2000 Legislation
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HOUSE BILL NO. 585 – Public wks contractr, violatn/pnlty

HOUSE BILL NO. 585

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Daily Data Tracking History



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

Bill Text


 H0585
                                                                        
                                                                        
  ||||              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  of  not  to
 37    exceed  three  hundred  five thousand dollars ($35,000)  or by imprisonment in
 38    the county jail for a term not to exceed six (6) months one  (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 / Fiscal Impact


                 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