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, condition or refuse to issue or reissue a license and 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 a licensee or applicant:

(a)

Violated a provision of this chapter.

(b)

Violated a rule or order of the board.

(c)

Entered into a settlement agreement with another person under ORS 701.145 (Resolution of complaints involving work on residential structures or certain small commercial structures) but failed to comply with the terms of the settlement agreement.

(d)

Is a business entity or is the owner, director, officer or partner of a business entity or of a reorganized business entity, as defined in ORS 305.330 (Tax liability of reorganized business entity), that was subject to a revocation or suspension of a license, or subject to a civil or criminal penalty, imposed under this chapter or ORS chapter 447, 455, 460 or 693, or under the laws of another state, and the revocation, suspension or civil or criminal penalty was related to the licensee’s or applicant’s engaging in construction.

(e)

Submitted an application to the board that, at the time the board issued or renewed the license or denied the application, was incomplete in any material respect or included a statement that was incorrect or misleading in light of the circumstances in which the licensee or applicant made the statement.

(f)

Knowingly assisted an unlicensed person to act in violation of this chapter.

(g)

Knowingly assisted a licensed contractor to perform work for which the contractor is not properly endorsed.

(h)

Wrongfully failed to perform a contractual duty to pay money to a person and the failure caused the person to file a lien on a structure under ORS 87.001 (Short title) to 87.093 (Information Notice to Owner).

(i)

Knowingly provided false information to the board.

(j)

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.

(k)

Worked together with another contractor on the same task on the same job site, where one of the contractors was classed as exempt under ORS 701.035 (Applicant required to be independent contractor to be eligible for license) (2)(b) and the number of contractors working together exceeded the following:

(A)

Two sole proprietors;

(B)

One partnership;

(C)

One corporation; or

(D)

One limited liability company.

(L)

Was convicted, or an owner, director, officer or partner of the licensee or applicant was convicted, consistent with ORS 670.280 (Denial, suspension or revocation of license based on criminal conviction), 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.

(m)

Did not pay another person for supplying labor or materials contracted for under a public improvement contract, plus the amount of interest due, within 90 days after receiving payment from a contracting agency or, if the licensee or applicant was a subcontractor, from a contractor.

(n)

Repeatedly reported bad faith or false complaints of nonpayment against contractors or subcontractors.

(o)

Engaged in conduct as a contractor that was dishonest or fraudulent and that the board finds injurious to the welfare of the public.

(p)

Hired employees while licensed as exempt under ORS 701.035 (Applicant required to be independent contractor to be eligible for license).

(q)

Used 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, condition or refuse to issue or reissue a license if the board determines after notice and opportunity for hearing that a licensee or applicant 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 against any person as provided in ORS 701.992 (Civil penalties and other sanctions) if the board determines after notice and opportunity for hearing that the person violated ORS 701.021 (License requirement).

(4)

Intentionally left blank —Ed.

(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)

Using 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;

(F)

Failure to pay a construction debt; or

(G)

Entering into a settlement agreement under ORS 701.145 (Resolution of complaints involving work on residential structures or certain small commercial structures) and failing to comply with the terms of the settlement agreement.

(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)

Intentionally left blank —Ed.

(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 the board determines 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 is conclusive evidence of a conviction under subsection (1)(L) 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)(k) 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; 2023 c.277 §5]

Source: Section 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, https://www.­oregonlegislature.­gov/bills_laws/ors/ors701.­html (accessed May 26, 2025).

Notes of Decisions

Construction Contractors Board lacks authority to impose monetary penalty on licensee deemed unfit for licensure due to criminal conviction listed in this section. Allied Structural v. CCB, 311 Or App 40, 492 P3d 642 (2021), Sup Ct review denied

701.002
Short title
701.005
Definitions
701.010
Exemptions from licensure
701.013
Intent relating to certain business license requirements
701.015
Business license requirements in cities and metropolitan service districts
701.020
Certain cities exempt from application of ORS 701.015
701.021
License requirement
701.026
Subcontractor licensing
701.031
Evidence of doing business as contractor
701.035
Applicant required to be independent contractor to be eligible for license
701.038
Residential limited contractors
701.042
Residential or commercial developers
701.046
License application
701.050
Commercial contractor key employees
701.056
Licensing application fee
701.060
Licensing in another category
701.063
Term of license
701.068
Bonding requirements
701.073
Insurance required of licensed contractors
701.081
Residential contractors
701.082
Residential contractor continuing education requirements
701.083
Residential contractor specialized education programs
701.084
Commercial contractors
701.086
Key employee continuing education
701.088
Contractor rehabilitating illegal drug manufacturing site
701.091
Responsible managing individual
701.093
Change in responsible managing individual
701.094
Definition for ORS 701.098 and 701.102
701.098
Grounds for discipline
701.102
Sanction for past unresolved activity or outstanding matters
701.106
Sanction for violation or failure to comply with certain laws
701.107
Sanction for assisting evasion of obligations
701.108
Failure to comply with prevailing wage rate or other wage and hour standards for energy efficiency and sustainable technology projects
701.109
Reporting of final judgments
701.110
License suspension for unpaid determined wage claim
701.112
Continuation of board authority when change occurs in license status
701.114
Change in responsible managing individual or persons exercising control of contractor
701.117
Contractor to notify board of address change or change in exemption status
701.119
Certification to participate in small scale local energy project program
701.120
Specialized education programs
701.122
Training requirements for individuals and businesses
701.128
Suit for damages for misrepresentation
701.131
License required to perfect lien or obtain judicial or administrative remedy
701.133
Notice of intent to file complaint
701.139
Complaint validity
701.140
Types of allowable complaints
701.143
Requirement for timely filing of complaints
701.145
Resolution of complaints involving work on residential structures or certain small commercial structures
701.146
Resolution of complaints involving work on large commercial structures or certain small commercial structures
701.149
Status reports
701.150
Determination of amount to be paid from bond
701.153
Recording of order as lien
701.157
Satisfaction of order against commercial contractor
701.160
Nonlawyer may represent certain forms of businesses before board
701.180
Alternative mediation or arbitration process
701.205
Construction Contractors Board
701.215
Officers
701.225
Investigatory powers of board
701.227
Disqualification from eligibility for certain public contracts
701.230
Board to provide names of unlicensed or improperly endorsed contractors to other state agencies
701.235
Rulemaking
701.236
Rulemaking to interpret, harmonize or adjust licensing requirements
701.238
Determination of licensing application fee
701.240
Provision of licensed contractors list to other state agencies
701.246
Confidentiality of information
701.250
Board to provide licensee’s status on request
701.255
Funds retained for collection of civil penalties
701.260
Appeal committee
701.265
Continuing education system for residential contractors
701.267
Agreements with continuing education providers
701.269
Residential general master builder certification program
701.272
Interagency agreements
701.295
Board duty to investigate and seek prosecution of illegal activity
701.305
Requirement for written contract with residential property owner
701.310
Cancellation of contract
701.312
Additional grounds for placing contractor on probation
701.315
Contents of contract for work on residential structure
701.320
Offer of warranty
701.325
Condition for obtaining building permit
701.330
Consumer notice form
701.335
Recommended maintenance schedule
701.340
Commercial structure warranty
701.345
Subcontractor list
701.348
Sewer contractor requirements
701.410
Definitions
701.420
Partial payment
701.430
Performance bond
701.435
Deposits in lieu of cash retainage
701.440
Applicability to federal projects
701.445
Home inspectors
701.450
Home inspector undertaking of repair work on inspected structure
701.455
Home inspector services contractor license
701.470
Licensing
701.475
Definitions for ORS 701.475 to 701.490
701.480
Certification
701.485
Standards of practice and professional conduct
701.490
Exemptions from certification, licensure and other requirements
701.495
Residential locksmith services contractor license
701.501
Home services contractor license
701.505
Definitions for ORS 701.505 to 701.515
701.510
License required to engage in lead-based paint activity
701.515
Licensing system
701.520
Construction Contractors Board Lead-Based Paint Activities Fund
701.527
Definitions for ORS 702.527 to 701.536
701.529
Certification and licensing requirements
701.532
Home energy assessor certification
701.534
Home energy performance score contractors
701.536
Assessor and contractor exemption from testing and continuing education
701.540
Licensing
701.545
Provision of accessible features list to purchaser
701.547
Model list of accessibility features
701.550
Notice of Department of Consumer and Business Services rules regarding thermostats containing mercury
701.555
Barrier-type exterior insulation and finish systems
701.560
Definitions for ORS 701.560 to 701.595 and 701.605
701.565
Notice of defect requirement
701.570
Secondary notice of defect
701.575
Availability of residence
701.580
Offer by contractor, subcontractor or supplier
701.585
Effect of notice of defect on time for commencing court action
701.595
Failure to follow notice of defect procedure
701.600
Nonapplicability of ORS 701.560 to 701.595 and 701.605
701.605
Recording of written warranty agreement
701.620
Definitions for ORS 701.620 to 701.640
701.625
Progress payments
701.630
Payments to subcontractors and material suppliers
701.635
Suspension of performance
701.640
Prohibition against contrary provisions, covenants or clauses
701.645
Contracts and housing not subject to ORS 701.620 to 701.640
701.990
Criminal penalties
701.992
Civil penalties and other sanctions
701.995
Civil penalties for violations related to lead-based paint activities

Current through early 2026

§ 701.098. Grounds for discipline's source at oregon​.gov