2005 Legislation
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HOUSE BILL NO. 163 – Contractor registration


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Bill Status

H0163...........................................................by BUSINESS
CONTRACTOR REGISTRATION - Adds to existing law to provide for contractor
registration; to provide a short title; to declare a policy; to define
terms; to require registration; to set forth exemptions; to create the
Idaho Contractors Board; to set forth powers and duties of the board; to
provide for the denial of lien rights; to provide that a contractor's
registration number shall be required on building and other permits; to
require the posting of permits; to provide an exemption; to provide for
applications for registration; to set forth registration periods; to
provide for renewal of registration; to provide for the disposition of
receipts; to provide for the payment of expenses; to provide for reciprocal
registration; to provide for the issuance of certificates of registration
and cards; to require notification upon any change of ownership; to require
the display of contractor registration numbers; to provide for board
authority to investigate and discipline; to provide for the suspension or
revocation of registration; to provide for reinstatement; to provide
penalties; to provide severability; and to set forth powers and duties of
the Attorney General and prosecuting attorneys.
02/10    House intro - 1st rdg - to printing
02/11    Rpt prt - to Bus
02/24    Rpt out - rec d/p - to 2nd rdg
02/25    2nd rdg - to 3rd rdg
03/03    3rd rdg - PASSED - 43-27-0
      AYES -- Anderson, Bastian, Bell, Bilbao, Black, Block, Boe,
      Chadderdon, Collins, Deal, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Garrett, Henbest, Henderson, Jaquet, Jones, Kemp,
      LeFavour, Martinez, Miller, Mitchell, Nonini, Pasley-Stuart, Pence,
      Ring, Ringo, Rusche, Sayler, Shepherd(2), Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Mr.
      NAYS -- Andrus, Barraclough, Barrett, Bayer, Bedke, Bolz, Bradford,
      Cannon, Clark, Crow, Denney, Hart, Harwood, Lake, Loertscher,
      Mathews, McGeachin, McKague, Moyle, Nielsen, Raybould, Roberts,
      Rydalch, Sali, Schaefer, Shepherd(8), Wood
      Absent and excused -- None
    Floor Sponsor - Black
    Title apvd - to Senate
03/04    Senate intro - 1st rdg - to Com/HuRes
03/11    Rpt out - rec d/p - to 2nd rdg
03/14    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 23-11-0, 1 vacancy
      AYES -- Andreason, Broadsword, Bunderson, Burkett, Coiner, Compton,
      Gannon, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, Malepeai, Marley, McGee, McKenzie, Schroeder, Stegner,
      Stennett, Werk
      NAYS -- Brandt, Burtenshaw, Cameron, Corder, Darrington, Davis,
      Geddes, Pearce, Richardson, Sweet, Williams
      Absent and excused -- (District 21 seat vacant)
    Floor Sponsors - Goedde, Andreason, Compton &
    Title apvd - to House
03/16    To enrol
03/17    Rpt enrol - Sp signed
03/18    Pres signed
03/21    To Governor
03/25    Governor signed
         Session Law Chapter 153
         Effective: 03/25/05

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 163
                                   BY BUSINESS COMMITTEE
  1                                        AN ACT
 20    Be It Enacted by the Legislature of the State of Idaho:
 21        SECTION  1.  That Title 54, Idaho Code, be, and the same is hereby amended
 22    by the addition thereto of a NEW CHAPTER, to be known and designated as  Chap-
 23    ter 52, Title 54, Idaho Code, and to read as follows:
 24                                      CHAPTER 52
 25                          IDAHO CONTRACTOR REGISTRATION ACT
 26        54-5201.  SHORT TITLE. This chapter shall be known and may be cited as the
 27    "Idaho Contractor Registration Act."
 28        54-5202.  DECLARATION  OF POLICY. The legislature finds and  declares that
 29    the practice of construction in the state of Idaho affects the public  health,
 30    safety  and  welfare of its citizens. The legislature further finds that it is
 31    in the public interest to provide a mechanism to remove from practice incompe-
 32    tent, dishonest, or unprincipled practitioners of construction. To aid in ful-
 33    filling  these  purposes,  this  chapter provides for the registration of con-
 34    struction contractors within the state of Idaho.
 35        54-5203.  DEFINITIONS. As used in this chapter:
 36        (1)  "Board" means the Idaho  contractors  board  as  created  in  section
 37    54-5206, Idaho Code.
 38        (2)  "Bureau  chief"  means  the  chief  of  the  bureau  of  occupational
 39    licenses.
 40        (3)  "Construction"  means  the performance of building, altering, repair-
  1    ing, adding to, subtracting from, improving, reconstructing, moving,  excavat-
  2    ing,  wrecking  or  demolishing  any building, highway, road, bridge, or other
  3    structure, project, development or improvement to real property, or to do  any
  4    part  thereof,  including  the  erection of scaffolding or other structures or
  5    works in connection therewith.
  6        (4)  "Contractor" means:
  7        (a)  Any person who in any capacity undertakes, offers to undertake,  pur-
  8        ports to have the capacity to undertake, or submits a bid to, or does him-
  9        self or by or through others, perform construction; or
 10        (b)  A construction manager who performs construction management services.
 11        (5)  "Department"  means  the department of self-governing agencies of the
 12    state of Idaho.
 13        (6)  "Person" means any individual, firm, partnership,  limited  liability
 14    company,  limited  liability  partnership,  corporation, trust, association or
 15    other entity or organization capable of conducting business, or  any  combina-
 16    tion thereof acting as a unit.
 17        54-5204.  REGISTRATION  REQUIRED.  (1)  On  and  after January 1, 2006, it
 18    shall be unlawful for any person to engage in the business of, or hold himself
 19    out as, a contractor within this state without being registered as required in
 20    this chapter.
 21        (2)  It shall be unlawful for a contractor to engage any other  contractor
 22    who  is  required by this chapter to be registered as a contractor unless such
 23    other contractor furnishes satisfactory proof to the  contractor  that  he  is
 24    duly registered under the provisions of this chapter.
 25        (3)  Any  person  who engages in the business or acts in the capacity of a
 26    contractor, whether or not duly  registered,  has  thereby  submitted  to  the
 27    jurisdiction  of  the state of Idaho and to the administrative jurisdiction of
 28    the Idaho contractors board, and shall be subject to all penalties  and  reme-
 29    dies available under Idaho law for any violation of this chapter.
 30        54-5205.  EXEMPTIONS  FROM REGISTRATION. (1) Nothing in this chapter shall
 31    be construed to restrict any person licensed, registered, or  otherwise  regu-
 32    lated  by  the  state of Idaho from engaging in the profession or practice for
 33    which they are licensed, registered or otherwise regulated  by  the  state  of
 34    Idaho  including, but not limited to, persons licensed pursuant to chapters 3,
 35    10, 12, 19, 26, 45 and 50, title  54,  Idaho  Code,  nor  shall  this  chapter
 36    require  such  persons  otherwise  licensed, registered or regulated to obtain
 37    such registration as required by this chapter, so long as such person  is  not
 38    acting  with the intent to evade this chapter. No such person exempt hereunder
 39    may hold himself out as a registered contractor.
 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 or as part of a bona fide educational curriculum or nonprofit char-
 49        itable activity for which no wages or salary shall be paid; provided  how-
 50        ever,  that  such  exemption shall not apply to any subcontractor or other
 51        independent contractor who is not otherwise exempt;
 52        (b)  An authorized representative of the  United  States  government,  the
 53        state of Idaho, or any incorporated municipality, county, alternative form
  1        of  local  government,    highway district, reclamation district, or other
  2        municipal or political corporation or subdivision of this state;
  3        (c)  A public utility operating under the regulation of the  Idaho  public
  4        utility  commission as set forth in title 61, Idaho Code, in the construc-
  5        tion, maintenance, or development work incidental to its own business;
  6        (d)  A person who performs repair or operation incidental to the discovery
  7        or production of oil, gas or minerals or incidental to the drilling, test-
  8        ing, abandoning, or other operation of an oil or gas well or a surface  or
  9        underground mine or mineral deposit;
 10        (e)  A  person who only furnishes materials, supplies or equipment without
 11        that person installing or fabricating them into or consuming them  in  the
 12        performance of the work of the construction contractor;
 13        (f)  A person performing work on one (1) undertaking or project considered
 14        casual,  minor,  or inconsequential, whether by one (1) or more contracts,
 15        the aggregate contract price of which, for labor  and  materials  and  all
 16        other  items,  is  less than two thousand dollars ($2,000). The exemptions
 17        prescribed in this paragraph (f) shall not apply when  the  work  or  con-
 18        struction  is part of a larger construction project, whether undertaken by
 19        the same or a different construction contractor, or in which a division of
 20        the operation is made into contracts of amounts of less than two  thousand
 21        dollars ($2,000) for the purpose of evasion of 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, or an operating agent of irrigation districts
 31        whose board consists of directors of its member districts;
 32        (j)  An operation related to clearing or other work  upon  land  in  rural
 33        districts for fire prevention purposes;
 34        (k)  An  owner who contracts for work to be performed by a registered con-
 35        tractor on his own property, provided however, this  exemption  shall  not
 36        apply to an owner who, with the intent to evade this chapter, constructs a
 37        building,  residence or other improvement on the owner's property with the
 38        intention and for the purpose of selling the improved property at any time
 39        during the construction or within twelve (12) months of completion of such
 40        construction;
 41        (l)  An owner performing construction on the owner's personal  residential
 42        real  property,  whether  or  not occupied by the owner, provided however,
 43        this exemption shall not apply to an owner who is otherwise  regulated  by
 44        this  chapter who constructs a building, residence or other improvement on
 45        the owner's property with the intention and for the  purpose  of  promptly
 46        selling  the improved property, unless the owner has continuously occupied
 47        the property as the owner's primary residence for  not  less  than  twelve
 48        (12) months prior to the sale of such property;
 49        (m)  Owners  of commercial properties, or lessees of commercial properties
 50        with the consent of the owner, who, whether themselves or with  their  own
 51        employees, perform maintenance, repair, alteration or construction work in
 52        or upon the properties;
 53        (n)  A  real estate licensee acting within the scope of his license pursu-
 54        ant to chapter 20, title 54, Idaho Code, who, incident to a regulated real
 55        estate transaction, assists his clients in scheduling or performing  nomi-
  1        nal  maintenance  and repairs upon such properties being transferred; pro-
  2        vided however, nothing in this section shall otherwise  authorize  a  real
  3        estate licensee or a property manager to act in the capacity of a contrac-
  4        tor unless registered with the board;
  5        (o)  A contractor engaged in the logging industry who builds forest access
  6        roads  for  the purpose of harvesting and transporting logs from forest to
  7        mill;
  8        (p)  A person working on the person's own residence, if the  residence  is
  9        owned by a person other than the resident;
 10        (q)  A  person who engages in the construction of building to be used pri-
 11        marily for industrial chemical process purposes as set  forth  in  section
 12        39-4103, Idaho Code; or
 13        (r)  A  person  who  engages  in the construction of a modular building as
 14        defined in section 39-4105(12), Idaho Code, that  is  constructed  in  the
 15        state of Idaho for installation on a building site outside the state.
 16        54-5206.  IDAHO  CONTRACTORS  BOARD.  (1)  The  Idaho contractors board is
 17    hereby created and made a part of the  bureau  of  occupational  licenses.  It
 18    shall  be  the  responsibility and duty of the bureau chief to administer this
 19    chapter, and the bureau chief shall exercise such powers  and  duties  as  are
 20    reasonably  necessary to enforce the provisions of this chapter. The board may
 21    promulgate such rules as may be necessary to carry out the provisions of  this
 22    chapter  in  order  to  effectuate the purposes herein and for the orderly and
 23    efficient administration thereof, except as may be limited  or  prohibited  by
 24    law and the provisions of this chapter.
 25        (2)  The  board shall consist of four (4) members who are contractors, and
 26    one (1) member of the public at large, all of whom shall be appointed  by  the
 27    governor  as follows: one (1) contractor from the northern district consisting
 28    of Idaho, Lewis, Nez Perce, Clearwater, Latah,  Benewah,  Boundary,  Shoshone,
 29    Kootenai  and  Bonner  counties; one (1) contractor from the southeastern dis-
 30    trict consisting of Lemhi, Butte, Clark, Fremont, Jefferson,  Madison,  Teton,
 31    Bonneville,  Bingham,  Caribou, Bear Lake, Franklin, Oneida, Power and Bannock
 32    counties; one (1) contractor from the southwestern district consisting of Owy-
 33    hee, Elmore, Ada, Canyon, Boise, Gem, Payette, Washington,  Adams  and  Valley
 34    counties;  one  (1)  contractor  from the south central district consisting of
 35    Blaine, Camas, Cassia, Custer, Gooding, Jerome,  Lincoln,  Minidoka  and  Twin
 36    Falls  counties;  and one (1) member of the public at large who resides in the
 37    state of Idaho and is a person of integrity and good reputation who has  lived
 38    in  this  state for at least five (5) years immediately preceding appointment,
 39    who has never been registered as a contractor in this or  another  state,  and
 40    who  has never had a substantial personal, business, professional or pecuniary
 41    connection with a contractor except as a purchaser or owner of real property.
 42        (3)  Each member of the board who is a contractor shall serve  a  term  of
 43    four (4) years and such terms shall be staggered. The initial board shall have
 44    one  (1)  member  whose  term  expires July 1, 2007; one (1) member whose term
 45    expires July 1, 2008; one (1) member whose term expires July 1, 2009; and  one
 46    (1)  member  whose term shall expire July 1, 2010. The member of the board who
 47    is a member of the public at large shall serve a four  (4)  year  term,  which
 48    initial  term  shall  expire  on  July  1, 2008. No member of the board may be
 49    appointed to more than two (2) consecutive terms.
 50        (4)  The board shall meet within thirty (30) days after the appointment of
 51    all its members and thereafter at such other times as  may  be  expedient  and
 52    necessary  for  the  proper  performance of its duties, but not less than once
 53    during each calendar quarter. At the board's first meeting, the members  shall
 54    elect  one  (1) of their number to be chairman. The chairman may serve in such
  1    capacity for a one (1) year term and may not serve in such capacity  for  more
  2    than  two  (2)  consecutive  terms. A majority of the board shall constitute a
  3    quorum for the transaction of business.
  4        (5)  The board may delegate to the bureau chief:
  5        (a)  The power to perform ministerial functions,  investigate  and  disci-
  6        pline,  hold  hearings,  appoint  hearing  officers,  summon  witnesses to
  7        appear, administer oaths and take affirmations of witnesses at any  formal
  8        proceeding or before a duly appointed hearing officer;
  9        (b)  The power to appoint competent persons to issue subpoenas, administer
 10        oaths and take testimony; and
 11        (c)  The power to enforce orders of the board.
 12        (6)  Each  member of the board shall be compensated as provided by section
 13    59-509(b), Idaho Code.
 14        (7)  On and after January 1, 2006, each member of the board who is a  con-
 15    tractor  shall  be  registered in accordance with this chapter and shall be in
 16    good standing.
 17        54-5207.  GENERAL POWERS AND DUTIES OF THE BOARD. The board shall  enforce
 18    the  minimum  standards  and requirements therefor as provided by this chapter
 19    and by rule adopted by the board. The  board  may  exercise  such  powers  and
 20    duties as are reasonably necessary to carry out the provisions of this chapter
 21    and it may, among other things:
 22        (1)  Accept or reject applications for registration and establish the fees
 23    to be charged for application, registration and renewal, subject to the provi-
 24    sions of this chapter;
 25        (2)  Hold  public  meetings and attend or be represented at such meetings,
 26    within or without the state, prepare and  publish  rules  pertaining  to  this
 27    chapter  and  such  other  information as may be necessary, and furnish copies
 28    thereof to those engaged in the business, trade, practice or work of contract-
 29    ing and to the public upon request;
 30        (3)  Furnish standards and procedures and prescribe reasonable  rules  for
 31    applications, qualifications and registration of contractors, including prora-
 32    tion of registration fees and staggering initial annual registration; and
 33        (4)  Under such rules as it may adopt, investigate, classify and determine
 34    the  qualifications  of  applicants for registration pursuant to this chapter;
 35    and
 36        (5)  Contract with the bureau of occupational licenses to provide adminis-
 37    trative services.
 38        54-5208.  DENIAL OF LIEN RIGHTS. A contractor who is not registered as set
 39    forth in this chapter, unless otherwise exempt, shall be denied and  shall  be
 40    deemed  to  have conclusively waived any right to place a lien upon real prop-
 41    erty as provided for in chapter 5, title 45, Idaho Code.  This  section  shall
 42    not  operate  as  a denial of lien rights for any subcontractor or independent
 43    contractor who is duly registered in accordance with this chapter and  who  is
 44    performing services at the direction of another contractor, nor shall it oper-
 45    ate  as  a denial of lien rights for any employee of any contractor who is not
 46    duly registered, or for any supplier of materials to  such  unregistered  con-
 47    tractor,  so  long as such subcontractor, independent  contractor, employee or
 48    supplier did not have actual knowledge that such contractor was not duly  reg-
 49    istered, or who reasonably believed that such contractor was duly registered.
 51    AT SITE. (1) On and after January 1, 2006, no building inspector or such other
 52    authority of any county, municipality or district charged  with  the  duty  of
  1    issuing  building  permits or other permits for construction of any type shall
  2    issue any permit without first requesting presentment of an Idaho contractor's
  3    registration number. Such registration number presented shall be conspicuously
  4    entered on the face of a permit so issued; provided however, a permit  may  be
  5    issued  to  a person otherwise exempt from the provisions of this chapter pro-
  6    vided such permit shall conspicuously contain the phrase "no contractor regis-
  7    tration provided" on the face of such permit. No authority  charged  with  the
  8    duty of issuing such permit shall be required to verify that the person apply-
  9    ing for such permit is exempt as provided in this chapter.
 10        (2)  All  building   permits or other permits for construction of any type
 11    shall be posted at the construction site in such a manner that the conspicuous
 12    statements set forth in subsection (1) of this section are visible.
 13        (3)  No person engaged in construction activities who is otherwise  exempt
 14    as  set forth in section 54-5205, Idaho Code, shall be required to have a con-
 15    tractor registration number.
 16        54-5210.  APPLICATION FOR REGISTRATION. (1) An applicant for  registration
 17    as  a contractor shall submit an application under oath upon a form to be pre-
 18    scribed by the board and which shall include the  following  information  per-
 19    taining to the applicant:
 20        (a)  Social  security number for natural persons or employer tax identifi-
 21        cation number for other persons;
 22        (b)  The name and address under which the applicant conducts business;
 23        (c)  The name and address of each principal, member, partner, shareholder,
 24        or any other person claiming an ownership interest in the business  entity
 25        for which registration is being applied for;
 26        (d)  A  certificate  issued by an insurance company authorized to do busi-
 27        ness in the state of Idaho or other satisfactory proof that the  applicant
 28        has procured and has in effect worker's compensation insurance or a state-
 29        ment  by  the  contractor  as  to  why such certificate or coverage is not
 30        required for the applicant;
 31        (e)  A certificate issued by an insurance company authorized to  do  busi-
 32        ness  in  the  state  of  Idaho that the applicant has procured and has in
 33        effect a general liability policy, including products and continued opera-
 34        tions insurance covering the applicant's construction  operations  in  the
 35        sum  of  not  less  than  three hundred thousand dollars ($300,000) single
 36        limit;
 37        (f)  A statement of the type of  construction  to  be  undertaken  by  the
 38        applicant,  or such other information as may be required by the board pur-
 39        suant to administrative rules adopted by the board; and
 40        (g)  A statement that the applicant and each principal,  member,  partner,
 41        shareholder,  or  any  other  person claiming an ownership interest in the
 42        business entity for which registration is being  applied  for  herein  has
 43        never  been  denied  or had revoked a contractor's license or registration
 44        privilege in this or any other state or,  if  a  license  or  registration
 45        privilege  has  been  denied  or  revoked  in this or any other state,  an
 46        explanation of any such denial or revocation.
 47        (2)  Along with such application, the applicant shall submit  a  registra-
 48    tion  fee  as may be set by the board to cover its administrative and enforce-
 49    ment costs, not to exceed one hundred fifty dollars ($150) per year.
 50        (3)  An application for registration that has been  denied  by  the  board
 51    shall  be considered a contested case as provided for in chapter 52, title 67,
 52    Idaho Code, and shall be subject to the provisions of that chapter as well  as
 53    the administrative rules adopted by the board governing contested cases.
  1        54-5211.  REGISTRATION  --  RENEWAL.  A registration shall be issued for a
  2    period of not less than one (1) year nor more than five (5) years,  as  deter-
  3    mined  by  the board. Each registration shall set forth its expiration date on
  4    the face of the certificate. No less than thirty (30) days prior to the  expi-
  5    ration  of  such  registration, the board shall notify a registered contractor
  6    that such registration is set to expire. Reinstatement of a  lapsed  registra-
  7    tion  shall  require  the  payment  of  a renewal fee and reinstatement fee in
  8    accordance with the administrative rules adopted by the board. The failure  of
  9    any  registered contractor to renew his registration as required herein and by
 10    the administrative rules of the board shall not deprive  such  person  of  the
 11    right  to  renewal upon subsequent application for registration and payment of
 12    the required board fees.
 13        54-5212.  DISPOSITION OF RECEIPTS -- EXPENSES. All fees received under the
 14    provisions of this chapter  shall  be  paid  to  the  bureau  of  occupational
 15    licenses and deposited in the state treasury to the credit of the occupational
 16    licenses fund and all costs and expenses incurred under the provisions of this
 17    chapter shall be a charge against and paid from said fund.
 18        54-5213.  RECIPROCAL  REGISTRATION.  (1)  Nothing in this chapter shall be
 19    construed as preventing any  incorporated  municipality,  county,  alternative
 20    form  of local government, or other municipal or political corporation or sub-
 21    division of this state from implementing its own  regulation  of  construction
 22    contractors, provided that no such code, ordinance, rule or regulation enacted
 23    or  adopted  by such entity shall contain provisions less stringent than those
 24    requirements provided for by this chapter.
 25        (2)  A contractor may provide a verified copy of  any  current  and  unre-
 26    stricted  license, registration, or other type of certification granted to the
 27    contractor by any incorporated municipality, county, alternative form of local
 28    government, or other municipal or political corporation or subdivision of this
 29    state to the board, for review, along with a reciprocal registration  fee  not
 30    to exceed fifty dollars ($50.00), as determined by board rule, which is neces-
 31    sary  for the administration and processing of such application. If the review
 32    indicates that the license, registration or certification  was  granted  under
 33    provisions  that  were not less stringent than those provided by this chapter,
 34    the applicant shall be issued a registration based upon  reciprocal  registra-
 35    tion.
 36        54-5214.  REGISTRATION  CERTIFICATE -- DISPLAY. (1) Upon receipt of a duly
 37    completed application, together with the registration fee, and after such ver-
 38    ification process  as the board may from time  to  time  deem  appropriate  by
 39    rule, a certificate of registration and a wallet-sized card showing the regis-
 40    trant's  name and showing a registration number shall be issued, commencing on
 41    the date of issue and continuing in effect for a period of not  less than  one
 42    (1) year nor more than five (5) years, as determined by the board. Application
 43    for renewal of registration shall be filed on or before thirty (30) days prior
 44    to the expiration date. The board shall issue a certificate of registration to
 45    an  applicant  upon  the applicant's compliance with the registration require-
 46    ments of this chapter. Certificates shall not be assignable nor  transferable.
 47    Upon any change of ownership or a change of address of a registered contractor
 48    entity,  the board shall be notified by such entity within thirty (30) days. A
 49    certificate of registration, without the payment of a registration fee,  shall
 50    be  issued to any person who is granted a public works contractor license or a
 51    construction manager license, so long as those requirements for  licensure  in
 52    Idaho are met.
  1        (2)  A  contractor  registered  pursuant to this chapter shall prominently
  2    display his contractor registration number for public view  in  his  place  of
  3    business, on advertising, contracts, permits, company or business letterheads,
  4    and purchase orders and subcontracts within sixty (60) days of issue of regis-
  5    tration.
  7    TION OF REGISTRATION. (1) The board may investigate any person engaged in con-
  8    tracting  within the state of Idaho, or any person believed to have acted as a
  9    contractor without being duly registered as required  by  this  chapter.  Upon
 10    receipt  of  a written complaint from a person who claims to have been injured
 11    or defrauded by such person, or upon information received by  the  board,  the
 12    board shall perform an investigation of the facts alleged against such person.
 13    If the board investigation reveals that the facts alleged or received are suf-
 14    ficient to proceed with a formal action, the board may authorize the filing of
 15    an administrative complaint against such person and may seek injunctive relief
 16    prohibiting such person from engaging in construction.
 17        (2)  The  board shall have the authority to issue informal letters of rep-
 18    rimand, suspend or revoke a registration, impose a civil penalty in an  amount
 19    not to exceed one thousand dollars ($1,000), recover the costs and fees incur-
 20    red  in  an  investigation  and  prosecution,  or  to issue a formal reprimand
 21    against any registered contractor if, after an opportunity for a hearing,  the
 22    board determines that:
 23        (a)  A  contractor  has  violated  any  of  the provisions of this chapter
 24        including, but not limited to, failure to keep current or  provide  insur-
 25        ance coverage as required by this chapter;
 26        (b)  A  contractor  has violated any of the provisions of chapter 6, title
 27        48, Idaho Code, relating to consumer protection including, but not limited
 28        to, making fraudulent misrepresentations to consumers;
 29        (c)  A contractor employed fraud or deception, made a misrepresentation or
 30        misstatement, or employed any unlawful means in applying for  or  securing
 31        registration as a contractor;
 32        (d)  A contractor employed fraud or deception, made a misrepresentation or
 33        misstatement, or employed any unlawful means in applying for or securing a
 34        building permit or other permits for construction of any type;
 35        (e)  A  contractor failed to pay the required fee for registration as pro-
 36        vided in this chapter;
 37        (f)  A contractor has been convicted of or has engaged in conduct  consti-
 38        tuting  a  violation of public laws, ordinances or rules of this state, or
 39        any subdivision  thereof, relevant to contracting, reflecting on the  reg-
 40        istered contractor's ability or qualifications to continue contracting for
 41        other persons, and making the registered contractor a threat to the public
 42        safety, health or well-being;
 43        (g)  A  contractor has engaged in any other conduct whether of the same or
 44        a different character than hereinabove specified which constitutes dishon-
 45        est or dishonorable dealings;
 46        (h)  A contractor was grossly negligent or reckless in his conduct in  the
 47        performance  of  construction.  For  purposes  of this chapter, conduct is
 48        grossly negligent or reckless if, when taken as a  whole,  it  is  conduct
 49        which  substantially fails to meet the generally accepted standard of care
 50        in the practice of construction in Idaho;
 51        (i)  A contractor had a license, registration  or  certification  revoked,
 52        suspended  or  refused  by  this or another state, territory, incorporated
 53        municipality, county, alternative  form  of  local  government,  or  other
 54        municipal  or  political  corporation  or  subdivision  of this or another
  1        state, or omitted such information from any application to the  board,  or
  2        failed to divulge such information when requested by the board;
  3        (j)  A  contractor  has  been  adjudged mentally incompetent by a court of
  4        competent jurisdiction; or
  5        (k)  A contractor interfered with an investigation  or  disciplinary  pro-
  6        ceeding  by  a willful misrepresentation of facts or by the use of threats
  7        or harassment against any person to prevent  such  person  from  providing
  8        evidence in a disciplinary proceeding, investigation or other legal action
  9        instituted in accordance with this chapter.
 10        (3)  A  contractor  whose registration has been revoked or suspended shall
 11    be required to return his certificate of registration within the  time  deter-
 12    mined  by  the   board  or, upon a failure to do so, shall be liable for civil
 13    penalties as set by the board but not to exceed fifty dollars ($50.00) per day
 14    for each day the certificate is not  returned  after  the  expiration  of  the
 15    period allowed.
 16        (4)  The  suspension or revocation of a registration shall be considered a
 17    contested case as provided for in chapter 52, title 67, Idaho Code, and  shall
 18    be  subject  to  the  provisions of that chapter as well as the administrative
 19    rules adopted by the board governing contested cases.
 21    reinstate a suspended or revoked registration upon a showing that:
 22        (1)  The grounds for such suspension or revocation have been eliminated;
 23        (2)  Such a violation is not likely to reoccur in the future; and
 24        (3)  The  public  interest is not jeopardized by reinstating the registra-
 25    tion.
 26        54-5217.  PENALTIES. (1) Any person acting in the capacity of a contractor
 27    within the meaning of this chapter without a current  registration  as  herein
 28    required  shall be guilty of a misdemeanor and shall, upon conviction thereof,
 29    be punished by a fine of not to exceed one thousand  dollars  ($1,000)  or  by
 30    imprisonment in the county jail for a term not to exceed six (6) months, or by
 31    both such fine and imprisonment, in the discretion of the court.
 32        (2)  No person engaged in the business or acting in the capacity of a con-
 33    tractor,  unless  otherwise  exempt,  may  bring or maintain any action in any
 34    court of this state for the collection of compensation for the performance  of
 35    any act or contract for which registration is required by this chapter without
 36    alleging  and proving that he was a duly registered contractor, or that he was
 37    otherwise exempt as provided for in this chapter, at all times during the per-
 38    formance of such act or contract.
 39        54-5218.  ATTORNEY GENERAL -- PROSECUTING ATTORNEY. It shall be the  right
 40    and  duty  of the attorney general or the prosecuting attorneys of the various
 41    counties to represent and appear for the people of the state of Idaho and  the
 42    department  in  all  actions and proceedings involving any question under this
 43    chapter or under any order or act of the board and to perform such other  ser-
 44    vices as are required.
 45        54-5219.  SEVERABILITY. The provisions of this chapter are hereby declared
 46    to  be  severable  and  if any provision of this chapter or the application of
 47    such provision to any person or circumstance is declared invalid for any  rea-
 48    son,  such declaration shall not affect the validity of the remaining portions
 49    of this chapter.
 50        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
  1    declared to exist, this act shall be in full force and effect on and after its
  2    passage and approval.

Statement of Purpose / Fiscal Impact

                      STATEMENT OF PURPOSE
                            RS 14884
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
Bureau of Occupational Licenses.  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 NOTE
The program is designed to be self-funded from building
contractor registration fees and will not impact the general

Contact:  Representative Max Black
          Senator John Andreason
          Jeremy P. Pisca
          Idaho Building Contractors Association
          John Eaton
          Idaho Association of REALTORS 
STATEMENT OF PURPOSE/FISCAL NOTE                       H 163