2004 Legislation
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SENATE BILL NO. 1340 – Contractor Registration Act


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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

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                       IN THE SENATE
                                    SENATE BILL NO. 1340
  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 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-
  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
  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.
 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-
  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
  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.
 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.
  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
  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 / Fiscal Impact

                       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


Jeremy P. Pisca
Idaho Building Contractors Association
384 1800

John Eaton
Building Contractors Association of Southwestern Idaho
378 0101
                                                   S 1340