Oregon Statutes 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 if the board determines after notice and opportunity for hearing that a licensee or applicant:
Terms Used In Oregon Statutes 701.098
- Board: means the Construction Contractors Board. See Oregon Statutes 701.005
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Construction debt: means an amount owed:
(a) Under an order or arbitration award issued by the board that has become final by operation of law;
(b) Under a judgment, arbitration award or civil penalty that has become final by operation of law arising from construction activities within the United States;
(c) Under a judgment or civil penalty that has become final by operation of law arising from a failure to comply with ORS § 656. See Oregon Statutes 701.005
- Contract: A legal written agreement that becomes binding when signed.
- 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. See Oregon Statutes 701.005
- Conviction: A judgement of guilt against a criminal defendant.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Officer: means any of the following persons:
(a) A president, vice president, secretary, treasurer or director of a corporation. See Oregon Statutes 701.005
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
- Responsible managing individual: means an individual who:
(a) Is an owner described in ORS § 701. See Oregon Statutes 701.005
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Worker leasing company: means a person licensed under ORS § 656. See Oregon Statutes 701.005
(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 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, 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 to 87.093.
(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. 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 (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, 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.
(q) Used one or more workers supplied by a worker leasing company while licensed as exempt under ORS § 701.035.
(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, 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 against any person as provided in ORS § 701.992 if the board determines after notice and opportunity for hearing that the person 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) Using 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;
(F) Failure to pay a construction debt; or
(G) Entering into a settlement agreement under ORS § 701.145 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, 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 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, 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. [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]
[1989 c.870 § 5; 1991 c.67 § 185; 1991 c.181 § 5; 1995 c.771 § 8; 1999 c.344 § 3; 1999 c.402 § 22; 2001 c.850 § 5; 2001 c.924 § 24; 2003 c.778 § 3; repealed by 2007 c.114 § 16]