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H0585...........................................................by BUSINESS PUBLIC WORKS CONTRACTORS - Amends existing law to provide enhanced penalties for violations of the Public Works Contractors License Act and the Public Works Construction Management Licensing Act. 02/16 House intro - 1st rdg - to printing 02/17 Rpt prt - to Bus 02/24 Rpt out - rec d/p - to 2nd rdg 02/25 2nd rdg - to 3rd rdg 02/29 3rd rdg - PASSED - 51-18-1 AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel, Chase, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Gould, Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kunz, Linford, Mader, Marley, Meyer, Montgomery, Mortensen, Moyle, Pearce, Pischner, Reynolds, Ringo, Robison, Schaefer(Tiegs), Shepherd, Smith, Smylie, Stone, Taylor, Tilman, Trail, Zimmermann, Mr Speaker NAYS -- Barrett, Callister, Campbell, Cheirrett, Clark, Geddes, Kendell, Lake, Loertscher, McKague, Moss, Pomeroy, Ridinger, Sali, Stevenson, Stoicheff, Wheeler, Wood Absent and excused -- Sellman Floor Sponsor - Kunz Title apvd - to Senate 03/01 Senate intro - 1st rdg - to Com/HuRes 03/15 Rpt out - rec d/p - to 2nd rdg 03/16 2nd rdg - to 3rd rdg 03/30 3rd rdg - PASSED - 35-0-0 AYES -- Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron, Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh, Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Wheeler, Whitworth, Williams NAYS -- None Absent and excused -- None Floor Sponsor - Andreason Title apvd - to House 03/31 To enrol 04/03 Rpt enrol - Sp signed 04/04 Pres signed - to Governor 04/14 Governor signed Session Law Chapter 318 Effective: 07/01/00
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 585 BY BUSINESS COMMITTEE 1 AN ACT 2 RELATING TO THE PUBLIC WORKS CONTRACTORS LICENSE BOARD; AMENDING SECTION 3 54-1914, IDAHO CODE, TO PROVIDE ADDITIONAL DISCIPLINARY ACTIONS THE BOARD 4 MAY TAKE AGAINST LICENSEES AND APPLICANTS WHO COMMIT OR ARE FOUND GUILTY 5 OF SPECIFIED ACTS OR OMISSIONS; AMENDING SECTION 54-1920, IDAHO CODE, TO 6 INCREASE THE PENALTIES IMPOSED AGAINST PERSONS ACTING IN THE CAPACITY OF A 7 PUBLIC WORKS CONTRACTOR WITHOUT A LICENSE AND TO MAKE A TECHNICAL CORREC- 8 TION; AMENDING SECTION 54-4508, IDAHO CODE, TO PROVIDE ADDITIONAL DISCI- 9 PLINARY ACTIONS THE BOARD MAY TAKE AGAINST PUBLIC WORKS CONSTRUCTION MAN- 10 AGEMENT LICENSEES OR HOLDERS OF CERTIFICATES OF AUTHORITY WHO ARE FOUND TO 11 BE IN VIOLATION OF CERTAIN CONDITIONS SPECIFIED IN LAW; AMENDING SECTION 12 54-4513, IDAHO CODE, TO PROVIDE PENALTIES FOR ACTING IN THE CAPACITY OF A 13 PUBLIC WORKS CONSTRUCTION MANAGER WITH A LICENSE; AND PROVIDING AN EFFEC- 14 TIVE DATE. 15 Be It Enacted by the Legislature of the State of Idaho: 16 SECTION 1. That Section 54-1914, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 54-1914. DISCIPLINARY PROCEEDINGS. The board may upon its own motion, and 19 shall upon the verified complaint in writing of any person, investigate the 20 actions of any contractor within the state and may reclassify, retype, place 21 on probation, impose an administrative fine not to exceed five thousand dol- 22 lars ($5,000) per violation, impose the administrative costs of bringing the 23 action before the board including, but not limited to, hearing officer fees, 24 expert witness fees, attorney's fees, costs of hearing transcripts and cop- 25 ies, temporarily suspend or permanently revoke any license if the holder, 26 while a licensee or applicant hereunder, is guilty of or commits any one (1) 27 or more of the following acts or omissions: 28 (a) Abandonment without legal excuse of any construction project or oper- 29 ation engaged in or undertaken by the licensee as a contractor. 30 (b) Diversion of funds or property received under express agreement for 31 prosecution or completion of a specific construction project or operation, or 32 for a specified purpose in the prosecution or completion of any construction 33 project or operation, and their application or use for any other construction 34 project or operation, obligation or purpose, with intent to defraud or deceive 35 creditors or the owner. 36 (c) Willful departure from or disregard of, plans or specifications in 37 any material respect, and prejudicial to another, without consent of the owner 38 or his duly authorized representative, and without the consent of the person 39 entitled to have the particular construction project or operation completed in 40 accordance with such plans and specifications. 41 (d) Willful or deliberate disregard and violation of valid building laws 42 of the state, or of any political subdivision thereof, or of the safety laws 43 or labor laws or compensation insurance laws of the state. 2 1 (e) Misrepresentation of a material fact by an applicant in obtaining a 2 license. 3 (f) Aiding or abetting an unlicensed person to evade the provisions of 4 this act or conspiring with an unlicensed person, or allowing one's license to 5 be used by an unlicensed person, or acting as agent or partner or associate or 6 otherwise, of an unlicensed person with the intent to evade the provisions of 7 this act. 8 (g) Failure in any material respect to comply with the provisions of this 9 act. 10 (h) Acting in the capacity of a contractor under any license issued here- 11 under except: (1) in the name of the licensee as set forth upon the license, 12 or (2) in accordance with the personnel of the licensee as set forth in the 13 application for such license, or as later changed as provided in this act. 14 (i) Knowingly accepting a bid from, or entering into a contract with 15 another contractor for a portion of a public works project if at that time 16 such contractor does not possess the appropriate license to do that work as 17 provided in this act. 18 (j) Willful failure or refusal without legal excuse on the part of a 19 licensee as a contractor to finish a construction project or operation with 20 reasonable diligence, causing material injury to another. 21 (k) Willful or deliberate failure by any licensee, or agent or officer 22 thereof, to pay any moneys when due, for any materials or services rendered in 23 connection with his operations as a contractor, when he has the capacity to 24 pay or when he has received sufficient funds therefor as payment for the par- 25 ticular construction work, project or operation for which the services or 26 materials were rendered or purchased; or denial of any such amount due or the 27 validity of the claim thereof with intent to secure for himself, his employer, 28 or other person, any discount upon such indebtedness or with intent to hinder, 29 delay or defraud the person to whom such indebtedness is due. 30 SECTION 2. That Section 54-1920, Idaho Code, be, and the same is hereby 31 amended to read as follows: 32 54-1920. PENALTIES. Any person, firm, copartnership, corporation, limited 33 liability company, limited liability partnership, association or other organi- 34 zation acting in the capacity of a public works contractor within the meaning 35 of this act, without a license as herein provided, shall be guilty of a misde- 36 meanor and shall, upon conviction thereof, be punished by a fine ofnot to 37 exceed three hundredfive thousand dollars ($ 35,000) or by imprisonment in 38 the county jail for a term not to exceed six (6) monthsone (1) year or by 39 both such fine and imprisonment, at the discretion of the court. The same pen- 40 alties shall apply, upon conviction to any member of a copartnership, or to 41 any construction, managing or directing officer of any corporation, limited 42 liability company or limited liability partnership, or other organization con- 43 senting to, participating in, or aiding or abetting any such violation of this 44 act. 45 Every public officer who knowingly lets a public contract to any person, 46 firm, copartnership, corporation, limited liability company, limited liability 47 partnership, association or other organization who does not hold a license as 48 required by the provisions of this act shall be guilty of a misdemeanor and 49 upon conviction, punishable as provided in this section, unless, however, 50 there be no qualified bidder willing to undertake the public works covered by 51 the contract. No person engaged in the business or acting in the capacity of a 52 contractor, may bring or maintain any action in any court of this state for 53 the collection of compensation for the performance of any act or contract for 3 1 which a license is required by this act without alleging and providing that he 2 was a duly licensed contractor at all times during the performance of such act 3 or contract. 4 SECTION 3. That Section 54-4508, Idaho Code, be, and the same is hereby 5 amended to read as follows: 6 54-4508. DISCIPLINARY PROCEEDINGS. (1) The board shall have the authority 7 to deny or refuse to renew a license or certificate of authority, suspend or 8 revoke a license, impose an administrative fine not to exceed five thousand 9 dollars ($5,000) per violation, impose the administrative costs of bringing 10 the action before the board including, but not limited to, hearing officer 11 fees, expert witness fees, attorney's fees, costs of hearing transcripts and 12 copies, or impose probationary conditions on the holder of a license or cer- 13 tificate of authority, upon the following grounds: 14 (a) Fraud or deception in the procurement of a license or certificate of 15 authority or in the taking of an examination required under the provisions 16 of this chapter; 17 (b) Incompetence in the performance of a construction manager's duties; 18 (c) Fraud or deceit in the performance of a construction manager's 19 duties; or 20 (d) Willful violation of the provisions of this chapter or the rules pro- 21 mulgated by the board. 22 (2) Proceedings which may result in the suspension or revocation of a 23 license or certificate of authority, or the imposition of probationary or 24 other disciplinary conditions on the holder of a license or certificate of 25 authority, shall be conducted in accordance with the provisions of chapter 52, 26 title 67, Idaho Code; provided however, that the suspension of a certificate 27 of authority, upon the notification by its holder that the construction man- 28 ager it has designated to the board no longer is a principal or employee of 29 the firm, shall not be required to be conducted in accordance with the provi- 30 sions of chapter 52, title 67, Idaho Code. 31 (3) The board may, by rule, provide for the reinstatement of suspended or 32 revoked licenses upon such terms as it may impose. 33 SECTION 4. That Section 54-4513, Idaho Code, be, and the same is hereby 34 amended to read as follows: 35 54-4513. PENALTIES. Any person who violates any provision of this chapter 36 shall, upon conviction, be guilty of a misdemeanor, and shall be punished by a 37 fine not to exceed five thousand dollars ($5,000) or by imprisonment in the 38 county jail for a term not to exceed one (1) year, or by both such fine and 39 imprisonment, at the discretion of the court. 40 SECTION 5. This act shall be in full force and effect on and after July 41 1, 2000.
STATEMENT OF PURPOSE RS 09316C1 The purpose of this legislation is to enhance the penalties for both licensed public works contractors for violations of the Public Works Contractors License Act, and for unlicensed contractors and other parties who violate the Act by doing public works contracting without a license. Penalties for violations of the Construction Management Licensing Act are also enhanced. This legislation was requested by the legislative Interim Committee on Construction Industry Laws because the penalties for violations of the Acts were either non-existent or were minor in comparison to the violations committed. FISCAL IMPACT There is no fiscal impact from this legislation. Contact: Nancy Michael, Executive Director Public Works Contractors License Board (208) 327-7326 STATEMENT OF PURPOSE/FISCAL NOTE H 585