2001 Legislation
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HOUSE BILL NO. 238 – Public works contractors licensing

HOUSE BILL NO. 238

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H0238aa.........................................................by BUSINESS
PUBLIC WORKS CONTRACTORS - LICENSING - Amends and repeals existing law to
reorganize the powers and duties of the administrator of the Division of
Building Safety and the Public Works Contractor's License Board regarding
the licensing of public works contractors.
                                                                        
02/14    House intro - 1st rdg - to printing
02/15    Rpt prt - to Bus
03/08    Rpt out - to Gen Ord
03/12    Rpt out amen - to engros
03/13    Rpt engros - 1st rdg - to 2nd rdg as amen
03/14    2nd rdg - to 3rd rdg as amen
    Rls susp - PASSED - 67-1-2
      AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
      Bradford, Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
      Field(20), Gagner, Gould, Hadley, Hammond, Harwood, Henbest,
      Hornbeck, Jaquet, Jones, Kellogg, Kendell, Kunz, Lake, Langford,
      Loertscher, Mader, Marley, Meyer, Montgomery, Mortensen, Moss, Moyle,
      Pearce, Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison,
      Sali, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Swan,
      Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker
      NAYS -- McKague
      Absent and excused -- Higgins, Schaefer
    Floor Sponsor -- Gagner
    Title apvd - to Senate
03/15    Senate intro - 1st rdg - to Com/HuRes
03/22    Rpt out - rec d/p - to 2nd rdg as amen
03/23    2nd rdg - to 3rd rdg as amen
03/26    3rd rdg as amen - PASSED - 35-0-0
      AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
      Cameron, Danielson, Darrington, Davis, Deide, Dunklin, Frasure,
      Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee,
      Lodge, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
      Stegner, Stennett, Thorne, Wheeler, Whitworth, Williams,
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor -- Goedde
    Title apvd - to House
03/28    To enrol - rpt enrol - Sp signed - Pres signed
03/29    To Governor
04/02    Governor signed
         Session Law Chapter 300
         Effective: 07/01/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 238
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LICENSING OF PUBLIC WORKS CONTRACTORS; AMENDING  SECTION  54-1901,
  3        IDAHO  CODE,  TO  DELETE THE DEFINITION OF "EXECUTIVE DIRECTOR," TO DEFINE
  4        "ADMINISTRATOR" AND TO MAKE TECHNICAL CORRECTIONS;  AMENDING  SECTION  54-
  5        1902,  IDAHO  CODE, TO PROVIDE THAT THE ADMINISTRATOR SHALL BE RESPONSIBLE
  6        FOR THE ISSUANCE OF PUBLIC WORKS CONTRACTOR LICENSES AND TO MAKE TECHNICAL
  7        CORRECTIONS; AMENDING SECTION 54-1904, IDAHO CODE, TO PROVIDE CORRECT TER-
  8        MINOLOGY AND TO MAKE  TECHNICAL  CORRECTIONS;  AMENDING  SECTION  54-1905,
  9        IDAHO  CODE, TO PROVIDE RESPONSIBILITIES OF THE ADMINISTRATOR OF THE DIVI-
 10        SION OF BUILDING SAFETY; REPEALING SECTION 54-1906, IDAHO  CODE;  AMENDING
 11        SECTION 54-1907, IDAHO CODE, TO REVISE THE DUTIES AND POWERS OF THE PUBLIC
 12        WORKS  CONTRACTORS  LICENSE  BOARD  AND  TO TRANSFER CERTAIN DUTIES TO THE
 13        ADMINISTRATOR; AMENDING SECTION 54-1910, IDAHO CODE, TO PROVIDE  THAT  THE
 14        ADMINISTRATOR  SHALL HAVE THE POWER AND AUTHORITY TO INVESTIGATE, CLASSIFY
 15        AND QUALIFY APPLICANTS FOR LICENSE  UNDER  RULES  ADOPTED  BY  THE  BOARD;
 16        AMENDING SECTION 54-1911, IDAHO CODE, TO MODIFY THE PROCEDURES AND AUTHOR-
 17        ITY FOR FILING, ISSUING AND DENYING LICENSES AND TO MAKE TECHNICAL CORREC-
 18        TIONS;  AMENDING SECTION 54-1912, IDAHO CODE, TO MODIFY THE PROCEDURES AND
 19        AUTHORITY FOR RENEWING LICENSES AND TO MAKE TECHNICAL CORRECTIONS;  AMEND-
 20        ING  SECTION  54-1913,  IDAHO CODE, TO PROVIDE DUTIES OF THE ADMINISTRATOR
 21        FOR MAINTAINING RECORDS AND PUBLISHING LISTS AND INFORMATION AND  TO  MAKE
 22        TECHNICAL  CORRECTIONS; AMENDING SECTION 54-1914, IDAHO CODE, TO AUTHORIZE
 23        THE ADMINISTRATOR TO INITIATE INVESTIGATIONS AND DISCIPLINARY ACTIONS,  TO
 24        PROVIDE  THAT  A CHANGE IN FINANCIAL CIRCUMSTANCES IS CAUSE FOR INVESTIGA-
 25        TION AND TO MAKE TECHNICAL CORRECTIONS; REPEALING SECTION 54-1914A,  IDAHO
 26        CODE;  AMENDING  SECTION  54-1915,  IDAHO  CODE,  TO PROVIDE DUTIES OF THE
 27        ADMINISTRATOR REGARDING DISCIPLINARY ACTIONS AND TO REVISE  THE  PROCEDURE
 28        FOR  DUE  PROCESS IN DISCIPLINARY ACTIONS; AMENDING SECTION 54-1916, IDAHO
 29        CODE, TO CLARIFY ACTIONS WHICH ARE SUBJECT TO JUDICIAL REVIEW, TO  PROVIDE
 30        A  REVISION  TO  THE  APPEALS  PROCESS  AND TO MAKE TECHNICAL CORRECTIONS;
 31        AMENDING SECTION 54-1917, IDAHO CODE, TO PROVIDE DUTIES OF THE ADMINISTRA-
 32        TOR REGARDING RENEWAL OF SUSPENDED AND REVOKED LICENSES AND TO MAKE  TECH-
 33        NICAL  CORRECTIONS; AMENDING SECTION 54-1918, IDAHO CODE, TO PROVIDE POWER
 34        OF THE ADMINISTRATOR REGARDING SUBPOENAS AND PROCESS AND TO MAKE TECHNICAL
 35        CORRECTIONS; AMENDING SECTION 54-1921, IDAHO CODE, TO DELETE OUTDATED LAN-
 36        GUAGE REGARDING THE EXPENDITURE OF FUNDS IN THE PUBLIC  WORKS  CONTRACTORS
 37        LICENSE  FUND  AND  TO  MAKE TECHNICAL CORRECTIONS; AND DECLARING AN EMER-
 38        GENCY.
                                                                        
 39    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 40        SECTION 1.  That Section 54-1901, Idaho Code, be, and the same  is  hereby
 41    amended to read as follows:
                                                                        
 42        54-1901.  DEFINITIONS.  For the interpretation of this act chapter, unless
 43    the context indicates a different meaning:
                                                                        
                                           2
                                                                        
  1        (a)  "Person" includes any individual, firm,  copartnership,  corporation,
  2    limited liability company, limited liability partnership, association or other
  3    organization, or any combination thereof acting as a unit.
  4        (b)  "Public  works  contractor,"  which  term is synonymous with the term
  5    "builder," "sub-contractor subcontractor" and "specialty contractor,"  and  in
  6    this  act chapter referred to as "contractor" or "licensee," includes any per-
  7    son who, in any capacity, undertakes, or offers to undertake, or  purports  to
  8    have  the  capacity to undertake any construction, repair or reconstruction of
  9    any public work, or submits a proposal to, or enters into a contract with, the
 10    state of Idaho, or any county, city, school  district,  sewer  district,  fire
 11    district,  or any other taxing subdivision or district of any public or quasi-
 12    public corporation of the state, or with any agency, or with any other  public
 13    board,  body,  commission,  department or agency, or officer or representative
 14    thereof, authorized to let or award contracts for the construction, repair  or
 15    reconstruction of any public work.
 16        (c)  "Public  works  construction"  includes  any  or all of the following
 17    branches:
 18        (1)  Heavy construction, which is defined as constructing substantially in
 19        its entirety any fixed works and structures (not including "building  con-
 20        struction"), without limitation, for any or all of the following divisions
 21        of  subjects: irrigation, drainage, sanitation, sewage, water power, water
 22        supply, reservoirs, flood control, reclamation,  inland  waterways,  rail-
 23        roads,  grade  separations,  track  elevation,  elevated  highways, hydro-
 24        electric developments, aqueducts, transmission lines,  duct  lines,  pipe-
 25        lines,  locks, dams, dykes, levees, revetments, channels, channel cutoffs,
 26        intakes, drainage, excavation and disposal of  earth  and  rocks,  founda-
 27        tions,  piers, abutments, retaining walls, viaducts, shafts, tunnels, air-
 28        ports, air bases and airways, and other facilities incidental to the same;
 29        (2)  Highway construction, which is defined as all work included in  high-
 30        way  construction  contracts,  including,  without  limitation,  highways,
 31        roads, streets, bridges, tunnels, sewer and street grading, street paving,
 32        curb  setting,  surfacing  and  other  facilities incidental to any of the
 33        same;
 34        (3)  Building construction, which is defined as  all  work  in  connection
 35        with  any  structure  now  built, being built, or hereafter built, for the
 36        support, shelter and inclosure of persons, chattels, personal and  movable
 37        property  of  any kind, requiring in its construction the use of more than
 38        two (2) unrelated building trades or crafts.
 39        (4)  Specialty construction, which is defined as any  work  in  connection
 40        with any public works construction, requiring special skill and the use of
 41        specially skilled trades or crafts.
 42        (d)  "Board" means the board created by this act chapter under the name of
 43    "public works contractors license board."
 44        (e)  "Executive  directorAdministrator" means the person appointed as such
 45    under this act administrator of the division of building safety.
 46        (f)  "Year" means the fiscal year ending June 30, each year.
 47        (g)  "Federal aid funds" means a direct grant in aid, matching  funds,  or
 48    loan  from  an  agency of the federal government and designated for a specific
 49    public works project. Revenue sharing  funds,  federal  impact  funds,  timber
 50    stumpage  fees,  and  similar indirect allowances and subsidies not designated
 51    for a specific public works project shall not  be  regarded  as  "federal  aid
 52    funds" within the meaning of this section.
 53        (h)  "Government  obligation" means a public debt obligation of the United
 54    States government or the state of Idaho and an obligation whose principal  and
 55    interest  is unconditionally guaranteed by the United States government or the
                                                                        
                                           3
                                                                        
  1    state of Idaho.
  2        (i)  "Public entity" means the state of Idaho, or any county, city, school
  3    district, sewer district, fire district, or any other  taxing  subdivision  or
  4    district of any public or quasi-public corporation of the state, or any agency
  5    thereof,  or  with  any  other  public  board, body, commission, department or
  6    agency, or officer or representative thereof.
  7        (j)  "Bid" or "bidder" means any proposal submitted by a public works con-
  8    tractor to a public entity in competitive bidding for the construction, alter-
  9    ation, repair or improvement of any public works construction.
                                                                        
 10        SECTION 2.  That Section 54-1902, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
                                                                        
 12        54-1902.  UNLAWFUL  TO ENGAGE IN PUBLIC WORKS CONTRACTING WITHOUT LICENSE.
 13    It shall be unlawful for any person to engage in the business or  act  in  the
 14    capacity  of a public works contractor within this state without first obtain-
 15    ing and having a license issued pursuant to the provisions of this chapter  by
 16    the  administrator  of  the division of building safety, unless such person is
 17    particularly exempted as provided in this act chapter. It  shall  be  unlawful
 18    for  any  public  works  contractor to subcontract in excess of eighty percent
 19    (80%) of the work under any contract to be performed by  him  as  such  public
 20    works  contractor  according  to the contract prices therein set forth, unless
 21    otherwise provided in the specifications of such contracts. Nor shall a public
 22    works contractor accept a bid from any person who at that time does  not  pos-
 23    sess  the  appropriate  license  for  the project involved. Nor shall a public
 24    works contractor accept bids to sublet any part of any contract for  specialty
 25    construction from a specialty contractor who at that time does not possess the
 26    appropriate  license  in  accordance with this act chapter; provided, however,
 27    that no contractor shall be required to have a license under this act  chapter
 28    in  order  to submit a bid or proposal for contracts for public works financed
 29    in whole or in part by federal aid funds, but at or prior  to  the  award  and
 30    execution of any such contract by the state of Idaho, or any other contracting
 31    authority  mentioned in this act chapter, the successful bidder shall secure a
 32    license as provided in this act chapter.
                                                                        
 33        SECTION 3.  That Section 54-1904, Idaho Code, be, and the same  is  hereby
 34    amended to read as follows:
                                                                        
 35        54-1904.  CLASSES  OF  LICENSES  -- RIGHTS GRANTED UNDER LICENSES -- FEES.
 36    There shall be six (6) classes of licenses issued under the provisions of this
 37    act chapter which are hereby designated as Classes AAA, AA, A, B, C and D, the
 38    maximum fee for which shall be as hereinafter specified. Each applicant for  a
 39    license shall specify the class of license applied for in his application.
 40        For the purpose of licensing public works contractors under this act chap-
 41    ter  the  board  may  adopt  rules  necessary  to determine the classification
 42    according to their responsibility, and the type and scope of the operations of
 43    a licensed contractor to those in which he  is  classified  and  qualified  to
 44    engage as in this act chapter provided.
 45        Class  "AAA"  license.  Any  contractor  whose qualifications, ability and
 46    responsibility to execute contracts for public works  involving  an  estimated
 47    cost of more than three million dollars ($3,000,000) may, upon his application
 48    and  the  payment  of  a  license  fee not to exceed one hundred fifty dollars
 49    ($150), be granted a Class "AAA" license and be so classified by the board  in
 50    accordance  with  the  provisions  of  this act chapter. The holder of a Class
 51    "AAA" license shall be entitled to engage  in  the  public  works  contracting
                                                                        
                                           4
                                                                        
  1    business in the state as provided in said license. The renewal fee for a Class
  2    "AAA" license shall not exceed one hundred fifty dollars ($150).
  3        Class  "AA"  license.  Any  contractor  whose  qualifications, ability and
  4    responsibility to execute contracts for public works  involving  an  estimated
  5    cost  of not more than three million dollars ($3,000,000) may, upon his appli-
  6    cation and the payment of a license fee not to exceed one hundred  fifty  dol-
  7    lars ($150), be granted a Class "AA" license and be so classified by the board
  8    in  accordance  with the provisions of this act chapter. The holder of a Class
  9    "AA" license shall be entitled to engage in the public works contracting busi-
 10    ness in the state as provided in said license. The renewal  fee  for  a  Class
 11    "AA" license shall not exceed one hundred fifty dollars ($150).
 12        Class  "A"  license.  Any  contractor  whose  qualifications,  ability and
 13    responsibility to execute contracts for public works  involving  an  estimated
 14    cost  of not more than one million dollars ($1,000,000) may, upon his applica-
 15    tion and the payment of a license fee not to exceed one hundred fifty  dollars
 16    ($150),  be  granted  a Class "A" license and be so classified by the board in
 17    accordance with the provisions of this act chapter. The holder of a Class  "A"
 18    license  shall  be entitled to engage in the public works contracting business
 19    in the state as provided in said license. The renewal  fee  for  a  Class  "A"
 20    license shall not exceed one hundred fifty dollars ($150).
 21        Class  "B"  license.  Any  contractor  whose  qualifications,  ability and
 22    responsibility to execute contracts for public works  involving  an  estimated
 23    cost  of not more than five hundred thousand dollars ($500,000), may, upon his
 24    application and the payment of a license fee not to exceed  seventy-five  dol-
 25    lars ($75.00) be granted a Class "B" license and be so classified by the board
 26    in  accordance  with the provisions of this act chapter. The holder of a Class
 27    "B" license shall be entitled to engage in the public works contracting  busi-
 28    ness in the state as provided in said license. The renewal fee for a Class "B"
 29    license shall not exceed seventy-five dollars ($75.00).
 30        Class  "C"  license.  Any  contractor  whose  qualifications,  ability and
 31    responsibility to execute contracts for public works  involving  an  estimated
 32    cost  of  not more than one hundred thousand dollars ($100,000), may, upon his
 33    application and the payment of a license fee not to exceed  seventy-five  dol-
 34    lars  ($75.00),  be  granted  a  Class "C" license and be so classified by the
 35    board in accordance with the provisions of this act chapter. The holder  of  a
 36    Class  "C" license shall be entitled to engage in the public works contracting
 37    business in the state as provided in said license. The renewal fee for a Class
 38    "C" license shall not exceed seventy-five dollars ($75.00).
 39        Class "D"  license.  Any  contractor  whose  qualifications,  ability  and
 40    responsibility  to  execute  contracts for public works involving an estimated
 41    cost of not more than fifty thousand dollars ($50,000), may, upon his applica-
 42    tion and the payment of a license  fee  not  to  exceed  seventy-five  dollars
 43    ($75.00),  be granted a Class "D" license and be so classified by the board in
 44    accordance with the provisions of this act chapter. The holder of a Class  "D"
 45    license  shall  be entitled to engage in the public works contracting business
 46    in the state as provided in said license. The renewal  fee  for  a  Class  "D"
 47    license shall not exceed seventy-five dollars ($75.00).
 48        The board shall be vested with the power to fix annually the amount of the
 49    original  and  renewal  license fees for each class of license for the ensuing
 50    license year. The amount of the license fee so fixed shall not exceed the max-
 51    imum fee set forth in this section.
 52        Each license issued by the board administrator shall clearly indicate  the
 53    type  and  scope of work for which the licensee is qualified and licensed. The
 54    holder of the license shall be permitted to submit proposals for  and  perform
 55    only  those  types  of work specified in each license. The board administrator
                                                                        
                                           5
                                                                        
  1    may extend the permissible type or scope of work to be done under any  license
  2    when  it is determined by the board administrator that the applicant meets all
  3    of the requirements of this act chapter to qualify him to do such other work.
                                                                        
  4        SECTION 4.  That Section 54-1905, Idaho Code, be, and the same  is  hereby
  5    amended to read as follows:
                                                                        
  6        54-1905.  PUBLIC WORKS CONTRACTORS LICENSE BOARD CREATED -- QUALIFICATIONS
  7    OF  APPOINTEES  --  TERM -- REMOVALS. There is hereby created and made part of
  8    the division of building safety in the department of self-governing agencies a
  9    public works contractors license board. to It shall be the responsibility  and
 10    duty of the administrator of the division of building safety to administer and
 11    enforce  the  provisions  of  this  chapter,  and to serve as secretary to the
 12    board. The board shall  be  composed  of  seven  (7)  members,  who  shall  be
 13    appointed  by the governor. One (1) member of the board shall be a "heavy con-
 14    struction" contractor, one (1) member shall be a "highway  construction"  con-
 15    tractor, two (2) members shall be "building construction" contractors, one (1)
 16    member  shall  be  a "specialty construction" contractor, as such construction
 17    terms are defined in this chapter, one (1) member  shall  be  a  "construction
 18    manager,"  and one (1) member shall be a registered professional engineer. All
 19    contractor members of the board shall be contractors holding a  current  unre-
 20    voked  license  at the time of their appointment, actively engaged in the con-
 21    tracting business and have been so engaged for a period of not less than  five
 22    (5)  years  preceding the date of their appointment, and who shall so continue
 23    in the contracting business during their term of office. Each  member  of  the
 24    board next preceding his appointment shall have been a citizen and resident of
 25    the  state  of Idaho for at least five (5) years. The governor shall appoint a
 26    member to said board for a term of six  (6)  years.  Each  member  shall  hold
 27    office  after  the expiration of their own term until their successor has been
 28    duly appointed and qualified. Vacancies on the board for any  cause  shall  be
 29    filled  by  appointment by the governor for the balance of the unexpired term.
 30    The governor may remove any member of the board for  misconduct,  incompetence
 31    or  neglect  of  duty. Each member of the board shall receive a certificate of
 32    appointment from the governor, and before entering upon the discharge of their
 33    duties, shall file with the secretary of  state  the  constitutional  oath  of
 34    office.
                                                                        
 35        SECTION  5.  That  Section 54-1906, Idaho Code, be, and the same is hereby
 36    repealed.
                                                                        
 37        SECTION 6.  That Section 54-1907, Idaho Code, be, and the same  is  hereby
 38    amended to read as follows:
                                                                        
 39        54-1907.  DUTIES  AND  POWERS  OF THE BOARD -- SEAL. -- EXECUTIVE DIRECTOR
 40    APPOINTED. The board shall be vested with all functions and duties relating to
 41    the administration of this act and shall have full power to make rules  as  it
 42    shall  deem necessary to carry out the provisions of this act. The board shall
 43    have the power to provide suitable quarters and equipment,  records  and  sup-
 44    plies  as  deemed  necessary to carry out the provisions of this act is autho-
 45    rized and directed to prescribe and amend rules consistent with  this  chapter
 46    for  the administration of this chapter and to effectuate the purpose thereof,
 47    and for the investigation, classification, examination and licensing of public
 48    works contractors. The board shall adopt a seal,  having  upon  it  the  words
 49    "Public Works Contractors License Board--State of Idaho." The care and custody
 50    of  the seal shall be with the executive director administrator. Any member of
                                                                        
                                           6
                                                                        
  1    the board may administer oaths and may take testimony concerning  all  matters
  2    within the jurisdiction of the board.
  3        The board shall appoint an executive director, and fix their compensation.
  4    The executive director shall be the secretary to the board and shall carry out
  5    such  administrative  duties  as  provided in this act and as delegated by the
  6    board. The board may, in its discretion, refuse, sustain or reverse, by major-
  7    ity vote, any action or decision of the executive director. For  the  adminis-
  8    tration of this act the board may employ such other employees as may be neces-
  9    sary, describe their duties and fix their compensation.
                                                                        
 10        SECTION  7.  That  Section 54-1910, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        54-1910.  EXAMINATIONS, QUALIFICATIONS AND APPLICATIONS. Under such  rules
 13    as  it  the  board may adopt, the board administrator shall have the power and
 14    authority to investigate, classify, and to  qualify  applicants  for  licenses
 15    under this act chapter, by written or oral examinations, or both.
 16        The qualifications to be required of an applicant by the board are as fol-
 17    lows:
 18        (a)  Such  degree  of experience, and such general knowledge of the build-
 19    ing, safety, health and lien laws of the state, and of the rudimentary  admin-
 20    istrative  principles  of the contracting business, as may be deemed necessary
 21    by the board for the safety and protection of the public. The applicant if  an
 22    individual  may  qualify  as to the aforementioned experience and knowledge by
 23    personal appearance or by the appearance of his responsible managing employee,
 24    and if a copartnership or corporation, limited liability company, limited lia-
 25    bility partnership and any other combination or organization, by  the  appear-
 26    ance  of  the  responsible managing officer or member of the personnel of such
 27    applicant. If the person qualifying by examination as to experience and knowl-
 28    edge shall, for any reason whatsoever, cease to be connected with the licensee
 29    to whom the license is issued, such licensee shall so notify the board  admin-
 30    istrator  in  writing within ten (10) days from such cessation. If such notice
 31    is given, the license shall remain in force for a reasonable length  of  time,
 32    to  be  determined  by rules of the board. If such licensee fails to so notify
 33    the board administrator within said ten (10) day period, then at  the  end  of
 34    such  ten (10) day period, the license of such licensee shall be automatically
 35    suspended. A suspended license shall be reinstated upon the  filing  with  the
 36    board  administrator  of  an affidavit executed by the licensee or a member of
 37    the suspended firm, to the effect that the individual originally examined  for
 38    the  firm  has  been  replaced by another individual who has been qualified by
 39    examination as herein provided, and who shall not have had a license suspended
 40    or revoked, nor have been connected with any licensee who has  had  a  license
 41    suspended  or  revoked  for  reasons  that should preclude him from personally
 42    qualifying as to good character as herein required of an applicant.
 43        (b)  The possession by the applicant of good character. Lack of  character
 44    may be established by showing any of the following:
 45        (1)  That  the applicant has committed or done any act which, if committed
 46        or done by any licensed contractor, would be grounds for the suspension or
 47        revocation of a contractor's license, or
 48        (2)  That the applicant has committed or done any  act  involving  dishon-
 49        esty,  fraud or deceit whereby the applicant has been benefited or whereby
 50        some injury has been sustained by another, or
 51        (3)  That the applicant bears a bad reputation for honesty and  integrity,
 52        or
 53        (4)  That the applicant has been convicted of a felony.
                                                                        
                                           7
                                                                        
  1        (c)  That he has never been refused a license or had a license revoked for
  2    reasons that would preclude the granting of the license applied for.
  3        (d)  No  license  shall be issued to a corporation, copartnership, limited
  4    liability company, limited liability partnership or other combination or orga-
  5    nization if any responsible officer of such corporation, or other  combination
  6    or  organization, or any member of such copartnership does not meet the quali-
  7    fications required of an applicant other than those qualifications relating to
  8    knowledge and experience.
  9        (e)  To obtain an original license under this act chapter,  the  applicant
 10    shall submit to the board administrator, on such forms as it the administrator
 11    shall  prescribe,  accompanied  by  the  required fee for the class of license
 12    applied for, and in accordance with such rules as may be deemed necessary  and
 13    adopted  by  the  board in order to carry out the foregoing provisions of this
 14    section, a sworn written application for such license, containing  the  state-
 15    ment  that applicant desires the issuance of a license under the terms of this
 16    act chapter. The information contained in such application forms shall include
 17    a complete statement of the general nature of  applicant's  contracting  busi-
 18    ness,  and  stating  concisely  applicant's experience and qualifications as a
 19    contractor; the value and character of contract work completed  and  for  whom
 20    performed  during the three (3) year period prior to filing the application; a
 21    general description of applicant's machinery and equipment; a complete  finan-
 22    cial  statement  on  such  forms  and  disclosing such information as shall be
 23    required by the board administrator, together with such additional information
 24    as may be required by the board administrator  to  determine  the  applicant's
 25    fitness  for  a license under this act chapter. The application shall contain,
 26    if by an individual, their the individual's name, social security  number  and
 27    business  address;  if  by a copartnership, its business address and the names
 28    and addresses of all partners; and if by a corporation,  association,  limited
 29    liability  company,  limited  liability partnership or other organization, its
 30    business address and the names and addresses of the president, vice-president,
 31    secretary, and chief construction managing officers, or  responsible  managing
 32    employee.
                                                                        
 33        SECTION  8.  That  Section 54-1911, Idaho Code, be, and the same is hereby
 34    amended to read as follows:
                                                                        
 35        54-1911.  FILING, ISSUANCE AND DENIAL OF LICENSES -- JOINT VENTURE  APPLI-
 36    CATIONS  --  FEES  NOT  REFUNDED. Applications for original licenses, together
 37    with the fees therefor, shall be filed with the board if received at least ten
 38    (10) days prior to consideration thereof by the  board.  administrator.  After
 39    such  examination and investigation as the board may require may be prescribed
 40    by rule, in accordance with the provisions of this act chapter,  if  no  valid
 41    reason  exists for further investigation of applicant, the board administrator
 42    shall at the next meeting issue a  license  to  applicant  permitting  him  to
 43    engage in business as a contractor under the terms of this act chapter for the
 44    licensing  period  designated.  If the information brought to the attention of
 45    the board administrator concerning the character and integrity of an applicant
 46    is such that it would appear proper to deny  the  application,  the  applicant
 47    shall  be  notified by certified mail to show cause within such time, not less
 48    than five (5) days, nor more than thirty (30) days, why the application should
 49    not be denied.
 50        Applications for original licenses filed in accordance with the provisions
 51    of this act shall be considered by  the  board  at  such  special  or  regular
 52    monthly meetings as the board may determine. Fees accompanying original appli-
 53    cations  under  this section are for the administration and enforcement of the
                                                                        
                                           8
                                                                        
  1    provisions of this chapter and shall not be refunded to the applicant.
                                                                        
  2        SECTION 9.  That Section 54-1912, Idaho Code, be, and the same  is  hereby
  3    amended to read as follows:
                                                                        
  4        54-1912.  EXPIRATION  AND  RENEWAL  OF  LICENSES  -- FEES. All contractors
  5    required by the provisions of this section to be licensed, shall  be  licensed
  6    for a period of twelve (12) consecutive calendar months.
  7        Each licensing period shall start on the first day of a calendar month and
  8    end on the last day of the twelfth month from the date of beginning.
  9        Licensing  periods shall expire at midnight on the last day of the licens-
 10    ing period.
 11        Application for renewal of a current license prior to its expiration  date
 12    shall  authorize operation as a contractor by such licensee until actual issu-
 13    ance of such renewal license for the ensuing year or until the final  decision
 14    of  the  board  is  rendered  in any proceeding. An applicant for renewal of a
 15    license issued under this act chapter shall not be required to take any  other
 16    or  further  examination  to obtain such renewal license, provided that at the
 17    time of such application his license has not been suspended  or  permitted  to
 18    lapse or expire for any cause for a period of one (1) year or more. All appli-
 19    cations  for renewal of license shall be made on forms prescribed by the board
 20    administrator and shall be accompanied by the annual renewal fee  and  a  com-
 21    plete  current  financial statement on such forms and disclosing such informa-
 22    tion as shall be required by the board rule, duly certified  as  true  by  the
 23    applicant,  and  if a copartnership, limited liability company or limited lia-
 24    bility partnership by a member thereof, and if a corporation, by its executive
 25    or financial officer; such renewal application shall be  filed  prior  to  the
 26    first  day  of  such  renewal  licensing period, otherwise the expired license
 27    shall be renewable only after the application and  fees  therefor  shall  have
 28    been  on  file with the board at least ten (10) days prior to consideration by
 29    the board. Fees accompanying renewal applications under this section  are  for
 30    the administration and enforcement of the provisions of this chapter and shall
 31    not be refunded to the applicant.
 32        The  license  issued  under  this  act chapter shall be signed both by the
 33    executive director administrator and by the licensee,  shall  be  nontransfer-
 34    able,  and  shall be displayed in the licensee's main office or chief place of
 35    business, and satisfactory evidence of the possession thereof and of the  cur-
 36    rent annual renewal thereof shall be exhibited by licensee upon demand.
 37        A surviving member or members of a licensed copartnership, limited liabil-
 38    ity company or limited liability partnership by reason of death shall be enti-
 39    tled  to  continue  in  business  under such license until the expiration date
 40    thereof, provided due application for permission is made to the board adminis-
 41    trator within thirty (30) days after death of the member, and the  application
 42    is approved by the board administrator in accordance with its rules.
 43        All  licensees shall report to the board administrator all changes of per-
 44    sonnel, name style or addresses recorded under this act chapter within  thirty
 45    (30) days after the changes are made.
                                                                        
 46        SECTION  10.  That Section 54-1913, Idaho Code, be, and the same is hereby
 47    amended to read as follows:
                                                                        
 48        54-1913.  RECORDS, LISTS AND INFORMATION. The  board  administrator  shall
 49    maintain,  at  its  office  in  Boise, Idaho, open to public inspection during
 50    office hours, a complete record of all retained applications, licenses issued,
 51    licenses renewed and all revocations, cancelations cancellations  and  suspen-
                                                                        
                                           9
                                                                        
  1    sions  of  licenses, and shall furnish a certified copy of any license issued,
  2    upon receipt of the sum of fifty cents (50), which certified  copy  shall  be
  3    received in all courts and elsewhere as evidence of the facts stated therein.
  4        Whenever  funds  are  available  for  the purpose, the board administrator
  5    shall publish a list of the names and addresses of contractors licensed  under
  6    this act chapter and such further information with respect to this act chapter
  7    and  its  administration  as  the  board administrator deems proper. The board
  8    administrator may furnish the lists to such public works and building  depart-
  9    ments,  public  officials or public bodies, and other persons interested in or
 10    allied with the building and construction industry in this or any other  state
 11    as deemed advisable, and at such intervals as deemed necessary, whenever funds
 12    therefor are available. Copies of the lists may also be furnished by the board
 13    administrator upon request to any firm or individual upon payment of a reason-
 14    able fee fixed by the board.
 15        Whenever  funds are available for the purpose, the board administrator may
 16    publish and disseminate to licensees of the board and to public  officials  or
 17    other  persons  interested  in  or  allied  with the building and construction
 18    industry, such information with relation to the administration and enforcement
 19    of this act chapter as deemed necessary to carry out its purposes.
                                                                        
 20        SECTION 11.  That Section 54-1914, Idaho Code, be, and the same is  hereby
 21    amended to read as follows:
                                                                        
 22        54-1914.  DISCIPLINARY  PROCEEDINGS.  The board administrator may upon its
 23    his own motion or at the direction of the board, and shall upon  the  verified
 24    complaint  in writing of any person, investigate the actions of any contractor
 25    within the state and may undertake to reclassify, retype, place on  probation,
 26    impose an administrative fine not to exceed five thousand dollars ($5,000) per
 27    violation,  impose  the administrative costs of bringing the action before the
 28    board including, but not limited to,  hearing  officer  fees,  expert  witness
 29    fees,  attorney's fees,  costs of hearing  transcripts and copies, temporarily
 30    suspend or permanently revoke any license if the holder, while a  licensee  or
 31    applicant  hereunder,  is guilty of or commits any one (1) or more of the fol-
 32    lowing acts or omissions:
 33        (a)  Abandonment without legal excuse of any construction project or oper-
 34    ation engaged in or undertaken by the licensee as a contractor.
 35        (b)  Diversion of funds or property received under express  agreement  for
 36    prosecution  or completion of a specific construction project or operation, or
 37    for a specified purpose in the prosecution or completion of  any  construction
 38    project  or operation, and their application or use for any other construction
 39    project or operation, obligation or purpose, with intent to defraud or deceive
 40    creditors or the owner.
 41        (c)  Willful departure from or disregard of, plans  or  specifications  in
 42    any material respect, and prejudicial to another, without consent of the owner
 43    or  his  duly authorized representative, and without the consent of the person
 44    entitled to have the particular construction project or operation completed in
 45    accordance with such plans and specifications.
 46        (d)  Willful or deliberate disregard and violation of valid building  laws
 47    of  the  state, or of any political subdivision thereof, or of the safety laws
 48    or labor laws or compensation insurance laws of the state.
 49        (e)  Misrepresentation of a material fact by an applicant in  obtaining  a
 50    license.
 51        (f)  Aiding  or  abetting  an unlicensed person to evade the provisions of
 52    this act chapter or conspiring with an unlicensed person,  or  allowing  one's
 53    license  to  be used by an unlicensed person, or acting as agent or partner or
                                                                        
                                           10
                                                                        
  1    associate or otherwise, of an unlicensed person with the intent to  evade  the
  2    provisions of this act chapter.
  3        (g)  Failure in any material respect to comply with the provisions of this
  4    act chapter.
  5        (h)  Acting in the capacity of a contractor under any license issued here-
  6    under  except:  (1) in the name of the licensee as set forth upon the license,
  7    or (2) in accordance with the personnel of the licensee as set  forth  in  the
  8    application  for  such  license,  or  as later changed as provided in this act
  9    chapter.
 10        (i)  Knowingly accepting a bid from, or  entering  into  a  contract  with
 11    another  contractor  for  a  portion of a public works project if at that time
 12    such contractor does not possess the appropriate license to do  that  work  as
 13    provided in this act chapter.
 14        (j)  Willful  failure  or  refusal  without  legal excuse on the part of a
 15    licensee as a contractor to finish a construction project  or  operation  with
 16    reasonable diligence, causing material injury to another.
 17        (k)  Willful  or  deliberate  failure by any licensee, or agent or officer
 18    thereof, to pay any moneys when due, for any materials or services rendered in
 19    connection with his operations as a contractor, when he has  the  capacity  to
 20    pay  or when he has received sufficient funds therefor as payment for the par-
 21    ticular construction work, project or operation  for  which  the  services  or
 22    materials  were rendered or purchased; or denial of any such amount due or the
 23    validity of the claim thereof with intent to secure for himself, his employer,
 24    or other person, any discount upon such indebtedness or with intent to hinder,
 25    delay or defraud the person to whom such indebtedness is due.
 26        (l)  Suffers a change in financial  circumstances  which  may  impair  the
 27    licensee's financial responsibility.
                                                                        
 28        SECTION 12.  That Section 54-1914A, Idaho Code, be, and the same is hereby
 29    repealed.
                                                                        
 30        SECTION  13.  That Section 54-1915, Idaho Code, be, and the same is hereby
 31    amended to read as follows:
                                                                        
 32        54-1915.  PROCEDURE FOR REVOCATION IMPOSITION OF DISCIPLINE. Upon the fil-
 33    ing with the board of a verified complaint with the administrator  charging  a
 34    licensee  with the commission of any act constituting a cause for disciplinary
 35    action within two (2) years prior to the date of filing, or upon such a  find-
 36    ing  made  by the administrator following an investigation, the board adminis-
 37    trator shall forthwith issue a citation notice, accompanied by a copy  of  the
 38    complaint,  directing  the licensee, within ten (10) days after service of the
 39    citation notice, to appear by filing with the board administrator  a  verified
 40    answer  to the complaint, showing cause, if any, why the license should not be
 41    suspended or revoked; provided, however, that the appearance of  the  licensee
 42    by  the filing of an answer may be waived by the complainant with the approval
 43    of the board, in which case the board shall proceed to a hearing. The proceed-
 44    ings before the board shall be governed by the provisions of chapter 52, title
 45    67, Idaho Code.
 46        The administrator shall have the power to appoint, by an order in writing,
 47    a hearing officer to take testimony, who shall have power to administer oaths,
 48    issue subpoenas and compel the attendance of witnesses.
 49        Service of the citation notice and complaint upon the  licensee  shall  be
 50    fully  effected  by  mailing a true copy of the citation notice and complaint,
 51    together with a true copy of the complaint, by certified mail addressed to the
 52    licensee at his last address of record with the board  administrator.  Service
                                                                        
                                           11
                                                                        
  1    of  the citation notice and complaint shall be complete at the time of deposit
  2    in accordance with the provisions of the Idaho  Rrules  of  Ccivil  Pprocedure
  3    relating to service by mail.
  4        Upon  the  filing  of the answer, the board shall fix a time and place for
  5    the hearing and give the licensee and the complainant not less than  five  (5)
  6    days'  notice thereof. The notice may be served by mailing a true copy by cer-
  7    tified mail addressed to the licensee and to the complainant, respectively, at
  8    the last known address of each. With the notice to the complainant there shall
  9    be attached or enclosed a copy of the answer. If either party has appeared  by
 10    counsel, the notice shall be given in like manner to counsel instead of to the
 11    party.
 12        The  hearing shall be conducted in accordance with the provisions of chap-
 13    ter 52, title 67, Idaho Code, and the Idaho rules of administrative procedure.
 14        Following the hearing, the hearing officer shall issue  recommended  find-
 15    ings of fact, conclusions of law, and order.
 16        The recommended order entered by the board may:
 17        (a)  Provide  for the immediate complete suspension by the licensee of all
 18    operations as a contractor during the period fixed by the decision.
 19        (b)  Permit the licensee to complete any or all contracts shown by  compe-
 20    tent evidence taken at the hearing to be then uncompleted.
 21        (c)  Impose  upon the licensee compliance with such specific conditions as
 22    may be just in connection with his operations as a contractor disclosed at the
 23    hearing and may further provide that until such conditions are  complied  with
 24    no  application  for  restoration of the suspended or revoked license shall be
 25    accepted by the board administrator.
 26        (d)  Provide for the imposition of any of the sanctions provided  by  sec-
 27    tion 54-1914, Idaho Code.
 28        Following  a  review of the entire hearing record, the administrator shall
 29    issue a final decision.
                                                                        
 30        SECTION 14.  That Section 54-1916, Idaho Code, be, and the same is  hereby
 31    amended to read as follows:
                                                                        
 32        54-1916.  JUDICIAL REVIEW -- APPEALS PROCEDURE. The applicant or licensee,
 33    as  the  case may be, shall have the right to judicial review of the an action
 34    of the board administrator refusing, cancelling, revoking or suspending  issu-
 35    ance  of a license, or actions taken by the board pursuant to section 54-1014,
 36    Idaho Code, in accordance with the provisions of chapter 52, title  67,  Idaho
 37    Code.
 38        Appeals  may  be  taken  from  the  judgment of said district court to the
 39    Ssupreme Ccourt of Idaho by either party by serving written notice thereof  on
 40    the  adverse  party  and  filing the same in said district court within thirty
 41    (30) days after entry of said judgment, but otherwise said appeal shall be  in
 42    the same manner that appeals are taken and records prepared on appeal in civil
 43    actions.
 44        On  any  appeal to the district court by a licensee, the court may, in its
 45    discretion, upon the filing of a proper bond by the licensee in an  amount  to
 46    be  fixed by the court, but not less than one thousand dollars ($1,000), guar-
 47    anteeing the compliance by the licensee with specific conditions imposed  upon
 48    him  by  the  board's  decision, if any, permit the licensee to continue to do
 49    business as a contractor pending entry of judgment by the district court.
                                                                        
 50        SECTION 15.  That Section 54-1917, Idaho Code, be, and the same is  hereby
 51    amended to read as follows:
                                                                        
                                           12
                                                                        
  1        54-1917.  RENEWAL  OF  SUSPENDED  OR  REVOKED LICENSE. After suspension or
  2    revocation of the license upon any of the grounds set forth in this act  chap-
  3    ter, the board administrator may renew the license upon proof of compliance by
  4    the  contractor  with  all provisions of the decision as to renewal or, in the
  5    absence of such decision or any provisions therein as to renewal, in the sound
  6    discretion of the board administrator. After revocation of a license upon  any
  7    of the grounds set forth in this act chapter, the license shall not be renewed
  8    or  reissued within a period of one (1) year after the final decision of revo-
  9    cation and then only on proper showing that all loss  caused  by  the  act  or
 10    omission  for  which the license was revoked has been fully satisfied and that
 11    all conditions imposed by the decision of revocation have been complied  with.
 12    At  any  time  before  a  case is finally submitted to the board for decision,
 13    whether upon an original hearing, or upon a rehearing, a complaint  or  answer
 14    may,  upon  the  motion of either party, and with the consent of the board, or
 15    upon the board's own motion, be amended. If new  charges  are  alleged  in  an
 16    amended  complaint,  the defendant may, upon request, be allowed ten (10) days
 17    to prepare his defense to such new charges.
                                                                        
 18        SECTION 16.  That Section 54-1918, Idaho Code, be, and the same is  hereby
 19    amended to read as follows:
                                                                        
 20        54-1918.  SUBPOENAS AND PROCESS. In any investigation, proceeding or hear-
 21    ing  which the board administrator is empowered to institute, conduct or hold,
 22    the board, and each member thereof, may administer oaths, certify to  official
 23    acts,  issue  subpoenas  for the attendance of witnesses and the production of
 24    books, papers and records, in like manner and to the same extent as courts  of
 25    record, and with their aid when necessary. The process issued by the board, or
 26    any  member  thereof, shall extend to all parts of the state and may be served
 27    by any person authorized to serve process, or by  any  person  designated  for
 28    that  purpose  by the board or a member thereof. The person executing any such
 29    process shall receive such compensation as may be allowed by the board and not
 30    to exceed the fees prescribed by law for similar services, and such fees shall
 31    be paid in the same manner as provided herein for the payment of fees for wit-
 32    nesses. Any citation, notice  or  other  process  or  any  paper  or  document
 33    required  by  this  act  chapter  to  be served on any party may be personally
 34    served as provided in the Ccode of Ccivil Pprocedure, with the same effect  as
 35    if served by mail in the manner provided in this act chapter.
                                                                        
 36        SECTION  17.  That Section 54-1921, Idaho Code, be, and the same is hereby
 37    amended to read as follows:
                                                                        
 38        54-1921.  PUBLIC WORKS CONTRACTORS LICENSE FUND -- APPROPRIATION. --  DIS-
 39    BURSEMENTS.  The state treasurer shall be custodian of a fund, which is hereby
 40    created, to be known as the "Public  Works  Contractors  License  Fund,"  into
 41    which shall be paid and deposited all funds accruing or received under any and
 42    all  provisions  of this act chapter. All moneys from whatever source accruing
 43    to or received by said fund are hereby appropriated for  the  payment  of  the
 44    cost and expense of the administration and enforcement of this act chapter, as
 45    herein  provided,  and  the same shall be paid out by the state treasurer only
 46    upon state vouchers prepared and approved by the board, certified  to  by  the
 47    chairman  of  the  board,  and  approved  by the state board of examiners. Any
 48    moneys remaining in said fund on the last day of each year, as the term "year"
 49    is defined in this act chapter, shall continue to be appropriated for the pur-
 50    poses of this act chapter.
                                                                        
                                           13
                                                                        
  1        SECTION 18.  An emergency existing therefor,  which  emergency  is  hereby
  2    declared to exist, this act shall be in full force and effect on and after its
  3    passage and approval.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                                     Moved by    Gagner              
                                                                        
                                                     Seconded by Chase               
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENTS TO H.B. NO. 238
                                                                        
  1                               AMENDMENT TO SECTION 14
  2        On page 11 of the printed bill, in line 35, delete "54-1014"  and  insert:
  3    "54-1914".
                                                                        
  4                                AMENDMENT TO THE BILL
  5        On page 13, delete lines 1 through 3.
                                                                        
  6                                 CORRECTIONS TO TITLE
  7        On page 1, in line 35, following "CORRECTIONS;" insert: "AND"; in line 37,
  8    following  "CORRECTIONS" delete the remainder of the line; delete line 38, and
  9    insert: ".".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                               HOUSE BILL NO. 238, As Amended
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LICENSING OF PUBLIC WORKS CONTRACTORS; AMENDING  SECTION  54-1901,
  3        IDAHO  CODE,  TO  DELETE THE DEFINITION OF "EXECUTIVE DIRECTOR," TO DEFINE
  4        "ADMINISTRATOR" AND TO MAKE TECHNICAL CORRECTIONS;  AMENDING  SECTION  54-
  5        1902,  IDAHO  CODE, TO PROVIDE THAT THE ADMINISTRATOR SHALL BE RESPONSIBLE
  6        FOR THE ISSUANCE OF PUBLIC WORKS CONTRACTOR LICENSES AND TO MAKE TECHNICAL
  7        CORRECTIONS; AMENDING SECTION 54-1904, IDAHO CODE, TO PROVIDE CORRECT TER-
  8        MINOLOGY AND TO MAKE  TECHNICAL  CORRECTIONS;  AMENDING  SECTION  54-1905,
  9        IDAHO  CODE, TO PROVIDE RESPONSIBILITIES OF THE ADMINISTRATOR OF THE DIVI-
 10        SION OF BUILDING SAFETY; REPEALING SECTION 54-1906, IDAHO  CODE;  AMENDING
 11        SECTION 54-1907, IDAHO CODE, TO REVISE THE DUTIES AND POWERS OF THE PUBLIC
 12        WORKS  CONTRACTORS  LICENSE  BOARD  AND  TO TRANSFER CERTAIN DUTIES TO THE
 13        ADMINISTRATOR; AMENDING SECTION 54-1910, IDAHO CODE, TO PROVIDE  THAT  THE
 14        ADMINISTRATOR  SHALL HAVE THE POWER AND AUTHORITY TO INVESTIGATE, CLASSIFY
 15        AND QUALIFY APPLICANTS FOR LICENSE  UNDER  RULES  ADOPTED  BY  THE  BOARD;
 16        AMENDING SECTION 54-1911, IDAHO CODE, TO MODIFY THE PROCEDURES AND AUTHOR-
 17        ITY FOR FILING, ISSUING AND DENYING LICENSES AND TO MAKE TECHNICAL CORREC-
 18        TIONS;  AMENDING SECTION 54-1912, IDAHO CODE, TO MODIFY THE PROCEDURES AND
 19        AUTHORITY FOR RENEWING LICENSES AND TO MAKE TECHNICAL CORRECTIONS;  AMEND-
 20        ING  SECTION  54-1913,  IDAHO CODE, TO PROVIDE DUTIES OF THE ADMINISTRATOR
 21        FOR MAINTAINING RECORDS AND PUBLISHING LISTS AND INFORMATION AND  TO  MAKE
 22        TECHNICAL  CORRECTIONS; AMENDING SECTION 54-1914, IDAHO CODE, TO AUTHORIZE
 23        THE ADMINISTRATOR TO INITIATE INVESTIGATIONS AND DISCIPLINARY ACTIONS,  TO
 24        PROVIDE  THAT  A CHANGE IN FINANCIAL CIRCUMSTANCES IS CAUSE FOR INVESTIGA-
 25        TION AND TO MAKE TECHNICAL CORRECTIONS; REPEALING SECTION 54-1914A,  IDAHO
 26        CODE;  AMENDING  SECTION  54-1915,  IDAHO  CODE,  TO PROVIDE DUTIES OF THE
 27        ADMINISTRATOR REGARDING DISCIPLINARY ACTIONS AND TO REVISE  THE  PROCEDURE
 28        FOR  DUE  PROCESS IN DISCIPLINARY ACTIONS; AMENDING SECTION 54-1916, IDAHO
 29        CODE, TO CLARIFY ACTIONS WHICH ARE SUBJECT TO JUDICIAL REVIEW, TO  PROVIDE
 30        A  REVISION  TO  THE  APPEALS  PROCESS  AND TO MAKE TECHNICAL CORRECTIONS;
 31        AMENDING SECTION 54-1917, IDAHO CODE, TO PROVIDE DUTIES OF THE ADMINISTRA-
 32        TOR REGARDING RENEWAL OF SUSPENDED AND REVOKED LICENSES AND TO MAKE  TECH-
 33        NICAL  CORRECTIONS; AMENDING SECTION 54-1918, IDAHO CODE, TO PROVIDE POWER
 34        OF THE ADMINISTRATOR REGARDING SUBPOENAS AND PROCESS AND TO MAKE TECHNICAL
 35        CORRECTIONS; AND AMENDING SECTION 54-1921, IDAHO CODE, TO DELETE  OUTDATED
 36        LANGUAGE  REGARDING  THE EXPENDITURE OF FUNDS IN THE PUBLIC WORKS CONTRAC-
 37        TORS LICENSE FUND AND TO MAKE TECHNICAL CORRECTIONS.
                                                                        
 38    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 39        SECTION 1.  That Section 54-1901, Idaho Code, be, and the same  is  hereby
 40    amended to read as follows:
                                                                        
 41        54-1901.  DEFINITIONS.  For the interpretation of this act chapter, unless
 42    the context indicates a different meaning:
 43        (a)  "Person" includes any individual, firm,  copartnership,  corporation,
                                                                        
                                           2
                                                                        
  1    limited liability company, limited liability partnership, association or other
  2    organization, or any combination thereof acting as a unit.
  3        (b)  "Public  works  contractor,"  which  term is synonymous with the term
  4    "builder," "sub-contractor subcontractor" and "specialty contractor,"  and  in
  5    this  act chapter referred to as "contractor" or "licensee," includes any per-
  6    son who, in any capacity, undertakes, or offers to undertake, or  purports  to
  7    have  the  capacity to undertake any construction, repair or reconstruction of
  8    any public work, or submits a proposal to, or enters into a contract with, the
  9    state of Idaho, or any county, city, school  district,  sewer  district,  fire
 10    district,  or any other taxing subdivision or district of any public or quasi-
 11    public corporation of the state, or with any agency, or with any other  public
 12    board,  body,  commission,  department or agency, or officer or representative
 13    thereof, authorized to let or award contracts for the construction, repair  or
 14    reconstruction of any public work.
 15        (c)  "Public  works  construction"  includes  any  or all of the following
 16    branches:
 17        (1)  Heavy construction, which is defined as constructing substantially in
 18        its entirety any fixed works and structures (not including "building  con-
 19        struction"), without limitation, for any or all of the following divisions
 20        of  subjects: irrigation, drainage, sanitation, sewage, water power, water
 21        supply, reservoirs, flood control, reclamation,  inland  waterways,  rail-
 22        roads,  grade  separations,  track  elevation,  elevated  highways, hydro-
 23        electric developments, aqueducts, transmission lines,  duct  lines,  pipe-
 24        lines,  locks, dams, dykes, levees, revetments, channels, channel cutoffs,
 25        intakes, drainage, excavation and disposal of  earth  and  rocks,  founda-
 26        tions,  piers, abutments, retaining walls, viaducts, shafts, tunnels, air-
 27        ports, air bases and airways, and other facilities incidental to the same;
 28        (2)  Highway construction, which is defined as all work included in  high-
 29        way  construction  contracts,  including,  without  limitation,  highways,
 30        roads, streets, bridges, tunnels, sewer and street grading, street paving,
 31        curb  setting,  surfacing  and  other  facilities incidental to any of the
 32        same;
 33        (3)  Building construction, which is defined as  all  work  in  connection
 34        with  any  structure  now  built, being built, or hereafter built, for the
 35        support, shelter and inclosure of persons, chattels, personal and  movable
 36        property  of  any kind, requiring in its construction the use of more than
 37        two (2) unrelated building trades or crafts.
 38        (4)  Specialty construction, which is defined as any  work  in  connection
 39        with any public works construction, requiring special skill and the use of
 40        specially skilled trades or crafts.
 41        (d)  "Board" means the board created by this act chapter under the name of
 42    "public works contractors license board."
 43        (e)  "Executive  directorAdministrator" means the person appointed as such
 44    under this act administrator of the division of building safety.
 45        (f)  "Year" means the fiscal year ending June 30, each year.
 46        (g)  "Federal aid funds" means a direct grant in aid, matching  funds,  or
 47    loan  from  an  agency of the federal government and designated for a specific
 48    public works project. Revenue sharing  funds,  federal  impact  funds,  timber
 49    stumpage  fees,  and  similar indirect allowances and subsidies not designated
 50    for a specific public works project shall not  be  regarded  as  "federal  aid
 51    funds" within the meaning of this section.
 52        (h)  "Government  obligation" means a public debt obligation of the United
 53    States government or the state of Idaho and an obligation whose principal  and
 54    interest  is unconditionally guaranteed by the United States government or the
 55    state of Idaho.
                                                                        
                                           3
                                                                        
  1        (i)  "Public entity" means the state of Idaho, or any county, city, school
  2    district, sewer district, fire district, or any other  taxing  subdivision  or
  3    district of any public or quasi-public corporation of the state, or any agency
  4    thereof,  or  with  any  other  public  board, body, commission, department or
  5    agency, or officer or representative thereof.
  6        (j)  "Bid" or "bidder" means any proposal submitted by a public works con-
  7    tractor to a public entity in competitive bidding for the construction, alter-
  8    ation, repair or improvement of any public works construction.
                                                                        
  9        SECTION 2.  That Section 54-1902, Idaho Code, be, and the same  is  hereby
 10    amended to read as follows:
                                                                        
 11        54-1902.  UNLAWFUL  TO ENGAGE IN PUBLIC WORKS CONTRACTING WITHOUT LICENSE.
 12    It shall be unlawful for any person to engage in the business or  act  in  the
 13    capacity  of a public works contractor within this state without first obtain-
 14    ing and having a license issued pursuant to the provisions of this chapter  by
 15    the  administrator  of  the division of building safety, unless such person is
 16    particularly exempted as provided in this act chapter. It  shall  be  unlawful
 17    for  any  public  works  contractor to subcontract in excess of eighty percent
 18    (80%) of the work under any contract to be performed by  him  as  such  public
 19    works  contractor  according  to the contract prices therein set forth, unless
 20    otherwise provided in the specifications of such contracts. Nor shall a public
 21    works contractor accept a bid from any person who at that time does  not  pos-
 22    sess  the  appropriate  license  for  the project involved. Nor shall a public
 23    works contractor accept bids to sublet any part of any contract for  specialty
 24    construction from a specialty contractor who at that time does not possess the
 25    appropriate  license  in  accordance with this act chapter; provided, however,
 26    that no contractor shall be required to have a license under this act  chapter
 27    in  order  to submit a bid or proposal for contracts for public works financed
 28    in whole or in part by federal aid funds, but at or prior  to  the  award  and
 29    execution of any such contract by the state of Idaho, or any other contracting
 30    authority  mentioned in this act chapter, the successful bidder shall secure a
 31    license as provided in this act chapter.
                                                                        
 32        SECTION 3.  That Section 54-1904, Idaho Code, be, and the same  is  hereby
 33    amended to read as follows:
                                                                        
 34        54-1904.  CLASSES  OF  LICENSES  -- RIGHTS GRANTED UNDER LICENSES -- FEES.
 35    There shall be six (6) classes of licenses issued under the provisions of this
 36    act chapter which are hereby designated as Classes AAA, AA, A, B, C and D, the
 37    maximum fee for which shall be as hereinafter specified. Each applicant for  a
 38    license shall specify the class of license applied for in his application.
 39        For the purpose of licensing public works contractors under this act chap-
 40    ter  the  board  may  adopt  rules  necessary  to determine the classification
 41    according to their responsibility, and the type and scope of the operations of
 42    a licensed contractor to those in which he  is  classified  and  qualified  to
 43    engage as in this act chapter provided.
 44        Class  "AAA"  license.  Any  contractor  whose qualifications, ability and
 45    responsibility to execute contracts for public works  involving  an  estimated
 46    cost of more than three million dollars ($3,000,000) may, upon his application
 47    and  the  payment  of  a  license  fee not to exceed one hundred fifty dollars
 48    ($150), be granted a Class "AAA" license and be so classified by the board  in
 49    accordance  with  the  provisions  of  this act chapter. The holder of a Class
 50    "AAA" license shall be entitled to engage  in  the  public  works  contracting
 51    business in the state as provided in said license. The renewal fee for a Class
                                                                        
                                           4
                                                                        
  1    "AAA" license shall not exceed one hundred fifty dollars ($150).
  2        Class  "AA"  license.  Any  contractor  whose  qualifications, ability and
  3    responsibility to execute contracts for public works  involving  an  estimated
  4    cost  of not more than three million dollars ($3,000,000) may, upon his appli-
  5    cation and the payment of a license fee not to exceed one hundred  fifty  dol-
  6    lars ($150), be granted a Class "AA" license and be so classified by the board
  7    in  accordance  with the provisions of this act chapter. The holder of a Class
  8    "AA" license shall be entitled to engage in the public works contracting busi-
  9    ness in the state as provided in said license. The renewal  fee  for  a  Class
 10    "AA" license shall not exceed one hundred fifty dollars ($150).
 11        Class  "A"  license.  Any  contractor  whose  qualifications,  ability and
 12    responsibility to execute contracts for public works  involving  an  estimated
 13    cost  of not more than one million dollars ($1,000,000) may, upon his applica-
 14    tion and the payment of a license fee not to exceed one hundred fifty  dollars
 15    ($150),  be  granted  a Class "A" license and be so classified by the board in
 16    accordance with the provisions of this act chapter. The holder of a Class  "A"
 17    license  shall  be entitled to engage in the public works contracting business
 18    in the state as provided in said license. The renewal  fee  for  a  Class  "A"
 19    license shall not exceed one hundred fifty dollars ($150).
 20        Class  "B"  license.  Any  contractor  whose  qualifications,  ability and
 21    responsibility to execute contracts for public works  involving  an  estimated
 22    cost  of not more than five hundred thousand dollars ($500,000), may, upon his
 23    application and the payment of a license fee not to exceed  seventy-five  dol-
 24    lars ($75.00) be granted a Class "B" license and be so classified by the board
 25    in  accordance  with the provisions of this act chapter. The holder of a Class
 26    "B" license shall be entitled to engage in the public works contracting  busi-
 27    ness in the state as provided in said license. The renewal fee for a Class "B"
 28    license shall not exceed seventy-five dollars ($75.00).
 29        Class  "C"  license.  Any  contractor  whose  qualifications,  ability and
 30    responsibility to execute contracts for public works  involving  an  estimated
 31    cost  of  not more than one hundred thousand dollars ($100,000), may, upon his
 32    application and the payment of a license fee not to exceed  seventy-five  dol-
 33    lars  ($75.00),  be  granted  a  Class "C" license and be so classified by the
 34    board in accordance with the provisions of this act chapter. The holder  of  a
 35    Class  "C" license shall be entitled to engage in the public works contracting
 36    business in the state as provided in said license. The renewal fee for a Class
 37    "C" license shall not exceed seventy-five dollars ($75.00).
 38        Class "D"  license.  Any  contractor  whose  qualifications,  ability  and
 39    responsibility  to  execute  contracts for public works involving an estimated
 40    cost of not more than fifty thousand dollars ($50,000), may, upon his applica-
 41    tion and the payment of a license  fee  not  to  exceed  seventy-five  dollars
 42    ($75.00),  be granted a Class "D" license and be so classified by the board in
 43    accordance with the provisions of this act chapter. The holder of a Class  "D"
 44    license  shall  be entitled to engage in the public works contracting business
 45    in the state as provided in said license. The renewal  fee  for  a  Class  "D"
 46    license shall not exceed seventy-five dollars ($75.00).
 47        The board shall be vested with the power to fix annually the amount of the
 48    original  and  renewal  license fees for each class of license for the ensuing
 49    license year. The amount of the license fee so fixed shall not exceed the max-
 50    imum fee set forth in this section.
 51        Each license issued by the board administrator shall clearly indicate  the
 52    type  and  scope of work for which the licensee is qualified and licensed. The
 53    holder of the license shall be permitted to submit proposals for  and  perform
 54    only  those  types  of work specified in each license. The board administrator
 55    may extend the permissible type or scope of work to be done under any  license
                                                                        
                                           5
                                                                        
  1    when  it is determined by the board administrator that the applicant meets all
  2    of the requirements of this act chapter to qualify him to do such other work.
                                                                        
  3        SECTION 4.  That Section 54-1905, Idaho Code, be, and the same  is  hereby
  4    amended to read as follows:
                                                                        
  5        54-1905.  PUBLIC WORKS CONTRACTORS LICENSE BOARD CREATED -- QUALIFICATIONS
  6    OF  APPOINTEES  --  TERM -- REMOVALS. There is hereby created and made part of
  7    the division of building safety in the department of self-governing agencies a
  8    public works contractors license board. to It shall be the responsibility  and
  9    duty of the administrator of the division of building safety to administer and
 10    enforce  the  provisions  of  this  chapter,  and to serve as secretary to the
 11    board. The board shall  be  composed  of  seven  (7)  members,  who  shall  be
 12    appointed  by the governor. One (1) member of the board shall be a "heavy con-
 13    struction" contractor, one (1) member shall be a "highway  construction"  con-
 14    tractor, two (2) members shall be "building construction" contractors, one (1)
 15    member  shall  be  a "specialty construction" contractor, as such construction
 16    terms are defined in this chapter, one (1) member  shall  be  a  "construction
 17    manager,"  and one (1) member shall be a registered professional engineer. All
 18    contractor members of the board shall be contractors holding a  current  unre-
 19    voked  license  at the time of their appointment, actively engaged in the con-
 20    tracting business and have been so engaged for a period of not less than  five
 21    (5)  years  preceding the date of their appointment, and who shall so continue
 22    in the contracting business during their term of office. Each  member  of  the
 23    board next preceding his appointment shall have been a citizen and resident of
 24    the  state  of Idaho for at least five (5) years. The governor shall appoint a
 25    member to said board for a term of six  (6)  years.  Each  member  shall  hold
 26    office  after  the expiration of their own term until their successor has been
 27    duly appointed and qualified. Vacancies on the board for any  cause  shall  be
 28    filled  by  appointment by the governor for the balance of the unexpired term.
 29    The governor may remove any member of the board for  misconduct,  incompetence
 30    or  neglect  of  duty. Each member of the board shall receive a certificate of
 31    appointment from the governor, and before entering upon the discharge of their
 32    duties, shall file with the secretary of  state  the  constitutional  oath  of
 33    office.
                                                                        
 34        SECTION  5.  That  Section 54-1906, Idaho Code, be, and the same is hereby
 35    repealed.
                                                                        
 36        SECTION 6.  That Section 54-1907, Idaho Code, be, and the same  is  hereby
 37    amended to read as follows:
                                                                        
 38        54-1907.  DUTIES  AND  POWERS  OF THE BOARD -- SEAL. -- EXECUTIVE DIRECTOR
 39    APPOINTED. The board shall be vested with all functions and duties relating to
 40    the administration of this act and shall have full power to make rules  as  it
 41    shall  deem necessary to carry out the provisions of this act. The board shall
 42    have the power to provide suitable quarters and equipment,  records  and  sup-
 43    plies  as  deemed  necessary to carry out the provisions of this act is autho-
 44    rized and directed to prescribe and amend rules consistent with  this  chapter
 45    for  the administration of this chapter and to effectuate the purpose thereof,
 46    and for the investigation, classification, examination and licensing of public
 47    works contractors. The board shall adopt a seal,  having  upon  it  the  words
 48    "Public Works Contractors License Board--State of Idaho." The care and custody
 49    of  the seal shall be with the executive director administrator. Any member of
 50    the board may administer oaths and may take testimony concerning  all  matters
                                                                        
                                           6
                                                                        
  1    within the jurisdiction of the board.
  2        The board shall appoint an executive director, and fix their compensation.
  3    The executive director shall be the secretary to the board and shall carry out
  4    such  administrative  duties  as  provided in this act and as delegated by the
  5    board. The board may, in its discretion, refuse, sustain or reverse, by major-
  6    ity vote, any action or decision of the executive director. For  the  adminis-
  7    tration of this act the board may employ such other employees as may be neces-
  8    sary, describe their duties and fix their compensation.
                                                                        
  9        SECTION  7.  That  Section 54-1910, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        54-1910.  EXAMINATIONS, QUALIFICATIONS AND APPLICATIONS. Under such  rules
 12    as  it  the  board may adopt, the board administrator shall have the power and
 13    authority to investigate, classify, and to  qualify  applicants  for  licenses
 14    under this act chapter, by written or oral examinations, or both.
 15        The qualifications to be required of an applicant by the board are as fol-
 16    lows:
 17        (a)  Such  degree  of experience, and such general knowledge of the build-
 18    ing, safety, health and lien laws of the state, and of the rudimentary  admin-
 19    istrative  principles  of the contracting business, as may be deemed necessary
 20    by the board for the safety and protection of the public. The applicant if  an
 21    individual  may  qualify  as to the aforementioned experience and knowledge by
 22    personal appearance or by the appearance of his responsible managing employee,
 23    and if a copartnership or corporation, limited liability company, limited lia-
 24    bility partnership and any other combination or organization, by  the  appear-
 25    ance  of  the  responsible managing officer or member of the personnel of such
 26    applicant. If the person qualifying by examination as to experience and knowl-
 27    edge shall, for any reason whatsoever, cease to be connected with the licensee
 28    to whom the license is issued, such licensee shall so notify the board  admin-
 29    istrator  in  writing within ten (10) days from such cessation. If such notice
 30    is given, the license shall remain in force for a reasonable length  of  time,
 31    to  be  determined  by rules of the board. If such licensee fails to so notify
 32    the board administrator within said ten (10) day period, then at  the  end  of
 33    such  ten (10) day period, the license of such licensee shall be automatically
 34    suspended. A suspended license shall be reinstated upon the  filing  with  the
 35    board  administrator  of  an affidavit executed by the licensee or a member of
 36    the suspended firm, to the effect that the individual originally examined  for
 37    the  firm  has  been  replaced by another individual who has been qualified by
 38    examination as herein provided, and who shall not have had a license suspended
 39    or revoked, nor have been connected with any licensee who has  had  a  license
 40    suspended  or  revoked  for  reasons  that should preclude him from personally
 41    qualifying as to good character as herein required of an applicant.
 42        (b)  The possession by the applicant of good character. Lack of  character
 43    may be established by showing any of the following:
 44        (1)  That  the applicant has committed or done any act which, if committed
 45        or done by any licensed contractor, would be grounds for the suspension or
 46        revocation of a contractor's license, or
 47        (2)  That the applicant has committed or done any  act  involving  dishon-
 48        esty,  fraud or deceit whereby the applicant has been benefited or whereby
 49        some injury has been sustained by another, or
 50        (3)  That the applicant bears a bad reputation for honesty and  integrity,
 51        or
 52        (4)  That the applicant has been convicted of a felony.
 53        (c)  That he has never been refused a license or had a license revoked for
                                                                        
                                           7
                                                                        
  1    reasons that would preclude the granting of the license applied for.
  2        (d)  No  license  shall be issued to a corporation, copartnership, limited
  3    liability company, limited liability partnership or other combination or orga-
  4    nization if any responsible officer of such corporation, or other  combination
  5    or  organization, or any member of such copartnership does not meet the quali-
  6    fications required of an applicant other than those qualifications relating to
  7    knowledge and experience.
  8        (e)  To obtain an original license under this act chapter,  the  applicant
  9    shall submit to the board administrator, on such forms as it the administrator
 10    shall  prescribe,  accompanied  by  the  required fee for the class of license
 11    applied for, and in accordance with such rules as may be deemed necessary  and
 12    adopted  by  the  board in order to carry out the foregoing provisions of this
 13    section, a sworn written application for such license, containing  the  state-
 14    ment  that applicant desires the issuance of a license under the terms of this
 15    act chapter. The information contained in such application forms shall include
 16    a complete statement of the general nature of  applicant's  contracting  busi-
 17    ness,  and  stating  concisely  applicant's experience and qualifications as a
 18    contractor; the value and character of contract work completed  and  for  whom
 19    performed  during the three (3) year period prior to filing the application; a
 20    general description of applicant's machinery and equipment; a complete  finan-
 21    cial  statement  on  such  forms  and  disclosing such information as shall be
 22    required by the board administrator, together with such additional information
 23    as may be required by the board administrator  to  determine  the  applicant's
 24    fitness  for  a license under this act chapter. The application shall contain,
 25    if by an individual, their the individual's name, social security  number  and
 26    business  address;  if  by a copartnership, its business address and the names
 27    and addresses of all partners; and if by a corporation,  association,  limited
 28    liability  company,  limited  liability partnership or other organization, its
 29    business address and the names and addresses of the president, vice-president,
 30    secretary, and chief construction managing officers, or  responsible  managing
 31    employee.
                                                                        
 32        SECTION  8.  That  Section 54-1911, Idaho Code, be, and the same is hereby
 33    amended to read as follows:
                                                                        
 34        54-1911.  FILING, ISSUANCE AND DENIAL OF LICENSES -- JOINT VENTURE  APPLI-
 35    CATIONS  --  FEES  NOT  REFUNDED. Applications for original licenses, together
 36    with the fees therefor, shall be filed with the board if received at least ten
 37    (10) days prior to consideration thereof by the  board.  administrator.  After
 38    such  examination and investigation as the board may require may be prescribed
 39    by rule, in accordance with the provisions of this act chapter,  if  no  valid
 40    reason  exists for further investigation of applicant, the board administrator
 41    shall at the next meeting issue a  license  to  applicant  permitting  him  to
 42    engage in business as a contractor under the terms of this act chapter for the
 43    licensing  period  designated.  If the information brought to the attention of
 44    the board administrator concerning the character and integrity of an applicant
 45    is such that it would appear proper to deny  the  application,  the  applicant
 46    shall  be  notified by certified mail to show cause within such time, not less
 47    than five (5) days, nor more than thirty (30) days, why the application should
 48    not be denied.
 49        Applications for original licenses filed in accordance with the provisions
 50    of this act shall be considered by  the  board  at  such  special  or  regular
 51    monthly meetings as the board may determine. Fees accompanying original appli-
 52    cations  under  this section are for the administration and enforcement of the
 53    provisions of this chapter and shall not be refunded to the applicant.
                                                                        
                                           8
                                                                        
  1        SECTION 9.  That Section 54-1912, Idaho Code, be, and the same  is  hereby
  2    amended to read as follows:
                                                                        
  3        54-1912.  EXPIRATION  AND  RENEWAL  OF  LICENSES  -- FEES. All contractors
  4    required by the provisions of this section to be licensed, shall  be  licensed
  5    for a period of twelve (12) consecutive calendar months.
  6        Each licensing period shall start on the first day of a calendar month and
  7    end on the last day of the twelfth month from the date of beginning.
  8        Licensing  periods shall expire at midnight on the last day of the licens-
  9    ing period.
 10        Application for renewal of a current license prior to its expiration  date
 11    shall  authorize operation as a contractor by such licensee until actual issu-
 12    ance of such renewal license for the ensuing year or until the final  decision
 13    of  the  board  is  rendered  in any proceeding. An applicant for renewal of a
 14    license issued under this act chapter shall not be required to take any  other
 15    or  further  examination  to obtain such renewal license, provided that at the
 16    time of such application his license has not been suspended  or  permitted  to
 17    lapse or expire for any cause for a period of one (1) year or more. All appli-
 18    cations  for renewal of license shall be made on forms prescribed by the board
 19    administrator and shall be accompanied by the annual renewal fee  and  a  com-
 20    plete  current  financial statement on such forms and disclosing such informa-
 21    tion as shall be required by the board rule, duly certified  as  true  by  the
 22    applicant,  and  if a copartnership, limited liability company or limited lia-
 23    bility partnership by a member thereof, and if a corporation, by its executive
 24    or financial officer; such renewal application shall be  filed  prior  to  the
 25    first  day  of  such  renewal  licensing period, otherwise the expired license
 26    shall be renewable only after the application and  fees  therefor  shall  have
 27    been  on  file with the board at least ten (10) days prior to consideration by
 28    the board. Fees accompanying renewal applications under this section  are  for
 29    the administration and enforcement of the provisions of this chapter and shall
 30    not be refunded to the applicant.
 31        The  license  issued  under  this  act chapter shall be signed both by the
 32    executive director administrator and by the licensee,  shall  be  nontransfer-
 33    able,  and  shall be displayed in the licensee's main office or chief place of
 34    business, and satisfactory evidence of the possession thereof and of the  cur-
 35    rent annual renewal thereof shall be exhibited by licensee upon demand.
 36        A surviving member or members of a licensed copartnership, limited liabil-
 37    ity company or limited liability partnership by reason of death shall be enti-
 38    tled  to  continue  in  business  under such license until the expiration date
 39    thereof, provided due application for permission is made to the board adminis-
 40    trator within thirty (30) days after death of the member, and the  application
 41    is approved by the board administrator in accordance with its rules.
 42        All  licensees shall report to the board administrator all changes of per-
 43    sonnel, name style or addresses recorded under this act chapter within  thirty
 44    (30) days after the changes are made.
                                                                        
 45        SECTION  10.  That Section 54-1913, Idaho Code, be, and the same is hereby
 46    amended to read as follows:
                                                                        
 47        54-1913.  RECORDS, LISTS AND INFORMATION. The  board  administrator  shall
 48    maintain,  at  its  office  in  Boise, Idaho, open to public inspection during
 49    office hours, a complete record of all retained applications, licenses issued,
 50    licenses renewed and all revocations, cancelations cancellations  and  suspen-
 51    sions  of  licenses, and shall furnish a certified copy of any license issued,
 52    upon receipt of the sum of fifty cents (50), which certified  copy  shall  be
                                                                        
                                           9
                                                                        
  1    received in all courts and elsewhere as evidence of the facts stated therein.
  2        Whenever  funds  are  available  for  the purpose, the board administrator
  3    shall publish a list of the names and addresses of contractors licensed  under
  4    this act chapter and such further information with respect to this act chapter
  5    and  its  administration  as  the  board administrator deems proper. The board
  6    administrator may furnish the lists to such public works and building  depart-
  7    ments,  public  officials or public bodies, and other persons interested in or
  8    allied with the building and construction industry in this or any other  state
  9    as deemed advisable, and at such intervals as deemed necessary, whenever funds
 10    therefor are available. Copies of the lists may also be furnished by the board
 11    administrator upon request to any firm or individual upon payment of a reason-
 12    able fee fixed by the board.
 13        Whenever  funds are available for the purpose, the board administrator may
 14    publish and disseminate to licensees of the board and to public  officials  or
 15    other  persons  interested  in  or  allied  with the building and construction
 16    industry, such information with relation to the administration and enforcement
 17    of this act chapter as deemed necessary to carry out its purposes.
                                                                        
 18        SECTION 11.  That Section 54-1914, Idaho Code, be, and the same is  hereby
 19    amended to read as follows:
                                                                        
 20        54-1914.  DISCIPLINARY  PROCEEDINGS.  The board administrator may upon its
 21    his own motion or at the direction of the board, and shall upon  the  verified
 22    complaint  in writing of any person, investigate the actions of any contractor
 23    within the state and may undertake to reclassify, retype, place on  probation,
 24    impose an administrative fine not to exceed five thousand dollars ($5,000) per
 25    violation,  impose  the administrative costs of bringing the action before the
 26    board including, but not limited to,  hearing  officer  fees,  expert  witness
 27    fees,  attorney's fees,  costs of hearing  transcripts and copies, temporarily
 28    suspend or permanently revoke any license if the holder, while a  licensee  or
 29    applicant  hereunder,  is guilty of or commits any one (1) or more of the fol-
 30    lowing acts or omissions:
 31        (a)  Abandonment without legal excuse of any construction project or oper-
 32    ation engaged in or undertaken by the licensee as a contractor.
 33        (b)  Diversion of funds or property received under express  agreement  for
 34    prosecution  or completion of a specific construction project or operation, or
 35    for a specified purpose in the prosecution or completion of  any  construction
 36    project  or operation, and their application or use for any other construction
 37    project or operation, obligation or purpose, with intent to defraud or deceive
 38    creditors or the owner.
 39        (c)  Willful departure from or disregard of, plans  or  specifications  in
 40    any material respect, and prejudicial to another, without consent of the owner
 41    or  his  duly authorized representative, and without the consent of the person
 42    entitled to have the particular construction project or operation completed in
 43    accordance with such plans and specifications.
 44        (d)  Willful or deliberate disregard and violation of valid building  laws
 45    of  the  state, or of any political subdivision thereof, or of the safety laws
 46    or labor laws or compensation insurance laws of the state.
 47        (e)  Misrepresentation of a material fact by an applicant in  obtaining  a
 48    license.
 49        (f)  Aiding  or  abetting  an unlicensed person to evade the provisions of
 50    this act chapter or conspiring with an unlicensed person,  or  allowing  one's
 51    license  to  be used by an unlicensed person, or acting as agent or partner or
 52    associate or otherwise, of an unlicensed person with the intent to  evade  the
 53    provisions of this act chapter.
                                                                        
                                           10
                                                                        
  1        (g)  Failure in any material respect to comply with the provisions of this
  2    act chapter.
  3        (h)  Acting in the capacity of a contractor under any license issued here-
  4    under  except:  (1) in the name of the licensee as set forth upon the license,
  5    or (2) in accordance with the personnel of the licensee as set  forth  in  the
  6    application  for  such  license,  or  as later changed as provided in this act
  7    chapter.
  8        (i)  Knowingly accepting a bid from, or  entering  into  a  contract  with
  9    another  contractor  for  a  portion of a public works project if at that time
 10    such contractor does not possess the appropriate license to do  that  work  as
 11    provided in this act chapter.
 12        (j)  Willful  failure  or  refusal  without  legal excuse on the part of a
 13    licensee as a contractor to finish a construction project  or  operation  with
 14    reasonable diligence, causing material injury to another.
 15        (k)  Willful  or  deliberate  failure by any licensee, or agent or officer
 16    thereof, to pay any moneys when due, for any materials or services rendered in
 17    connection with his operations as a contractor, when he has  the  capacity  to
 18    pay  or when he has received sufficient funds therefor as payment for the par-
 19    ticular construction work, project or operation  for  which  the  services  or
 20    materials  were rendered or purchased; or denial of any such amount due or the
 21    validity of the claim thereof with intent to secure for himself, his employer,
 22    or other person, any discount upon such indebtedness or with intent to hinder,
 23    delay or defraud the person to whom such indebtedness is due.
 24        (l)  Suffers a change in financial  circumstances  which  may  impair  the
 25    licensee's financial responsibility.
                                                                        
 26        SECTION 12.  That Section 54-1914A, Idaho Code, be, and the same is hereby
 27    repealed.
                                                                        
 28        SECTION  13.  That Section 54-1915, Idaho Code, be, and the same is hereby
 29    amended to read as follows:
                                                                        
 30        54-1915.  PROCEDURE FOR REVOCATION IMPOSITION OF DISCIPLINE. Upon the fil-
 31    ing with the board of a verified complaint with the administrator  charging  a
 32    licensee  with the commission of any act constituting a cause for disciplinary
 33    action within two (2) years prior to the date of filing, or upon such a  find-
 34    ing  made  by the administrator following an investigation, the board adminis-
 35    trator shall forthwith issue a citation notice, accompanied by a copy  of  the
 36    complaint,  directing  the licensee, within ten (10) days after service of the
 37    citation notice, to appear by filing with the board administrator  a  verified
 38    answer  to the complaint, showing cause, if any, why the license should not be
 39    suspended or revoked; provided, however, that the appearance of  the  licensee
 40    by  the filing of an answer may be waived by the complainant with the approval
 41    of the board, in which case the board shall proceed to a hearing. The proceed-
 42    ings before the board shall be governed by the provisions of chapter 52, title
 43    67, Idaho Code.
 44        The administrator shall have the power to appoint, by an order in writing,
 45    a hearing officer to take testimony, who shall have power to administer oaths,
 46    issue subpoenas and compel the attendance of witnesses.
 47        Service of the citation notice and complaint upon the  licensee  shall  be
 48    fully  effected  by  mailing a true copy of the citation notice and complaint,
 49    together with a true copy of the complaint, by certified mail addressed to the
 50    licensee at his last address of record with the board  administrator.  Service
 51    of  the citation notice and complaint shall be complete at the time of deposit
 52    in accordance with the provisions of the Idaho  Rrules  of  Ccivil  Pprocedure
                                                                        
                                           11
                                                                        
  1    relating to service by mail.
  2        Upon  the  filing  of the answer, the board shall fix a time and place for
  3    the hearing and give the licensee and the complainant not less than  five  (5)
  4    days'  notice thereof. The notice may be served by mailing a true copy by cer-
  5    tified mail addressed to the licensee and to the complainant, respectively, at
  6    the last known address of each. With the notice to the complainant there shall
  7    be attached or enclosed a copy of the answer. If either party has appeared  by
  8    counsel, the notice shall be given in like manner to counsel instead of to the
  9    party.
 10        The  hearing shall be conducted in accordance with the provisions of chap-
 11    ter 52, title 67, Idaho Code, and the Idaho rules of administrative procedure.
 12        Following the hearing, the hearing officer shall issue  recommended  find-
 13    ings of fact, conclusions of law, and order.
 14        The recommended order entered by the board may:
 15        (a)  Provide  for the immediate complete suspension by the licensee of all
 16    operations as a contractor during the period fixed by the decision.
 17        (b)  Permit the licensee to complete any or all contracts shown by  compe-
 18    tent evidence taken at the hearing to be then uncompleted.
 19        (c)  Impose  upon the licensee compliance with such specific conditions as
 20    may be just in connection with his operations as a contractor disclosed at the
 21    hearing and may further provide that until such conditions are  complied  with
 22    no  application  for  restoration of the suspended or revoked license shall be
 23    accepted by the board administrator.
 24        (d)  Provide for the imposition of any of the sanctions provided  by  sec-
 25    tion 54-1914, Idaho Code.
 26        Following  a  review of the entire hearing record, the administrator shall
 27    issue a final decision.
                                                                        
 28        SECTION 14.  That Section 54-1916, Idaho Code, be, and the same is  hereby
 29    amended to read as follows:
                                                                        
 30        54-1916.  JUDICIAL REVIEW -- APPEALS PROCEDURE. The applicant or licensee,
 31    as  the  case may be, shall have the right to judicial review of the an action
 32    of the board administrator refusing, cancelling, revoking or suspending  issu-
 33    ance  of a license, or actions taken by the board pursuant to section 54-1914,
 34    Idaho Code, in accordance with the provisions of chapter 52, title  67,  Idaho
 35    Code.
 36        Appeals  may  be  taken  from  the  judgment of said district court to the
 37    Ssupreme Ccourt of Idaho by either party by serving written notice thereof  on
 38    the  adverse  party  and  filing the same in said district court within thirty
 39    (30) days after entry of said judgment, but otherwise said appeal shall be  in
 40    the same manner that appeals are taken and records prepared on appeal in civil
 41    actions.
 42        On  any  appeal to the district court by a licensee, the court may, in its
 43    discretion, upon the filing of a proper bond by the licensee in an  amount  to
 44    be  fixed by the court, but not less than one thousand dollars ($1,000), guar-
 45    anteeing the compliance by the licensee with specific conditions imposed  upon
 46    him  by  the  board's  decision, if any, permit the licensee to continue to do
 47    business as a contractor pending entry of judgment by the district court.
                                                                        
 48        SECTION 15.  That Section 54-1917, Idaho Code, be, and the same is  hereby
 49    amended to read as follows:
                                                                        
 50        54-1917.  RENEWAL  OF  SUSPENDED  OR  REVOKED LICENSE. After suspension or
 51    revocation of the license upon any of the grounds set forth in this act  chap-
                                                                        
                                           12
                                                                        
  1    ter, the board administrator may renew the license upon proof of compliance by
  2    the  contractor  with  all provisions of the decision as to renewal or, in the
  3    absence of such decision or any provisions therein as to renewal, in the sound
  4    discretion of the board administrator. After revocation of a license upon  any
  5    of the grounds set forth in this act chapter, the license shall not be renewed
  6    or  reissued within a period of one (1) year after the final decision of revo-
  7    cation and then only on proper showing that all loss  caused  by  the  act  or
  8    omission  for  which the license was revoked has been fully satisfied and that
  9    all conditions imposed by the decision of revocation have been complied  with.
 10    At  any  time  before  a  case is finally submitted to the board for decision,
 11    whether upon an original hearing, or upon a rehearing, a complaint  or  answer
 12    may,  upon  the  motion of either party, and with the consent of the board, or
 13    upon the board's own motion, be amended. If new  charges  are  alleged  in  an
 14    amended  complaint,  the defendant may, upon request, be allowed ten (10) days
 15    to prepare his defense to such new charges.
                                                                        
 16        SECTION 16.  That Section 54-1918, Idaho Code, be, and the same is  hereby
 17    amended to read as follows:
                                                                        
 18        54-1918.  SUBPOENAS AND PROCESS. In any investigation, proceeding or hear-
 19    ing  which the board administrator is empowered to institute, conduct or hold,
 20    the board, and each member thereof, may administer oaths, certify to  official
 21    acts,  issue  subpoenas  for the attendance of witnesses and the production of
 22    books, papers and records, in like manner and to the same extent as courts  of
 23    record, and with their aid when necessary. The process issued by the board, or
 24    any  member  thereof, shall extend to all parts of the state and may be served
 25    by any person authorized to serve process, or by  any  person  designated  for
 26    that  purpose  by the board or a member thereof. The person executing any such
 27    process shall receive such compensation as may be allowed by the board and not
 28    to exceed the fees prescribed by law for similar services, and such fees shall
 29    be paid in the same manner as provided herein for the payment of fees for wit-
 30    nesses. Any citation, notice  or  other  process  or  any  paper  or  document
 31    required  by  this  act  chapter  to  be served on any party may be personally
 32    served as provided in the Ccode of Ccivil Pprocedure, with the same effect  as
 33    if served by mail in the manner provided in this act chapter.
                                                                        
 34        SECTION  17.  That Section 54-1921, Idaho Code, be, and the same is hereby
 35    amended to read as follows:
                                                                        
 36        54-1921.  PUBLIC WORKS CONTRACTORS LICENSE FUND -- APPROPRIATION. --  DIS-
 37    BURSEMENTS.  The state treasurer shall be custodian of a fund, which is hereby
 38    created, to be known as the "Public  Works  Contractors  License  Fund,"  into
 39    which shall be paid and deposited all funds accruing or received under any and
 40    all  provisions  of this act chapter. All moneys from whatever source accruing
 41    to or received by said fund are hereby appropriated for  the  payment  of  the
 42    cost and expense of the administration and enforcement of this act chapter, as
 43    herein  provided,  and  the same shall be paid out by the state treasurer only
 44    upon state vouchers prepared and approved by the board, certified  to  by  the
 45    chairman  of  the  board,  and  approved  by the state board of examiners. Any
 46    moneys remaining in said fund on the last day of each year, as the term "year"
 47    is defined in this act chapter, shall continue to be appropriated for the pur-
 48    poses of this act chapter.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                            RS 11111


The 2000 Legislature placed the Public Works Contractors Licensing 
Board under the Division of Building Safety in the Department of 
Self-Governing Agencies.  Prior to the move, the board had functioned 
independently within the Department of Self-Governing Agencies.

While the 2000 legislation brought the board within the Division
 of Building Safety, the statutes giving the board the powers that
 it needed to function independently were not transferred to the 
administrator of the Division of Building Safety.  This has led to 
duplicative management, budgeting and personnel practices and has 
prevented the incorporation of the board functions into a bureau 
within the Division of Building Safety.


                          FISCAL IMPACT

There is no fiscal impact to the general fund.  The Public Works 
Contractor's Licensing Board is funded with dedicated funds.  
Passage of the bill will likely result in modest cost savings 
attributable to the streamlined management of board functions 
which will occur when those functions are administered within the 
existing organizational structure of the Division.  







CONTACT:	Rep. Lee Gagner
		(208) 332-1000
		 



STATEMENT OF PURPOSE/FISCAL NOTE			H 238