OAR 839-015-0157: Procedure for Obtaining Reduction in the Amount of Required Aggregate Bonding When More than One Individual Is Required to Be Licensed in One Entity

(1) Labor contractors desiring to apply for a reduction in the required bond or deposit may do so by submitting an application to the Bureau of Labor and Industries. (2) Applications shall be in writing and on forms provided by the bureau. All completed applications must be mailed or delivered to the Bureau of Labor and Industries, Wage and Hour Division, License Unit, 3865 Wolverine Street, NE, Bldg. E-1, Salem, OR 97305. (3) No such application shall be considered unless the commissioner determines that: (a) The application pertains to a single business entity; and (b) More than one natural person is an owner or employee of the business entity; and (c) Such persons engage in activities requiring a labor contractor's license; and (d) Such persons engage in such activities solely for the business entity. (4) In the case of a corporate surety bond, applications must be accompanied by a statement from the licensee's bonding agent or agents certifying the length of time the licensee has been bonded by the agent and that there have been no valid claims against the licensee's bond during that time. If the license utilized more than one bonding agent, a statement is required from each agent. (5) No application may be granted unless the business entity has operated for at least one year without a valid claim in this or any other state against the bond or deposit. (6) When the commissioner is satisfied that the business entity has presented adequate proof that it has operated for at least one year without a valid claim against its bond or deposit, and when the commissioner determines that the conditions set out in sections (3) and (5) of this rule are met, the commissioner may grant an application for a reduction in the aggregate amount of the required bond or deposit. (7) In determining whether to grant the application, the commissioner shall consider the following circumstances: (a) All matters contained in the application; (b) The number of licensees; (c) The type of business entity; (d) The history of each licensee in complying with any law; (e) Whether the licensees are dealing directly or indirectly with employees; (f) The number of employees employed by the business entity; (g) The character, competence or reliability of the licensees, as those terms are used in these rules; (h) Other information bearing on the circumstances of the application. (8) When the commissioner determines to grant an application for lower aggregate bonding requirements for a business entity and its owners pursuant to sections (5) and (6) of this rule, the application will be granted to permit a total aggregate bond or deposit in the amount required by OAR 839-015-0210 for one licensee with a corresponding number of employees: (9) When the commissioner grants an application for lower aggregate bonding requirements for a business entity and its owners, the required amount of aggregate bond or deposit may be divided among the licensees as they may agree, so long as each is obligated; in the absence of an agreement, the required amount shall be divided equally among them. (10) Notwithstanding section (8) of this rule, when the commissioner determines to grant an application for lower aggregate bonding requirements for a business entity and its owners pursuant to section (6) of this rule, the entity must post an aggregate bond or deposit in the minimum amount specified in ORS 658.415 or 658.735, whichever is greater. (11) The commissioner may specify conditions, if any, on the approval of the application. (12) If the commissioner rejects the application, the reasons for the rejection will be specified. (13) The commissioner may, for good cause shown, revoke the licensee's authorization to post a reduced bond or deposit. "Good cause" includes but is not limited to the following situations: (a) A valid claim is filed against the bond or deposit of the business entity or licensee who is an owner or employee; (b) The business entity ceases operating the business for which the bond or deposit was accepted; (c) Failure to pay wages to the employees when due; (d) Failure to pay advances made to or on behalf of the licensee by construction property owners, owners or property managers of property where janitorial services are or were to be performed, growers or producers of agricultural products or by owners or lessees of land intended to be used for the production of timber; (e) The business entity, its licensees, its agents or employees during the course of their employment, cause damage to any person by reason of willful misrepresentation, fraud, deceit or other unlawful act or omission; (f) The business entity, including any licensee, agent or employee, acting in the course of employment, has engaged in labor contracting activities on behalf of anyone other than the business entity.