2004 Legislation
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HOUSE BILL NO. 814 – Contractor Registration Act


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Bill Status

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

Bill Text

  ]]]]              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
 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
  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
  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-
  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.
  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.
 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
  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
  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.
 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
  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-
  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 / Fiscal Impact

                       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

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