701.005. As used in this chapter:
(1) 'Board' means the Construction Contractors Board.
(2) 'Commercial contractor' means a licensed contractor that
holds an endorsement as a:
(a) Commercial general contractor level 1;
(b) Commercial specialty contractor level 1;
(c) Commercial general contractor level 2;
(d) Commercial specialty contractor level 2; or
(e) Commercial developer.
Enrolled Senate Bill 207 (SB 207-B) Page 7
(3) 'Commercial developer' means a developer of property that
is zoned for or intended for use compatible with a small
commercial or large commercial structure.
(4) 'Construction debt' means an amount owed under:
(a) An order or arbitration award issued by the board that has
become final by operation of law;
(b) A judgment or civil penalty that has become final by
operation of law arising from construction activities within the
United States; or
(c) A judgment or civil penalty that has become final by
operation of law arising from a failure to comply with ORS
656.017.
(5) 'Contractor' means any of the following:
(a) A person that, for compensation or with the intent to sell,
arranges or undertakes or offers to undertake or submits a bid to
construct, alter, repair, add to, subtract from, improve,
inspect, move, wreck or demolish, for another, a building,
highway, road, railroad, excavation or other structure, project,
development or improvement attached to real estate, or to do any
part thereof.
(b) A person that purchases or owns property and constructs or
for compensation arranges for the construction of one or more
residential structures or small commercial structures with the
intent of selling the structures.
(c) A school district, as defined in ORS 332.002, that permits
students to construct a residential structure or small commercial
structure as an educational experience to learn building
techniques and sells the completed structure.
(d) A community college district, as defined in ORS 341.005,
that permits students to construct a residential structure or
small commercial structure as an educational experience to learn
building techniques and sells the completed structure.
(e) A person except a landscape contracting business,
nurseryman, gardener or person engaged in the commercial harvest
of forest products, that is engaged as an independent contractor
to remove trees, prune trees, remove tree limbs or stumps or to
engage in tree or limb guying.
(f) A business that supplies the services of a home inspector
certified under ORS 701.350 or a cross-connection inspector and
backflow assembly tester certified under ORS 448.279.
(g) A person that for compensation arranges, undertakes, offers
to undertake or submits a bid to clean or service chimneys.
(6) 'Developer' means a contractor that owns property or an
interest in property and engages in the business of arranging for
construction work or performing other activities associated with
the improvement of real property, with the intent to sell the
property.
(7)(a) 'General contractor' means a contractor whose business
operations require the use of more than two unrelated building
trades or crafts that the contractor supervises or performs in
whole or part, whenever the sum of all contracts on any single
property, including materials and labor, exceeds an amount
established by rule by the board.
(b) 'General contractor' does not mean a specialty contractor
or a residential limited contractor.
(8)(a) 'Home improvement' means a renovation, remodel, repair
or alteration by a residential contractor to an existing
owner-occupied:
(A) Residence that is a site-built home;
Enrolled Senate Bill 207 (SB 207-B) Page 8
(B) Condominium, rental residential unit or other residential
dwelling unit that is part of a larger structure, if the property
interest in the unit is separate from the property interest in
the larger structure;
(C) Modular home constructed off-site;
(D) Manufactured dwelling; or
(E) Floating home, as defined in ORS 830.700.
(b) 'Home improvement' does not include a renovation, remodel,
repair or alteration by a residential contractor:
(A) To a structure that contains one or more dwelling units and
is four stories or less above grade; or
(B) That the residential contractor performed in the course of
constructing a new residential structure.
(9)(a) 'Home inspector' means a person who, for a fee, inspects
and provides written reports on the overall physical condition of
a residential structure.
(b) 'Home inspector' does not include persons certified under
ORS chapter 455 to inspect new, repaired or altered structures
for compliance with the state building code.
(10) 'Key employee' means an employee or owner of a contractor
who is a corporate officer, manager, superintendent, foreperson
or lead person or any other employee the board identifies by
rule.
(11) 'Large commercial structure' means a structure that is not
a residential structure or small commercial structure.
(12) 'Officer' means any of the following persons:
(a) A president, vice president, secretary, treasurer or
director of a corporation.
(b) A general partner in a limited partnership.
(c) A manager in a manager-managed limited liability company.
(d) A member of a member-managed limited liability company.
(e) A trustee.
(f) A person the board defines by rule as an officer. The
definition of officer adopted by board rule may include persons
not listed in this subsection who may exercise substantial
control over a business.
(13) 'Residential contractor' means a licensed contractor that
holds an endorsement as a:
(a) Residential general contractor;
(b) Residential specialty contractor;
(c) Residential limited contractor; { - or - }
(d) Residential developer { - . - } { + ;
(e) Residential locksmith services contractor;
(f) Home inspector services contractor; or
(g) Home services contractor. + }
(14) 'Residential developer' means a developer of property that
is zoned for or intended for use compatible with a residential or
small commercial structure.
(15)(a) 'Residential structure' means:
(A) A residence that is a site-built home;
(B) A structure that contains one or more dwelling units and is
four stories or less above grade;
(C) A condominium, rental residential unit or other residential
dwelling unit that is part of a larger structure, if the property
interest in the unit is separate from the property interest in
the larger structure;
(D) A modular home constructed off-site;
(E) A manufactured dwelling;
(F) A floating home as defined in ORS 830.700; or
Enrolled Senate Bill 207 (SB 207-B) Page 9
(G) An appurtenance to a home, structure, unit or dwelling
described in subparagraphs (A) to (F) of this paragraph.
(b) 'Residential structure' does not mean:
(A) Subject to paragraph (a)(C) of this subsection, a structure
that contains both residential and nonresidential units;
(B) Transient lodging;
(C) A residential school or residence hall;
(D) A state or local correctional facility other than a local
facility for persons enrolled in work release programs maintained
under ORS 144.460;
(E) A youth correction facility as defined in ORS 420.005;
(F) A youth care center operated by a county juvenile
department under administrative control of a juvenile court
pursuant to ORS 420.855 to 420.885;
(G) A detention facility as defined in ORS 419A.004;
(H) A nursing home;
(I) A hospital; or
(J) A place constructed primarily for recreational activities.
(16) 'Responsible managing individual' means an individual who:
(a) Is an owner described in ORS 701.094 or an employee of the
business;
(b) Exercises management or supervisory authority, as defined
by the board by rule, over the construction activities of the
business; and
(c)(A) Successfully completed the training and testing required
for licensing under ORS 701.122 within a period the board
identifies by rule;
(B) Demonstrated experience the board requires by rule; or
(C) Complied with the licensing requirements of ORS 446.395.
(17) 'Small commercial structure' means:
(a) A nonresidential structure that has a ground area of 10,000
square feet or less, including exterior walls, and a height of
not more than 20 feet from the top surface of the lowest flooring
to the highest interior overhead finish of the structure;
(b) A nonresidential leasehold, rental unit or other unit that
is part of a larger structure, if the unit has a ground area of
12,000 square feet or less, excluding exterior walls, and a
height of not more than 20 feet from the top surface of the
lowest flooring to the highest interior overhead finish of the
unit;
(c) A nonresidential structure of any size for which the
contract price of all construction contractor work to be
performed on the structure as part of a construction project does
not total more than $250,000; or
(d) An appurtenance to a structure or unit described in
paragraphs (a) to (c) of this subsection.
(18) 'Specialty contractor' means a contractor who performs
work on a structure, project, development or improvement and
whose operations as such do not fall within the definition of
'general contractor.' 'Specialty contractor' includes a person
who performs work regulated under ORS 446.395.
{ + (19) 'Worker leasing company' means a person licensed
under ORS 656.850 (2) to perform the service of providing
nontemporary workers by contract and for a fee to work for a
client. + }
{ - (19) - } { + (20) + } 'Zero-lot-line dwelling' means a
single-family dwelling unit constructed in a group of attached
units in which:
(a) Each attached unit extends from foundation to roof with
open space on two sides; and
Enrolled Senate Bill 207 (SB 207-B) Page 10
(b) Each dwelling unit is separated by a property line.
SECTION 8. ORS 701.021 is amended to read:
701.021. (1) Except as provided in ORS 701.010, a person or
joint venture that undertakes, offers to undertake or submits a
bid to do work as a contractor must have a current license issued
by the Construction Contractors Board and possess an appropriate
endorsement as provided in this section. For purposes of offering
to undertake or submitting a bid to do work, a partnership or
joint venture is licensed and endorsed if any partner or joint
venturer whose name appears in the business name of the
partnership or joint venture has a current license issued by the
board and possesses an appropriate endorsement.
(2) A person or joint venture that undertakes, offers to
undertake or submits a bid to do work as a contractor in
preparation for or in connection with a residential structure
must have one of the following endorsements:
(a) Residential general contractor.
(b) Residential specialty contractor.
(c) Residential limited contractor.
(d) Residential developer.
{ + (e) Residential locksmith services contractor.
(f) Home inspector services contractor.
(g) Home services contractor. + }
(3) A person or joint venture that undertakes, offers to
undertake or submits a bid to do work as a contractor in
preparation for or in connection with a small commercial
structure must have one of the following endorsements:
(a) Residential general contractor.
(b) Residential specialty contractor.
(c) Residential limited contractor.
(d) Residential developer.
{ + (e) Residential locksmith services contractor. + }
{ - (e) - } { + (f) + } Commercial general contractor level
1.
{ - (f) - } { + (g) + } Commercial specialty contractor
level 1.
{ - (g) - } { + (h) + } Commercial general contractor level
2.
{ - (h) - } { + (i) + } Commercial specialty contractor
level 2.
{ - (i) - } { + (j) + } Commercial developer.
(4) A person or joint venture that undertakes, offers to
undertake or submits a bid to do work as a contractor in
preparation for or in connection with a large commercial
structure must have one of the following endorsements:
(a) Commercial general contractor level 1.
(b) Commercial specialty contractor level 1.
(c) Commercial general contractor level 2.
(d) Commercial specialty contractor level 2.
(e) Commercial developer.
SECTION 9. ORS 701.081 is amended to read:
701.081. (1) A residential general contractor shall:
(a) Obtain a surety bond under ORS 701.068 in the amount of
$20,000;
(b) Obtain general liability insurance under ORS 701.073 in an
amount of not less than $500,000; and
(c) Have a responsible managing individual who meets the
requirements of ORS 701.091.
(2) A residential specialty contractor shall:
Enrolled Senate Bill 207 (SB 207-B) Page 11
(a) Obtain a surety bond under ORS 701.068 in the amount of
$15,000;
(b) Obtain general liability insurance under ORS 701.073 in an
amount not less than $300,000; and
(c) Have a responsible managing individual who meets the
requirements of ORS 701.091.
(3) A residential limited contractor shall:
(a) Obtain a surety bond under ORS 701.068 in the amount of
$10,000;
(b) Obtain general liability insurance under ORS 701.073 in an
amount not less than $100,000; and
(c) Have a responsible managing individual who meets the
requirements of ORS 701.091.
(4) A residential developer shall:
(a) Obtain a surety bond under ORS 701.068 in the amount of
$20,000; and
(b) Obtain general liability insurance under ORS 701.073 in an
amount not less than $500,000.
{ + (5) A residential locksmith services contractor shall:
(a) Obtain a surety bond under ORS 701.068 in the amount of
$10,000;
(b) Obtain general liability insurance under ORS 701.073 in an
amount of not less than $100,000; and
(c) Have a responsible managing individual for the business who
is certified as a locksmith under ORS 701.485.
(6) A home inspector services contractor shall:
(a) Obtain a surety bond under ORS 701.068 in the amount of
$10,000;
(b) Obtain general liability insurance under ORS 701.073 in an
amount of not less than $100,000; and
(c) Have a responsible managing individual for the business who
is certified as a home inspector under ORS 701.350.
(7) A home services contractor shall:
(a) Obtain a surety bond under ORS 701.068 in the amount of
$10,000; and
(b) Obtain general liability insurance under ORS 701.073 in an
amount of not less than $100,000. + }
SECTION 10. ORS 701.035 is amended to read:
701.035. (1) An applicant must qualify as an independent
contractor under ORS 670.600 to be eligible for a license with
the Construction Contractors Board.
(2) The board shall establish two classes of independent
contractor:
(a) The nonexempt class is composed of the following entities:
(A) Sole proprietorships, partnerships, corporations { - , - }
{ + and + } limited liability companies { + : + }
{ + (i) + } With one or more employees; { - and - } { +
or + }
{ + (ii) That utilize one or more workers supplied by a
worker leasing company. + }
(B) Partnerships, corporations and limited liability companies
with more than two partners, corporate officers or members, if
any of the partners, corporate officers or members are not part
of the same family and related as parents, spouses, sisters,
brothers, daughters or sons, daughters-in-law or sons-in-law or
grandchildren.
(b) The exempt class is composed of all sole proprietorships,
partnerships, corporations and limited liability companies that
do not qualify as nonexempt.
Enrolled Senate Bill 207 (SB 207-B) Page 12
(3) If a person who is licensed as exempt under subsection
(2)(b) of this section hires one or more employees { + , utilizes
one or more workers supplied by a worker leasing company + } or
falls into any of the categories set out in subsection (2)(a)(B)
of this section, the person is subject to penalties under ORS
701.992 for improper licensing. If a person who is licensed as
exempt under subsection (2)(b) of this section hires one or more
employees { + , or utilizes one or more workers supplied by a
worker leasing company + }, the person is also subject to
licensing sanctions under ORS 701.098. The person must reapply to
the board in the correct class.
(4) The decision of the board that a person is an independent
contractor applies only when the person is performing work of the
nature described in ORS 701.021.
(5) A person that is within the exempt class described in
subsection (2)(b) of this section and is licensed as a commercial
contractor shall procure and maintain workers' compensation
insurance as authorized by ORS 656.128.
SECTION 11. ORS 701.098 is amended to read:
701.098. (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 a provision of
this chapter.
(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 the licensee has knowingly assisted a licensed
contractor to perform work for which the contractor is not
properly endorsed.
(e) 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.
(f) That the licensee has knowingly provided false information
to the board.
(g) That the licensee has worked without a construction permit
where a permit is required and the work resulted in a complaint
being filed with the board under ORS 701.139. For purposes of
this paragraph, 'construction permit' includes a building permit,
electrical permit, mechanical permit or plumbing permit.
(h) That the number of licensed contractors working together on
the same task on the same job site, where one of the contractors
is classed 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.
(i) Consistent with the provisions of ORS 670.280, that the
licensee or applicant, or an owner or officer of the licensee or
applicant has been convicted of one of the following crimes in
this state or an equivalent crime in another state:
(A) Murder;
(B) Assault in the first degree;
(C) Kidnapping;
(D) Rape, sodomy or unlawful sexual penetration;
(E) Sexual abuse;
Enrolled Senate Bill 207 (SB 207-B) Page 13
(F) Arson in the first degree;
(G) Robbery in the first degree;
(H) Theft in the first degree; or
(I) Theft by extortion.
(j) 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.
(k) That the licensee or applicant has repeatedly reported bad
faith or false complaints of nonpayment against contractors or
subcontractors.
(L) 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.
(m) That the contractor has hired employees while licensed as
exempt under ORS 701.035.
{ + (n) That the contractor has utilized one or more workers
supplied by a worker leasing company while licensed as exempt
under ORS 701.035; + }
(2) The board may revoke, suspend or refuse to issue or reissue
a license if the board determines after notice and opportunity
for hearing that an applicant or licensee is unfit for licensure
based upon information submitted to the board under ORS 701.046,
submitted in a registration of securities described in ORS
701.046 (2) or discovered by a board investigation under ORS
701.225.
(3) The board may assess a civil penalty as provided in ORS
701.992 if the board determines after notice and opportunity for
hearing that any person has violated ORS 701.021.
(4)(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 701.068;
(B) Lack of liability insurance required by ORS 701.073;
(C) Hiring employees while classed as exempt under ORS 701.035;
{ + (D) Utilizing one or more workers supplied by a worker
leasing company while classed as exempt under ORS 701.035; + }
{ - (D) - } { + (E) + } Conduct as a construction
contractor that is dishonest or fraudulent; or
{ - (E) - } { + (F) + } Failure to pay a construction debt.
(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, pursuant to the
hearing as required by ORS chapter 183, an order 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.
(5)(a) In addition to all other remedies, if the board has
reason to believe that a person is engaging in an act, practice
Enrolled Senate Bill 207 (SB 207-B) Page 14
or transaction that violates this chapter or a board rule, the
board may issue an order directing the person to cease the act or
to take corrective action.
(b) The board shall mail a copy of an order issued under this
subsection to the person by first class mail with certificate of
mailing. The board shall include with the order a notice
informing the person of the right to request a hearing concerning
the order. The notice shall inform the person that any hearing
request must be received by the board no later than 21 days after
the date the order was mailed by the board.
(c) If the board receives a timely request for a hearing
concerning an order issued under this subsection, the board shall
schedule the hearing no later than 30 days after receiving the
request. The board shall mail written notice of the hearing to
the person by first class mail with certificate of mailing no
later than seven days before the scheduled hearing date.
(d) An order described in this subsection becomes final if the
person does not file a timely request for a hearing concerning
the order or fails to appear at the requested hearing as
scheduled.
(e) The issuance of a board order under this subsection is
subject to ORS 183.413 to 183.497.
(6) 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 701.345, unless the court determines
that the failure is intentional.
(7) A certified copy of the record of conviction shall be
conclusive evidence of a conviction under subsection (1)(i) of
this section.
(8) If the board suspends or revokes the license of an
individual contractor or contractor business for a violation of
subsection (1)(h) of this section, the board may not restore or
reissue the license unless the individual contractor or a
responsible managing individual for the contractor business has
successfully completed the training and testing described in ORS
701.122.
SECTION 12. { + The amendments to ORS 701.046 and 701.114 by
sections 1 and 2 of this 2013 Act apply to license applications
received by the Construction Contractors Board on or after the
effective date of this 2013 Act. + }
SECTION 13. { + The amendments to ORS 701.035 and 701.098 by
sections 10 and 11 of this 2013 Act apply to the utilization of
workers that are supplied by a worker leasing company 90 or more
days after the effective date of this 2013 Act. + }
----------
Enrolled Senate Bill 207 (SB 207-B) Page 15
Passed by Senate March 21, 2013
Repassed by Senate May 28, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House May 22, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 207 (SB 207-B) Page 16
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 207 (SB 207-B) Page 17
