Construction Contractors and Contracts
ORS
701.098
Grounds for discipline
- rules
- suspension or refusal of license without prior hearing
- hearing
- civil penalty
- injunctions
- cease and desist orders
- restoration or reissuance of license
(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 (Civil penalties and other sanctions) 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 (Construction liens) to 87.060 (Foreclosure) and 87.075 (Exemption of building materials from attachment by third persons) to 87.093 (Information Notice to Owner) 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 (Complaint validity). 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 (Applicant required to be independent contractor to be eligible for license) (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 (Denial, suspension or revocation of license based on criminal conviction), 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;(F)
Arson in the first degree;(G)
Robbery in the first degree;(H)
Theft in the first degree; or(I)
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 (Applicant required to be independent contractor to be eligible for license).(n)
That the contractor has utilized one or more workers supplied by a worker leasing company while licensed as exempt under ORS 701.035 (Applicant required to be independent contractor to be eligible for license).(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 (License application), submitted in a registration of securities described in ORS 701.046 (License application) (2) or discovered by a board investigation under ORS 701.225 (Investigatory powers of board).(3)
The board may assess a civil penalty as provided in ORS 701.992 (Civil penalties and other sanctions) if the board determines after notice and opportunity for hearing that any person has violated ORS 701.021 (License requirement).(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 (Bonding requirements);(B)
Lack of liability insurance required by ORS 701.073 (Insurance required of licensed contractors);(C)
Hiring employees while classed as exempt under ORS 701.035 (Applicant required to be independent contractor to be eligible for license);(D)
Utilizing one or more workers supplied by a worker leasing company while classed as exempt under ORS 701.035 (Applicant required to be independent contractor to be eligible for license);(E)
Conduct as a construction contractor that is dishonest or fraudulent; or(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 (Proceedings on denial of license), 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 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 (Notice to parties before hearing of rights and procedure) to 183.497 (Awarding costs and attorney fees when finding for petitioner).(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 (Subcontractor list), 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 (Training requirements for individuals and businesses). [Formerly 701.135; 2009 c.226 §§4,5; 2009 c.408 §§6,7; 2013 c.300 §11; 2016 c.47 §10]Chapter 701
Notes of Decisions
This is a remedial statute made for the protection of the building business and of people dealing with builders who might be irresponsible; it should be read as a whole and liberally construed to accomplish its purpose. Robinson v. Builders Bd., 20 Or App 340, 531 P2d 752 (1975)
Atty. Gen. Opinions
Lack of authority for director to appoint executive secretary for board, (1971) Vol 35, p 930; inapplicability of this chapter to business of construction or installation of fences, sidewalks, septic tanks, wells and underground sprinkling systems, (1972) Vol 35, p 1278; mobile home as personal or real property under this chapter, (1972) Vol 36, p 41; application of Homebuilders Law to mobile homes, (1978) Vol 38, p 693