Bill would direct state agencies to track unlicensed construction labor contractors
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Summary
House Bill 4,012 A directs the Bureau of Labor and Industries and the Construction Contractors Board to carry out a temporary mission to identify and report on unlicensed labor contractors in construction, increase worksite screenings, and provide education to licensees; sponsors said the bill focuses on education rather than new punitive authority.
Representative Dacia Graber presented House Bill 4,012 A to the Senate Committee on Labor and Business on Feb. 16, 2026, describing it as a committee bill from the House Committee on Labor and Workforce Development. Graber said the bill tasks the Oregon Bureau of Labor and Industries (BOLI) and the Construction Contractors Board (CCB) with a temporary mission to track and report on the use of unlicensed labor contractors at construction worksites, incorporate screenings for unlicensed contractors into existing CCB worksite visits, and provide education to license holders ahead of the mission.
Graber said the measure is intended to begin with education rather than punishment: "This bill is an opportunity to get our arms around the problem, to start with education rather than punishment, to create a chilling effect, we hope, on exploits by increasing worksite check ins, and to arm our agencies with insight that will allow them to make informed recommendations for the next phase of discussion and policy," she said. Graber emphasized that BOLI may use information presented during the mission to aid enforcement duties but that the agencies' punitive powers are not being increased by this bill.
Kirsten Adams of the Associated General Contractors testified in support, saying the proposal will allow the state to be data-focused about unlicensed labor brokers, leading to more informed policy choices. Adams described the bill as protecting a level playing field and welcomed collaboration between the two agencies. The committee closed the public hearing on HB 4,012 A and scheduled a work session for Wednesday.
The bill's sponsors framed it as a narrowly tailored, investigatory and educational mission to reduce wage theft and other violations tied to unlicensed labor contractors, protect compliant employers, and recover state tax revenue lost to unlicensed activity. No formal committee vote occurred at the hearing; the next procedural step is the work session.
