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S1340.......................................by COMMERCE AND HUMAN RESOURCES
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.
02/16 Senate intro - 1st rdg - to printing
02/17 Rpt prt - to Com/HuRes
02/20 Rpt out - rec d/p - to 2nd rdg
02/23 2nd rdg - to 3rd rdg
02/26 3rd rdg - PASSED - 27-6-2
AYES -- Andreason, Bailey, Bunderson, Burkett, Calabretta, Cameron,
Compton, Darrington, Gannon, Geddes, Goedde, Hill, Ingram, Kennedy,
Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams, Noh,
Schroeder, Sorensen, Stegner, Stennett, Werk
NAYS -- Brandt, Burtenshaw, Noble, Pearce, Richardson, Sweet
Absent and excused -- Davis, Williams
Floor Sponsors - Goedde & Stennett
Title apvd - to House
02/27 House intro - 1st rdg - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE SENATE
SENATE BILL NO. 1340
BY COMMERCE AND HUMAN RESOURCES 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 one thousand five hundred dollars ($1,500). The
16 exemption prescribed in this paragraph (f) shall not apply when the work
17 or construction is part of a larger construction project, whether under-
18 taken by the same or a different construction contractor, or in which a
19 division of the operation is made into contracts of amounts of less than
20 one thousand five hundred dollars ($1,500) for the purpose of evasion of
21 this chapter or otherwise;
22 (g) A farmer or rancher while engaged in a farming, dairying, agricul-
23 ture, viticulture, horticulture, or stock or poultry operation;
24 (h) A person who engages in the construction of an agriculture building
25 which is exempt from the Idaho building code act as set forth in section
26 39-4116, Idaho Code;
27 (i) An irrigation district, canal company, reservoir district, ground
28 water district, water district, water measurement district, recharge dis-
29 trict, flood control district, drainage district, or other water delivery
30 or water management entity;
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; or
7 (p) A person working on the person's own residence, if the residence is
8 owned by a person other than the resident.
9 54-5206. IDAHO CONTRACTORS BOARD. (1) The Idaho contractors board is
10 hereby created and made a part of the division of building safety. It shall be
11 the responsibility and duty of the administrator of the division of building
12 safety to administer this chapter, and the administrator shall exercise such
13 powers and duties as are reasonably necessary to enforce the provisions of
14 this chapter. The board may promulgate such rules as may be necessary to carry
15 out the provisions of this chapter in order to effectuate the purposes herein
16 and for the orderly and efficient administration thereof, except as may be
17 limited or prohibited by law and the provisions of this chapter.
18 (2) The board shall consist of four (4) members who are registered con-
19 tractors, and one (1) member of the public at large, all of whom shall be
20 appointed by the governor as follows: one (1) registered contractor from the
21 northern district consisting of Idaho, Lewis, Nez Perce, Clearwater, Latah,
22 Benewah, Boundary, Shoshone, Kootenai and Bonner counties; one (1) registered
23 contractor from the southeastern district consisting of Lemhi, Butte, Clark,
24 Fremont, Jefferson, Madison, Teton, Bonneville, Bingham, Caribou, Bear Lake,
25 Franklin, Oneida, Power and Bannock counties; one (1) registered contractor
26 from the southwestern district consisting of Owyhee, Elmore, Ada, Canyon,
27 Boise, Gem, Payette, Washington, Adams and Valley counties; one (1) registered
28 contractor from the south central district consisting of Blaine, Camas, Cas-
29 sia, Custer, Gooding, Jerome, Lincoln, Minidoka and Twin Falls counties; and
30 one (1) member of the public at large who resides in the state of Idaho and is
31 a person of integrity and good reputation who has lived in this state for at
32 least five (5) years immediately preceding appointment, who has never been
33 registered as a contractor in this or another state, and who has never had a
34 substantial personal, business, professional or pecuniary connection with a
35 contractor except as a purchaser or owner of real property.
36 (3) Each member of the board who is a registered contractor shall serve a
37 term of four (4) years and such terms shall be staggered. The initial board
38 shall have one (1) member whose term expires July 1, 2006; one (1) member
39 whose term expires July 1, 2007; one (1) member whose term expires July 1,
40 2008; and one (1) member whose term shall expire July 1, 2009. The member of
41 the board who is a member of the public at large shall serve a four (4) year
42 term, which initial term shall expire on July 1, 2007. No member of the board
43 may be appointed to more than two (2) consecutive terms.
44 (4) The board shall meet within thirty (30) days after the appointment of
45 all its members and thereafter at such other times as may be expedient and
46 necessary for the proper performance of its duties, but not less than once
47 during each calendar quarter. At the board's first meeting, the members shall
48 elect one (1) of their number to be chairman. The chairman may serve in such
49 capacity for a one (1) year term and may not serve in such capacity for more
50 than two (2) consecutive terms. A majority of the board shall constitute a
51 quorum for the transaction of business.
52 (5) The board may delegate to the administrator the power to perform min-
53 isterial functions, investigate and discipline, hold hearings, appoint hearing
54 officers, summon witnesses to appear, administer oaths and take affirmations
5
1 of witnesses appearing before him or a duly appointed hearing officer and the
2 power to appoint competent persons to issue subpoenas, administer oaths and
3 take testimony.
4 (6) Each member of the board shall be compensated as provided by section
5 59-509(b), Idaho Code.
6 54-5207. GENERAL POWERS AND DUTIES OF THE BOARD. The board shall enforce
7 the minimum standards and requirements therefor as provided by this chapter
8 and by rule adopted by the board. The board may exercise such powers and
9 duties as are reasonably necessary to carry out the provisions of this chapter
10 and it may, among other things:
11 (1) Accept or reject applications for registration and establish the fees
12 to be charged for application, registration and renewal, subject to the provi-
13 sions of this chapter;
14 (2) Hold public meetings and attend or be represented at such meetings,
15 within or without the state, prepare and publish rules pertaining to this
16 chapter and such other information as may be necessary, and furnish copies
17 thereof to those engaged in the business, trade, practice or work of contract-
18 ing and to the public upon request;
19 (3) Furnish standards and procedures and prescribe reasonable rules for
20 applications, qualifications and registration of contractors, including prora-
21 tion of registration fees and staggering initial annual registration; and
22 (4) Under such rules as it may adopt, investigate, classify and determine
23 the qualifications of applicants for registration pursuant to this chapter.
24 54-5208. DENIAL OF LIEN RIGHTS. A contractor who is not registered as set
25 forth in this chapter, unless otherwise exempt, shall be denied and shall be
26 deemed to have conclusively waived any right to place a lien upon real prop-
27 erty as provided for in chapter 5, title 45, Idaho Code. This section shall
28 not operate as a denial of lien rights for any subcontractor or independent
29 contractor who is duly registered in accordance with this chapter and who is
30 performing services at the direction of another contractor, nor shall it oper-
31 ate as a denial of lien rights for any employee of any contractor who is not
32 duly registered, or for any supplier of materials to such unregistered con-
33 tractor, so long as such subcontractor, independent contractor, employee or
34 supplier did not have actual knowledge that such contractor was not duly reg-
35 istered, or who reasonably believed that such contractor was duly registered.
36 54-5209. BUILDING PERMITS AND CONTRACTOR REGISTRATION NUMBER -- POSTING
37 AT SITE. (1) On and after January 1, 2005, no building inspector or such other
38 authority of any county, municipality or district charged with the duty of
39 issuing building permits or other permits for construction of any type shall
40 issue any permit without first requesting presentment of an Idaho contractor's
41 registration number. Such registration number presented shall be conspicuously
42 entered on the face of a permit so issued; provided however, a permit may be
43 issued to a person otherwise exempt from the provisions of this chapter pro-
44 vided such permit shall conspicuously contain the phrase "no contractor regis-
45 tration provided" on the face of such permit. No authority charged with the
46 duty of issuing such permit shall be required to verify that the person apply-
47 ing for such permit is exempt as provided in this chapter.
48 (2) All building permits or other permits for construction of any type
49 shall be posted at the construction site in such a manner that the conspicuous
50 statements set forth in subsection (1) of this section are visible.
51 (3) No person engaged in construction activities who is otherwise exempt
52 as set forth in section 54-5205, Idaho Code, shall be required to have a con-
6
1 tractor registration number.
2 54-5210. APPLICATION FOR REGISTRATION. (1) An applicant for registration
3 as a contractor shall submit an application under oath upon a form to be pre-
4 scribed by the board and which shall include the following information per-
5 taining to the applicant:
6 (a) Social security number for natural persons or employer tax identifi-
7 cation number for other persons;
8 (b) The name and address under which the applicant conducts business;
9 (c) The name and address of each principal, member, partner, shareholder,
10 or any other person claiming an ownership interest in the business entity
11 for which registration is being applied for;
12 (d) A certificate issued by an insurance company authorized to do busi-
13 ness in the state of Idaho or other satisfactory proof that the applicant
14 has procured and has in effect worker's compensation insurance or a state-
15 ment by the contractor as to why such certificate or coverage is not
16 required for the applicant;
17 (e) A certificate issued by an insurance company authorized to do busi-
18 ness in the state of Idaho that the applicant has procured and has in
19 effect a general liability policy, including products and continued opera-
20 tions insurance covering the applicant's construction operations in the
21 sum of not less than three hundred thousand dollars ($300,000) single
22 limit;
23 (f) A statement of the type of construction to be undertaken by the
24 applicant, or such other information as may be required by the board pur-
25 suant to administrative rules adopted by the board; and
26 (g) A statement that the applicant and each principal, member, partner,
27 shareholder, or any other person claiming an ownership interest in the
28 business entity for which registration is being applied for herein has
29 never been denied or had revoked a contractor's license or registration
30 privilege in this or any other state or, if a license or registration
31 privilege has been denied or revoked in this or any other state, an expla-
32 nation of any such denial or revocation.
33 (2) Along with such application, the applicant shall submit a registra-
34 tion fee as may be set by the board to cover its administrative and enforce-
35 ment costs, not to exceed one hundred fifty dollars ($150) per year.
36 (3) An application for registration that has been denied by the board
37 shall be considered a contested case as provided for in chapter 52, title 67,
38 Idaho Code, and shall be subject to the provisions of that chapter as well as
39 the administrative rules adopted by the board governing contested cases.
40 54-5211. REGISTRATION -- RENEWAL. A registration shall be issued for a
41 period of not less than one (1) year nor more than five (5) years, as deter-
42 mined by the board. Each registration shall set forth its expiration date on
43 the face of the certificate. No less than thirty (30) days prior to the expi-
44 ration of such registration, the board shall notify a registered contractor
45 that such registration is set to expire. Reinstatement of a lapsed registra-
46 tion shall require the payment of a renewal fee and reinstatement fee in
47 accordance with the administrative rules adopted by the board. The failure of
48 any registered contractor to renew his registration as required herein and by
49 the administrative rules of the board shall not deprive such person of the
50 right to renewal upon subsequent application for registration and payment of
51 the required board fees.
52 54-5212. IDAHO CONTRACTORS BOARD FUND. All moneys received by the board
7
1 or the division of building safety under the terms and provisions of this
2 chapter shall be paid into the state treasury and shall be placed by the state
3 treasurer to the credit of the Idaho contractors board fund, which fund is
4 hereby created as a dedicated fund. All such moneys hereafter placed in said
5 fund are hereby set aside and perpetually appropriated to the division of
6 building safety to carry into effect the provisions of this chapter.
7 54-5213. RECIPROCAL REGISTRATION. (1) Nothing in this chapter shall be
8 construed as preventing any incorporated municipality, county, alternative
9 form of local government, or other municipal or political corporation or sub-
10 division of this state from implementing its own regulation of construction
11 contractors, provided that no such code, ordinance, rule or regulation enacted
12 or adopted by such entity shall contain provisions less stringent than those
13 requirements provided for by this chapter.
14 (2) A contractor may provide a verified copy of any license, registra-
15 tion, or other type of certification granted to the contractor by any incorpo-
16 rated municipality, county, alternative form of local government, or other
17 municipal or political corporation or subdivision of this state to the board,
18 for review, along with a reciprocal registration fee not to exceed fifty dol-
19 lars ($50.00), as determined by board rule, which is necessary for the admin-
20 istration and processing of such application. If the review indicates that the
21 license, registration or certification was granted under provisions that were
22 not less stringent than those provided by this chapter, the applicant shall be
23 issued a registration based upon reciprocal registration.
24 54-5214. REGISTRATION CERTIFICATE -- DISPLAY. (1) Upon receipt of a duly
25 completed application, together with the registration fee, and after such ver-
26 ification process as the board may from time to time deem appropriate by
27 rule, a certificate of registration and a wallet-sized card showing the regis-
28 trant's name and showing a registration number shall be issued, commencing on
29 the date of issue and continuing in effect for a period of not less than one
30 (1) year nor more than five (5) years, as determined by the board. Application
31 for renewal of registration shall be filed on or before thirty (30) days prior
32 to the expiration date. The board shall issue a certificate of registration to
33 an applicant upon the applicant's compliance with the registration require-
34 ments of this chapter. Certificates shall not be assignable nor transferable.
35 Upon any change of ownership or a change of address of a registered contractor
36 entity, the board shall be notified by such entity within thirty (30) days. A
37 certificate of registration, without the payment of a registration fee, shall
38 be issued to any person who is granted a public works contractor license or a
39 construction manager license, so long as those requirements for licensure in
40 Idaho are met.
41 (2) A contractor registered pursuant to this chapter shall prominently
42 display his contractor registration number for public view in his place of
43 business, on advertising, contracts, permits, company or business letterheads,
44 and purchase orders and subcontracts within sixty (60) days of issue of regis-
45 tration.
46 54-5215. AUTHORITY TO INVESTIGATE AND DISCIPLINE -- SUSPENSION OR REVOCA-
47 TION OF REGISTRATION. (1) The board may investigate any person engaged in con-
48 tracting within the state of Idaho, or any person believed to have acted as a
49 contractor without being duly registered as required by this chapter. Upon
50 receipt of a written complaint from a person who claims to have been injured
51 or defrauded by such person, or upon information received by the board, the
52 board shall perform an investigation of the facts alleged against such person.
8
1 If the board investigation reveals that the facts alleged or received are suf-
2 ficient to proceed with a formal action, the board may authorize the filing of
3 an administrative complaint against such person and may seek injunctive relief
4 prohibiting such person from engaging in construction.
5 (2) The board shall have the authority to issue informal letters of rep-
6 rimand, accept voluntary surrender of a registration, suspend or revoke a reg-
7 istration, impose a civil penalty in an amount not to exceed one thousand dol-
8 lars ($1,000), or to issue a formal reprimand against any registered contrac-
9 tor if, after an opportunity for a hearing, the board determines that:
10 (a) A contractor has violated any of the provisions of this chapter
11 including, but not limited to, failure to keep current or provide insur-
12 ance coverage as required by this chapter;
13 (b) A contractor has violated any of the provisions of chapter 6, title
14 48, Idaho Code, relating to consumer protection including, but not limited
15 to, making fraudulent misrepresentations to consumers;
16 (c) A contractor employed fraud or deception, made a misrepresentation or
17 misstatement, or employed any unlawful means in applying for or securing
18 registration as a contractor;
19 (d) A contractor employed fraud or deception, made a misrepresentation or
20 misstatement, or employed any unlawful means in applying for or securing a
21 building permit or other permits for construction of any type;
22 (e) A contractor failed to pay the required fee for registration as pro-
23 vided in this chapter;
24 (f) A contractor has been convicted of or has engaged in conduct consti-
25 tuting a violation of public laws, ordinances or rules of this state, or
26 any subdivision thereof, relevant to contracting, reflecting on the reg-
27 istered contractor's ability or qualifications to continue contracting for
28 other persons, and making the registered contractor a threat to the public
29 safety, health or well-being;
30 (g) A contractor has engaged in any other conduct whether of the same or
31 a different character than hereinabove specified which constitutes dishon-
32 est or dishonorable dealings;
33 (h) A contractor was grossly negligent or reckless in his conduct in the
34 performance of construction. For purposes of this chapter, conduct is
35 grossly negligent or reckless if, when taken as a whole, it is conduct
36 which substantially fails to meet the generally accepted standard of care
37 in the practice of construction in Idaho;
38 (i) A contractor had a license, registration or certification revoked,
39 suspended or refused by this or another state, territory, incorporated
40 municipality, county, alternative form of local government, or other
41 municipal or political corporation or subdivision of this or another
42 state, or omitted such information from any application to the board, or
43 failed to divulge such information when requested by the board;
44 (j) A contractor has been adjudged mentally incompetent by a court of
45 competent jurisdiction; or
46 (k) A contractor interfered with an investigation or disciplinary pro-
47 ceeding by a willful misrepresentation of facts or by the use of threats
48 or harassment against any person to prevent such person from providing
49 evidence in a disciplinary proceeding, investigation or other legal action
50 instituted in accordance with this chapter.
51 (3) A contractor whose registration has been revoked or suspended shall
52 be required to return his certificate of registration within the time deter-
53 mined by the board or, upon a failure to do so, shall be liable for civil
54 penalties as set by the board but not to exceed fifty dollars ($50.00) per day
55 for each day the certificate is not returned after the expiration of the
9
1 period allowed.
2 (4) The suspension or revocation of a registration shall be considered a
3 contested case as provided for in chapter 52, title 67, Idaho Code, and shall
4 be subject to the provisions of that chapter as well as the administrative
5 rules adopted by the board governing contested cases.
6 54-5216. REINSTATEMENT OF LICENSE AFTER DISCIPLINE. The board may rein-
7 state a suspended or revoked registration upon a showing that:
8 (1) The grounds for such suspension or revocation have been eliminated;
9 (2) Such a violation is not likely to reoccur in the future; and
10 (3) The public interest is not jeopardized by reinstating the registra-
11 tion.
12 54-5217. PENALTIES. (1) Any person acting in the capacity of a contractor
13 within the meaning of this chapter without a current registration as herein
14 required shall be guilty of a misdemeanor and shall, upon conviction thereof,
15 be punished by a fine of not to exceed one thousand dollars ($1,000) or by
16 imprisonment in the county jail for a term not to exceed six (6) months, or by
17 both such fine and imprisonment, in the discretion of the court.
18 (2) No person engaged in the business or acting in the capacity of a con-
19 tractor, unless otherwise exempt, may bring or maintain any action in any
20 court of this state for the collection of compensation for the performance of
21 any act or contract for which registration is required by this chapter without
22 alleging and proving that he was a duly registered contractor, or that he was
23 otherwise exempt as provided for in this chapter, at all times during the per-
24 formance of such act or contract.
25 54-5218. SEVERABILITY. The provisions of this chapter are hereby declared
26 to be severable and if any provision of this chapter or the application of
27 such provision to any person or circumstance is declared invalid for any rea-
28 son, such declaration shall not affect the validity of the remaining portions
29 of this chapter.
30 54-5219. ATTORNEY GENERAL -- PROSECUTING ATTORNEY. It shall be the right
31 and duty of the attorney general or the prosecuting attorneys of the various
32 counties to represent and appear for the people of the state of Idaho and the
33 division in all actions and proceedings involving any question under this
34 chapter or under any order or act of the board and to perform such other ser-
35 vices as are required.
36 SECTION 2. An emergency existing therefor, which emergency is hereby
37 declared to exist, this act shall be in full force and effect on and after its
38 passage and approval.
STATEMENT OF PURPOSE
RS 13928
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
Jeremy P. Pisca
Idaho Building Contractors Association
384 1800
John Eaton
Building Contractors Association of Southwestern Idaho
378 0101
S 1340