2021 Oregon Revised Statutes
Chapter 701 - Construction Contractors and Contracts
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.


(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;
(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.
(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;
(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, 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 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. [Formerly 701.135; 2009 c.226 §§4,5; 2009 c.408 §§6,7; 2013 c.300 §11; 2016 c.47 §10]

Structure 2021 Oregon Revised Statutes

2021 Oregon Revised Statutes

Volume : 17 - Occupations

Chapter 701 - Construction Contractors and Contracts

Section 701.002 - Short title.

Section 701.005 - Definitions.

Section 701.010 - Exemptions from licensure; rules.

Section 701.013 - Intent relating to certain business license requirements.

Section 701.015 - Business license requirements in cities and metropolitan service districts; fees; distribution of fees.

Section 701.020 - Certain cities exempt from application of ORS 701.015.

Section 701.021 - License requirement; endorsements.

Section 701.026 - Subcontractor licensing; landscaping.

Section 701.031 - Evidence of doing business as contractor.

Section 701.035 - Applicant required to be independent contractor to be eligible for license; classes of licenses.

Section 701.038 - Residential limited contractors.

Section 701.042 - Residential or commercial developers.

Section 701.046 - License application.

Section 701.050 - Commercial contractor key employees.

Section 701.056 - Licensing application fee; rules.

Section 701.063 - Term of license; fee; renewal; inactive status; license identification card.

Section 701.068 - Bonding requirements; action against surety; rules.

Section 701.073 - Insurance required of licensed contractors.

Section 701.081 - Residential contractors; bond; insurance; responsible managing individual.

Section 701.082 - Residential contractor continuing education requirements; exemptions.

Section 701.084 - Commercial contractors; bond; insurance; responsible managing individual; key employees.

Section 701.086 - Key employee continuing education.

Section 701.088 - Contractor rehabilitating illegal drug manufacturing site; substitution for bond; fee; rules.

Section 701.091 - Responsible managing individual.

Section 701.093 - Change in responsible managing individual; temporary managing individual.

Section 701.094 - Definition for ORS 701.098 and 701.102; rules.

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.

Section 701.102 - Sanction for past unresolved activity or outstanding matters; probation.

Section 701.106 - Sanction for violation or failure to comply with certain laws.

Section 701.107 - Sanction for assisting evasion of obligations.

Section 701.108 - Failure to comply with prevailing wage rate or other wage and hour standards for energy efficiency and sustainable technology projects.

Section 701.109 - Reporting of final judgments.

Section 701.114 - Change in responsible managing individual or persons exercising control of contractor.

Section 701.119 - Certification to participate in small scale local energy project program.

Section 701.120 - Specialized education programs; standards; specialized education notation in credentials; removal of notation; rules for use of credentials.

Section 701.122 - Training requirements for individuals and businesses; testing of business license applicant; exception; rules.

Section 701.128 - Suit for damages for misrepresentation.

Section 701.131 - License required to perfect lien or obtain judicial or administrative remedy; exception.

Section 701.133 - Notice of intent to file complaint; fees; rules.

Section 701.139 - Complaint validity; applicable resolution processes.

Section 701.140 - Types of allowable complaints; restriction on processing complaint for recoupment of lien.

Section 701.143 - Requirement for timely filing of complaints; timelines.

Section 701.145 - Resolution of complaints involving work on residential structures or certain small commercial structures.

Section 701.146 - Resolution of complaints involving work on large commercial structures or certain small commercial structures.

Section 701.149 - Status reports; alternative dispute resolution.

Section 701.150 - Determination of amount to be paid from bond.

Section 701.153 - Recording of order as lien; satisfaction of order against residential contractor.

Section 701.157 - Satisfaction of order against commercial contractor.

Section 701.160 - Nonlawyer may represent certain forms of businesses before board; rules for additional business forms.

Section 701.205 - Construction Contractors Board; members; terms; confirmation; vacancies; qualifications.

Section 701.215 - Officers; quorum; compensation and expenses; advisory committees.

Section 701.225 - Investigatory powers of board; use of city or county inspectors; notice of noncompliance; conduct of hearings; authority of board to order work stopped.

Section 701.227 - Disqualification from eligibility for certain public contracts; list of disqualified contractors.

Section 701.235 - Rulemaking.

Section 701.238 - Determination of licensing application fee; rules.

Section 701.240 - Provision of licensed contractors list to other state agencies; rules.

Section 701.246 - Confidentiality of information; permissible disclosures.

Section 701.250 - Board to provide licensee’s status on request; fee.

Section 701.260 - Appeal committee; membership; duties.

Section 701.265 - Continuing education system for residential contractors; rules.

Section 701.267 - Agreements with continuing education providers; credits; fees.

Section 701.269 - Residential general master builder certification program; requirements; standards; fees; rules.

Section 701.272 - Interagency agreements.

Section 701.305 - Requirement for written contract with residential property owner; standard contractual terms; rules.

Section 701.310 - Cancellation of contract.

Section 701.312 - Additional grounds for placing contractor on probation.

Section 701.320 - Offer of warranty; withdrawal of contract offer.

Section 701.325 - Condition for obtaining building permit; information notice; business licenses; local regulation.

Section 701.330 - Consumer notice form; notice of procedure form; rules.

Section 701.335 - Recommended maintenance schedule; rules.

Section 701.345 - Subcontractor list.

Section 701.348 - Sewer contractor requirements.

Section 701.410 - Definitions.

Section 701.420 - Partial payment; retainage; effect; interest; notice of completion; payment by contractor and owner.

Section 701.430 - Performance bond; terms.

Section 701.435 - Deposits in lieu of cash retainage.

Section 701.440 - Applicability to federal projects.

Section 701.445 - Home inspectors; certification; rules; fees; exemption.

Section 701.455 - Home inspector services contractor license; exemption from testing and continuing education.

Section 701.470 - Licensing; exemptions; insurance.

Section 701.475 - Definitions for ORS 701.475 to 701.490.

Section 701.480 - Certification; licensing; holding out as locksmith or locksmithing business.

Section 701.485 - Standards of practice and professional conduct; determination of competency; sanctions; rules; fees.

Section 701.490 - Exemptions from certification, licensure and other requirements.

Section 701.495 - Residential locksmith services contractor license; exemption from testing and continuing education.

Section 701.501 - Home services contractor license; exemption from testing and continuing education.

Section 701.505 - Definitions for ORS 701.505 to 701.515.

Section 701.510 - License required to engage in lead-based paint activity.

Section 701.515 - Licensing system; fees; rules.

Section 701.520 - Construction Contractors Board Lead-Based Paint Activities Fund.

Section 701.527 - Definitions for ORS 702.527 to 701.536.

Section 701.529 - Certification and licensing requirements; use of title.

Section 701.532 - Home energy assessor certification; training; rules; fees.

Section 701.536 - Assessor and contractor exemption from testing and continuing education.

Section 701.540 - Licensing; standards and practices; rules.

Section 701.545 - Provision of accessible features list to purchaser; effect.

Section 701.547 - Model list of accessibility features; rules.

Section 701.555 - Barrier-type exterior insulation and finish systems.

Section 701.560 - Definitions for ORS 701.560 to 701.595 and 701.605.

Section 701.565 - Notice of defect requirement; contents; mailing.

Section 701.570 - Secondary notice of defect; inspection of residence; response to notice or secondary notice.

Section 701.575 - Availability of residence; scope of inspection; report of inspection results.

Section 701.580 - Offer by contractor, subcontractor or supplier; effect of accepting offer; nonperformance; compelling arbitration or commencing court action; admissibility of response or reply.

Section 701.585 - Effect of notice of defect on time for commencing court action.

Section 701.595 - Failure to follow notice of defect procedure.

Section 701.600 - Nonapplicability of ORS 701.560 to 701.595 and 701.605.

Section 701.605 - Recording of written warranty agreement.

Section 701.620 - Definitions for ORS 701.620 to 701.640.

Section 701.625 - Progress payments; notice requirements; nonapproval of billing or estimate; withholding; final payment.

Section 701.630 - Payments to subcontractors and material suppliers; failure to pay; omission of payment.

Section 701.635 - Suspension of performance.

Section 701.640 - Prohibition against contrary provisions, covenants or clauses.

Section 701.645 - Contracts and housing not subject to ORS 701.620 to 701.640.

Section 701.990 - Criminal penalties.

Section 701.992 - Civil penalties and other sanctions; enforcement.

Section 701.995 - Civil penalties for violations related to lead-based paint activities; reporting of penalties and sanctions.