OAR 839-015-0142: Use of Certain Agents Prohibited/Evidence of Sham or Subterfuge

(1) The Bureau may refuse to license or renew the license of any person who proposes to use any individual, partnership, association, corporation or other entity as such person's agent for the performance of any activity specified in ORS 658.405(4), when the proposed agent has, within the preceding three years, violated any section of 658.405 to 658.485. (2) The Bureau may refuse to license or renew the license of any applicant where there is evidence of sham or subterfuge in the identity of the applying entity. The Bureau will regard as prima facie evidence of sham or subterfuge mere changes in business form in anticipation of or subsequent to denial, suspension, revocation or refusal to renew a license, where a relative by blood or marriage, or a person presently employed in an occupation, other than an occupation with a licensed labor contractor, makes application, including a renewal application, for a license and one or more of the following factors are present: (a) A lack of adequate consideration or value given for the former business or its property; (b) The use of the same real property, fixtures or equipment or use of a business name similar to that of the former business; (c) A time period of less than one year elapsed between the former entity's receipt of notice of the Bureau's intent to deny, suspend, revoke or refuse to renew its license or application and the license application by the new business; (d) A person financially interested in any capacity in the former business has a financial interest in any capacity in the new business; (e) Assets or capital of the former business are commingled with assets or capital of the new business; (f) The amount of capitalization is inadequate to meet current obligations of the new business; or (g) The formalities of a partnership or a corporation are disregarded by the new business when such business is a partnership or corporation. (3) When the factors outlined in section (2) of this rule are present, it shall be the burden of the applicant to provide evidence to the Bureau clearly indicating that such business form is not sham or subterfuge.