Construction Contractors Board

Board Member Handbook

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Welcome On behalf of the Oregon Construction Contractors Board (CCB), thank you for your willingness to serve on the board. You join a select group of Oregon citizens who represent their community and peers and play an invaluable role in guiding our state’s actions.

Handbook We hope this booklet helps you understand your role and duties as a CCB board member. You should also review the Governor’s Membership Handbook for Boards and Commissions. You can find it online at http://www.oregon.gov/gov/admin/Documents/Board%20Handbook.pdf.

CCB Mission

The CCB protects the public interest relating to improvements to real property. We help prevent and resolve problems in the construction industry by regulating construction contractors through education, licensing, enforcement and dispute resolution. The CCB strives to promote a fair, honest and competitive construction industry in Oregon in a manner that ensures consumer rights.

Oregon law requires CCB licensing for any individual or business that offers or performs construction work.

Table of Contents

Welcome ...................................................................................................................................................... i

CCB Mission ................................................................................................................................................ i

Table of Contents ........................................................................................................................................ i

The Board .................................................................................................................................................... 1

About the Board ........................................................................................................................................ 1

Role and Responsibilities .......................................................................................................................... 1

Characteristics of Effective Board Members ............................................................................................ 2

Attendance ................................................................................................................................................ 2

Terms and Reappointment Policy ............................................................................................................. 2

Compensation and Reimbursement ......................................................................................................... 2

Government Immunity ............................................................................................................................. 3

Complaints and Enforcement Actions Involving Board Members ............................................................ 3

Board Meetings .......................................................................................................................................... 4

Parliamentary Procedure at a Glance ....................................................................................................... 5

Public Meetings Law ................................................................................................................................. 6

Public Records Law ................................................................................................................................... 6

Board Processes............................................................................................................................................ 8

Rulemaking ............................................................................................................................................... 8

Administrative Hearings and Appeals ....................................................................................................... 8

Operations .................................................................................................................................................... 9

Organizational Chart ................................................................................................................................. 9

Sections ................................................................................................................................................... 10

Ethics ........................................................................................................................................................... 11

Restrictions on Political Campaigning ....................................................................................................... 11

Law Summary ............................................................................................................................................. 12

Board Member Handbook

Page 1

The Board About the Board The board was established in 1971 to regulate residential homebuilders. Initially called the Builders Board, the agency became the Construction Contractors Board in 1990 with regulatory authority expanded to include commercial contractors. The CCB licenses contractors, investigates violations of contractor laws and mediates disputes against contractors.

The nine-member board, appointed by the Governor and confirmed by the Oregon Senate, governs the agency. The board consists of:

Two contractors who work primarily on residential or small commercial structures.

One contractor who does residential or small commercial remodeling.

Two general contractors who work primarily on large commercial structures.

One commercial specialty contractor or residential limited contractor.

Two public members.

One elected representative of a local government.

Key duties:

Set policy for contractor licensure, education, enforcement and dispute resolution.

Adopt administrative rules.

Hear appeals to proposed agency orders.

Board members additionally ensure the agency’s mission and high-level goals are current and applicable, review the administrator’s performance, help review key agency communications, and review all proposed budgets along with other key financial information.

Board members assume their positions after signing the Oath of Office, which is notarized and filed with the Governor’s Office.

Role and Responsibilities Oregon boards are usually small in size and composed of a carefully balanced membership. Each board member has the potential to influence board decisions.

Board members should:

Understand that the board is part of the executive branch of government and accountable to the Governor through the CCB administrator.

Remember that the board is responsible for policy and advice, not for the day-to-day operations of the CCB.

Agree to make the board a priority and devote an appropriate amount of time and energy to the assignment.

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Represent your constituency by communicating with them and listening to them.

Understand the board’s authority and work within the framework established by laws and rules.

Research issues and form reasonable opinions based on facts.

Remember that the board’s authority is granted to the board as a whole – not to individual members.

Be aware that you are seen as a representative of the board. Take care at industry or professional gatherings not to speak for the board unless authorized to do so.

Not use board membership to create a personal platform.

Characteristics of Effective Board Members An effective board member is committed to serving the public interest and to fulfilling the purpose of the agency. The effective board member possesses well-developed civic, interpersonal and professional skills and sensitivities, and can evaluate information and communicate his or her views with honesty, integrity and directness.

The effective board member is willing to share power and negotiate fairly, to participate in board discussions and decision-making and to acknowledge staff’s expertise in implementing policy. The board member can think in terms of context and is willing to do the required homework to develop a sound understanding of the board subject matter.

Attendance State law places an important emphasis on regular attendance. A board member who has two successive, unexcused absences “shall forfeit his or her office unless prevented from attending” for reasonable cause.

There must be five board members present to constitute a “quorum” and conduct business. A vote of a majority of those present decides board policy.

Terms and Reappointment Policy Board members serve a four-year term and may be appointed to a second term. When a mid-term vacancy occurs, a replacement fills the remainder of the unexpired term.

Before the end of your term, if you are interested in serving a second term, speak with the administrator. If it is necessary to resign, send a letter to the administrator and to the Office of the Governor, Boards and Commissions, with the effective date of resignation.

Compensation and Reimbursement Each member is eligible to receive $30 per diem for each board meeting day, travel day and day reading materials in preparation for board meetings. (If travel is on the board meeting day, there is only one per diem paid for that day.)

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Board members must file a “Travel Expense Report” with the agency to claim reimbursement for travel expenses, including private car mileage, meals and lodging. Staff will assist you in completing expense reports.

Government Immunity As a member of a statutorily created board, you are entitled to the protections of the Oregon Tort Claim Act.

The act provides that “The sole cause of action for a tort committed by officers, employees or agents of a public body acting within the scope of their employment or duties and eligible for representation and indemnification under ORS 30.285 or 30.287 is an action under ORS 30.260 to 30.300. The remedy provided by ORS 30.260 to 30.300 is exclusive of any other action against any such officer, employee or agent of a public body whose act or omission within the scope of the officers, employee’s or agent’s employment or duties gives rise to the action. No other form of civil action is permitted.”

In other words, performing the duties and functions of a board member within the scope of your appointment will not expose you to personal liability unless you act, or fail to act, due to malfeasance or willful or wanton conduct (for example, fraud or malice).

Complaints and Enforcement Actions Involving Board Members If a complaint is filed by or against a board member, the agency will process the complaint without deviation from the normal process. Board members will not seek nor be given any priority or unique handling. For hearings on an enforcement action against a board member, an assistant attorney general from the Department of Justice may represent the agency.

Board Member Handbook

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Board Meetings The board elects from among its members a chairperson and a vice chairperson. The board may also create advisory committees or program liaisons.

The order of business for board meetings normally is as follows.

Call to order.

Approval of agenda, order of business and prior meeting minutes.

Public comments.

Report of administrator and staff.

Consideration of enforcement actions.

Old business.

New business.

Adjournment.

It is proper for board members and guests to address the chair, identify themselves for the record, and receive recognition before speaking.

The board follows the Sturgis Standard Code of Parliamentary Procedure. Board members should not abstain from voting unless they believe they are prejudiced or biased or their vote would yield an unfair decision. No motion requires a second.

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Parliamentary Procedure at a Glance

(Based on The Standard Code of Parliamentary Procedure by Alice Sturgis) Listed in Order of Precedence

TO DO THIS YOU SAY THIS INTERRUPT SPEAKER?

MOTION DEBATABLE?

VOTE REQUIRED?

Adjourn the meeting* I move the meeting be adjourned No Yes (Restricted)

Majority

Recess the meeting* I move that the meeting be recessed until . . .

No Yes** Majority

Temporarily postpone motion

I move this motion be tabled No No Majority (2/3 if would suppress

debate)

End debate

I move to vote immediately No No 2/3

Limit debate* I move that each speaker be limited to a total of XX minutes per discussion.

No Yes** 2/3

Postpose considering an item until later*

I move to postpone this item until XX p.m.

No Yes** Majority

Refer to committee* I move this matter be referred to the XX committee

No Yes** Majority

Amend a motion* I move to amend this motion by . . . No Yes Majority

Introduce business*

I move that . . . No Yes Majority

Amend a previous action

I move to amend the motion that was adopted. . .

No Yes Majority

Reconsider

I move to reconsider . . . Yes Yes** Majority

Rescind (a motion)

I move to rescind the motion . . . No Yes Majority

Resume consideration of tabled item

I move to resume consideration of . . . No Yes Majority

*Amendable ** Debatable if no other motion is pending

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Public Meetings Law Under Oregon’s Public Meetings Law (ORS 192.610 – 192.690), the board must hold meetings open to the public, unless a closed meeting is authorized.

Meeting with Quorum Present. Once a quorum (five or more members) exists, the requirements for a public meeting usually apply. Caution: If five or more members attend a social or other function, they should not to discuss board matters. It is usually best to avoid get-togethers of five or more members without convening a public meeting.

Topics Which May be Discussed in Executive or Closed Sessions. The board may not close a meeting or go into executive session without first convening an open meeting at which a quorum (at least five members) is present. The board may meet in executive session to discuss:

Employment of public officers and employees.

Performance evaluation of public officers and employees.

Discipline of public officers and employees.

Labor negotiations.

Exempt public records.

Issues with legal counsel.

In addition, the board may meet in closed session to consider matters under appeal to the board as the Appeals Committee (discussed later).

Must Return to Open Session to Take Final Action. The board may not make a final decision or vote on matters in executive or closed sessions. The board must return to open session and then vote.

Electronic Meetings. A public meeting may be conducted by telephone conference or other electronic device. Members of the public must be provided at least one place where they may “listen” to the meeting by speakers or other devices.

Public Records Law Oregon records are open to the public unless the law provides otherwise. Oregon also requires state agencies that create records to retain those records for a specified period of time. From time to time, the CCB receives requests from the public for agency records.

Your responsibility as a board member is to provide CCB staff with a copy of any record you create as part of your official service (e.g. travel reports) and any record you receive from outside the agency in the course of your official service. This might include letters, emails or anything you receive from constituents, advocates or others that deal with board business or your official duties. If you provide documents to staff, staff will take care to follow the record retention schedules.

If you receive a records request, forward the request to agency staff. Staff will analyze the request and make the appropriate response. Please continue to retain (or turn over to staff) any documents you think may be subject to a public records request.

Some records that may be exempt from public disclosure:

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Records relating to litigation.

Records that contain trade secrets.

Test and examination materials.

Unfair labor practice complaints.

Personnel discipline actions.

Computer programs developed or purchased for the agency.

Board Member Handbook

Page 8

Board Processes Rulemaking From time to time, the board will be called upon to adopt rules. A rule is “any agency directive, standard, regulation or statement of general applicability that implements, interprets or prescribes law or policy.” Rules affect the public. Rules do not include internal agency policies.

Ordinarily, agency staff begins by meeting with interested stakeholders and others. Staff drafts proposed rules and a memorandum (or other document) explaining the need for the rules. The board considers these draft rules at a meeting. If satisfactory, a time for a rulemaking hearing is scheduled.

The agency provides notice of the time and place of the rulemaking hearing. At the rulemaking hearing, members of the public are allowed to comment on the proposed rules. Rule hearings are normally conducted by a CCB staff person designated by the agency as the hearings officer. After taking input, the board decides whether to adopt the rule as proposed, to modify and adopt the rule, or not to adopt the rule. The agency files adopted rules with the Oregon Secretary of State.

Administrative Hearings and Appeals The agency’s Enforcement Section issues “notices of intent” to contractors and others who violate Oregon law. If the person who receives the notice wants a hearing, the person sends a request to the agency. The agency forwards the request to the Office of Administrative Hearings (OAH), which assigns an administrative law judge (ALJ) to hear the matter. After hearing the matter, the ALJ prepares a proposed order.

If the person who requested the hearing is dissatisfied with the proposed order, the person may request that the board’s Appeal Committee hear an appeal.

The board appoints at least three board members to each Appeal Committee. The Appeal Committee must have at least one public member or elected official. Alternatively, the entire nine-member board may act as the Appeal Committee.

Staff provides the Appeal Committee with a copy of the ALJ’s proposed order as well as other documents outlining the issues before the committee. A short period of time is set for persons to appear before the Appeal Committee and state their concerns. The Appeal Committee is not tasked with obtaining any new information, but makes its decision based upon the information already in the record. After statements are made, the Appeal Committee may go into a closed meeting for purposes of deliberating on the appeal. The committee reconvenes in public and takes a vote. The committee may accept the proposed order, modify the proposed order or reverse the proposed order. In rare instances, the committee may send the matter back to the ALJ to conduct further proceedings.

After all proceedings conclude, the agency issues a final order. The person affected may appeal the agency’s final order to the Oregon Court of Appeals.

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Operations CCB’s day-to-day operations are conducted by its staff. The agency is managed by an administrator and four managers.

Organizational Chart

James Denno Administrator

Dana Zeimantz Business Services and HR Manager

Admin. Accounting

IT

Cheryl Martinis Communications

and Education Manager

Continuing Ed

Website Outreach

Laurie Hall Licensing Manager

Licensing Customer Services

Stan Jessup Enforcement

Manager

Dispute Resolution

Enforcement

Field Investigation

Kathleen Dahlin Policy Analyst

Leslie Culpepper Executive Assistant

Lorene Nakamura Operational

Transformation Project Manager

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Sections Office of the Administrator: The administrator is responsible for overall agency operations. The administrator, with the assistance of the managers, establishes agency policies and procedures. The administrator proposes legislation, recommends rules, issues final orders and determines agency practices. The administrator, assisted by a human resources analyst, makes personnel decisions.

Business Services: The Business Services Section oversees the following central services for the agency: human resources, information technology and financial management. These functions include budget, procurement, revenue, facilities and a broad range of human resources and information technology services.

Communications and Education: The Education Section develops the reference manual that is the basis for the required 16-hour pre-license training and testing. The agency website references the most current version of the manual. The section also approves pre-license trainers and their curricula.

The Education Section oversees the continuing education (CE) program, including approving providers and courses. The section also creates and produces courses to satisfy agency-specific CE requirements. The Education Section creates, maintains and updates the agency’s website and publications, and conducts outreach to consumers and contractors.

Licensing: The Licensing Section handles original and renewal licensing for approximately 38,000 contractors. The section tracks licensees’ bonds and insurance. If coverage expires, the Licensing Section suspends the license until proof of valid coverage is submitted.

The Licensing Section handles most contractor and consumer contacts with the agency – whether by phone, in person or by email.

Enforcement: The Enforcement Section encompasses field investigations, compliance and dispute resolution. Compliance officers review field investigation reports and monitor Craigslist and similar advertisements. The section issues notices of intent to impose sanctions. Sanctions include civil penalties and not issuing, suspending or revoking a contractor’s license.

Sometimes, the Enforcement Section settles cases. If the party fails to respond, the section issues a default final order. If the party requests a hearing, a compliance officer appears on behalf of the agency before an administrative law judge.

Dispute Resolution: The Dispute Resolution staff mediates disputes between residential contractors and their customers. If the dispute is mediated successfully, the dispute mediator will draw up a settlement agreement for the parties.

When a customer obtains a court judgment against a contractor, the Dispute Resolution Section determines the amount due. If the contractor fails to pay, the Dispute Resolution Section directs the bonding company to make the payment.

Field Investigations: Field investigators are stationed throughout the state. They conduct random job site visits to check licenses, as well as respond to complaints about unlawful activities.

Staff sometimes investigates complex cases, at times in conjunction with the Department of Justice or other law enforcement agencies.

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Ethics Oregon’s government ethics laws (ORS chapter 244) cover various situations. Some of the most common are listed below. However, you may want to consult the Ethics Commission about specific situations. They can be reached at ogec.mail@oregon.gov or 503-378-5105. The CCB schedules periodic training for the board with the Ethics Commission training providers.

Gifts: As a public official, you may not receive gifts worth more than $50 per calendar year from any one source with any economic interest in the board’s decisions. This rule also applies if the gifts are given to people you live with or to your immediate relatives.

However, if the person with the economic interest giving you a gift is also a person with whom you live or a spouse, domestic partner, child, sibling or parent, then you may receive the gift.

Food and drink: Generally, the same rules that apply to gifts apply to food and drink.

There are some exceptions. You may consume incidental food or drink that is free to everyone at receptions (does not include sit-down dinners). You may also partake of food or drink when you speak at or participate in a scheduled program. If food or drink is offered at an official meeting or convention paid for by a federal, state, local or tribal government, an organization to which the board pays membership dues, or a 501(c)(3) nonprofit, you may consume the food or drink without violating the law.

Travel: Generally, the same rules that apply to gifts apply to travel. Any travel paid for by a third-party should be preapproved by the board.

There are some exceptions. You may travel together with another public official to an in-state event that you are attending in your official capacity without splitting the cost of travel. Also, if travel is offered to an official meeting or convention paid for by a federal, state, local or tribal government, an organization to which the board pays membership dues, or a 501(c)(3) nonprofit, you may accept without violating the law.

Entertainment: You may not receive any gift of entertainment (even if worth less than $50) from a source with any economic interest in the board’s decisions. This does not include incidental entertainment, for example, a guitarist in the corner of a restaurant.

Restrictions on Political Campaigning Oregon law (ORS 260.432) states that a public employee may not, while on the job during working hours, promote or oppose election petitions, candidates, political committee or ballot measures. Additionally, no person, including elected officials, may require a public employee to do so. A “public employee” includes public officials who are not elected, whether they are paid or unpaid, including appointed boards and commissions.

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Law Summary The agency administers the Construction Contractors Licensing Act, as set forth in the Oregon Revised Statutes (ORS) at 701.002 to 701.995. The agency is also governed by ORS chapter 670, which relates to certain occupational and professional boards.

The agency’s rules, which further implement the law, are found at Oregon Administrative Rules (OAR) 812-001-0030 to 812-032-0150.

The following table outlines key laws that the agency administers.

Topic Statutes Rules Board 670.300 to 670.306; 701.205 to

701.225; 701.260 812-001-0051

Civil Penalties 701.255; 701.992 – 701.995 812-005-0800

Continuing Education 701.082 to 701.086; 701.265 to 701.267

812-020-0050 to 812-020-0090 (commercial); 812-022-0000 to 812-022-0047 (residential)

Contracts and Notices 701.305 to 701.340 812-001-0200; 812-012-0110 to 812-012-0140

Dispute Resolution 701.131 to 701.180 812-004-0001 to 812-004-1600

Energy Efficiency Program 701.119 812-025-0000 to 812-025-0045

Enforcement 701.094 to 701.109 812-005-0100 to 812-005-0800; 812-009-0300 to 812-009-0350

Home Energy Assessment Contractors

701.527 to 701.536 812-032-0000 to 812-032-0150

Home Inspectors 701.350 to 701.360 812-008-0000 to 812-008-0214

Home Service Agreement Contractors

701.610

Lead-Based Paint Renovation 701.515 812-007-0300 to 812-007-0374

Lead-Based Paint 701.500 to 701.520 812-007-0000 to 812-007-0374

Licensing 701.021 to 701.081; 701.112 to 701.117

812-003-0100 to 812-003-0440

Locksmiths 701.475 to 701.495 812-030-0000 to 812-030-0300

Notice of Defects 701.560 to 701.600

Rulemaking 670.310; 701.235 812-001-0100 to 812-001-0120

Training/testing 701.122 812-006-0100 to 812-006-0450

Construction Contractors Board The Construction Contractors Board (CCB) protects Oregonians by preventing and resolving construction contracting problems. CCB’s mission is to:

• Establish licensing standards for construction contractors • Enforce construction contractor laws • Educate the public about licensing requirements • Mediate disputes between homeowners and licensed contractors

The Builders Board was established in 1971 to regulate residential homebuilders. The nine-member board became the Construction Contractors Board in 1990 with regulatory authority expanded to include commercial contractors. Management Team

James Denno, Administrator: 503-934-2184 or james.s.denno@state.or.us. Stan Jessup, Enforcement Manager: 503-934-2188 or stan.m.jessup@state.or.us. Laurie Hall, Licensing Manager: 503-934-2199 or laurie.hall@state.or.us. Cheryl Martinis, Communications & Education Manager: 503-934-2195 or cheryl.martinis@state.or.us. Dana Zeimantz, Business Services & HR Manager: 503-934-2337 or dana.zeimantz@state.or.us. Lorene Nakamura, Operational Transformation Project Manager: 503-934-2187 or lorene.l.nakamura@state.or.us.

Customer Service Licensing questions: 503-378-4621 or ccb.info@state.or.us. Report unlicensed contractors: 503-934-2246 or ccbtips@state.or.us Continuing education questions: 503-934-2227 or ccbeducation@state.or.us. Mediation (dispute resolution) questions: 503-934-2247 or ccbdisputes@state.or.us Lead-based paint regulation: 503-378-4621 or lbptip@state.or.us. Rule status: 503-934-2228 or leslie.culpepper@state.or.us. • Licensing fees: 80 percent • Education: 11 percent • Civil penalties: 9 percent (80% goes to state General Fund)

Fulfilling an expanding mission with limited resources.

Our Mission

2007-09 2009-11 2011-13 2013-15 2015-17 2017-19

Licensees 47,000 43,000 39,000 35,000 35,000 38,000

Budget $15.4 million $15.1 million h$15.1 million 15.9 million $15.1 million $15.9 million

Employees 85 80 76 75 62 61

Our People

Our Funding

Our Challenge

Enforcement: Unlicensed contractors, paying employees under the table to avoid employment and workers’ compensation requirements, and illegal advertising, harm the public, workers and the construction industry. Licensing: In addition to residential and commercial contractors, CCB’s mission has expanded to include licensing home inspectors, locksmiths, energy assessors, home services contractors, restoration contractors and road flaggers. Education: The CCB needs to devote increasing resources to creating and maintaining meaningful pre-licensure and continuing education classes for contractors, and to increasing the public’s awareness of the requirements and benefits of using licensed contractors.

Online services: In today’s world, it is essential for contractors and the public to be able to conduct business online. Our existing databases and online systems need updating to make them efficient and user-friendly.

Public protection: Focus on our core mission of protecting the public through licensing contractors, enforcing construction contracting laws, and public outreach.

• Move to national license testing standards where appropriate. • Improve strategic enforcement efforts across the state to root out unlicensed contractors. • Partner with other agencies to share information and improve enforcement coordination. • Improve response times for dispute resolution services. • Revise continuing education requirements to increase the variety and quality of available courses, and reduce

the cost for licensees. • Increase outreach to raise public awareness of the requirements and benefits of using licensed contractors. • Provide excellent customer service across all programs.

Make it easier to conduct business online: Upgrade our technology tools to expand and improve online services.

• Improve online systems for license applications, renewals, and continuing education tracking. • Improve web-based license search tools to provide better information to the public. • Create mobile app to search license database and report unlicensed contractors.

Live within our means: Achieve efficiencies that allow us to improve operations with existing staff.

• Remove unnecessary or redundant administrative rules and procedures. • Collaborate with state and local government agencies to share information. • Increase collaboration with the Building Codes Division to coordinate resources.

Innovate: Work creatively to do more with less.

• Reduce fees and explore new models for providing pre-licensure training and continuing education. • Utilize resources provided by the National Association of State Contractors Licensing Agencies. • Promote a culture of innovation throughout the agency.

Our Challenge

Our Strategy