Current through Register Vol. 64, No. 3, March 1, 2025
(1) Under ORS
701.068(6), the
agency may require a bond, letter of credit or cash deposit of up to five times
the normally required amount, if it determines that a licensee or a current or
previous owner, officer or responsible managing individual, as those terms are
defined in division 2 of these rules, has:
(a) A history of unpaid final orders,
arbitration awards or determinations consisting of two or more final orders,
arbitration awards or determinations, which remain unpaid for longer than
thirty (30) days following the date of issuance.
(b) Five or more complaints filed under ORS
701.140 and processed under
701.145 or 701.146 by five or more separate complainants within a one-year
period from the date of filing of the most recent Dispute Resolution Services
complaint.
(c) An unpaid
construction debt as defined in ORS
701.005(4) or
unpaid judgment arising from construction activity that exceeds the amount of
the bond, letter of credit or cash deposit.
(d) Board final orders, arbitration awards or
determinations issued in favor of one or more complainants under ORS
701.145where the amount that must be paid exceeds the amount of the residential
bond.
(e) Board final orders or
determinations issued in favor of one or more complainants under ORS
701.146where the amount that must be paid exceeds the amount of the commercial
bond.
(2) The amount of
the increased bond, letter of credit or cash deposit required under subsection
(1)(a) of this rule must conform to the following schedule:
(a) If the sum of unpaid amounts on final
orders, arbitration awards and determinations exceeds the licensee's most
recent bond, letter of credit or cash deposit by less than 50 percent, the
agency may require a bond, letter of credit or cash deposit two times the
amount required under ORS
701.081 or
701.084.
(b) If the sum of the unpaid final orders,
arbitration awards and determinations exceeds the licensee's most recent bond,
letter of credit or cash deposit by 50 percent or more, but less than 100
percent, the agency may require a bond, letter of credit or cash deposit three
times the bond, letter of credit or cash deposit amount required under ORS
701.081 or
701.084.
(c) If the sum of unpaid amounts on final
orders, arbitration awards and determinations exceeds the licensee's most
recent bond, letter of credit or cash deposit by 100 percent or more, the
agency may require a bond, letter of credit or cash deposit in the amount of
five times the normal amount required under ORS
701.081 or
701.084.
(d) For purposes of this section, if a
contractor has both residential and commercial bonds, the increased bond
requirement will apply to both bonds, even if the unpaid amounts occurred only
with respect to one of the two bonds.
(3) The amount of increased bond, letter of
credit or cash deposit the agency may require under subsection (1)(b) of this
rule will be based on the number of complaints filed and the time period that
the complaints were received as follows:
(a)
Two times the bond, letter of credit or cash deposit amount required under ORS
701.081 or
701.084 if five or more
complaints are received in any twelve-month period.
(b) Three times the bond, letter of credit or
cash deposit amount required under ORS701.081 or
701.084 if five or more
complaints are received in any six-month period.
(c) Five times the bond, letter of credit or
cash deposit amount required under ORS
701.081 or
701.084 if five or more
complaints are received in any three-month period.
(d) For purposes of this section, if a
contractor has both residential and commercial bonds, the increased bond
requirement will apply to both bonds, even if the unpaid amounts occurred only
with respect to one of the two bonds.
(4) The amount of the increased bond, letter
of credit or cash deposit required under subsection (1)(c) of this rule must
conform to the following schedule:
(a) If the
sum of the unpaid construction debt or judgment exceeds the licensee's most
recent bond, letter of credit or cash deposit by less than 50 percent, the
agency may require a bond, letter of credit or cash deposit two times the bond,
letter of credit or cash deposit amount required under ORS
701.081 or
701.084.
(b) If the sum of the unpaid construction
debt or judgment exceeds the licensee's most recent bond, letter of credit or
cash deposit by 50 percent or more, but less than 100 percent, the agency may
require a bond, letter of credit or cash deposit three times the bond, letter
of credit or cash deposit amount required under ORS
701.081 or
701.084.
(c) If the sum of the unpaid construction
debt or judgment exceeds the licensee's most recent bond, letter of credit or
cash deposit by 100 percent or more, the agency may require a bond, letter of
credit or cash deposit five times the bond, letter of credit or cash deposit
amount required under ORS
701.081 or
701.084.
(d) For purposes of this section, if a
contractor has both residential and commercial bonds, the increased bond
requirement will apply to both bonds, even if the unpaid amounts occurred only
with respect to one of the two bonds.
(5) The amount of the increased bond, letter
of credit or cash deposit required under subsection (1)(d) of this rule must
conform to the following schedule:
(a) If the
amount of the board final orders, arbitration awards or determinations exceeds
the licensee's most recent bond, letter of credit or cash deposit by less than
50 percent, the agency may require bonds, letter of credit or cash deposit two
times the bond, letter of credit or cash deposit amount required under ORS
701.081 and
701.084.
(b) If the amount of the board final orders,
arbitration awards or determinations exceeds the licensee's most recent bond,
letter of credit or cash deposit by 50 percent or more, but less than 100
percent, the agency may require bonds, letter of credit or cash deposit three
times the bond, letter of credit or cash deposit amount required under ORS
701.081 and
701.084.
(c) If the amount of the board final orders,
arbitrations or determinations exceeds the licensee's most recent bond, letter
of credit or cash deposit by 100 percent or more, the agency may require bonds,
letter of credit or cash deposit five times the bond, letter of credit or cash
deposit amount required under ORS
701.081 or
701.084.
(6) Notwithstanding sections (2) through (5)
of this rule, a business (including an individual person) licensed as a
residential general contractor or residential specialty contractor that applies
to be licensed as, or seeks to change its endorsement to, a residential limited
contractor must file a residential bond, letter or credit or cash deposit in an
amount of five times the amount of the residential limited contractor bond,
namely $50,000, if the business or its previous owner, officer or responsible
managing individual has:
(a) A history of
unpaid final orders, arbitration awards or determinations consisting of two or
more final orders, arbitration awards or determinations unpaid for longer than
thirty (30) days following the date of issuance.
(b) Five or more complaints filed under ORS
701.140 and processed under
701.145 by five or more separate complainants within a one-year period from the
date of filing of the most recent Dispute Resolution Services complaint.
(c) An unpaid construction debt as
defined in ORS 701.005(4) that
exceeds the amount of the residential bond, letter of credit or cash deposit
previously held by the business.
(d) Board final orders, arbitration awards or
determinations issued in favor of one or more complainants under ORS
701.145 where the amount that
must be paid exceeds the amount of the residential bond previously held by the
business.
Stat. Auth.: ORS
670.310,
701.068,
701.088 &
701.235
Stats. Implemented: ORS
701.005,
701.068,
701.088 &
701.094
