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H0761aa....................................................by STATE AFFAIRS CONTRACTOR LICENSING - BONDS - Amends existing law relating to contractor licensing to authorize the Idaho Electrical Board to set forth bonding requirements and to set forth license application requirements; to revise powers and duties of the Idaho Plumbing Board and to set forth license application requirements; and to revise provisions applicable to requirements for certificates of competency for heating, ventilation and air conditioning contractors and specialty contractors. 03/02 House intro - 1st rdg - to printing 03/03 Rpt prt - to Bus 03/16 Rpt out - to Gen Ord 03/28 Rpt out amen - to engros 03/29 Rpt engros - 1st rdg - to 2nd rdg as amen 03/30 2nd rdg - to 3rd rdg as amen Rls susp - PASSED - 40-26-4 AYES -- Anderson, Barraclough, Bastian, Bell, Bilbao, Black, Block, Boe, Bradford, Chadderdon, Collins, Deal, Edmunson, Ellsworth, Eskridge, Field(18), Garrett, Henbest, Henderson, Jaquet, LeFavour, Martinez, Miller, Mitchell, Nonini, Pasley-Stuart, Pence, Ring, Ringo, Rusche, Rydalch, Sayler, Shepherd(2), Skippen, Smith(30), Smith(24), Snodgrass, Stevenson, Trail, Wills NAYS -- Andrus, Barrett, Bayer, Bedke, Bolz, Brackett, Cannon, Clark, Crow, Denney, Field(23), Hart, Harwood, Lake, Loertscher, Mathews, McKague, Moyle, Nielsen, Raybould, Roberts, Sali, Schaefer, Shepherd(8), Shirley, Wood Absent and excused -- Kemp, McGeachin, Smylie, Mr. Speaker Floor Sponsor - Black Title apvd - to Senate 03/31 Senate intro - 1st rdg - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 761 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO CONTRACTOR LICENSING; AMENDING SECTION 54-1003, IDAHO CODE, TO 3 REQUIRE THAT LICENSE APPLICATIONS FOR ELECTRICAL CONTRACTORS AND SPECIALTY 4 ELECTRICAL CONTRACTORS BE ACCOMPANIED BY A BOND, TO SET AN AMOUNT FOR THE 5 BOND, TO PROVIDE TERMS AND CONDITIONS, TO REQUIRE THAT SUCH APPLICATIONS 6 BE ACCOMPANIED BY PROOF OF LIABILITY INSURANCE, TO SET AN AMOUNT FOR SUCH 7 INSURANCE AND TO REQUIRE THAT SUCH APPLICATIONS BE ACCOMPANIED BY PROOF OF 8 WORKER'S COMPENSATION INSURANCE, IF APPLICABLE; AMENDING SECTION 54-2606, 9 IDAHO CODE, TO DELETE LANGUAGE RELATING TO BONDS, TO REQUIRE THAT LICENSE 10 APPLICATIONS FROM PLUMBING CONTRACTORS BE ACCOMPANIED BY A BOND, TO SET AN 11 AMOUNT FOR THE BOND, TO PROVIDE TERMS AND CONDITIONS, TO REQUIRE THAT SUCH 12 APPLICATIONS BE ACCOMPANIED BY PROOF OF LIABILITY INSURANCE, TO SET AN 13 AMOUNT FOR SUCH INSURANCE AND TO REQUIRE THAT SUCH APPLICATIONS BE ACCOM- 14 PANIED BY PROOF OF WORKER'S COMPENSATION INSURANCE, IF APPLICABLE; AND 15 AMENDING SECTION 54-5007, IDAHO CODE, TO DELETE LANGUAGE RELATING TO 16 BONDS, TO REQUIRE THAT LICENSE APPLICATIONS FROM HEATING, VENTILATION AND 17 AIR CONDITIONING CONTRACTORS AND SPECIALTY CONTRACTORS BE ACCOMPANIED BY A 18 BOND, TO SET AN AMOUNT FOR THE BOND, TO PROVIDE TERMS AND CONDITIONS, TO 19 REQUIRE THAT SUCH APPLICATIONS BE ACCOMPANIED BY PROOF OF LIABILITY INSUR- 20 ANCE, TO SET THE AMOUNT FOR SUCH INSURANCE AND TO REQUIRE THAT SUCH APPLI- 21 CATIONS BE ACCOMPANIED BY PROOF OF WORKER'S COMPENSATION INSURANCE, IF 22 APPLICABLE. 23 Be It Enacted by the Legislature of the State of Idaho: 24 SECTION 1. That Section 54-1003, Idaho Code, be, and the same is hereby 25 amended to read as follows: 26 54-1003. ADMINISTRATOR AUTHORITY. (1) Only the administrator of the divi- 27 sion of building safety of the state of Idaho is authorized and empowered to 28 conduct examinations and to pass upon the qualifications of applicants, and to 29 grant and issue licenses or registrations to such applicants as are found to 30 be qualified to engage in the trade, business or calling of a journeyman elec- 31 trician, electrical contractor, master electrician, specialty electrician, 32 specialty electrical contractor, specialty electrical trainee or apprentice 33 electrician in the manner and upon the terms and conditions hereinafter pro- 34 vided. 35 (2) License applications for electrical and specialty electrical contrac- 36 tors shall be accompanied by a bond in the amount of ten thousand dollars 37 ($10,000) executed by a surety company authorized to do business in Idaho as 38 surety with the applicant as principal and the state of Idaho as obligee, for 39 its benefit and that of consumers dealing with the applicant, conditioned that 40 the applicant shall faithfully perform the duties and in all things comply 41 with the laws and rules pertaining to the license or registration applied for 42 and shall pay all amounts due to the consumer for reason of the contractor's 43 breach of contract including negligent or improper work in the conduct of the 2 1 contracting business or failure to fully perform a contract. In order for a 2 claim to be payable by the surety, it must be established that the claim is 3 within the scope of the bond as described in this subsection; however, it is 4 not necessary for a claimant to reduce a claim to judgment before submitting a 5 claim to the surety. 6 The bond shall be continuous unless canceled as provided for in this sub- 7 section, and the aggregate liability of the surety, regardless of the number 8 of claims made against the bond or the number of years the bond remains in 9 force, shall in no event exceed the amount of the bond. The bond may be termi- 10 nated at any time by the surety upon sending thirty (30) days' notice in writ- 11 ing to the state of Idaho at the office where the bond is filed and to the 12 contractor. 13 (3) License applications for electrical contractors and specialty elec- 14 trical contractors shall also be accompanied by proof of liability insurance 15 in the amount of three hundred thousand dollars ($300,000) and proof of wor- 16 ker's compensation insurance, if applicable. 17 (4) No licenses granted hereunder shall be transferable. Licenses shall 18 be issued upon the condition that the holder thereof shall comply with all 19 provisions of this chapter. 20 (35) The administrator of the division of building safety is authorized 21 to impose civil penalties as provided in this chapter. 22 SECTION 2. That Section 54-2606, Idaho Code, be, and the same is hereby 23 amended to read as follows: 24 54-2606. POWERS AND DUTIES OF THE IDAHO PLUMBING BOARD. (1) The board 25 shall have the general administration and supervision of the design, construc- 26 tion, installation, improvement, extension and alteration of plumbing and 27 plumbing systems, except that which has been heretofore and hereinafter 28 exempted from the jurisdiction of this board, in connection with all build- 29 ings, residences and structures in this state including buildings, residences 30 and structures owned by the state or any political subdivision thereof. 31 (2) The division of building safety shall enforce the minimum standards 32 and requirements therefor as provided by this chapter. 33 (3) The board may exercise such powers and duties as are reasonably nec- 34 essary to carry out the provisions of this chapter, and it may among other 35 things: 36 (a) Establish the fees to be charged for permits and inspections of 37 plumbing systems. 38 (b) Hold public meetings and attend or be represented at such meetings, 39 within or without the state, prepare and publish rules pertaining to this 40 chapter, and such other information as may be necessary, and furnish cop- 41 ies thereof to those engaged in the business, trade, practice or work of 42 plumbing and pipefitting and to the public upon request. 43 (c) Furnish standards and procedures and prescribe reasonable rules for 44 examinations, qualification and certification of plumbing contractors and 45 journeymen and apprentice plumbers not herein prescribed., including the46furnishing of a compliance bond in an amount not to exceed two thousand47dollars ($2,000) for the contractor classification or evidence of such48coverage by a corporate industry group bond acceptable to the board.49 (d) Furnish standards and procedures and prescribe reasonable rules to 50 provide for the certification of specialty contractors, specialty journey- 51 men, and specialty apprentices, including the furnishing of a compliance 52 bond in an amount not to exceed two thousand dollars ($2,000) for the spe- 53 cialty contractor classification or evidence of coverage by a corporate 3 1 industry group bond acceptable to the board. 2 (e) Establish by administrative rule civil penalties not to exceed one 3 thousand dollars ($1,000) for each count or separate offense, to be paid 4 for violations of this chapter and rules of the Idaho plumbing board; and 5 to establish by administrative rule the process by which appeals from the 6 imposition of civil penalties may be heard. The board is authorized to 7 affirm, reject, decrease or increase the penalty imposed; however, the 8 board shall not increase any penalty imposed to an amount exceeding one 9 thousand dollars ($1,000) for each individual count or separate offense. 10 (f) License applications for plumbing contractors shall be accompanied by 11 a bond in the amount of ten thousand dollars ($10,000) executed by a 12 surety company authorized to do business in Idaho as surety with the 13 applicant as principal and the state of Idaho as obligee, for its benefit 14 and that of consumers dealing with the applicant, conditioned that the 15 applicant shall faithfully perform the duties and in all things comply 16 with the laws and rules pertaining to the license applied for and shall 17 pay all amounts due to the consumer for reason of the contractor's breach 18 of contract including negligent or improper work in the conduct of the 19 contracting business or failure to fully perform a contract. In order for 20 a claim to be payable by the surety, it must be established that the claim 21 is within the scope of the bond as described in this paragraph; however, 22 it is not necessary for a claimant to reduce a claim to judgment before 23 submitting a claim to the surety. The bond shall be continuous unless can- 24 celed as provided for in this paragraph, and the aggregate liability of 25 the surety, regardless of the number of claims made against the bond or 26 the number of years the bond remains in force, shall in no event exceed 27 the amount of the bond. The bond may be terminated at any time by the 28 surety upon sending thirty (30) days' notice in writing to the state of 29 Idaho at the office where the bond is filed and to the contractor. 30 (g) License applications for plumbing contractors shall also be accompa- 31 nied by proof of liability insurance in the amount of three hundred thou- 32 sand dollars ($300,000) and proof of worker's compensation insurance, if 33 applicable. 34 SECTION 3. That Section 54-5007, Idaho Code, be, and the same is hereby 35 amended to read as follows: 36 54-5007. REQUIREMENTS FOR CERTIFICATES OF COMPETENCY. (1) The Idaho heat- 37 ing, ventilation and air conditioning board shall provide standards and proce- 38 dures and prescribe reasonable rules for examination, qualification and certi- 39 fication of heating, ventilation and air conditioning contractors, journeymen, 40 apprentices, specialty contractors, specialty journeymen and specialty appren- 41 tices.HVAC contractors and specialty contractors shall provide a bond in the42amount of two thousand dollars ($2,000) or evidence of such coverage by a cor-43porate industry group bond acceptable to the board.44 (2) Applications for certificates of competency for heating, ventilation 45 and air conditioning contractors and specialty contractors shall be accompa- 46 nied by a bond in the amount of ten thousand dollars ($10,000) executed by a 47 surety company authorized to do business in Idaho as surety with the applicant 48 as principal and the state of Idaho as obligee, for its benefit and that of 49 consumers dealing with the applicant, conditioned that the applicant shall 50 faithfully perform the duties and in all things comply with the laws and rules 51 pertaining to the license applied for and shall pay all amounts due to the 52 consumer for reason of the contractor's breach of contract including negligent 53 or improper work in the conduct of the contracting business or failure to 4 1 fully perform a contract. In order for a claim to be payable by the surety, it 2 must be established that the claim is within the scope of the bond as 3 described in this subsection; however, it is not necessary for a claimant to 4 reduce a claim to judgment before submitting a claim to the surety. 5 The bond shall be continuous unless canceled as provided for in this sub- 6 section and the aggregate liability of the surety, regardless of the number of 7 claims made against the bond or the number of years the bond remains in force, 8 shall in no event exceed the amount of the bond. The bond may be terminated at 9 any time by the surety upon sending thirty (30) days' notice in writing to the 10 state of Idaho at the office where the bond is filed and to the contractor. 11 (3) License applications for heating, ventilation and air conditioning 12 contractors and specialty contractors shall also be accompanied by proof of 13 liability insurance in the amount of three hundred thousand dollars ($300,000) 14 and proof of worker's compensation insurance, if applicable.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006Moved by Deal Seconded by Black IN THE HOUSE OF REPRESENTATIVES HOUSE AMENDMENTS TO H.B. NO. 761 1 AMENDMENTS TO SECTION 1 2 On page 1 of the printed bill, in line 24, delete "54-1003" and insert: 3 "54-1006"; delete lines 26 through 43, and on page 2 delete lines 1 through 21 4 and insert: 5 "54-1006. IDAHO ELECTRICAL BOARD. (1) The Idaho electrical board, herein- 6 after known as the board, is hereby created and made a part of the division of 7 building safety. It shall be the responsibility and duty of the administrator 8 of the division of building safety to administer and enforce the provisions of 9 thisactchapter, and to serve as secretary to the Idaho electrical board. 10 (2) The board shall consist of nine (9) members to be appointed by the 11 governor with power of removal for cause. Two (2) members shall be licensed 12 journeymen or master electricians; two (2) members shall be employees or offi- 13 cers of licensed electrical contractors; one (1) member shall be a licensed 14 specialty journeyman or contractor; one (1) member shall be an employee or 15 officer of an electrical power provider; one (1) member shall be an employee 16 or officer of a manufacturing plant or other large power user; one (1) member 17 shall be an employee or director of a manufacturer or distributor of electri- 18 cal supplies or materials; and one (1) member shall be from the public at 19 large not directly associated with the electrical industry. Board members 20 shall be appointed for a term of four (4) years. Members of the board shall 21 hold office until expiration of the term to which the member was appointed and 22 until his successor has been duly appointed and qualified. Whenever a vacancy 23 occurs, the governor shall appoint a qualified person to fill the vacancy for 24 the unexpired portion of the term. 25 (3) All members of the board shall be citizens of the United States, res- 26 idents of this state for not less than two (2) years and shall be qualified by 27 experience, knowledge and integrity in formulating rules for examinations, in 28 passing on the fitness and qualifications of applicants for electrical con- 29 tractor and journeyman electrician licenses and in establishing standards for 30 electrical products to be used in electrical installations coming under the 31 provisions of thisactchapter. 32 (4) The members of the board shall, at their first regular meeting fol- 33 lowing the effective date of this act and every two (2) years thereafter, 34 elect by majority vote of the members of the board, a chairman who shall pre- 35 side at meetings of the board. In the event the chairman is not present at any 36 board meeting, the board may by majority vote of the members present appoint a 37 temporary chairman. A majority of the members of the board shall constitute a 38 quorum. 39 (5) The board is authorized and directed to prescribe and amend rules 40 consistent with thisactchapter for the administration of this chapter and to 41 effectuate the purpose thereof, and for the examination and licensing of elec- 42 trical contractors, journeyman electricians, master electricians, specialty 43 electricians, specialty electrical contractors, specialty electrical trainees 2 1 and apprentice electricians. The board shall also establish the classifica- 2 tions for specialty electrician and specialty electrical contractor licensing 3 and the fees to be charged for permits and inspections of electrical systems. 4 The board shall establish by administrative rule the fines to be paid for 5 citations issued and shall hear appeals regarding the imposition of civil pen- 6 alties for violations of this chapter and the rules of the Idaho electrical 7 board. The board is authorized to affirm, reject, decrease or increase the 8 penalty imposed by the administrator. However, in no case shall the penalty 9 exceed one thousand dollars ($1,000) for each offense. 10 (6) Each member of the board not otherwise compensated by public moneys 11 shall be compensated as provided by section 59-509(h), Idaho Code. 12 (7) The board shall require applicants for issuance or renewal of an 13 electrical or specialty electrical contractor license to file with the board a 14 bond with one (1) or more corporate surety companies authorized to do business 15 in this state as follows: 16 (a) The bond shall be conditioned that an electrical or specialty elec- 17 trical contractor faithfully comply with applicable rules of the board and 18 the terms of any contract that may be included within the scope of such 19 bond as may be determined by the board. The board shall adopt rules to 20 implement the provisions of this paragraph (a); 21 (b) The bond shall be in the amount of ten thousand dollars ($10,000), 22 executed by a surety company with the applicant as principal and the state 23 of Idaho as obligee, for its benefit and that of consumers dealing with 24 the applicant; provided however, the board may reduce the amount of the 25 bond required by this paragraph (b) to five thousand dollars ($5,000) upon 26 a showing that the applicant does not perform work exceeding forty thou- 27 sand dollars ($40,000) in gross annual volume and does not enter into con- 28 tracts with consumers that exceed five thousand dollars ($5,000); 29 (c) A surety company shall pay all amounts due to a consumer pursuant to 30 a bond, provided that the board has determined that: 31 (i) An electrical or specialty electrical contractor has failed to 32 comply with any applicable rule adopted by the board; or 33 (ii) An electrical or specialty electrical contractor has breached a 34 contract with a consumer, including negligent or improper work in the 35 conduct of the contracting business or failure to fully perform a 36 contract, provided that such contract is within the scope of the 37 bond; 38 (d) In order for a claim to be payable by the surety company, it must be 39 established that the claim is within the scope of the bond provided in 40 this subsection (7); provided however, it is not necessary for a consumer 41 to reduce a claim to judgment through a court of competent jurisdiction 42 before submitting a claim to a surety company; 43 (e) A bond shall be continuous unless canceled as provided for in this 44 subsection (7), and the aggregate liability of a surety company, regard- 45 less of the number of claims made against the bond or the number of years 46 the bond remains in force, shall in no event exceed the amount of the 47 bond; and 48 (f) The bond may be terminated at any time by the contractor. A surety 49 company may terminate the bond on the anniversary date of the bond upon 50 providing thirty (30) days' written notice to the board and to an electri- 51 cal or specialty electrical contractor on whose behalf a bond has been 52 issued. 53 (8) License applications for electrical contractors and specialty elec- 54 trical contractors shall be accompanied by proof of liability insurance in the 55 amount of three hundred thousand dollars ($300,000) and proof of worker's com- 3 1 pensation insurance, if applicable.". 2 AMENDMENTS TO SECTION 2 3 On page 2, delete lines 51 through 53; and on page 3, delete line 1 and 4 insert: "men, and specialty apprentices, including the furnishing of a compli-5ance bond in an amount not to exceed two thousand dollars ($2,000) for the6specialty contractor classification or evidence of coverage by a corporate7industry group bond acceptable to the board."; also on page 3, delete lines 10 8 through 29 and insert: 9 "(f) Require applicants for issuance or renewal of a plumbing contractor 10 license to file with the board a bond with one (1) or more corporate 11 surety companies authorized to do business in this state as follows: 12 (i) The bond shall be conditioned that a plumbing contractor faith- 13 fully comply with applicable rules of the board and the terms of any 14 contract that may be included within the scope of such bond as may be 15 determined by the board. The board shall adopt rules to implement the 16 provisions of this paragraph (f)(i); 17 (ii) The bond shall be in the amount of ten thousand dollars 18 ($10,000), executed by a surety company with the applicant as princi- 19 pal and the state of Idaho as obligee, for its benefit and that of 20 consumers dealing with the applicant; provided however, the board may 21 reduce the amount of the bond required by this paragraph (ii) to five 22 thousand dollars ($5,000) upon a showing that the applicant does not 23 perform work exceeding forty thousand dollars ($40,000) in gross 24 annual volume and does not enter into contracts with consumers that 25 exceed five thousand dollars ($5,000); 26 (iii) A surety company shall pay all amounts due to a consumer pursu- 27 ant to a bond, provided that the board has determined that: 28 (A) A plumbing contractor has failed to comply with any appli- 29 cable rule adopted by the board; or 30 (B) A plumbing contractor has breached a contract with a con- 31 sumer, including negligent or improper work in the conduct of 32 the contracting business or failure to fully perform a contract, 33 provided that such contract is within the scope of the bond; 34 (iv) In order for a claim to be payable by the surety company, it 35 must be established that the claim is within the scope of the bond 36 provided in this paragraph (f); provided however, it is not necessary 37 for a consumer to reduce a claim to judgment through a court of com- 38 petent jurisdiction before submitting a claim to a surety company; 39 (v) A bond shall be continuous unless canceled as provided for in 40 this paragraph (f), and the aggregate liability of a surety company, 41 regardless of the number of claims made against the bond or the num- 42 ber of years the bond remains in force, shall in no event exceed the 43 amount of the bond; and 44 (vi) The bond may be terminated at any time by the contractor. A 45 surety company may terminate the bond on the anniversary date of the 46 bond upon providing thirty (30) days' written notice to the board and 47 to the plumbing contractor on whose behalf a bond has been issued.". 48 AMENDMENTS TO SECTION 3 49 On page 3, delete lines 44 through 53; and on page 4, delete lines 1 50 through 10 and insert: 51 "(2) The board shall require applicants for issuance or renewal of a 52 heating, ventilation and air conditioning contractor or specialty contractor 53 certificate of competency to file with the board a bond with one (1) or more 4 1 corporate surety companies authorized to do business in this state as follows: 2 (a) The bond shall be conditioned that a heating, ventilation and air 3 conditioning contractor or specialty contractor faithfully comply with 4 applicable rules of the board and the terms of any contract that may be 5 included within the scope of such bond as may be determined by the board. 6 The board shall adopt rules to implement the provisions of this paragraph 7 (a); 8 (b) The bond shall be in the amount of ten thousand dollars ($10,000), 9 executed by a surety company with the applicant as principal and the state 10 of Idaho as obligee, for its benefit and that of consumers dealing with 11 the applicant; provided however, the board may reduce the amount of the 12 bond required by this paragraph (b) to five thousand dollars ($5,000) upon 13 a showing that the applicant does not perform work exceeding forty thou- 14 sand dollars ($40,000) in gross annual volume and does not enter into con- 15 tracts with consumers that exceed five thousand dollars ($5,000); 16 (c) A surety company shall pay all amounts due to a consumer pursuant to 17 a bond, provided that the board has determined that: 18 (i) A heating, ventilation and air conditioning contractor or spe- 19 cialty contractor has failed to comply with any applicable rule 20 adopted by the board; or 21 (ii) A heating, ventilation and air conditioning contractor or spe- 22 cialty contractor has breached a contract with a consumer, including 23 negligent or improper work in the conduct of the contracting business 24 or failure to fully perform a contract, provided that such contract 25 is within the scope of the bond; 26 (d) In order for a claim to be payable by the surety company, it must be 27 established that the claim is within the scope of the bond provided in 28 this subsection (2); provided however, it is not necessary for a consumer 29 to reduce a claim to judgment through a court of competent jurisdiction 30 before submitting a claim to a surety company; 31 (e) A bond shall be continuous unless canceled as provided for in this 32 subsection (2), and the aggregate liability of a surety company, regard- 33 less of the number of claims made against the bond or the number of years 34 the bond remains in force, shall in no event exceed the amount of the 35 bond; and 36 (f) The bond may be terminated at any time by the contractor. A surety 37 company may terminate the bond on the anniversary date of the bond upon 38 providing thirty (30) days' written notice to the board and to a heating, 39 ventilation and air conditioning contractor or specialty contractor on 40 whose behalf a bond has been issued."; 41 also on page 4, in line 11, delete "License" and insert: "Certificate of com- 42 petency". 43 AMENDMENT TO THE BILL 44 On page 4, following line 14, insert: 45 "SECTION 4. This act shall be in full force and effect on and after July 46 1, 2007.". 47 CORRECTIONS TO TITLE 48 On page 1, delete lines 2 through 22 and insert: 49 "RELATING TO CONTRACTOR LICENSING; AMENDING SECTION 54-1006, IDAHO CODE, TO 50 AUTHORIZE THE IDAHO ELECTRICAL BOARD TO SET FORTH BONDING REQUIREMENTS, TO 51 SET FORTH LICENSE APPLICATION REQUIREMENTS AND TO REVISE TERMINOLOGY; 52 AMENDING SECTION 54-2606, IDAHO CODE, TO REVISE THE POWERS AND DUTIES OF 53 THE IDAHO PLUMBING BOARD AND TO SET FORTH LICENSE APPLICATION REQUIRE- 5 1 MENTS; AMENDING SECTION 54-5007, IDAHO CODE, TO REVISE PROVISIONS APPLICA- 2 BLE TO REQUIREMENTS FOR CERTIFICATES OF COMPETENCY FOR HEATING, VENTILA- 3 TION AND AIR CONDITIONING CONTRACTORS AND SPECIALTY CONTRACTORS; AND PRO- 4 VIDING AN EFFECTIVE DATE.".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 761, As Amended BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO CONTRACTOR LICENSING; AMENDING SECTION 54-1006, IDAHO CODE, TO AU- 3 THORIZE THE IDAHO ELECTRICAL BOARD TO SET FORTH BONDING REQUIREMENTS, TO 4 SET FORTH LICENSE APPLICATION REQUIREMENTS AND TO REVISE TERMINOLOGY; 5 AMENDING SECTION 54-2606, IDAHO CODE, TO REVISE THE POWERS AND DUTIES OF 6 THE IDAHO PLUMBING BOARD AND TO SET FORTH LICENSE APPLICATION REQUIRE- 7 MENTS; AMENDING SECTION 54-5007, IDAHO CODE, TO REVISE PROVISIONS APPLICA- 8 BLE TO REQUIREMENTS FOR CERTIFICATES OF COMPETENCY FOR HEATING, VENTILA- 9 TION AND AIR CONDITIONING CONTRACTORS AND SPECIALTY CONTRACTORS; AND PRO- 10 VIDING AN EFFECTIVE DATE. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Section 54-1006, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 54-1006. IDAHO ELECTRICAL BOARD. (1) The Idaho electrical board, herein- 15 after known as the board, is hereby created and made a part of the division of 16 building safety. It shall be the responsibility and duty of the administrator 17 of the division of building safety to administer and enforce the provisions of 18 thisactchapter, and to serve as secretary to the Idaho electrical board. 19 (2) The board shall consist of nine (9) members to be appointed by the 20 governor with power of removal for cause. Two (2) members shall be licensed 21 journeymen or master electricians; two (2) members shall be employees or offi- 22 cers of licensed electrical contractors; one (1) member shall be a licensed 23 specialty journeyman or contractor; one (1) member shall be an employee or 24 officer of an electrical power provider; one (1) member shall be an employee 25 or officer of a manufacturing plant or other large power user; one (1) member 26 shall be an employee or director of a manufacturer or distributor of electri- 27 cal supplies or materials; and one (1) member shall be from the public at 28 large not directly associated with the electrical industry. Board members 29 shall be appointed for a term of four (4) years. Members of the board shall 30 hold office until expiration of the term to which the member was appointed and 31 until his successor has been duly appointed and qualified. Whenever a vacancy 32 occurs, the governor shall appoint a qualified person to fill the vacancy for 33 the unexpired portion of the term. 34 (3) All members of the board shall be citizens of the United States, res- 35 idents of this state for not less than two (2) years and shall be qualified by 36 experience, knowledge and integrity in formulating rules for examinations, in 37 passing on the fitness and qualifications of applicants for electrical con- 38 tractor and journeyman electrician licenses and in establishing standards for 39 electrical products to be used in electrical installations coming under the 40 provisions of thisactchapter. 41 (4) The members of the board shall, at their first regular meeting fol- 42 lowing the effective date of this act and every two (2) years thereafter, 43 elect by majority vote of the members of the board, a chairman who shall pre- 2 1 side at meetings of the board. In the event the chairman is not present at any 2 board meeting, the board may by majority vote of the members present appoint a 3 temporary chairman. A majority of the members of the board shall constitute a 4 quorum. 5 (5) The board is authorized and directed to prescribe and amend rules 6 consistent with thisactchapter for the administration of this chapter and to 7 effectuate the purpose thereof, and for the examination and licensing of elec- 8 trical contractors, journeyman electricians, master electricians, specialty 9 electricians, specialty electrical contractors, specialty electrical trainees 10 and apprentice electricians. The board shall also establish the classifica- 11 tions for specialty electrician and specialty electrical contractor licensing 12 and the fees to be charged for permits and inspections of electrical systems. 13 The board shall establish by administrative rule the fines to be paid for 14 citations issued and shall hear appeals regarding the imposition of civil pen- 15 alties for violations of this chapter and the rules of the Idaho electrical 16 board. The board is authorized to affirm, reject, decrease or increase the 17 penalty imposed by the administrator. However, in no case shall the penalty 18 exceed one thousand dollars ($1,000) for each offense. 19 (6) Each member of the board not otherwise compensated by public moneys 20 shall be compensated as provided by section 59-509(h), Idaho Code. 21 (7) The board shall require applicants for issuance or renewal of an 22 electrical or specialty electrical contractor license to file with the board a 23 bond with one (1) or more corporate surety companies authorized to do business 24 in this state as follows: 25 (a) The bond shall be conditioned that an electrical or specialty elec- 26 trical contractor faithfully comply with applicable rules of the board and 27 the terms of any contract that may be included within the scope of such 28 bond as may be determined by the board. The board shall adopt rules to 29 implement the provisions of this paragraph (a); 30 (b) The bond shall be in the amount of ten thousand dollars ($10,000), 31 executed by a surety company with the applicant as principal and the state 32 of Idaho as obligee, for its benefit and that of consumers dealing with 33 the applicant; provided however, the board may reduce the amount of the 34 bond required by this paragraph (b) to five thousand dollars ($5,000) upon 35 a showing that the applicant does not perform work exceeding forty thou- 36 sand dollars ($40,000) in gross annual volume and does not enter into con- 37 tracts with consumers that exceed five thousand dollars ($5,000); 38 (c) A surety company shall pay all amounts due to a consumer pursuant to 39 a bond, provided that the board has determined that: 40 (i) An electrical or specialty electrical contractor has failed to 41 comply with any applicable rule adopted by the board; or 42 (ii) An electrical or specialty electrical contractor has breached a 43 contract with a consumer, including negligent or improper work in the 44 conduct of the contracting business or failure to fully perform a 45 contract, provided that such contract is within the scope of the 46 bond; 47 (d) In order for a claim to be payable by the surety company, it must be 48 established that the claim is within the scope of the bond provided in 49 this subsection (7); provided however, it is not necessary for a consumer 50 to reduce a claim to judgment through a court of competent jurisdiction 51 before submitting a claim to a surety company; 52 (e) A bond shall be continuous unless canceled as provided for in this 53 subsection (7), and the aggregate liability of a surety company, regard- 54 less of the number of claims made against the bond or the number of years 55 the bond remains in force, shall in no event exceed the amount of the 3 1 bond; and 2 (f) The bond may be terminated at any time by the contractor. A surety 3 company may terminate the bond on the anniversary date of the bond upon 4 providing thirty (30) days' written notice to the board and to an electri- 5 cal or specialty electrical contractor on whose behalf a bond has been 6 issued. 7 (8) License applications for electrical contractors and specialty elec- 8 trical contractors shall be accompanied by proof of liability insurance in the 9 amount of three hundred thousand dollars ($300,000) and proof of worker's com- 10 pensation insurance, if applicable. 11 SECTION 2. That Section 54-2606, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 54-2606. POWERS AND DUTIES OF THE IDAHO PLUMBING BOARD. (1) The board 14 shall have the general administration and supervision of the design, construc- 15 tion, installation, improvement, extension and alteration of plumbing and 16 plumbing systems, except that which has been heretofore and hereinafter 17 exempted from the jurisdiction of this board, in connection with all build- 18 ings, residences and structures in this state including buildings, residences 19 and structures owned by the state or any political subdivision thereof. 20 (2) The division of building safety shall enforce the minimum standards 21 and requirements therefor as provided by this chapter. 22 (3) The board may exercise such powers and duties as are reasonably nec- 23 essary to carry out the provisions of this chapter, and it may among other 24 things: 25 (a) Establish the fees to be charged for permits and inspections of 26 plumbing systems. 27 (b) Hold public meetings and attend or be represented at such meetings, 28 within or without the state, prepare and publish rules pertaining to this 29 chapter, and such other information as may be necessary, and furnish cop- 30 ies thereof to those engaged in the business, trade, practice or work of 31 plumbing and pipefitting and to the public upon request. 32 (c) Furnish standards and procedures and prescribe reasonable rules for 33 examinations, qualification and certification of plumbing contractors and 34 journeymen and apprentice plumbers not herein prescribed., including the35furnishing of a compliance bond in an amount not to exceed two thousand36dollars ($2,000) for the contractor classification or evidence of such37coverage by a corporate industry group bond acceptable to the board.38 (d) Furnish standards and procedures and prescribe reasonable rules to 39 provide for the certification of specialty contractors, specialty journey- 40 men, and specialty apprentices, including the furnishing of a compliance41bond in an amount not to exceed two thousand dollars ($2,000) for the spe-42cialty contractor classification or evidence of coverage by a corporate43industry group bond acceptable to the board. 44 (e) Establish by administrative rule civil penalties not to exceed one 45 thousand dollars ($1,000) for each count or separate offense, to be paid 46 for violations of this chapter and rules of the Idaho plumbing board; and 47 to establish by administrative rule the process by which appeals from the 48 imposition of civil penalties may be heard. The board is authorized to 49 affirm, reject, decrease or increase the penalty imposed; however, the 50 board shall not increase any penalty imposed to an amount exceeding one 51 thousand dollars ($1,000) for each individual count or separate offense. 52 (f) Require applicants for issuance or renewal of a plumbing contractor 53 license to file with the board a bond with one (1) or more corporate 4 1 surety companies authorized to do business in this state as follows: 2 (i) The bond shall be conditioned that a plumbing contractor faith- 3 fully comply with applicable rules of the board and the terms of any 4 contract that may be included within the scope of such bond as may be 5 determined by the board. The board shall adopt rules to implement the 6 provisions of this paragraph (f)(i); 7 (ii) The bond shall be in the amount of ten thousand dollars 8 ($10,000), executed by a surety company with the applicant as princi- 9 pal and the state of Idaho as obligee, for its benefit and that of 10 consumers dealing with the applicant; provided however, the board may 11 reduce the amount of the bond required by this paragraph (ii) to five 12 thousand dollars ($5,000) upon a showing that the applicant does not 13 perform work exceeding forty thousand dollars ($40,000) in gross 14 annual volume and does not enter into contracts with consumers that 15 exceed five thousand dollars ($5,000); 16 (iii) A surety company shall pay all amounts due to a consumer pursu- 17 ant to a bond, provided that the board has determined that: 18 (A) A plumbing contractor has failed to comply with any appli- 19 cable rule adopted by the board; or 20 (B) A plumbing contractor has breached a contract with a con- 21 sumer, including negligent or improper work in the conduct of 22 the contracting business or failure to fully perform a contract, 23 provided that such contract is within the scope of the bond; 24 (iv) In order for a claim to be payable by the surety company, it 25 must be established that the claim is within the scope of the bond 26 provided in this paragraph (f); provided however, it is not necessary 27 for a consumer to reduce a claim to judgment through a court of com- 28 petent jurisdiction before submitting a claim to a surety company; 29 (v) A bond shall be continuous unless canceled as provided for in 30 this paragraph (f), and the aggregate liability of a surety company, 31 regardless of the number of claims made against the bond or the num- 32 ber of years the bond remains in force, shall in no event exceed the 33 amount of the bond; and 34 (vi) The bond may be terminated at any time by the contractor. A 35 surety company may terminate the bond on the anniversary date of the 36 bond upon providing thirty (30) days' written notice to the board and 37 to the plumbing contractor on whose behalf a bond has been issued. 38 (g) License applications for plumbing contractors shall also be accompa- 39 nied by proof of liability insurance in the amount of three hundred thou- 40 sand dollars ($300,000) and proof of worker's compensation insurance, if 41 applicable. 42 SECTION 3. That Section 54-5007, Idaho Code, be, and the same is hereby 43 amended to read as follows: 44 54-5007. REQUIREMENTS FOR CERTIFICATES OF COMPETENCY. (1) The Idaho heat- 45 ing, ventilation and air conditioning board shall provide standards and proce- 46 dures and prescribe reasonable rules for examination, qualification and certi- 47 fication of heating, ventilation and air conditioning contractors, journeymen, 48 apprentices, specialty contractors, specialty journeymen and specialty appren- 49 tices.HVAC contractors and specialty contractors shall provide a bond in the50amount of two thousand dollars ($2,000) or evidence of such coverage by a cor-51porate industry group bond acceptable to the board.52 (2) The board shall require applicants for issuance or renewal of a heat- 53 ing, ventilation and air conditioning contractor or specialty contractor cer- 5 1 tificate of competency to file with the board a bond with one (1) or more cor- 2 porate surety companies authorized to do business in this state as follows: 3 (a) The bond shall be conditioned that a heating, ventilation and air 4 conditioning contractor or specialty contractor faithfully comply with 5 applicable rules of the board and the terms of any contract that may be 6 included within the scope of such bond as may be determined by the board. 7 The board shall adopt rules to implement the provisions of this paragraph 8 (a); 9 (b) The bond shall be in the amount of ten thousand dollars ($10,000), 10 executed by a surety company with the applicant as principal and the state 11 of Idaho as obligee, for its benefit and that of consumers dealing with 12 the applicant; provided however, the board may reduce the amount of the 13 bond required by this paragraph (b) to five thousand dollars ($5,000) upon 14 a showing that the applicant does not perform work exceeding forty thou- 15 sand dollars ($40,000) in gross annual volume and does not enter into con- 16 tracts with consumers that exceed five thousand dollars ($5,000); 17 (c) A surety company shall pay all amounts due to a consumer pursuant to 18 a bond, provided that the board has determined that: 19 (i) A heating, ventilation and air conditioning contractor or spe- 20 cialty contractor has failed to comply with any applicable rule 21 adopted by the board; or 22 (ii) A heating, ventilation and air conditioning contractor or spe- 23 cialty contractor has breached a contract with a consumer, including 24 negligent or improper work in the conduct of the contracting business 25 or failure to fully perform a contract, provided that such contract 26 is within the scope of the bond; 27 (d) In order for a claim to be payable by the surety company, it must be 28 established that the claim is within the scope of the bond provided in 29 this subsection (2); provided however, it is not necessary for a consumer 30 to reduce a claim to judgment through a court of competent jurisdiction 31 before submitting a claim to a surety company; 32 (e) A bond shall be continuous unless canceled as provided for in this 33 subsection (2), and the aggregate liability of a surety company, regard- 34 less of the number of claims made against the bond or the number of years 35 the bond remains in force, shall in no event exceed the amount of the 36 bond; and 37 (f) The bond may be terminated at any time by the contractor. A surety 38 company may terminate the bond on the anniversary date of the bond upon 39 providing thirty (30) days' written notice to the board and to a heating, 40 ventilation and air conditioning contractor or specialty contractor on 41 whose behalf a bond has been issued. 42 (3) Certificate of competency applications for heating, ventilation and 43 air conditioning contractors and specialty contractors shall also be accompa- 44 nied by proof of liability insurance in the amount of three hundred thousand 45 dollars ($300,000) and proof of worker's compensation insurance, if applica- 46 ble. 47 SECTION 4. This act shall be in full force and effect on and after July 48 1, 2007.
STATEMENT OF PURPOSE RS 16193 This legislation will apply identical insurance and bonding requirements to all electrical, plumbing, and heating and ventilating ("HVAC") contractors. Current Idaho code provisions provide different requirements for different trades. The new bonding requirements in this legislation provide that a consumer can obtain up to $10,000 for the failure of an electrical, plumbing, or HVAC contractor to comply with applicable rules, codes or statutory requirements or comply with the terms of a contract to perform work. The requirements provided by this bill are: (1) proof of worker's compensation insurance, (2)proof of liability insurance in the amount of $300,000, and(3) a surety bond in the amount of $10,000 payable to a consumer in the event the electrical, plumbing, or HVAC contractor fails to meet the requirements of applicable codes or rules. FISCAL NOTE There is no impact to the general fund. Contact Name: Rep. Max Black Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 761