Or. Admin. R. 839-014-0085 - Use of Certain Agents Prohibited/Evidence of Sham or Subterfuge

(1) The bureau may refuse to issue indorsements to any person who proposes to use any individual, partnership, association, corporation or other entity as such persons' agent for the performance of any activity specified in ORS 658.405(1), when the proposed agent has, within the preceding three years, violated any section of ORS 658.405 to 658.485.

(2) The bureau will regard as prima facie evidence of sham or subterfuge mere changes in business form 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 farm or forest labor contractor, makes application, including a renewal application, for a license and indorsement if 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 similar business name of the former business;

(c) The time period elapsed between the bureau's denial, suspension, revocation or refusal to renew a license and application by the new business for a license is less than one year;

(d) A person financially interested in any capacity in the former business has a financial interest in any capacity in the new business;

(e) The amount of capitalization is inadequate to meet current obligations of the new business; or

(f) 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.

Notes

Or. Admin. R. 839-014-0085

BL 2-1990, f. & cert. ef. 3-1-90; BL 1-1996, f. & cert. ef. 1-9-96

Stat. Auth.: ORS 164, ORS 165, ORS 651, ORS 658 & ORS 962

Stats. Implemented: ORS 658.705 - ORS 658.850