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H0814......................................................by STATE AFFAIRS
CONTRACTORS - REGISTRATION - Adds to existing law to require contractor
registration; to define terms; to provide exemptions from registration; to
create the Idaho Contractors Board and the Idaho Contractors Board Fund; to
set forth board powers and duties; to provide for reciprocal registration;
to provide for investigations and discipline; and to provide penalties.
03/04 House intro - 1st rdg - to printing
03/05 Rpt prt - Held at Desk
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 814
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO CONTRACTOR REGISTRATION; AMENDING TITLE 54, IDAHO CODE, BY THE
3 ADDITION OF A NEW CHAPTER 52, TITLE 54, IDAHO CODE, TO PROVIDE A SHORT
4 TITLE, TO DECLARE A POLICY, TO DEFINE TERMS, TO REQUIRE REGISTRATION, TO
5 SET FORTH EXEMPTIONS, TO CREATE THE IDAHO CONTRACTORS BOARD, TO SET FORTH
6 BOARD POWERS AND DUTIES, TO PROVIDE FOR THE DENIAL OF LIEN RIGHTS, TO PRO-
7 VIDE THAT A CONTRACTOR'S REGISTRATION NUMBER SHALL BE REQUIRED ON BUILDING
8 AND OTHER PERMITS, TO REQUIRE THE POSTING OF PERMITS, TO PROVIDE AN EXEMP-
9 TION, TO PROVIDE FOR APPLICATIONS FOR REGISTRATION, TO SET FORTH REGISTRA-
10 TION PERIODS, TO PROVIDE FOR RENEWAL OF REGISTRATION, TO CREATE THE IDAHO
11 CONTRACTORS BOARD FUND, TO PROVIDE FOR RECIPROCAL REGISTRATION, TO PROVIDE
12 FOR THE ISSUANCE OF CERTIFICATES OF REGISTRATION AND CARDS, TO REQUIRE
13 NOTIFICATION UPON ANY CHANGE OF OWNERSHIP, TO REQUIRE THE DISPLAY OF CON-
14 TRACTOR REGISTRATION NUMBERS, TO PROVIDE FOR BOARD AUTHORITY TO INVESTI-
15 GATE AND DISCIPLINE, TO PROVIDE FOR THE SUSPENSION OR REVOCATION OF REGIS-
16 TRATION, TO PROVIDE FOR REINSTATEMENT, TO PROVIDE PENALTIES, TO PROVIDE
17 FOR SEVERABILITY AND TO SET FORTH POWERS AND DUTIES OF THE ATTORNEY GEN-
18 ERAL AND PROSECUTING ATTORNEYS; AND DECLARING AN EMERGENCY.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Title 54, Idaho Code, be, and the same is hereby amended
21 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
22 ter 52, Title 54, Idaho Code, and to read as follows:
23 CHAPTER 52
24 IDAHO CONTRACTOR REGISTRATION ACT
25 54-5201. SHORT TITLE. This chapter shall be known and may be cited as the
26 "Idaho Contractor Registration Act."
27 54-5202. DECLARATION OF POLICY. This chapter is enacted as an exercise of
28 the power of the state to promote the public health, safety and welfare by
29 safeguarding the people of this state against contractors who prove to be
30 incompetent, dishonest, or unprincipled practitioners of construction prac-
31 tices and to provide for state administrative supervision, regulation and reg-
32 istration of every person offering to practice in the construction of improve-
33 ments to real property. It is hereby declared that the right to practice con-
34 struction is a privilege conferred by legislative grant and this chapter shall
35 be liberally construed to promote the public interest and to accomplish the
36 purpose stated herein.
37 54-5203. DEFINITIONS. As used in this chapter:
38 (1) "Administrator" means the administrator of the division of building
39 safety.
40 (2) "Board" means the Idaho contractors board as created in section
2
1 54-5206, Idaho Code.
2 (3) "Construction" means the performance of building, altering, repair-
3 ing, adding to, subtracting from, improving, reconstructing, moving, excavat-
4 ing, wrecking or demolishing any building, highway, road, bridge, or other
5 structure, project, development or improvement to real property, or to do any
6 part thereof, including the erection of scaffolding or other structures or
7 works in connection therewith.
8 (4) "Contractor" means:
9 (a) Any person who in any capacity undertakes, offers to undertake, pur-
10 ports to have the capacity to undertake, or submits a bid to, or does him-
11 self or by or through others, perform construction; or
12 (b) A construction manager who performs construction management services.
13 (5) "Division" means the division of building safety.
14 (6) "Person" means any individual, firm, partnership, limited liability
15 company, limited liability partnership, corporation, trust, association or
16 other entity or organization capable of conducting business, or any combina-
17 tion thereof acting as a unit.
18 54-5204. REGISTRATION REQUIRED. (1) On and after January 1, 2005, it
19 shall be unlawful for any person to engage in the business of, or hold himself
20 out as, a contractor within this state without being registered as required in
21 this chapter.
22 (2) It shall be unlawful for a contractor to engage any other contractor
23 who is required by this chapter to be registered as a contractor unless such
24 other contractor furnishes satisfactory proof to the contractor that he is
25 duly registered under the provisions of this chapter.
26 (3) Any person who engages in the business or acts in the capacity of a
27 contractor, whether or not duly registered, has thereby submitted to the
28 jurisdiction of the state of Idaho and to the administrative jurisdiction of
29 the Idaho contractors board, and shall be subject to all penalties and reme-
30 dies available under Idaho law for any violation of this chapter.
31 54-5205. EXEMPTIONS FROM REGISTRATION. (1) Nothing in this chapter shall
32 be construed to restrict any person licensed, registered, or otherwise regu-
33 lated by the state of Idaho from engaging in the profession or practice for
34 which they are licensed, registered or otherwise regulated by the state of
35 Idaho, nor shall this chapter require such persons otherwise licensed, regis-
36 tered or regulated from obtaining such registration as required by this chap-
37 ter, so long as such person is not acting with the intent to evade this chap-
38 ter. No such person exempt hereunder may hold himself out as a registered con-
39 tractor.
40 (2) In addition to the exemption set forth in section (1) of this sec-
41 tion, registration as provided for in this chapter shall not be required for
42 the following, so long as such person is not acting with the intent to evade
43 this chapter and so long as such person does not hold himself out as a regis-
44 tered contractor:
45 (a) A person who only performs labor or services for wages or a salary as
46 an employee of a contractor, or as an employee of a person otherwise
47 exempt by the provisions set forth in this chapter, or strictly as a vol-
48 unteer for which no wages or salary shall be paid; provided however, that
49 such exemption shall not apply to any subcontractor or other independent
50 contractor who is not otherwise exempt;
51 (b) An authorized representative of the United States government, the
52 state of Idaho, or any incorporated municipality, county, alternative form
53 of local government, highway district, reclamation district, or other
3
1 municipal or political corporation or subdivision of this state;
2 (c) A public utility operating under the regulation of the Idaho public
3 utility commission as set forth in title 61, Idaho Code, in the construc-
4 tion, maintenance, or development work incidental to its own business;
5 (d) A person who performs repair or operation incidental to the discovery
6 or production of oil, gas or minerals or incidental to the drilling, test-
7 ing, abandoning, or other operation of an oil or gas well or a surface or
8 underground mine or mineral deposit;
9 (e) A person who only furnishes materials, supplies or equipment without
10 that person installing or fabricating them into or consuming them in the
11 performance of the work of the construction contractor;
12 (f) A person performing work on one (1) undertaking or project considered
13 casual, minor, or inconsequential, whether by one (1) or more contracts,
14 the aggregate contract price of which, for labor and materials and all
15 other items, is less than two thousand dollars ($2,000). The exemption
16 prescribed in this paragraph (f) shall not apply when the work or con-
17 struction is part of a larger construction project, whether undertaken by
18 the same or a different construction contractor, or in which a division of
19 the operation is made into contracts of amounts of less than two thousand
20 dollars ($2,000) for the purpose of evasion of this chapter or otherwise;
21 (g) A farmer or rancher while engaged in a farming, dairying, agricul-
22 ture, viticulture, horticulture, or stock or poultry operation;
23 (h) A person who engages in the construction of an agriculture building
24 which is exempt from the Idaho building code act as set forth in section
25 39-4116, Idaho Code;
26 (i) An irrigation district, canal company, reservoir district, ground
27 water district, water district, water measurement district, recharge dis-
28 trict, flood control district, drainage district, or other water delivery
29 or water management entity, or an operating agent of irrigation districts
30 whose board consists of directors of its member districts;
31 (j) An operation related to clearing or other work upon land in rural
32 districts for fire prevention purposes;
33 (k) An owner who contracts for work to be performed by a registered con-
34 tractor on his own property, provided however, this exemption shall not
35 apply to an owner who, with the intent to evade this chapter, constructs a
36 building, residence or other improvement on the owner's property with the
37 intention and for the purpose of selling the improved property at any time
38 during the construction or within twelve (12) months of completion of such
39 construction;
40 (l) An owner performing construction on the owner's personal residential
41 real property, whether or not occupied by the owner, provided however,
42 this exemption shall not apply to an owner who is otherwise regulated by
43 this chapter who constructs a building, residence or other improvement on
44 the owner's property with the intention and for the purpose of promptly
45 selling the improved property, unless the owner has continuously occupied
46 the property as the owner's primary residence for not less than twelve
47 (12) months prior to the sale of such property;
48 (m) Owners of commercial properties, or lessees of commercial properties
49 with the consent of the owner, who, whether themselves or with their own
50 employees, perform maintenance, repair, alteration or construction work in
51 or upon the properties;
52 (n) A real estate licensee acting within the scope of his license pursu-
53 ant to chapter 20, title 54, Idaho Code, who, incident to a regulated real
54 estate transaction, assists his clients in scheduling or performing nomi-
55 nal maintenance and repairs upon such properties being transferred; pro-
4
1 vided however, nothing in this section shall otherwise authorize a real
2 estate licensee or a property manager to act in the capacity of a contrac-
3 tor unless registered with the board;
4 (o) A contractor engaged in the logging industry who builds forest access
5 roads for the purpose of harvesting and transporting logs from forest to
6 mill;
7 (p) A person working on the person's own residence, if the residence is
8 owned by a person other than the resident; or
9 (q) A person who engages in the construction of building to be used pri-
10 marily for industrial chemical process purposes as set forth in section
11 39-4103, Idaho Code.
12 54-5206. IDAHO CONTRACTORS BOARD. (1) The Idaho contractors board is
13 hereby created and made a part of the division of building safety. It shall be
14 the responsibility and duty of the administrator of the division of building
15 safety to administer this chapter, and the administrator shall exercise such
16 powers and duties as are reasonably necessary to enforce the provisions of
17 this chapter. The board may promulgate such rules as may be necessary to carry
18 out the provisions of this chapter in order to effectuate the purposes herein
19 and for the orderly and efficient administration thereof, except as may be
20 limited or prohibited by law and the provisions of this chapter.
21 (2) The board shall consist of four (4) members who are registered con-
22 tractors, and one (1) member of the public at large, all of whom shall be
23 appointed by the governor as follows: one (1) registered contractor from the
24 northern district consisting of Idaho, Lewis, Nez Perce, Clearwater, Latah,
25 Benewah, Boundary, Shoshone, Kootenai and Bonner counties; one (1) registered
26 contractor from the southeastern district consisting of Lemhi, Butte, Clark,
27 Fremont, Jefferson, Madison, Teton, Bonneville, Bingham, Caribou, Bear Lake,
28 Franklin, Oneida, Power and Bannock counties; one (1) registered contractor
29 from the southwestern district consisting of Owyhee, Elmore, Ada, Canyon,
30 Boise, Gem, Payette, Washington, Adams and Valley counties; one (1) registered
31 contractor from the south central district consisting of Blaine, Camas, Cas-
32 sia, Custer, Gooding, Jerome, Lincoln, Minidoka and Twin Falls counties; and
33 one (1) member of the public at large who resides in the state of Idaho and is
34 a person of integrity and good reputation who has lived in this state for at
35 least five (5) years immediately preceding appointment, who has never been
36 registered as a contractor in this or another state, and who has never had a
37 substantial personal, business, professional or pecuniary connection with a
38 contractor except as a purchaser or owner of real property.
39 (3) Each member of the board who is a registered contractor shall serve a
40 term of four (4) years and such terms shall be staggered. The initial board
41 shall have one (1) member whose term expires July 1, 2006; one (1) member
42 whose term expires July 1, 2007; one (1) member whose term expires July 1,
43 2008; and one (1) member whose term shall expire July 1, 2009. The member of
44 the board who is a member of the public at large shall serve a four (4) year
45 term, which initial term shall expire on July 1, 2007. No member of the board
46 may be appointed to more than two (2) consecutive terms.
47 (4) The board shall meet within thirty (30) days after the appointment of
48 all its members and thereafter at such other times as may be expedient and
49 necessary for the proper performance of its duties, but not less than once
50 during each calendar quarter. At the board's first meeting, the members shall
51 elect one (1) of their number to be chairman. The chairman may serve in such
52 capacity for a one (1) year term and may not serve in such capacity for more
53 than two (2) consecutive terms. A majority of the board shall constitute a
54 quorum for the transaction of business.
5
1 (5) The board may delegate to the administrator the power to perform min-
2 isterial functions, investigate and discipline, hold hearings, appoint hearing
3 officers, summon witnesses to appear, administer oaths and take affirmations
4 of witnesses appearing before him or a duly appointed hearing officer and the
5 power to appoint competent persons to issue subpoenas, administer oaths and
6 take testimony.
7 (6) Each member of the board shall be compensated as provided by section
8 59-509(b), Idaho Code.
9 54-5207. GENERAL POWERS AND DUTIES OF THE BOARD. The board shall enforce
10 the minimum standards and requirements therefor as provided by this chapter
11 and by rule adopted by the board. The board may exercise such powers and
12 duties as are reasonably necessary to carry out the provisions of this chapter
13 and it may, among other things:
14 (1) Accept or reject applications for registration and establish the fees
15 to be charged for application, registration and renewal, subject to the provi-
16 sions of this chapter;
17 (2) Hold public meetings and attend or be represented at such meetings,
18 within or without the state, prepare and publish rules pertaining to this
19 chapter and such other information as may be necessary, and furnish copies
20 thereof to those engaged in the business, trade, practice or work of contract-
21 ing and to the public upon request;
22 (3) Furnish standards and procedures and prescribe reasonable rules for
23 applications, qualifications and registration of contractors, including prora-
24 tion of registration fees and staggering initial annual registration; and
25 (4) Under such rules as it may adopt, investigate, classify and determine
26 the qualifications of applicants for registration pursuant to this chapter.
27 54-5208. DENIAL OF LIEN RIGHTS. A contractor who is not registered as set
28 forth in this chapter, unless otherwise exempt, shall be denied and shall be
29 deemed to have conclusively waived any right to place a lien upon real prop-
30 erty as provided for in chapter 5, title 45, Idaho Code. This section shall
31 not operate as a denial of lien rights for any subcontractor or independent
32 contractor who is duly registered in accordance with this chapter and who is
33 performing services at the direction of another contractor, nor shall it oper-
34 ate as a denial of lien rights for any employee of any contractor who is not
35 duly registered, or for any supplier of materials to such unregistered con-
36 tractor, so long as such subcontractor, independent contractor, employee or
37 supplier did not have actual knowledge that such contractor was not duly reg-
38 istered, or who reasonably believed that such contractor was duly registered.
39 54-5209. BUILDING PERMITS AND CONTRACTOR REGISTRATION NUMBER -- POSTING
40 AT SITE. (1) On and after January 1, 2005, no building inspector or such other
41 authority of any county, municipality or district charged with the duty of
42 issuing building permits or other permits for construction of any type shall
43 issue any permit without first requesting presentment of an Idaho contractor's
44 registration number. Such registration number presented shall be conspicuously
45 entered on the face of a permit so issued; provided however, a permit may be
46 issued to a person otherwise exempt from the provisions of this chapter pro-
47 vided such permit shall conspicuously contain the phrase "no contractor regis-
48 tration provided" on the face of such permit. No authority charged with the
49 duty of issuing such permit shall be required to verify that the person
50 applying for such permit is exempt as provided in this chapter.
51 (2) All building permits or other permits for construction of any type
52 shall be posted at the construction site in such a manner that the conspicuous
6
1 statements set forth in subsection (1) of this section are visible.
2 (3) No person engaged in construction activities who is otherwise exempt
3 as set forth in section 54-5205, Idaho Code, shall be required to have a con-
4 tractor registration number.
5 54-5210. APPLICATION FOR REGISTRATION. (1) An applicant for registration
6 as a contractor shall submit an application under oath upon a form to be pre-
7 scribed by the board and which shall include the following information per-
8 taining to the applicant:
9 (a) Social security number for natural persons or employer tax identifi-
10 cation number for other persons;
11 (b) The name and address under which the applicant conducts business;
12 (c) The name and address of each principal, member, partner, shareholder,
13 or any other person claiming an ownership interest in the business entity
14 for which registration is being applied for;
15 (d) A certificate issued by an insurance company authorized to do busi-
16 ness in the state of Idaho or other satisfactory proof that the applicant
17 has procured and has in effect worker's compensation insurance or a state-
18 ment by the contractor as to why such certificate or coverage is not
19 required for the applicant;
20 (e) A certificate issued by an insurance company authorized to do busi-
21 ness in the state of Idaho that the applicant has procured and has in
22 effect a general liability policy, including products and continued opera-
23 tions insurance covering the applicant's construction operations in the
24 sum of not less than three hundred thousand dollars ($300,000) single
25 limit;
26 (f) A statement of the type of construction to be undertaken by the
27 applicant, or such other information as may be required by the board pur-
28 suant to administrative rules adopted by the board; and
29 (g) A statement that the applicant and each principal, member, partner,
30 shareholder, or any other person claiming an ownership interest in the
31 business entity for which registration is being applied for herein has
32 never been denied or had revoked a contractor's license or registration
33 privilege in this or any other state or, if a license or registration
34 privilege has been denied or revoked in this or any other state, an expla-
35 nation of any such denial or revocation.
36 (2) Along with such application, the applicant shall submit a registra-
37 tion fee as may be set by the board to cover its administrative and enforce-
38 ment costs, not to exceed one hundred fifty dollars ($150) per year.
39 (3) An application for registration that has been denied by the board
40 shall be considered a contested case as provided for in chapter 52, title 67,
41 Idaho Code, and shall be subject to the provisions of that chapter as well as
42 the administrative rules adopted by the board governing contested cases.
43 54-5211. REGISTRATION -- RENEWAL. A registration shall be issued for a
44 period of not less than one (1) year nor more than five (5) years, as deter-
45 mined by the board. Each registration shall set forth its expiration date on
46 the face of the certificate. No less than thirty (30) days prior to the expi-
47 ration of such registration, the board shall notify a registered contractor
48 that such registration is set to expire. Reinstatement of a lapsed registra-
49 tion shall require the payment of a renewal fee and reinstatement fee in
50 accordance with the administrative rules adopted by the board. The failure of
51 any registered contractor to renew his registration as required herein and by
52 the administrative rules of the board shall not deprive such person of the
53 right to renewal upon subsequent application for registration and payment of
7
1 the required board fees.
2 54-5212. IDAHO CONTRACTORS BOARD FUND. All moneys received by the board
3 or the division of building safety under the terms and provisions of this
4 chapter shall be paid into the state treasury and shall be placed by the state
5 treasurer to the credit of the Idaho contractors board fund, which fund is
6 hereby created as a dedicated fund. All such moneys hereafter placed in said
7 fund are hereby set aside and perpetually appropriated to the division of
8 building safety to carry into effect the provisions of this chapter.
9 54-5213. RECIPROCAL REGISTRATION. (1) Nothing in this chapter shall be
10 construed as preventing any incorporated municipality, county, alternative
11 form of local government, or other municipal or political corporation or sub-
12 division of this state from implementing its own regulation of construction
13 contractors, provided that no such code, ordinance, rule or regulation enacted
14 or adopted by such entity shall contain provisions less stringent than those
15 requirements provided for by this chapter.
16 (2) A contractor may provide a verified copy of any license, registra-
17 tion, or other type of certification granted to the contractor by any incorpo-
18 rated municipality, county, alternative form of local government, or other
19 municipal or political corporation or subdivision of this state to the board,
20 for review, along with a reciprocal registration fee not to exceed fifty dol-
21 lars ($50.00), as determined by board rule, which is necessary for the admin-
22 istration and processing of such application. If the review indicates that the
23 license, registration or certification was granted under provisions that were
24 not less stringent than those provided by this chapter, the applicant shall be
25 issued a registration based upon reciprocal registration.
26 54-5214. REGISTRATION CERTIFICATE -- DISPLAY. (1) Upon receipt of a duly
27 completed application, together with the registration fee, and after such ver-
28 ification process as the board may from time to time deem appropriate by
29 rule, a certificate of registration and a wallet-sized card showing the regis-
30 trant's name and showing a registration number shall be issued, commencing on
31 the date of issue and continuing in effect for a period of not less than one
32 (1) year nor more than five (5) years, as determined by the board. Application
33 for renewal of registration shall be filed on or before thirty (30) days prior
34 to the expiration date. The board shall issue a certificate of registration to
35 an applicant upon the applicant's compliance with the registration require-
36 ments of this chapter. Certificates shall not be assignable nor transferable.
37 Upon any change of ownership or a change of address of a registered contractor
38 entity, the board shall be notified by such entity within thirty (30) days. A
39 certificate of registration, without the payment of a registration fee, shall
40 be issued to any person who is granted a public works contractor license or a
41 construction manager license, so long as those requirements for licensure in
42 Idaho are met.
43 (2) A contractor registered pursuant to this chapter shall prominently
44 display his contractor registration number for public view in his place of
45 business, on advertising, contracts, permits, company or business letter-
46 heads, and purchase orders and subcontracts within sixty (60) days of issue of
47 registration.
48 54-5215. AUTHORITY TO INVESTIGATE AND DISCIPLINE -- SUSPENSION OR REVOCA-
49 TION OF REGISTRATION. (1) The board may investigate any person engaged in con-
50 tracting within the state of Idaho, or any person believed to have acted as a
51 contractor without being duly registered as required by this chapter. Upon
8
1 receipt of a written complaint from a person who claims to have been injured
2 or defrauded by such person, or upon information received by the board, the
3 board shall perform an investigation of the facts alleged against such person.
4 If the board investigation reveals that the facts alleged or received are suf-
5 ficient to proceed with a formal action, the board may authorize the filing of
6 an administrative complaint against such person and may seek injunctive relief
7 prohibiting such person from engaging in construction.
8 (2) The board shall have the authority to issue informal letters of rep-
9 rimand, accept voluntary surrender of a registration, suspend or revoke a reg-
10 istration, impose a civil penalty in an amount not to exceed one thousand dol-
11 lars ($1,000), or to issue a formal reprimand against any registered contrac-
12 tor if, after an opportunity for a hearing, the board determines that:
13 (a) A contractor has violated any of the provisions of this chapter
14 including, but not limited to, failure to keep current or provide insur-
15 ance coverage as required by this chapter;
16 (b) A contractor has violated any of the provisions of chapter 6, title
17 48, Idaho Code, relating to consumer protection including, but not limited
18 to, making fraudulent misrepresentations to consumers;
19 (c) A contractor employed fraud or deception, made a misrepresentation or
20 misstatement, or employed any unlawful means in applying for or securing
21 registration as a contractor;
22 (d) A contractor employed fraud or deception, made a misrepresentation or
23 misstatement, or employed any unlawful means in applying for or securing a
24 building permit or other permits for construction of any type;
25 (e) A contractor failed to pay the required fee for registration as pro-
26 vided in this chapter;
27 (f) A contractor has been convicted of or has engaged in conduct consti-
28 tuting a violation of public laws, ordinances or rules of this state, or
29 any subdivision thereof, relevant to contracting, reflecting on the reg-
30 istered contractor's ability or qualifications to continue contracting for
31 other persons, and making the registered contractor a threat to the public
32 safety, health or well-being;
33 (g) A contractor has engaged in any other conduct whether of the same or
34 a different character than hereinabove specified which constitutes dishon-
35 est or dishonorable dealings;
36 (h) A contractor was grossly negligent or reckless in his conduct in the
37 performance of construction. For purposes of this chapter, conduct is
38 grossly negligent or reckless if, when taken as a whole, it is conduct
39 which substantially fails to meet the generally accepted standard of care
40 in the practice of construction in Idaho;
41 (i) A contractor had a license, registration or certification revoked,
42 suspended or refused by this or another state, territory, incorporated
43 municipality, county, alternative form of local government, or other
44 municipal or political corporation or subdivision of this or another
45 state, or omitted such information from any application to the board, or
46 failed to divulge such information when requested by the board;
47 (j) A contractor has been adjudged mentally incompetent by a court of
48 competent jurisdiction; or
49 (k) A contractor interfered with an investigation or disciplinary pro-
50 ceeding by a willful misrepresentation of facts or by the use of threats
51 or harassment against any person to prevent such person from providing
52 evidence in a disciplinary proceeding, investigation or other legal action
53 instituted in accordance with this chapter.
54 (3) A contractor whose registration has been revoked or suspended shall
55 be required to return his certificate of registration within the time deter-
9
1 mined by the board or, upon a failure to do so, shall be liable for civil
2 penalties as set by the board but not to exceed fifty dollars ($50.00) per day
3 for each day the certificate is not returned after the expiration of the
4 period allowed.
5 (4) The suspension or revocation of a registration shall be considered a
6 contested case as provided for in chapter 52, title 67, Idaho Code, and shall
7 be subject to the provisions of that chapter as well as the administrative
8 rules adopted by the board governing contested cases.
9 54-5216. REINSTATEMENT OF LICENSE AFTER DISCIPLINE. The board may rein-
10 state a suspended or revoked registration upon a showing that:
11 (1) The grounds for such suspension or revocation have been eliminated;
12 (2) Such a violation is not likely to reoccur in the future; and
13 (3) The public interest is not jeopardized by reinstating the registra-
14 tion.
15 54-5217. PENALTIES. (1) Any person acting in the capacity of a contractor
16 within the meaning of this chapter without a current registration as herein
17 required shall be guilty of a misdemeanor and shall, upon conviction thereof,
18 be punished by a fine of not to exceed one thousand dollars ($1,000) or by
19 imprisonment in the county jail for a term not to exceed six (6) months, or by
20 both such fine and imprisonment, in the discretion of the court.
21 (2) No person engaged in the business or acting in the capacity of a con-
22 tractor, unless otherwise exempt, may bring or maintain any action in any
23 court of this state for the collection of compensation for the performance of
24 any act or contract for which registration is required by this chapter without
25 alleging and proving that he was a duly registered contractor, or that he was
26 otherwise exempt as provided for in this chapter, at all times during the per-
27 formance of such act or contract.
28 54-5218. SEVERABILITY. The provisions of this chapter are hereby declared
29 to be severable and if any provision of this chapter or the application of
30 such provision to any person or circumstance is declared invalid for any rea-
31 son, such declaration shall not affect the validity of the remaining portions
32 of this chapter.
33 54-5219. ATTORNEY GENERAL -- PROSECUTING ATTORNEY. It shall be the right
34 and duty of the attorney general or the prosecuting attorneys of the various
35 counties to represent and appear for the people of the state of Idaho and the
36 division in all actions and proceedings involving any question under this
37 chapter or under any order or act of the board and to perform such other ser-
38 vices as are required.
39 SECTION 2. An emergency existing therefor, which emergency is hereby
40 declared to exist, this act shall be in full force and effect on and after its
41 passage and approval.
STATEMENT OF PURPOSE
RS 14235C1
The state of Idaho has no way of stopping unscrupulous or
dishonest building contractors from continuing to practice in
this state. There is nothing in current law that would prohibit
a contractor - even if known to be a "bad actor" - from acting as
a building contractor
This bill will create a registration system for contractors and
would require that all contractors be registered with the state
Division of Building Safety. It would provide a mechanism for
the state to remove contractors who prove to be incompetent,
dishonest, or unprincipled from the registry.
Application for registration would require a statement disclosing
whether any person with an ownership interest in the business has
ever been suspended or prohibited from practicing construction in
Idaho or any other state. It would require proof that the
applicant has complied with Idaho's workers compensation law, and
that the applicant has a general liability insurance policy in an
amount not less than $300,000.
FISCAL IMPACT
The program is designed to be self-funded from building
contractor registration fees and will not impact the general
fund.
Contact
Name: Rep. Lee Gagner
Phone: 208/332-1000
Name: Jeremy P. Pisca, Idaho Building Contractors Association
Phone: 208/384-1800
Name: John Eaton, Building Contractors Association of SW Idaho
Phone: 208/378-0101
Name: Alex LaBeau, Idaho Association of Realtors
Phone: 208/342-3585
STATEMENT OF PURPOSE/FISCAL NOTE H 814