2005 Legislation
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HOUSE BILL NO. 248 – Procurement, political subdivisions

HOUSE BILL NO. 248

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H0248......................................................by STATE AFFAIRS
PUBLIC WORKS - Amends, repeals and adds to existing law relating to public
works contracting to revise provisions applicable to the contracting and
procurement of political subdivisions of the state.
                                                                        
02/18    House intro - 1st rdg - to printing
02/21    Rpt prt - to Bus

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 248
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PUBLIC WORKS CONTRACTING; AMENDING SECTION 31-1001, IDAHO CODE, TO
  3        REVISE A CODE REFERENCE AND TO CORRECT A CODIFIER ERROR; AMENDING  SECTION
  4        31-3615,  IDAHO  CODE,  TO REVISE PROVISIONS APPLICABLE TO THE CONTRACTING
  5        AND PROCUREMENT POWERS OF THE COUNTY HOSPITAL BOARD; REPEALING CHAPTER 40,
  6        TITLE 31, IDAHO CODE, RELATING TO COUNTY EXPENDITURES AND  BIDS;  AMENDING
  7        SECTION  33-402,  IDAHO CODE, TO REVISE NOTICE REQUIREMENTS; AMENDING SEC-
  8        TION 33-601, IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO CONTRACTS EXE-
  9        CUTED BY SCHOOL DISTRICT BOARDS OF TRUSTEES FOR PROPERTY; AMENDING SECTION
 10        33-601A, IDAHO CODE, TO PROVIDE A CODE REFERENCE; AMENDING SECTION 40-901,
 11        IDAHO CODE, TO PROVIDE FOR APPLICABILITY OF CERTAIN REQUIREMENTS FOR  CON-
 12        TRACTS AND BIDS TO COUNTY HIGHWAY SYSTEMS AND HIGHWAY DISTRICTS; REPEALING
 13        SECTIONS  40-906,  40-907,  40-908,  40-909,  40-910,  40-911,  40-912 AND
 14        40-916, IDAHO CODE, RELATING TO CONTRACTS AND BIDS FOR HIGHWAYS;  AMENDING
 15        SECTION  42-3115,  IDAHO  CODE,  TO  PROVIDE  FOR APPLICABILITY OF CERTAIN
 16        REQUIREMENTS FOR THE PURCHASE OF GOODS AND SERVICES BY THE BOARDS OF  COM-
 17        MISSIONERS  OF  FLOOD CONTROL DISTRICTS AND TO MAKE TECHNICAL CORRECTIONS;
 18        REPEALING SECTION 42-3116, IDAHO CODE, RELATING  TO  BIDDING  REQUIREMENTS
 19        FOR FLOOD CONTROL DISTRICTS; AMENDING SECTION 42-3212, IDAHO CODE, TO PRO-
 20        VIDE  FOR  APPLICABILITY OF CERTAIN REQUIREMENTS FOR THE PURCHASE OF GOODS
 21        AND SERVICES BY BOARDS OF DIRECTORS OF WATER AND SEWER DISTRICTS; AMENDING
 22        SECTION 42-4416, IDAHO CODE, TO REVISE THE POWERS AND DUTIES OF BOARDS  OF
 23        COMMISSIONERS  OF  LEVEE  DISTRICTS  AND  TO  MAKE A TECHNICAL CORRECTION;
 24        AMENDING SECTION 43-318A, IDAHO CODE, TO REVISE A CODE REFERENCE; AMENDING
 25        SECTION 43-901, IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO CONTRACTORS
 26        FOR CONSTRUCTION WORK AND PURCHASING  BY  IRRIGATION  DISTRICTS;  AMENDING
 27        SECTION 43-903, IDAHO CODE, TO REVISE A CODE REFERENCE AND TO MAKE A TECH-
 28        NICAL  CORRECTION;  AMENDING SECTION 43-2508, IDAHO CODE, TO REVISE PROVI-
 29        SIONS APPLICABLE TO BIDDING BY  LOCAL  IMPROVEMENT  DISTRICTS  WITHIN  THE
 30        BOUNDARIES  OF IRRIGATION DISTRICTS; REPEALING SECTION 50-341, IDAHO CODE,
 31        RELATING TO BIDDING PROVISIONS OF MUNICIPALITIES; AMENDING SECTION 50-342,
 32        IDAHO CODE, TO REVISE A CODE REFERENCE;  AMENDING  SECTION  50-344,  IDAHO
 33        CODE, TO REVISE A CODE REFERENCE; AMENDING SECTION 50-1710, IDAHO CODE, TO
 34        REVISE PROVISIONS APPLICABLE TO BIDDING BY IMPROVEMENT DISTRICTS; AMENDING
 35        SECTION  50-2006,  IDAHO  CODE,  TO  REVISE A CODE REFERENCE AND TO MAKE A
 36        TECHNICAL CORRECTION; AMENDING SECTION 50-2620, IDAHO CODE, TO REVISE PRO-
 37        VISIONS APPLICABLE TO BIDDING BY BUSINESS IMPROVEMENT DISTRICTS;  AMENDING
 38        SECTION  50-2621, IDAHO CODE, TO REVISE A CODE REFERENCE; AMENDING SECTION
 39        54-1901, IDAHO CODE, TO PROVIDE LEGISLATIVE INTENT AND TO  MAKE  TECHNICAL
 40        CHANGES; AMENDING SECTION 54-1903, IDAHO CODE, TO REVISE EXEMPTIONS AND TO
 41        REVISE  TERMINOLOGY; AMENDING SECTION 54-1904A, IDAHO CODE, TO REVISE TER-
 42        MINOLOGY AND TO REQUIRE THAT A COPY OF CERTAIN FORMS FILED BY  PRIME  CON-
 43        TRACTORS  BE SENT TO THE ADMINISTRATOR OF THE DIVISION OF BUILDING SAFETY;
 44        AMENDING SECTION 54-1913, IDAHO CODE, TO REFERENCE DATA COLLECTED PURSUANT
 45        TO LAW; AMENDING SECTION 54-1914, IDAHO CODE, TO REVISE  DESCRIPTIVE  LAN-
 46        GUAGE AND TO SET FORTH PROVISIONS APPLICABLE TO ADMINISTRATIVE ENFORCEMENT
                                                                        
                                           2
                                                                        
  1        PROCEEDINGS;  AMENDING  SECTION  54-1915, IDAHO CODE, TO REVISE PROVISIONS
  2        APPLICABLE TO THE PROCEDURE FOR THE  IMPOSITION  OF  DISCIPLINE;  AMENDING
  3        SECTION  54-1916,  IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO JUDICIAL
  4        REVIEW AND APPEALS PROCEDURES; AMENDING  SECTIONS  54-1926  AND  54-1926A,
  5        IDAHO  CODE,  TO REVISE CODE REFERENCES AND TO MAKE TECHNICAL CORRECTIONS;
  6        AMENDING SECTION 54-4503, IDAHO CODE, TO REVISE A CODE REFERENCE; AMENDING
  7        SECTION 54-4508, IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO DISCIPLIN-
  8        ARY PROCEEDINGS; REPEALING SECTION 59-1026, IDAHO CODE, RELATING TO PENAL-
  9        TIES FOR EVADING COMPETITIVE BIDDING STATUTES; AMENDING CHAPTER 10,  TITLE
 10        59,  IDAHO  CODE, BY THE ADDITION OF A NEW SECTION 59-1026, IDAHO CODE, TO
 11        PROHIBIT THE WILLFUL AND KNOWING AVOIDANCE OF COMPETITIVE BIDDING AND PRO-
 12        CUREMENT STATUTES AND TO PROVIDE FOR CIVIL PENALTIES; AMENDING  TITLE  67,
 13        IDAHO  CODE, BY THE ADDITION OF A NEW CHAPTER 28, TITLE 67, IDAHO CODE, TO
 14        PROVIDE LEGISLATIVE INTENT, TO PROVIDE FOR  APPLICABILITY,  TO  SET  FORTH
 15        EXCLUSIONS, TO PROVIDE FOR A WAIVER, TO SET FORTH PROVISIONS APPLICABLE TO
 16        PROCUREMENT OF PUBLIC WORKS CONSTRUCTION, TO SET FORTH PROVISIONS APPLICA-
 17        BLE TO PURCHASING SERVICES OR PERSONAL PROPERTY, TO PROVIDE FOR JOINT PUR-
 18        CHASING AGREEMENTS, TO PROVIDE FOR NOT-FOR-PROFIT ASSOCIATIONS AND TO PRO-
 19        VIDE  FOR  EMERGENCY  EXPENDITURES  AND SOLE SOURCE EXPENDITURES; AMENDING
 20        SECTION 67-4912, IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO PURCHASING
 21        BY AUDITORIUM DISTRICTS AND TO MAKE TECHNICAL CORRECTIONS;  AMENDING  SEC-
 22        TION  67-5711,  IDAHO CODE, TO INCREASE THE DOLLAR AMOUNT FOR CERTAIN CON-
 23        TRACTS FOR CONSTRUCTION, ALTERATION, EQUIPPING, FURNISHING AND  REPAIR  OF
 24        PUBLIC  BUILDINGS  AND  WORKS AND TO MAKE A TECHNICAL CORRECTION; AMENDING
 25        SECTION 67-5711C, IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO THE  CON-
 26        STRUCTION OF PUBLIC PROJECTS AND COMPETITIVE SEALED BIDDING; AMENDING SEC-
 27        TION  70-1612,  IDAHO  CODE, TO REVISE PROVISIONS APPLICABLE TO PURCHASING
 28        PROCEDURES OF PORT DISTRICTS; AND AMENDING SECTION 70-1613, IDAHO CODE, TO
 29        REVISE PROVISIONS APPLICABLE TO NOTICE AND CONTRACT AWARDS  BY  PORT  DIS-
 30        TRICTS AND TO MAKE TECHNICAL CORRECTIONS.
                                                                        
 31    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 32        SECTION  1.  That  Section 31-1001, Idaho Code, be, and the same is hereby
 33    amended to read as follows:
                                                                        
 34        31-1001.  ERECTION OF BUILDINGS -- FURNISHING OF OFFICES --  CONTRACTS  --
 35    LEASE  OF  PREMISES  FOR COURTHOUSE OR JAIL -- BOOKS AND STATIONERY. The board
 36    must cause to be erected or furnished, a courthouse, jail and such other  pub-
 37    lic  buildings  as may be necessary, and must, when necessary, provide offices
 38    with necessary furniture for the sheriff, clerk of the district court  and  ex
 39    officio  auditor  and recorder, county treasurer, prosecuting attorney, county
 40    assessor and county surveyor, and must draw warrants in payment of  the  same:
 41    provided,  that  the  contract  for the erection of any such buildings must be
 42    left let, after thirty (30) days' notice for proposals, to the  lowest  bidder
 43    who will give security for the completion of any contract he may make respect-
 44    ing  the  same; and, provided further, no contracts for the purchase of furni-
 45    ture must be let under the provisions of this section when the expenses there-
 46    under will exceed one thousand dollars ($1,000). And, provided  further,  that
 47    no  part  of  the provisions of this section shall be construed to prevent the
 48    board of county commissioners, from entering into a lease for courthouse prem-
 49    ises, rooms and jail for any period in their discretion, not to exceed  thirty
 50    (30)  years,  and  provided  that  the  county commissioners may contract with
 51    responsible parties for the leasing of a courthouse, jail and hospital,  or  a
 52    combination  of  courthouse,  jail  and  hospital, or fairground buildings and
                                                                        
                                           3
                                                                        
  1    facilities, to be constructed upon premises owned by the county or  otherwise,
  2    provided  that said contract shall be let subject to the provisions of chapter
  3    4028, of  this title 67, Idaho Code; the contract also may provide that at the
  4    expiration of the term of the lease, upon full performance of  such  lease  by
  5    the county, the said courthouse premises, rooms and jail, fairground buildings
  6    and  facilities,  or  so much thereof as is leased, may become the property of
  7    the county. The board must also provide all necessary books of record for  the
  8    county  auditor  and recorder, county treasurer, county assessor, and tax col-
  9    lector, clerk of the district court, county surveyor, and the books  and  sta-
 10    tionery  for  the use of the board, and so much as is necessary for the use of
 11    said county officers in the transaction of official business.  Nothing  herein
 12    shall  be construed as limiting or otherwise affecting a lease or other trans-
 13    action  between  the Idaho health facilities authority and the board of county
 14    commissioners as provided in section 31-836, Idaho Code.
                                                                        
 15        SECTION 2.  That Section 31-3615, Idaho Code, be, and the same  is  hereby
 16    amended to read as follows:
                                                                        
 17        31-3615.  CONTRACTING AND PROCUREMENT POWERS OF BOARD. The county hospital
 18    board  shall  have  power  to contract for, purchase and pay for all material,
 19    equipment, services and supplies necessary or convenient  for  the  efficient,
 20    economical  and  successful  operation  and maintenance of the county hospital
 21    properties. Notwithstanding the provisions of  section  31-4003,  Idaho  Code,
 22    tThe  county  hospital  board may make expenditures which are not in excess of
 23    ten thousand dollars ($10,000) without submitting the expenditure  to  bidding
 24    procedures  if  the board believes that only one (1) supplier is available for
 25    the product or service to be purchased in accordance with  the  provisions  of
 26    chapter  28,  title  67, Idaho Code. Moreover, the county hospital board which
 27    participates with other hospitals as a member of a group  purchasing  associa-
 28    tion  that engages in a formal competitive bidding process on behalf of member
 29    institutions for the purchase of hospital supplies and equipment  may  utilize
 30    that  bidding  process  in  lieu of the bidding requirements in established by
 31    chapter 4028,  title 3167, Idaho Code. Verification  of participation in  such
 32    a  group purchasing association shall be provided by the county hospital board
 33    upon request of appropriate governmental officials. For purposes of this  sub-
 34    section,  payment for services may include reasonable expenses incident to the
 35    hiring or maintaining of hospital staff, chief executive officers, board  mem-
 36    bers  or operating employee personnel, to be incurred and paid under rules and
 37    regulations adopted and approved as described in section 31-3610, Idaho Code.
                                                                        
 38        SECTION 3.  That Chapter 40, Title 31, Idaho Code, be,  and  the  same  is
 39    hereby repealed.
                                                                        
 40        SECTION  4.  That  Section  33-402, Idaho Code, be, and the same is hereby
 41    amended to read as follows:
                                                                        
 42        33-402.  NOTICE REQUIREMENTS. a. Notice of all school  elections  must  be
 43    given by posting and publishing notice of said elections and such notice shall
 44    state:
 45        1.  The date of holding the election;
 46        2.  The hours between which the polls will be open;
 47        3.  The definite place or places of holding the election;
 48        4.  In  the  case  of  election of trustees, the offices to be filled, the
 49        trustee zones, and a statement that  declarations  of  candidacy  must  be
 50        filed not later than 5:00 p.m. on the fifth Friday prior to the day of the
                                                                        
                                           4
                                                                        
  1        election;
  2        5.  In the case of bond election, the amount of the issue, the purpose and
  3        period of the issue;
  4        6.  In  the  case of the assumption of a debt, the amount of any such debt
  5        to be assumed by each district, or part of a district; and
  6        7.  In all other elections, a brief statement of the question  being  sub-
  7        mitted to the electors.
  8        b.  In  school  elections  involving  (i) the incurring or increasing of a
  9    debt,  (ii) approving a levy for a plant  facilities  reserve  fund  and  term
 10    thereof,  (iii) excising and annexing territory, (iv) consolidating districts,
 11    or (v) dividing a district, notice of the election shall be  posted  not  less
 12    than  twenty-one  (21) days prior to the day of the election in at least three
 13    (3) places in each district participating in or affected by such election, one
 14    (1) of which places shall be at or near the main door  of  the  administrative
 15    offices  of  each such district, and by publishing at least once each week for
 16    three (3) consecutive weeks prior to the day of the election in a newspaper as
 17    provided in section 60-106, Idaho Code, published in  the  county  or  in  any
 18    county  in  which  such district may lie and having general circulation within
 19    such district.
 20        c.  Notice of all other school elections shall be given in the  same  man-
 21    ner,  except  that  the  posting shall be for not less than ten (10) days, and
 22    publishing shall be at least once each week  for  two  (2)  consecutive  weeks
 23    prior to the day of the election.
 24        d.  Notice  of  the deadline for filing declaration of candidacy for elec-
 25    tion of trustees shall be posted for not less than ten (10) days and published
 26    at least once each week for two (2) consecutive weeks prior to  the  last  day
 27    for filing nominating petitions as required by section 33-502, Idaho Code.
 28        e.  In  elections  for  excising and annexing the territory of school dis-
 29    tricts, or to create new school districts by consolidation  or  division,  the
 30    clerk of the board of county commissioners of the county in which the district
 31    lies,  or  of  the home county if the district be a joint district, shall pre-
 32    pare, post, sign and arrange for the publishing of, the notice of election. In
 33    all other elections it shall be the duty of the clerk of the board of trustees
 34    so to do.
 35        f.  Notice of annual meeting of elementary school  districts  as  provided
 36    for  in  section 33-510, Idaho Code, and of intent to discontinue a school, as
 37    provided for in section 33-511, Idaho Code, and annual budget hearing as  pro-
 38    vided  for  in  section 33-801, Idaho Code, shall be given by posting and pub-
 39    lishing as outlined in subsection b of this section except that posting  shall
 40    be  for  not  less than ten (10) days, and publishing shall be once in a news-
 41    paper as provided in section 60-106, Idaho Code,  published  within  the  dis-
 42    trict,  or,  if  there  be  none,  then  in a newspaper as provided in section
 43    60-106, Idaho Code, published in the county in which such  district  lies.  If
 44    more  than  one  (1)  newspaper  is  printed and published in said district or
 45    county, then in the newspaper most likely to give best general notice  of  the
 46    election  within  said district; provided that if no newspaper is published in
 47    the said district or county, then  in  a  newspaper  as  provided  in  section
 48    60-106,  Idaho  Code,  most likely to give best general notice of the election
 49    within the district.
 50        g.  Notices calling for bids for the acquisition, use, or disposal of real
 51    and personal property as provided for in section 33-601, Idaho Code, and  con-
 52    tracting for transportation services as provided for in section 33-1510, Idaho
 53    Code,  shall be given by publishing twice, not less than one (1) week apart in
 54    a newspaper as provided in section 60-106, Idaho Code,  published  within  the
 55    district,  or,  if  there  be none, then in a newspaper as provided in section
                                                                        
                                           5
                                                                        
  1    60-106, Idaho Code, published in the county in which such  district  lies.  If
  2    more  than  one  (1)  newspaper  is  printed and published in said district or
  3    county, then in the newspaper most likely to give best general notice  of  the
  4    election  within  said district; provided that if no newspaper is published in
  5    the said district or county, then  in  a  newspaper  as  provided  in  section
  6    60-106,  Idaho  Code,  most likely to give best general notice of the election
  7    within the district. The notice inviting bids shall set a date and  place  for
  8    opening  bids.  The  first publication of the notice shall be at least two (2)
  9    weeks before the date of opening the bids; as required by  chapter  28,  title
 10    67, Idaho Code, except that the notice for contracting for transportation ser-
 11    vices  shall  be made not  less than four (4) weeks before the date of opening
 12    bids.
 13        h.  Proof of posting notice shall be upon  the  affidavit  of  the  person
 14    posting  the same; and proof of publication shall be upon the affidavit of the
 15    publisher of the newspaper or newspapers respectively. Such  affidavits  shall
 16    be  filed with his board by the clerk responsible for the posting and the pub-
 17    lishing of said notice, before the day of the election named in the notice.
                                                                        
 18        SECTION 5.  That Section 33-601, Idaho Code, be, and the  same  is  hereby
 19    amended to read as follows:
                                                                        
 20        33-601.  REAL  AND  PERSONAL  PROPERTY  -- ACQUISITION, USE OR DISPOSAL OF
 21    SAME. The board of trustees of each school district shall have  the  following
 22    powers and duties:
 23        1.  To rent to or from others, school buildings or other property used, or
 24    to be used, for school purposes.
 25        2.  To  contract  for the construction, repair, or improvement of any real
 26    property, or the acquisition, purchase or repair of any  equipment,  or  other
 27    personal property necessary for the operation of the school district.
 28        Except  for  the  purchase  of  curricular materials as defined in section
 29    33-118A, Idaho Code, no such contract shall  be  executed  which  entails  the
 30    expenditure  of  twenty-five thousand dollars ($25,000) or more without notice
 31    first being given by publishing twice in the manner required by subsections g.
 32    and h. of section 33-402, Idaho Code, unless in cooperation with a cooperative
 33    agency established pursuant to chapter 23, title 67,  and/or  sections  33-315
 34    through  33-318, Idaho Code, or through a contract that has been competitively
 35    bid by the state of Idaho, one (1) of its subdivisions, or an  agency  of  the
 36    federal  government.  The board of trustees may let the contract to the lowest
 37    responsible bidder, or reject any bid, or reject all bids and  publish  notice
 38    for  bids,  as  before.  If,  thereafter, no satisfactory bid is received, the
 39    board may proceed under its own direction in accordance with the provisions of
 40    chapter 28, title 67, Idaho Code.
 41        3.  To designate and purchase any real property necessary for school  pur-
 42    poses  or in the operation of the district, or remove any building, or dispose
 43    of any real property. Prior to, but not more than one (1) year prior  to,  any
 44    purchase  or  disposal  of  real  property, the board shall have such property
 45    appraised by an appraiser certified in the state  of  Idaho,  which  appraisal
 46    shall be entered in the records of the board of trustees, and shall be used to
 47    establish  the  value of the real property. The board of trustees shall deter-
 48    mine the size of the site necessary for school purposes.  The  site  shall  be
 49    located  within  the incorporated limits of any city within the district; pro-
 50    vided, however, that if the board finds that it is not in the  best  interests
 51    of the electors and the students of the district to locate the site within the
 52    incorporated  limits  of a city, the board, by duly adopted resolution setting
 53    forth the reasons for its finding, may  designate  a  site  located  elsewhere
                                                                        
                                           6
                                                                        
  1    within  the  district. In elementary school districts, except upon removal for
  2    highway purposes, a site may be designated or changed only after  approval  of
  3    two-thirds (2/3) or more of the electors voting at the annual meeting.
  4        4.  (a) To convey, except as provided by paragraph (b) of this subsection,
  5        by  deed, bill of sale, or other appropriate instrument, all of the estate
  6        and interest of the district in any property, real or personal. In elemen-
  7        tary school districts, except such conveyance as is authorized by  subsec-
  8        tion  6.  of this section, any of the transactions authorized in this sub-
  9        section shall be subject to the approval of two-thirds (2/3)  or  more  of
 10        the electors voting at the annual meeting.
 11             Prior  to  such sale or conveyance, the board shall have the property
 12        appraised pursuant to this section, which appraisal shall  be  entered  in
 13        the  records  of the board of trustees. The property may be sold at public
 14        auction or by sealed bids, as the board of trustees  shall  determine,  to
 15        the  highest  bidder. Such property may be sold for cash or for such terms
 16        and conditions as the board of trustees shall determine for a  period  not
 17        exceeding ten (10) years, with the annual rate of interest on all deferred
 18        payments  not  less  than  seven  percent (7%) per annum. The title to all
 19        property sold on contract shall be retained in the name of the school dis-
 20        trict until full payment has been made by the purchaser, and title to  all
 21        property  sold  under a note and mortgage or deed of trust shall be trans-
 22        ferred to the purchaser at the point of sale under the  terms  and  condi-
 23        tions  of  the  mortgage  or  deed of trust as the board of trustees shall
 24        determine. Notice of the time and the conditions of  such  sale  shall  be
 25        published twice, and proof thereof made, in accordance with subsections g.
 26        and h. of section 33-402, Idaho Code, except that when the appraised value
 27        of the property is less than one thousand dollars ($1,000), one (1) single
 28        notice  by  publication shall be sufficient and the property shall be sold
 29        by sealed bids or at public auction.
 30             The board of trustees may accept the highest bid, may reject any bid,
 31        or reject all bids. If the real property was donated to  the  school  dis-
 32        trict  the board may, within a period of one (1) year from the time of the
 33        appraisal, sell the property without additional  advertising  or  bidding.
 34        Otherwise,  the  board of trustees must have new appraisals made and again
 35        publish notice for bids, as before. If, thereafter, no satisfactory bid is
 36        made and received, the board may proceed under its own direction  to  sell
 37        and  convey the property. In no case shall any real property of the school
 38        district be sold for less than its appraisal.
 39             The board of trustees may sell personal property, with  an  estimated
 40        value  of  less  than one thousand dollars ($1,000), without appraisal, by
 41        sealed bid or at public auction, provided that there  has  been  not  less
 42        than  one  (1) published advertisement prior to the sale of said property.
 43        If the board, by a unanimous vote of those members present, finds that the
 44        property has an estimated value of less than five hundred  dollars  ($500)
 45        and is of insufficient value to defray the costs of arranging a sale,  the
 46        property  may be disposed of in the most cost-effective and expedient man-
 47        ner by an employee of the district  empowered  for  that  purpose  by  the
 48        board.
 49        (b)  Real and personal property may be exchanged hereunder for other prop-
 50        erty. Provided, however, that aside from the provisions of this paragraph,
 51        any  school  district  may by a vote of one-half (1/2) plus one (1) of the
 52        members of the full board of trustees, by resolution duly adopted, author-
 53        ize the transfer or conveyance of any real or personal property  owned  by
 54        such  school  district  to  the government of the United States, any city,
 55        county, the state of Idaho, any hospital district organized under  chapter
                                                                        
                                           7
                                                                        
  1        13, title 39, Idaho Code, any other school district, any library district,
  2        any  community college district, or any recreation district, with or with-
  3        out any consideration accruing to the school district, when in  the  judg-
  4        ment  of  the board of trustees it is for the interest of such school dis-
  5        trict that said transfer or conveyance be made. Prior to any  transfer  or
  6        conveyance  of  any  real  or personal property pursuant to this paragraph
  7        4.(b), the board shall have the property appraised by an appraiser  certi-
  8        fied  in  the  state  of  Idaho,  which  appraisal shall be entered in the
  9        records of the board of trustees, and shall be used to establish the value
 10        of the real or personal property.
 11        5.  To enter into contracts with any city located within the boundaries of
 12    the school district for the joint purchase, construction, development, mainte-
 13    nance and equipping of playgrounds, ball parks, swimming pools, and other rec-
 14    reational facilities upon property owned either by the school district or  the
 15    city.
 16        6.  To convey rights-of-way and easements for highway, public utility, and
 17    other purposes over, upon or across any school property and, when necessary to
 18    the  use  of  such  property for any such purpose, to authorize the removal of
 19    school buildings to such new location, or locations, as shall be determined by
 20    the board of trustees, and such removal shall be made at no cost or expense to
 21    the school district.
 22        7.  To authorize the use of any school building of the district as a  com-
 23    munity  center,  or  for  any  public  purpose,  and  to establish a policy of
 24    charges, if any, to be made for such use.
 25        8.  To exercise the right of eminent domain under the provisions of  chap-
 26    ter  7, title 7, Idaho Code, for any of the uses and purposes provided in sec-
 27    tion 7-701, Idaho Code.
 28        9.  If there is a great public calamity, such as  an  extraordinary  fire,
 29    flood,  storm,  epidemic, or other disaster, or if it is necessary to do emer-
 30    gency work to prepare for national or local defense, or it is necessary to  do
 31    emergency  work  to  safeguard life, health or property, the board of trustees
 32    may pass a resolution declaring that the public interest and necessity  demand
 33    the  immediate  expenditure of public money to safeguard life, health or prop-
 34    erty. Upon adoption of the resolution, the board may expend any  sum  required
 35    in the emergency without compliance with this section.
                                                                        
 36        SECTION  6.  That  Section 33-601A, Idaho Code, be, and the same is hereby
 37    amended to read as follows:
                                                                        
 38        33-601A.  LEASING OF GOODS, EQUIPMENT, BUSES AND PORTABLE  CLASSROOMS.  No
 39    provision  of  chapter 6, title 33, or chapter 28, title 67, Idaho Code, shall
 40    be construed to prevent a board of trustees from entering into  lease-purchase
 41    agreements  for  goods,  equipment, buses or portable classrooms, provided the
 42    agreement is in writing and meets all of the following requirements:
 43        (1)  The annual lease payments shall reflect reasonable  compensation  for
 44    use;
 45        (2)  No penalty shall be imposed on the school district for proper cancel-
 46    lation of the lease;
 47        (3)  The  right  to  exercise  the option to purchase shall be at the sole
 48    discretion of the school district; and
 49        (4)  The cost of purchase shall not exceed the  reasonable  value  of  the
 50    goods,  equipment,  buses  or portable classrooms as of the time the option to
 51    purchase is exercised.
 52        For the purposes of this section, "portable classroom"  means  a  facility
 53    which  is  not  so  related  to  particular real estate that an interest in it
                                                                        
                                           8
                                                                        
  1    arises under real estate law.
                                                                        
  2        SECTION 7.  That Section 40-901, Idaho Code, be, and the  same  is  hereby
  3    amended to read as follows:
                                                                        
  4        40-901.  APPLICATION.  The  requirements for contracts and bids shall that
  5    apply to all county highway systems and highway districts of  the  state,  but
  6    shall  be  subject  to  the provisions of chapter 28, title 67, Idaho Code, in
  7    concert with the provisions of any specific statute pertaining to the  letting
  8    of  any  contract or the purchase or acquisition of  any commodity or thing by
  9    any system or highway  district by soliciting and receiving competitive  bids,
 10    and  shall  not  be  construed  as modifying or amending the provisions of any
 11    statute, nor preventing the district from doing any work by its own employees.
                                                                        
 12        SECTION 8.  That Sections 40-906, 40-907, 40-908, 40-909, 40-910,  40-911,
 13    40-912 and 40-916, Idaho Code, be, and the same are hereby repealed.
                                                                        
 14        SECTION  9.  That  Section 42-3115, Idaho Code, be, and the same is hereby
 15    amended to read as follows:
                                                                        
 16        42-3115.  COMMISSIONERS -- POWERS AND DUTIES. The board  of  commissioners
 17    of flood control districts shall have the following powers and duties:
 18        1.  To  annually  fix  and  determine,  the amount of money required to be
 19    raised by taxation to supply funds for costs of construction, costs of  opera-
 20    tion  and  maintenance  of the work and equipment of the district, and to levy
 21    and cause to be collected assessments on real property within the district  in
 22    an  amount  not  to  exceed six hundredths of one percent (.06%) of the market
 23    value for assessment purposes on all taxable  property  within  the  district,
 24    provided however that a higher levy may be approved and ratified by the quali-
 25    fied  voters  at  an election to be held, subject to the provisions of section
 26    34-106, Idaho Code, for that purpose in the same manner as  provided  for  the
 27    approval  and  ratification  of contracts, in section 42-3117, Idaho Code, and
 28    said levy shall be certified by the board to the board of county commissioners
 29    of the county, or counties, in which said district is located, with directions
 30    that at the time and in the manner required  by  law  for  levying  taxes  for
 31    county  purposes,  such  board,  or boards, of county commissioners shall levy
 32    such tax upon the market value for assessment purposes of  the  real  property
 33    within  the  boundaries of the district. Such certification of levies shall be
 34    prepared and forwarded by the board of  the  flood  control  district  to  the
 35    board,  or  boards,  of  county commissioners on or before September 1 of each
 36    year.
 37        Such levies shall be levied and collected in the manner provided  by  law,
 38    and  the moneys collected shall be turned over to the treasurer or treasurers,
 39    of the county, or counties, in which said district is located.
 40        Said moneys shall be public funds and subject to  the  provisions  of  the
 41    public depository laws of the state.
 42        2.  To employ such personnel as may be necessary to carry out the purposes
 43    and objects of this act chapter, with the full power to bind said district for
 44    the compensation of such personnel.
 45        3.  To  sue and be sued in the name of the district; to have a seal, which
 46    seal shall be judicially noticed; to have perpetual succession  unless  termi-
 47    nated as hereinafter provided; to make and execute contracts and other instru-
 48    ments  necessary or convenient to the exercise of its power and to promulgate,
 49    amend and repeal rules not consistent with the provisions of this chapter.
 50        4.  To manage and conduct the business and affairs of the  district,  both
                                                                        
                                           9
                                                                        
  1    within and without the district.
  2        5.  To construct, operate and maintain structural works of improvement for
  3    the  prevention  of  floodwater  and  sediment  damages, and the conservation,
  4    development, utilization, and disposal of water, whether within or without the
  5    boundaries of the district, and to enter into contract for  the  purposes  set
  6    forth  above, provided however, that the board  shall not enter into contracts
  7    that necessitate  an  expenditure  in  excess  of   fifteen  thousand  dollars
  8    ($15,000),  without  first  advertising  for sealed competitive bids as herein
  9    provided purchase goods and services in  accordance  with  the  provisions  of
 10    chapter  28, title 67, Idaho Code. However, where it is determined by order of
 11    the board that there is an existing emergency, or where it is determined  that
 12    the  district is in a flood fight resulting from unanticipated conditions, the
 13    requirement for sealed competitive bids shall not apply.
 14        6.  To prescribe the duties of officers, agents and employees  as  may  be
 15    required.
 16        7.  To  establish  the  fiscal year of the district and to keep records of
 17    all business transactions of the district.
 18        8.  To prepare a statement of the financial condition of the  district  at
 19    the  end of each fiscal year, in a form to be prescribed by the director or by
 20    the legislative services office, and publish in at least one (1) issue of some
 21    newspaper published, or in general circulation in, the county, or counties, in
 22    which such district is located and to file a certified copy of such  financial
 23    report with the director and the legislative services office on or before Feb-
 24    ruary 2 of each year.
 25        9.  To  have an audit of the financial affairs of the district as required
 26    in section 67-450B, Idaho Code. A certified copy of said audit shall be  filed
 27    with the director on or before February 2 following the audit.
 28        10. To obtain options upon and acquire by purchase, exchange, lease, gift,
 29    grant,  bequest,  devise,  or  otherwise,  any property, real or personal, and
 30    improve any properties acquired; to receive income from such properties and to
 31    expend such income in carrying out the purposes and provisions of  this  chap-
 32    ter;  to  lease  any of its property or interest therein in furtherance of the
 33    purposes and provisions of this chapter, provided that no contract  or  agree-
 34    ment  for  the  acquisition, purchase or repair of personal property involving
 35    expenditure in excess of one thousand dollars ($1,000), shall be entered  into
 36    without first advertising for sealed competitive bids as herein provided.
 37        11. To have the power of eminent domain for the use of the district in the
 38    construction,  operation, maintenance and upkeep of its structures, waterways,
 39    dikes, dams, basins, or any other use necessary in the  carrying  out  of  the
 40    provisions of this chapter.
 41        12. To convey rights-of-way and easements for highways, public roads, pub-
 42    lic  utilities,  and  for  other purposes, over district property, as shall be
 43    determined by the board to be in the best interests of the district.
 44        13. To convey, by deed, bill of sale, or other appropriate instrument, all
 45    of the estate and interest of the district, in any real or personal  property.
 46    Prior  to such sale or conveyance, the board shall have the property appraised
 47    by three (3) disinterested residents of the district, which appraisal shall be
 48    entered in the minutes of the board. The property may be sold at  public  auc-
 49    tion  or  at  a  private  sale  by sealed competitive bids, as the board shall
 50    determine, to the highest cash bidder, provided that  in  no  case  shall  any
 51    property of a district be sold for less than its appraised value. All sales by
 52    sealed competitive bids shall be advertised as herein provided.
 53        14. To use natural streams and to improve the same for use as a flood con-
 54    trol  structure.  However,  in  the  event  that the use of the natural stream
 55    involves alteration of the stream channel, no such alteration shall be made by
                                                                        
                                           10
                                                                        
  1    the district until such alteration is approved by the director.
  2        15. To enter into contracts or agreements with the United States or any of
  3    its officers, agents, or subdivisions, or with the state or any of  its  offi-
  4    cers,  agents  or  political  subdivisions, and to cooperate with such govern-
  5    ments, persons or agencies in effectuating, promoting  and  accomplishing  the
  6    purposes of this chapter, provided that the district has  sufficient moneys on
  7    hand,  or in their budget for the year in which said contract is entered into,
  8    to defray the expenditure of funds called for in  such  contract  without  the
  9    creation of any indebtedness.
 10        Whenever any such contract shall, by its terms, require the expenditure of
 11    funds by the district in excess of the moneys on hand or the funds to be real-
 12    ized  from  their  budget for the year in which said contract is entered into,
 13    then such contract may not be entered into by the district until  ratified  by
 14    two-thirds  (2/3)  of  the  qualified voters voting at an election to be held,
 15    subject to the provisions of section 34-106, Idaho  Code,  for  that  purpose,
 16    according to the provisions of this chapter.
 17        16. To  bear its allocated share of the cost of any project resulting from
 18    any contract or agreement entered into as provided herein.
 19        17. To take over, administer and maintain pursuant  to  any  agreement  or
 20    contract  entered  into in accordance with the provisions of this act chapter,
 21    any flood control project within or without the  boundaries  of  the  district
 22    undertaken  in  cooperation  with the United States or any of its agencies, or
 23    with the state of Idaho or any of its agencies, or any combinations thereof.
 24        18. To accept donations, gifts and contributions in  money,  services,  or
 25    materials, or otherwise, from the United States or any of its agencies, or the
 26    state  of  Idaho  or  any  of its agencies or any combinations thereof, and to
 27    expend such moneys, services, or materials in carrying on its operations.
 28        19. To exercise all other powers necessary, convenient  or  incidental  to
 29    carrying out the purposes and provisions of the chapter.
                                                                        
 30        SECTION  10.  That Section 42-3116, Idaho Code, be, and the same is hereby
 31    repealed.
                                                                        
 32        SECTION 11.  That Section 42-3212, Idaho Code, be, and the same is  hereby
 33    amended to read as follows:
                                                                        
 34        42-3212.  GENERAL  POWERS  OF BOARD. For and on behalf of the district the
 35    board shall have the following powers:
 36        (a)  To have perpetual existence;
 37        (b)  To have and use a corporate seal;
 38        (c)  To sue and be sued, and be a party to suits, actions and proceedings;
 39        (d)  Except as otherwise provided in this chapter, to enter into contracts
 40    and agreements, cooperative and otherwise, affecting the affairs of  the  dis-
 41    trict,  including  contracts  with the United States of America and any of its
 42    agencies or instrumentalities, and contracts with corporations, public or pri-
 43    vate, municipalities, or governmental subdivisions, and to cooperate with  any
 44    one  (1)  or more of them in building, erecting or constructing works, canals,
 45    pipelines, sewage treatment plants, and other facilities within or without the
 46    district. Except in cases in which a district will receive aid from a  govern-
 47    mental  agency,  a notice shall be published for bids on all construction con-
 48    tracts involving an expense of fifteen thousand dollars ($15,000) or more  for
 49    labor,  materials  and  equipment,  which  sum shall exclude design costs, bid
 50    advertising and related bidding expenses. The district may reject any and  all
 51    bids,  and if it shall appear that the district can perform the work or secure
 52    material for less than the lowest bid, it may proceed so to do procurement  of
                                                                        
                                           11
                                                                        
  1    goods  or  services  shall be in accordance with the provisions of chapter 28,
  2    title 67, Idaho Code;
  3        (e)  To borrow money and incur indebtedness and evidence the same by  cer-
  4    tificate,    notes  or  debentures, and to issue bonds, in accordance with the
  5    provisions of this chapter;
  6        (f)  To acquire, dispose of  and  encumber  real  and  personal  property,
  7    water,  water  rights,  water  and sewage systems and plants, and any interest
  8    therein, including leases and easements within or without said district;
  9        (g)  To refund any bonded indebtedness of the district  without  an  elec-
 10    tion;  provided,  however,  that  the obligations of the district shall not be
 11    increased by any refund of bonded indebtedness. Otherwise, the terms and  con-
 12    ditions  of  refunding  bonds  shall  be substantially the same as those of an
 13    original issue of bonds;
 14        (h)  To have the management, control and supervision of all  the  business
 15    and affairs of the district, and the construction, installation, operation and
 16    maintenance of district improvements therein or therefor;
 17        (i)  To hire and retain agents, employees, engineers and attorneys;
 18        (j)  To  have  and exercise the power of eminent domain in the manner pro-
 19    vided by law for the condemnation of private property for public use  to  take
 20    any  property  necessary  to  the  exercise of the powers herein granted, both
 21    within and without the district;
 22        (k)  To construct and maintain works and establish and maintain facilities
 23    across or along any public street or highway, and in, upon, or over any vacant
 24    public lands, which public lands are now, or may become, the property  of  the
 25    state  of  Idaho, and to construct works and establish and maintain facilities
 26    across any stream of water or watercourse, and to maintain access  to  facili-
 27    ties and works by the removal of snow from roads and lands; provided, however,
 28    that  the  district  shall  promptly restore any such street or highway to its
 29    former state of usefulness as nearly as may be, and shall not use the same  in
 30    such manner as to completely or unnecessarily impair the usefulness thereof;
 31        (l)  To  fix and from time to time to increase or decrease water and sewer
 32    rates, tolls or charges for services or facilities furnished by the  district,
 33    and  to  pledge  such  revenue for the payment of any indebtedness of the dis-
 34    trict. The board shall fix rates, tolls and charges and the time or times  for
 35    the  payment thereof. All such rates, tolls and charges not paid within thirty
 36    (30) days after the date fixed for the payment  thereof  shall  become  delin-
 37    quent; the board shall certify all such delinquent rates, tolls and charges to
 38    the  tax collector of the county by the district, not later than the first day
 39    of August and shall be, by said tax collector, placed upon the  tax  roll  and
 40    collected  in  the same manner and subject to the same penalties as other dis-
 41    trict taxes; provided, however, that special assessments certified to the  tax
 42    collector which are placed on property qualifying for a hardship exemption may
 43    be  returned  to the taxing district from which they originated if the special
 44    assessments are not paid within three (3) years. The date of priority of  such
 45    lien  shall  be  the date upon which such charge becomes delinquent. The board
 46    shall shut off or discontinue service for delinquencies in the payment of such
 47    rates, tolls or charges, or in the payment of taxes levied  pursuant  to  this
 48    chapter,  and  prescribe  and enforce rules and regulations for the connection
 49    with and the disconnection from properties of the facilities of the  district.
 50    For  health and sanitary purposes the board shall have the power to compel the
 51    owners of inhabited property within a sewer district to connect their property
 52    with the sewer system of such district, and  upon  a  failure  so  to  connect
 53    within  sixty  (60)  days after written notice by the board so to do the board
 54    may cause such connection to be made and a lien to be filed against the  prop-
 55    erty  for  the  expense incurred in making such connection, provided, however,
                                                                        
                                           12
                                                                        
  1    that no owner shall be compelled to connect  his  property  with  such  system
  2    unless  a service line is brought, by the district, to a point within two hun-
  3    dred (200) feet of his dwelling place;
  4        (m)  To adopt and amend bylaws not in conflict with the  constitution  and
  5    laws  of  the  state  for carrying on the business, objects and affairs of the
  6    board and of the district;
  7        (n)  To have and exercise all rights and powers necessary or incidental to
  8    or implied from the specific powers granted herein. Such specific powers shall
  9    not be considered as a limitation upon any power necessary or  appropriate  to
 10    carry out the purposes and intent of this chapter.
                                                                        
 11        SECTION  12.  That Section 42-4416, Idaho Code, be, and the same is hereby
 12    amended to read as follows:
                                                                        
 13        42-4416.  COMMISSIONERS -- POWERS AND DUTIES. The board  of  commissioners
 14    of levee districts shall have the following powers and duties:
 15        (1)  To  annually  fix  and  determine  the amount of money required to be
 16    raised by taxation to supply funds for costs of maintenance, operation, and/or
 17    construction of the levees and equipment of the  district,  and  to  levy  and
 18    cause  to  be collected assessments on real property within the district in an
 19    amount not to exceed eight hundredths percent (.08%) of each dollar of  market
 20    value  for  assessment  purposes; provided, however, that a higher levy may be
 21    approved and ratified by the qualified voters at an election to be held,  sub-
 22    ject  to  the  provisions of section 34-106, Idaho Code, for that purpose, and
 23    said levy shall be certified by the board to the board of county commissioners
 24    of the county, or counties, in which said district is located, with directions
 25    that at the time and in the manner required  by  law  for  levying  taxes  for
 26    county  purposes,  such  board,  or boards, of county commissioners shall levy
 27    such tax upon the real property within the boundaries of  the  district.  Such
 28    certification  of  levies  shall be prepared and forwarded by the board of the
 29    levee district to the board, or boards, of county commissioners on  or  before
 30    September 1, of each year.
 31        Such  levies  shall be levied and collected in the manner provided by law,
 32    and the moneys collected shall be turned over to the treasurer or  treasurers,
 33    of the county, or counties, in which said district is located.
 34        Said  moneys  shall  be  public funds and subject to the provisions of the
 35    public depository laws of the state.
 36        (2)  To employ such personnel as may be necessary to carry  out  the  pur-
 37    poses  and  objects of this chapter, with the full power to bind said district
 38    for the compensation of such personnel.
 39        (3)  To sue and be sued in the name of the district; to have a seal, which
 40    seal shall be judicially noticed; to have perpetual succession  unless  termi-
 41    nated as hereinafter provided; to make and execute contracts and other instru-
 42    ments  necessary or convenient to the exercise of its power and to promulgate,
 43    amend and repeal rules and regulations not consistent with the  provisions  of
 44    this chapter.
 45        (4)  To  manage and conduct the business and affairs of the district, both
 46    within and without the district.
 47        (5)  To maintain, operate and/or construct levees for containment of irri-
 48    gation water and for the prevention of floodwater whether  within  or  without
 49    the  boundaries  of  the district, and to enter into contract for the purposes
 50    set forth above; provided, however, that the board shall not enter  into  con-
 51    tracts  that  necessitate  an  expenditure  in excess of five thousand dollars
 52    ($5,000), without first advertising for sealed competitive bids as herein pro-
 53    vided except in accordance with the provisions of chapter 28, title 67,  Idaho
                                                                        
                                           13
                                                                        
  1    Code.  However,  where it is determined by order of the board that there is an
  2    existing emergency, the requirement for  sealed  competitive  bids  shall  not
  3    apply.
  4        (6)  To  prescribe  the duties of officers, agents and employees as may be
  5    required.
  6        (7)  To establish the fiscal year of the district and to keep  records  of
  7    all business transactions of the district.
  8        (8)  To  prepare a statement of the financial condition of the district at
  9    the end of each fiscal year according to generally accepted accounting princi-
 10    ples, and publish in at least one (1) issue of some newspaper published, or in
 11    general circulation in, the county, or counties, in  which  such  district  is
 12    located  and to file a certified copy of such financial report with the direc-
 13    tor of the department of water resources.
 14        (9)  To have an audit of the financial affairs of the district as required
 15    in section 67-450B, Idaho Code.
 16        (10) To obtain options upon and  acquire  by  purchase,  exchange,  lease,
 17    gift,  grant,  bequest,  devise, or otherwise, any property, real or personal,
 18    and improve any properties acquired; to receive income  from  such  properties
 19    and  to expend such income in carrying out the purposes and provisions of this
 20    chapter; to lease any of its property or interest therein  in  furtherance  of
 21    the  purposes and provisions of this chapter, provided that no any contract or
 22    agreement for the acquisition, purchase or repair of personal property involv-
 23    ing expenditure in excess of one thousand dollars ($1,000), shall  be  entered
 24    into  without first advertising for sealed competitive bids as herein provided
 25    in accordance with the provisions of chapter 28, title 67, Idaho Code.
 26        (11) To have the power of eminent domain for the use of  the  district  in
 27    the  maintenance,  operation,  and construction of its levees or any other use
 28    necessary in the carrying out of the provisions of this chapter.
 29        (12) To convey rights-of-way and easements  for  highways,  public  roads,
 30    public  utilities, and for other purposes, over district property, as shall be
 31    determined by the board to be in the best interests of the district.
 32        (13) To convey, by deed, bill of sale, or  other  appropriate  instrument,
 33    all  of the estate and interest of the district, in any real or personal prop-
 34    erty. Prior to such sale or conveyance, the  board  shall  have  the  property
 35    appraised  by  three  (3)  disinterested  residents  of  the  district,  which
 36    appraisal  shall  be  entered in the minutes of the board. The property may be
 37    sold at public auction or at a private sale by sealed competitive bids, as the
 38    board shall determine, to the highest cash bidder, provided that  in  no  case
 39    shall  any  property  of a district be sold for less than its appraised value.
 40    All sales by sealed competitive bids shall be advertised as herein provided.
 41        (14) To enter into contracts or agreements with the United States  or  any
 42    of its officers, agents or subdivisions, or with the state or any of its offi-
 43    cers,  persons  or  agencies  in effectuating, promoting and accomplishing the
 44    purposes of this chapter, provided that the district has sufficient moneys  on
 45    hand,  or in their budget for the year in which said contract is entered into,
 46    to defray the expenditure of funds called for in  such  contract  without  the
 47    creation of any indebtedness.
 48        Whenever any such contract shall, by its terms, require the expenditure of
 49    funds by the district in excess of the moneys on hand or the funds to be real-
 50    ized  from  their  budget for the year in which said contract is entered into,
 51    then such contract may not be entered into by the district until  ratified  by
 52    two-thirds  (2/3)  of  the  qualified voters voting at an election to be held,
 53    subject to the provisions of section 34-106, Idaho  Code,  for  that  purpose,
 54    according to the provisions of this chapter.
 55        (15) To bear its allocated share of the cost of any project resulting from
                                                                        
                                           14
                                                                        
  1    any contract or agreement entered into as provided herein.
  2        (16) To  take  over,  administer and maintain pursuant to any agreement or
  3    contract entered into in accordance with the provisions of this  chapter,  any
  4    levee  project  within or without the boundaries of the district undertaken in
  5    cooperation with the United States or any of its agencies, or with  the  state
  6    of Idaho or any of its agencies, or any combinations thereof.
  7        (17) To  accept  donations, gifts and contributions in money, services, or
  8    materials or otherwise, from the United States or any of its agencies, or  the
  9    state  of  Idaho  or  any  of its agencies or any combinations thereof, and to
 10    expend such moneys, services, or materials in carrying on its operations.
 11        (18) To exercise all other powers necessary, convenient or  incidental  to
 12    carrying out the purposes and provisions of this chapter.
                                                                        
 13        SECTION  13.  That Section 43-318A, Idaho Code, be, and the same is hereby
 14    amended to read as follows:
                                                                        
 15        43-318A.  TRADE-IN OR EXCHANGE OF DISTRICT PROPERTY. Whenever the board of
 16    directors of an irrigation district finds and by resolution declares that  the
 17    district no longer has use for any personal property of the district, or finds
 18    and  declares  that such property is no longer economical to use, the district
 19    may, in lieu of the sale of said property as provided in section 43-318, Idaho
 20    Code, dispose of the property by exchanging the same in part payment  for  new
 21    or replacement property.
 22        If  the  acquisition  of the new or replacement property is required to be
 23    let to bid under the provisions of section 43-901 chapter 28, title 67,  Idaho
 24    Code,  the  district shall include in its request for bids, a full description
 25    of the property to be exchanged as part payment, and shall permit  any  inter-
 26    ested bidder to examine the same, and any contract let as a result of said bid
 27    shall  be awarded on the basis of net cost to the district after allowance for
 28    the property to be exchanged in part payment.
 29        Exchange of property will be permitted only when, in the  opinion  of  the
 30    board  of directors of the district, the sale of the property under the provi-
 31    sions of section 43-318, Idaho Code, will yield a lesser  monetary  return  to
 32    the district than the exchange thereof as herein provided.
                                                                        
 33        SECTION  14.  That  Section 43-901, Idaho Code, be, and the same is hereby
 34    amended to read as follows:
                                                                        
 35        43-901.  CONTRACTS FOR CONSTRUCTION WORK AND PURCHASING. A. The  following
 36    provisions  relative to competitive bidding set forth in chapter 28, title 67,
 37    Idaho Code, apply to all irrigation districts of the state of Idaho, but shall
 38    be subject to the provisions of any specific statute pertaining to the letting
 39    of any contract, purchase or acquisition of any commodity or thing  by  solic-
 40    iting  and  receiving competitive bids therefor, and shall not be construed as
 41    modifying or amending the provisions of any such statute, nor  preventing  the
 42    irrigation district from doing any work by its own employees.
 43        B.  The  word  "expenditure"  shall  mean  the  granting  of a contract to
 44    another by the irrigation district, the construction of any works, or any por-
 45    tion thereof,  and every manner and means whereby the irrigation district dis-
 46    burses funds or obligates itself to disburse funds;  provided,  however,  that
 47    "expenditure"  does  not  include disbursement of funds to any irrigation dis-
 48    trict employee, official, agent, or for the performance of  personal  services
 49    to  the  irrigation  district,  or  for  the  acquisition of personal property
 50    through a contract that has been competitively bid by the state of Idaho,  one
 51    of  its  subdivisions  or  an  agency  of the federal government, and does not
                                                                        
                                           15
                                                                        
  1    include the purchase of used personal property.
  2        C.  When the expenditure contemplated exceeds twenty-five thousand dollars
  3    ($25,000), the expenditure shall be contracted  for  and  let  to  the  lowest
  4    responsible bidder.
  5        D.  The notice inviting bids shall set a date and place for the opening of
  6    bids.  The  first  publication  of  the notice shall be at least two (2) weeks
  7    before the date of opening the bids. Notice shall be published at least twice,
  8    not less than one (1) week apart, in the official newspaper of such irrigation
  9    district. The notice shall succinctly set forth the project or construction to
 10    be done. Any of the following documents shall be made available, upon  reason-
 11    able  deposit, to any interested bidder: bid form, bidder's instructions, con-
 12    tract documents, general and special  instructions,  drawings  and  specifica-
 13    tions.
 14        E.  All  bids shall be presented or otherwise delivered under sealed cover
 15    to the secretary with a concise statement marked on the outside thereof gener-
 16    ally identifying the expenditure to which said bid pertains.  All  bids  shall
 17    contain one (1) of the following forms of bidder's security:
 18        a.  Cash;
 19        b.  Cashier's check made payable to the irrigation district;
 20        c.  A certified check made payable to the irrigation district;
 21        d.  A  bidder's  bond executed by a qualified surety company, made payable
 22        to the irrigation district.
 23        F.  The security shall be an amount equal to at least ten percent (10%) of
 24    the amount bid. A bid shall not be considered unless one (1) of the  forms  of
 25    bidder's  security  is  enclosed with it, and unless the bid is submitted in a
 26    form which substantially complies with the form  provided  by  the  irrigation
 27    district.
 28        G.  Any bid received by the irrigation district may not be withdrawn after
 29    the  time  set  in  the  notice for opening of bids. All bids received must be
 30    opened at the time and place set in the notice inviting bids,  and  no  person
 31    shall be denied the right to be present at the opening of bids.
 32        H.  If  the successful bidder fails to execute the contract, the amount of
 33    his bidder's security shall be forfeited to the irrigation  district  and  the
 34    proceeds  shall be deposited in the fund out of which the expenses of prepara-
 35    tion and printing of the plans and specifications, estimates of costs and pub-
 36    lication of notice are paid.
 37        I.  The irrigation district may, on refusal or failure of  the  successful
 38    bidder  to  execute the contract, award it to the next lowest responsible bid-
 39    der. If the board awards the contract to the next lowest  responsible  bidder,
 40    the  amount  of the said lowest responsible bidder's security shall be applied
 41    by the irrigation district to the difference between the said lowest responsi-
 42    ble bid and the said next lowest responsible bid, and  the  surplus,  if  any,
 43    shall  be  returned  to the said lowest bidder if cash or check is used, or to
 44    the surety on the bidder's bond if a bond is used.
 45        J.  In its discretion, the board may reject any bids presented  and  read-
 46    vertise. If two (2) or more bids are the same and the lowest responsible bids,
 47    the  board  may  accept the one it chooses. If no bids are received, the board
 48    may make the expenditure without further compliance with this section.
 49        K.  After rejecting bids, the board may, after finding it to  be  a  fact,
 50    pass  a  resolution  declaring that the thing sought to be accomplished by the
 51    expenditure can be performed more economically by day labor, or the  materials
 52    or  supplies  furnished  at a lower price in the open market. Upon adoption of
 53    the resolution, it may have the thing sought to be accomplished  done  in  the
 54    manner stated without further compliance with this section.
 55        L.  If  there is a great public calamity, as an extraordinary fire, flood,
                                                                        
                                           16
                                                                        
  1    storm, epidemic or other disaster, or if it is necessary to do emergency  work
  2    to  prepare  for national or local defense, or if the irrigation system of the
  3    district has been seriously damaged or impaired, the board may pass a  resolu-
  4    tion  declaring  that  the  public interest and necessity demand the immediate
  5    expenditure of public money to  safeguard  life,  health  or  property  or  to
  6    replace  or  repair  any damaged portion of the irrigation system or to remove
  7    any impediment therefrom. Upon adoption of the resolution, it may  expend  any
  8    sum required in the emergency without compliance with this section.
                                                                        
  9        SECTION  15.  That  Section 43-903, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        43-903.  NOTICE FOR BIDS DISPENSED WITH. On the petition of fifty (50)  or
 12    a  majority  of  the owners of land in said district, to be determined as pro-
 13    vided by section 43-101, Idaho Code, the board of directors may  do  any  work
 14    mentioned  in  the preceding section on behalf of the district, and it may use
 15    the construction fund therefor; in such case they need not publish notice  for
 16    bids as provided in the last preceding section 43-901, Idaho Code.
                                                                        
 17        SECTION  16.  That Section 43-2508, Idaho Code, be, and the same is hereby
 18    amended to read as follows:
                                                                        
 19        43-2508.  RESOLUTION CREATING LOCAL IMPROVEMENT DISTRICT AND PROCEDURE FOR
 20    CONSTRUCTION BIDS. If, after the hearing on the creation of the district,  the
 21    board  finds that the local improvement district will be for the best interest
 22    of the property affected and the district; that there is reasonable  probabil-
 23    ity  that the obligations of such local improvement district will be paid; and
 24    the value of the property within the proposed local  improvement  district  is
 25    sufficient;  it shall then adopt a  resolution providing for such improvements
 26    and creating a local improvement district to be called "Local Improvement Dis-
 27    trict No. ...  for  ............  Irrigation  District,  Idaho,"  which  shall
 28    include  all  of the property within said local improvement district in accor-
 29    dance with the findings of the board, and said resolution shall set forth  the
 30    boundaries  of  the local improvement district, provide the improvements which
 31    shall be made, and state that the total cost and  expenses  thereof  shall  be
 32    assessed  according to the percentage or calculation hereinbefore mentioned on
 33    all benefited property in the local improvement district by  using  the  gross
 34    acreage  method  of assessment contemplated in the notice of intention subject
 35    to any variation therefrom as a result of the  board's  determining  that  the
 36    benefits  to  be  derived  by certain lots or parcels of property warrant such
 37    variations. The board shall appoint an engineer and shall  have  prepared  the
 38    necessary  plans  and specifications for the construction work ordered. Except
 39    as hereinafter otherwise provided, the board shall authorize the advertisement
 40    for bids therefor by giving notice calling for sealed bids for  the  construc-
 41    tion  of  the  work in accordance with the provisions of chapter 28, title 67,
 42    Idaho Code.
 43        Notice of advertisement for bids shall be published in the official  news-
 44    paper  of  the  district  in three (3) consecutive weekly issues, which notice
 45    shall contain a general description of the kind and amount of work to be done,
 46    state that the plans and specifications for said  work  are  on  file  in  the
 47    office  of  the  engineer or secretary for inspection and state the date, hour
 48    and place of the bid opening.
 49        Each bidder shall accompany his bid with bidder's security as provided  in
 50    section  43-901, Idaho Code, in the amount of ten percent (10%) of his bid. In
 51    case the contract for any such work is offered to such bidder and he fails  or
                                                                        
                                           17
                                                                        
  1    refuses  to  enter into the contract, then such security shall be forfeited to
  2    the district and placed in the local improvement fund of such district.  These
  3    provisions also shall appear in said notice.
  4        Award  shall  be  made  to  the  lowest  responsible bidder fulfilling the
  5    requirements.
  6        Any contract made by a district for any improvements  authorized  by  this
  7    code shall be made by the board in the name of the district upon such terms of
  8    payment  as  shall  be fixed by the board. The contract shall be authorized by
  9    resolution empowering the authorized officer of the district  to  execute  the
 10    contract. The resolution need not set out the contract in full but it shall be
 11    sufficient  if  the resolution refers to a copy of the contract on file in the
 12    office of the secretary where it is available for public inspection.
 13        Any provision in this local improvement district for irrigation  districts
 14    code  notwithstanding,  if  any  district   shall elect to exercise the powers
 15    herein granted jointly with another irrigation district or districts, or  with
 16    any other public agency or agencies as authorized by the provisions of section
 17    67-2328,  Idaho  Code,  the  improvements  as  contemplated  within  the local
 18    improvement district may be constructed jointly and as part of a larger  proj-
 19    ect  with  such other agency or agencies upon the letting of a single contract
 20    after compliance with the required bidding  procedure  for  any  Idaho  public
 21    agency jointly participating in the work.
                                                                        
 22        SECTION  17.  That  Section 50-341, Idaho Code, be, and the same is hereby
 23    repealed.
                                                                        
 24        SECTION 18.  That Section 50-342, Idaho Code, be, and the same  is  hereby
 25    amended to read as follows:
                                                                        
 26        50-342.  ELECTRIC POWER -- PURCHASE OR DISPOSAL. In addition to the powers
 27    otherwise  conferred  on  cities of this state, a city owning and operating an
 28    electric distribution system shall have the authority to:
 29        (a)  Purchase, or generate, or both, electric power  and  energy  for  the
 30    purpose of disposing of such power and energy to the United States of America,
 31    department  of  energy, acting by and through the Bonneville power administra-
 32    tion, or its successor, through exchange, net billing or any arrangement which
 33    is used for supplying the needs of the city for electric power or energy;
 34        (b)  Enter into power sales or  power  purchase  contracts  with  entities
 35    engaged in generating, transmitting, or distributing electric power and energy
 36    to provide for the purchase, sale or exchange of electric power or energy upon
 37    such terms and conditions as shall be specified in the power sales or purchase
 38    contract; and
 39        (c)  Establish,  operate and fund energy conservation or other public pur-
 40    pose programs for the purpose of promoting efficient use of energy and  energy
 41    conservation  by  city  consumers  including,  but not limited to, programs to
 42    install energy efficient and energy conservation devices or measures  in  con-
 43    sumer  buildings  and  structures served by the city and to grant low-interest
 44    loans to city consumers for the installation of such measures,  provided  such
 45    measures are provided on a nondiscriminatory basis to all classes of customers
 46    similarly situated;
 47    and  such  authority shall not be subject to the requirements, limitations, or
 48    procedures contained in sections 50-325, 50-327 and 50-341 chapter  28,  title
 49    67, Idaho Code.
                                                                        
 50        SECTION  19.  That  Section 50-344, Idaho Code, be, and the same is hereby
 51    amended to read as follows:
                                                                        
                                           18
                                                                        
  1        50-344.  SOLID WASTE DISPOSAL. (1) Cities shall have the power to maintain
  2    and operate solid waste collection systems.  Such  maintenance  and  operation
  3    may, by exclusive or nonexclusive  means, be performed by:
  4        (a)  Employees,  facilities, equipment and supplies engaged or acquired by
  5        cities;
  6        (b)  Contracts, franchises or otherwise providing maintenance  and  opera-
  7        tion performed by private persons;
  8        (c)  Contracts  providing  for  maintenance  and  operation  performed  by
  9        another unit of government;
 10        (d)  Contracts, franchises or otherwise for maintenance and operation that
 11        may provide solid waste collection for all or geographic parts of a city;
 12        (e)  Any combination of paragraphs (a), (b), (c), and (d) of this section.
 13        (2)  Upon a finding by the mayor or city manager for public safety or nec-
 14    essary protection of public health and welfare and property, the provisions of
 15    section  50-341  chapter  28,  title  67, Idaho Code, shall not apply to solid
 16    waste collection, as provided herein.
 17        (3)  Before entering into such contracts, franchises or otherwise, a  city
 18    may  require such security for the performance thereof as it deems appropriate
 19    or may waive such undertaking.
                                                                        
 20        SECTION 20.  That Section 50-1710, Idaho Code, be, and the same is  hereby
 21    amended to read as follows:
                                                                        
 22        50-1710.  ORDINANCE  CREATING  IMPROVEMENT DISTRICT AND PROCEDURE FOR CON-
 23    STRUCTION BIDS. If, after the hearing on the creation  of  the  district,  the
 24    council finds (a) that the district will be for the best interest of the prop-
 25    erty  affected  and the municipality, (b) that there is reasonable probability
 26    that the obligations of such district will be paid, and (c) the value  of  the
 27    property within the proposed district, including the proposed improvements, is
 28    sufficient,  it  shall then enact an ordinance providing for such improvements
 29    and creating a local improvement district to be called "Local Improvement Dis-
 30    trict No. ...... for ............, Idaho," which  shall  include  all  of  the
 31    property  within said district in accordance with the findings of the council,
 32    and said ordinance shall set forth the boundaries of the district, provide the
 33    improvements which shall be made, and state that the total cost  and  expenses
 34    thereof shall be assessed according to the percentage or calculation hereinbe-
 35    fore  mentioned  on all benefited property in the district by using the method
 36    of assessment contemplated in the notice of intention subject to any variation
 37    therefrom as a result of the council's determining that  the  benefits  to  be
 38    derived  by  certain  lots or parcels of property warrant such variations. The
 39    council may either purchase, acquire or construct the improvements. The  coun-
 40    cil shall appoint an engineer. If the council elects to construct the improve-
 41    ments, the engineer shall have prepared the necessary plans and specifications
 42    for the construction work ordered.
 43        Except  as hereinafter otherwise provided, the council shall authorize the
 44    advertisement for bids therefor by giving notice calling for sealed  bids  for
 45    the  construction  of the work. Notice of advertisement for bids shall be pub-
 46    lished in the official newspaper of the municipality in three (3)  consecutive
 47    weekly  issues,  which  notice  shall (a) contain a general description of the
 48    kind and amount of work to be done, (b) state that the  plans  and  specifica-
 49    tions  for  said  work  are on file in the office of the engineer or clerk for
 50    inspection and (c) state the date, hour and place of the bid opening in accor-
 51    dance with the provisions of chapter 28, title 67, Idaho Code.
 52        Each bidder shall accompany his bid with bidder's security as provided  in
 53    section  50-341, Idaho Code, in the amount of five percent (5%) of his bid. In
                                                                        
                                           19
                                                                        
  1    case the contract for any such work is offered to such bidder and he fails  or
  2    refuses  to  enter into the contract, then such security shall be forfeited to
  3    the municipality and placed in the local improvement fund  of  such  district.
  4    These provisions also shall appear in said notice.
  5        Award  shall  be  made  to  the  lowest  responsible bidder fulfilling the
  6    requirements.
  7        Any acquisition, purchase or construction contract made by a  municipality
  8    for  any  improvements authorized by this code shall be made by the council in
  9    the name of the municipality upon such terms of payment as shall be  fixed  by
 10    the  council.  The  contract  shall be authorized by resolution empowering the
 11    authorized officer of the municipality to execute the contract. The resolution
 12    need not set out the contract in full but it shall be sufficient if the  reso-
 13    lution  refers  to  a  copy of the contract on file in the office of the clerk
 14    where it is available for public inspection.
 15        Any provision in this local improvement district code notwithstanding,  if
 16    any  municipality  shall  elect  to exercise the powers herein granted jointly
 17    with any other public agency or agencies as authorized by  the  provisions  of
 18    section 67-2328, Idaho Code, the improvements as contemplated within the local
 19    improvement  district may be constructed jointly and as part of a larger proj-
 20    ect with such other agency or agencies upon the letting of a  single  contract
 21    after  compliance  with  the  required  bidding procedure for any Idaho public
 22    agency jointly participating in the work.
                                                                        
 23        SECTION 21.  That Section 50-2006, Idaho Code, be, and the same is  hereby
 24    amended to read as follows:
                                                                        
 25        50-2006.  URBAN RENEWAL AGENCY. (a) There is hereby created in each munic-
 26    ipality  an  independent  public body corporate and politic to be known as the
 27    "urban renewal agency" for the municipality; provided, that such agency  shall
 28    not transact any business or exercise its powers hereunder until or unless the
 29    local  governing  body  has  made  the findings prescribed in section 50-2005,
 30    Idaho Code.
 31        (b)  Upon the local governing body making such findings, the urban renewal
 32    agency is authorized to transact the business and exercise the powers  hereun-
 33    der by a board of commissioners to be appointed or designated as follows:
 34        (1)  The  mayor, by and with the advice and consent of the local governing
 35        body, shall appoint a board of commissioners of the urban  renewal  agency
 36        which shall consist of not less than three (3) commissioners nor more than
 37        nine  (9) commissioners. In the order of appointment, the mayor shall des-
 38        ignate the number of commissioners to be appointed, and the term of  each,
 39        provided  that the original term of office of no more than two (2) commis-
 40        sioners shall expire in the same year. The commissioners shall  serve  for
 41        terms  not  to exceed five (5) years, from the date of appointment, except
 42        that all vacancies shall be filled for the  unexpired  term.  For  ineffi-
 43        ciency  or  neglect of duty or misconduct in office, a commissioner may be
 44        removed only after a hearing and after he shall have been given a copy  of
 45        the  charges at least ten (10) days prior to such hearings and have had an
 46        opportunity to be heard in person or by counsel.
 47        (2)  By enactment of an ordinance, the local governing  body  may  appoint
 48        and designate itself to be the board of commissioners of the urban renewal
 49        agency, in which case all the rights, powers, duties, privileges and immu-
 50        nities  vested  by  the  urban  renewal law of 1965, and as amended, in an
 51        appointed board of commissioners, shall be vested in the  local  governing
 52        body,  who  shall, in all respects when acting as an urban renewal agency,
 53        be acting as an arm of state government, entirely  separate  and  distinct
                                                                        
                                           20
                                                                        
  1        from  the municipality, to achieve, perform and accomplish the public pur-
  2        poses prescribed and provided by said urban renewal law of  1965,  and  as
  3        amended.
  4        (3)  By enactment of an ordinance, the local governing body may terminate
  5        the  appointed  board  of  commissioners and thereby appoint and designate
  6        itself as the board of commissioners of the urban renewal agency.
  7        (c)  A commissioner shall receive no compensation  for  his  services  but
  8    shall  be  entitled  to  the necessary expenses, including traveling expenses,
  9    incurred in the discharge of his duties. Each commissioner shall  hold  office
 10    until his successor has been appointed and has qualified. A certificate of the
 11    appointment or reappointment of any commissioner shall be filed with the clerk
 12    of  the  municipality and such certificate shall be conclusive evidence of the
 13    due and proper appointment of such commissioner.
 14        The powers of an urban renewal agency shall be exercised  by  the  commis-
 15    sioners thereof. A majority of the commissioners shall constitute a quorum for
 16    the purpose of conducting business and exercising the powers of the agency and
 17    for  all  other  purposes.  Action may be taken by the agency upon a vote of a
 18    majority of the commissioners present, unless in any  case  the  bylaws  shall
 19    require a larger number.
 20        The  mayor  may appoint a chairman, a cochairman, or a vice chairman for a
 21    term of office of one (1) year from among the  commissioners,  thereafter  the
 22    commissioners shall elect the chairman, cochairman or vice chairman for a term
 23    of  one  (1)  year from among their members. An agency may employ an executive
 24    director, technical experts and such other agents and employees, permanent and
 25    temporary, as it may require, and determine their qualifications,  duties  and
 26    compensation.  For  such legal service as it may require, an agency may employ
 27    or retain its own counsel and legal staff. An agency  authorized  to  transact
 28    business and exercise powers under this act chapter shall file, with the local
 29    governing  body, on or before March 31 of each year a report of its activities
 30    for the preceding calendar year, which report shall include a complete  finan-
 31    cial  statement  setting  forth  its assets, liabilities, income and operating
 32    expense as of the end of such calendar year. At the time of filing the report,
 33    the agency shall publish in a newspaper of general circulation in  the  commu-
 34    nity  a  notice to the effect that such report has been filed with the munici-
 35    pality and that the report is available for inspection during  business  hours
 36    in  the  office  of the city clerk or county recorder and in the office of the
 37    agency.
 38        (d)  An urban renewal agency shall have the same fiscal year as a  munici-
 39    pality  and shall be subject to the same audit requirements as a municipality.
 40    An urban renewal agency shall be required to prepare and file with  its  local
 41    governing body an annual financial report and shall prepare, approve and adopt
 42    an  annual  budget for filing with the local governing body, for informational
 43    purposes. A budget means an annual estimate of revenues and expenses  for  the
 44    following fiscal year of the agency.
 45        (e)  An urban renewal agency shall comply with the public records law pur-
 46    suant to chapter 3, title 9, Idaho Code, open meetings law pursuant to chapter
 47    23,  title 67, Idaho Code, the ethics in government law pursuant to chapter 7,
 48    title 59, Idaho Code, and the competitive bidding provisions of section 50-341
 49    chapter 28, title 67, Idaho Code.
                                                                        
 50        SECTION 22.  That Section 50-2620, Idaho Code, be, and the same is  hereby
 51    amended to read as follows:
                                                                        
 52        50-2620.  BIDS  REQUIRED  --  MONETARY AMOUNT. Any city authorized by this
 53    chapter to establish a business improvement district shall call  for  competi-
                                                                        
                                           21
                                                                        
  1    tive bids by appropriate public notice and award contracts, whenever the esti-
  2    mated  cost of such work or improvement, including cost of materials, supplies
  3    and equipment, exceeds the sum of five thousand  dollars ($5,000) conduct  its
  4    purchasing  activities  in accordance with the provisions of chapter 28, title
  5    67, Idaho Code.
                                                                        
  6        SECTION 23.  That Section 50-2621, Idaho Code, be, and the same is  hereby
  7    amended to read as follows:
                                                                        
  8        50-2621.  COMPUTING  COST  OF IMPROVEMENT FOR BID REQUIREMENT. The cost of
  9    the improvement for the purposes of this chapter shall  be  aggregate  of  all
 10    amounts  to be paid for the labor, materials and equipment on one (1) continu-
 11    ous or interrelated project where work is to be performed simultaneously or in
 12    near sequence. Breaking an improvement into small units for  the  purposes  of
 13    avoiding  the  minimum dollar amount prescribed in section 50-2620 chapter 28,
 14    title 67, Idaho Code, is contrary to public policy and is prohibited.
                                                                        
 15        SECTION 24.  That Section 54-1901, Idaho Code, be, and the same is  hereby
 16    amended to read as follows:
                                                                        
 17        54-1901.  LEGISLATIVE  INTENT  --  DEFINITIONS.  (1) The legislature finds
 18    that it is in the best interests of the people of the state of Idaho to estab-
 19    lish a process for licensure of public works contractors  to  be  administered
 20    through the public works contractors license board. To assure that experienced
 21    and  qualified  contractors  provide services to public entities in Idaho, the
 22    board is charged with licensing as provided in this chapter. Effective licens-
 23    ing procedures should assure that contractors of integrity  provide  work  for
 24    which  they  have specific experience and expertise and that public facilities
 25    are constructed and rebuilt by efficient and cost-effective  means.  Licensing
 26    should also protect the public health and safety through judicious exercise of
 27    investigative, disciplinary and enforcement activities.
 28        (2)  For  the interpretation of this chapter, unless the context indicates
 29    a different meaning:
 30        (a)  "Person" includes any individual, firm,  copartnership,  corporation,
 31        limited  liability  company, limited liability partnership, association or
 32        other organization, or any combination thereof acting as a unit.
 33        (b)  "Public works contractor," which term is  synonymous  with  the  term
 34        "builder," "subcontractor" and "specialty contractor," and in this chapter
 35        referred to as "contractor" or "licensee," includes any person who, in any
 36        capacity,  undertakes,  or  offers  to  undertake, or purports to have the
 37        capacity to undertake any construction, repair or  reconstruction  of  any
 38        public work, or submits a proposal to, or enters into a contract with, the
 39        state of Idaho, or any county, city, school district, sewer district, fire
 40        district,  or  any  other  taxing subdivision or district of any public or
 41        quasi-public corporation of the state, or with any  agency,  or  with  any
 42        other  public board, body, commission, department or agency, or officer or
 43        representative thereof, authorized to let or award contracts for the  con-
 44        struction, repair or reconstruction of any public work.
 45        (c)  "Public  works  construction"  includes  any  or all of the following
 46        branches:
 47             (1i)  Heavy construction, which is defined as  constructing  substan-
 48             tially  in its entirety any fixed works and structures (not including
 49             "building construction"), without limitation, for any or all  of  the
 50             following  divisions  of  subjects: irrigation, drainage, sanitation,
 51             sewage, water power, water supply, reservoirs, flood control,  recla-
                                                                        
                                           22
                                                                        
  1             mation,  inland waterways, railroads, grade separations, track eleva-
  2             tion,  elevated  highways,  hydroelectric  developments,   aqueducts,
  3             transmission  lines, duct lines, pipelines, locks, dams, dykes dikes,
  4             levees, revetments, channels,  channel  cutoffs,  intakes,  drainage,
  5             excavation and disposal of earth and rocks, foundations, piers, abut-
  6             ments,  retaining  walls,  viaducts,  shafts,  tunnels, airports, air
  7             bases and airways, and other facilities incidental to the same;
  8             (2ii)  Highway construction, which is defined as all work included in
  9             highway construction contracts, including, without limitation,  high-
 10             ways,  roads,  streets,  bridges,  tunnels, sewer and street grading,
 11             street paving, curb setting, surfacing  and  other  facilities  inci-
 12             dental to any of the same;
 13             (3iii)  Building  construction,  which is defined as all work in con-
 14             nection with any structure  now  built,  being  built,  or  hereafter
 15             built,  for  the support, shelter and inclosure enclosure of persons,
 16             chattels, personal and movable property of any kind, requiring in its
 17             construction the use of more than two (2) unrelated  building  trades
 18             or crafts.
 19             (4iv)  Specialty  construction,  which is defined as any work in con-
 20             nection with any public works construction, requiring  special  skill
 21             and the use of specially skilled trades or crafts.
 22        (d)  "Board"  means  the  board  created by this chapter under the name of
 23        "public works contractors license board."
 24        (e)  "Administrator" means the administrator of the division  of  building
 25        safety.
 26        (f)  "Year" means the fiscal year ending June 30, each year.
 27        (g)  "Federal  aid  funds" means a direct grant in aid, matching funds, or
 28        loan from an agency of the federal government and designated  for  a  spe-
 29        cific  public  works project. Revenue sharing funds, federal impact funds,
 30        timber stumpage fees, and similar indirect allowances  and  subsidies  not
 31        designated  for  a  specific public works project shall not be regarded as
 32        "federal aid funds" within the meaning of this section.
 33        (h)  "Government obligation" means a public debt obligation of the  United
 34        States  government or the state of Idaho and an obligation whose principal
 35        and interest is unconditionally guaranteed by the United States government
 36        or the state of Idaho.
 37        (i)  "Public entity" means the state of Idaho, or any county, city, school
 38        district, sewer district, fire district, or any other  taxing  subdivision
 39        or district of any public or quasi-public corporation of the state, or any
 40        agency  thereof, or with any other public board, body, commission, depart-
 41        ment or agency, or officer or representative thereof.
 42        (j)  "Bid" or "bidder" means any proposal submitted by a public works con-
 43        tractor to a public entity in competitive bidding  for  the  construction,
 44        alteration, repair or improvement of any public works construction.
                                                                        
 45        SECTION  25.  That Section 54-1903, Idaho Code, be, and the same is hereby
 46    amended to read as follows:
                                                                        
 47        54-1903.  EXEMPTIONS. This act chapter shall not apply to:
 48        (a)  An authorized representative of the  United  States  government,  the
 49    state  of  Idaho, or any incorporated town, city, county, irrigation district,
 50    reclamation district or other municipal or political corporation  or  subdivi-
 51    sion of this state.
 52        (b)  Officers  of  a  court when they are acting within the scope of their
 53    office.
                                                                        
                                           23
                                                                        
  1        (c)  Public utilities operating under the jurisdiction of the public util-
  2    ities commission of the state of Idaho on construction, maintenance and devel-
  3    opment work incidental to their own business.
  4        (d)  The sale or installation of any finished products, materials or arti-
  5    cles of merchandise, which are not actually fabricated into and do not  become
  6    a permanent fixed part of the structure.
  7        (e)  Any construction, alteration, improvement or repair of personal prop-
  8    erty.
  9        (f)  Any construction, alteration, improvement or repair carried on within
 10    the limits and boundaries of any site or reservation, the title of which rests
 11    in the federal government.
 12        (g)  Any  construction  or  operation  incidental  to the construction and
 13    repair of irrigation and drainage ditches of regularly constituted  irrigation
 14    districts,  drainage districts or reclamation districts, except when performed
 15    by a person required to be licensed under this act chapter.
 16        (h)  Duly licensed architects, civil licensed  engineers,  and  land  sur-
 17    veyors when acting solely in their professional capacity.
 18        (i)  Any  construction,  alteration,  improvement  or repair involving any
 19    single project involving any number of trades or crafts with an estimated cost
 20    of less than ten thousand dollars ($10,000), or a project  estimated  to  cost
 21    less  than  fifty thousand dollars ($50,000) for which no responsive statement
 22    of interest was received from a licensed public works contractor  when  state-
 23    ments of interest were solicited as provided in section 67-2805, Idaho Code.
 24        (j)  Any  construction,  operation,  alteration  or maintenance of a solid
 25    waste disposal site including those operated by, for, or at the direction of a
 26    city or a county.
 27        (k)  Any construction, operation or repair carried on in  response  to  an
 28    emergency  that  has  been officially declared by the governor pursuant to the
 29    provisions of chapter 10, title 46, Idaho Code, or an emergency that has  been
 30    declared  by a governing body (city or county) in anticipation of a governor's
 31    declaration, for a period of time not to exceed seven (7) calendar days.
                                                                        
 32        SECTION 26.  That Section 54-1904A, Idaho Code, be, and the same is hereby
 33    amended to read as follows:
                                                                        
 34        54-1904A.  FILING OF NOTICES AND INCOME TAX RETURNS -- PAYMENT  OF  INCOME
 35    TAXES  BY CONTRACTORS. Within thirty (30) days after any public works contrac-
 36    tor who is required to be licensed pursuant to this chapter has been awarded a
 37    contract for construction to be performed within the state of Idaho  involving
 38    the  expenditure of any public moneys, the contract awarding agency prime con-
 39    tractor shall file with the tax commission a signed statement showing the date
 40    on which such contract was made or awarded, the names  and  addresses  of  the
 41    home  offices  of  the  contracting parties, including all subcontractors, the
 42    state of incorporation if the party is a corporation, the project number and a
 43    general description of the type and location of the work to be performed,  the
 44    amount  of  the  prime  contract  and all subcontracts, and all other relevant
 45    information which may be required on forms which may be prescribed by the  tax
 46    commission  with  a  copy to be sent to the administrator. Every contractor or
 47    subcontractor whose name appears on any such notice shall be required to  file
 48    income  tax  returns with the state tax commission and to pay all income taxes
 49    which may be due thereon pursuant to law for all years  in  which  any  public
 50    moneys were received by him in connection with any construction work which was
 51    performed within the state of Idaho.
                                                                        
 52        SECTION  27.  That Section 54-1913, Idaho Code, be, and the same is hereby
                                                                        
                                           24
                                                                        
  1    amended to read as follows:
                                                                        
  2        54-1913.  RECORDS, LISTS AND INFORMATION. The  administrator  shall  main-
  3    tain,  open to public inspection during office hours, a complete record of all
  4    retained applications,  licenses  issued,  licenses  renewed,  data  collected
  5    through  the  provisions of section 54-1904A, Idaho Code, and all revocations,
  6    cancellations and suspensions of licenses, and shall furnish a certified  copy
  7    of  any  license  issued,  upon receipt of the sum of fifty cents (50¢), which
  8    certified copy shall be received in all courts and elsewhere  as  evidence  of
  9    the facts stated therein.
 10        Whenever funds are available for the purpose, the administrator shall pub-
 11    lish  a  list  of  the  names and addresses of contractors licensed under this
 12    chapter and such further information with respect  to  this  chapter  and  its
 13    administration  as  the administrator deems proper. The administrator may fur-
 14    nish the lists to such public works and building departments, public officials
 15    or public bodies, and other persons interested in or allied with the  building
 16    and  construction industry in this or any other state as deemed advisable, and
 17    at such intervals as deemed necessary, whenever funds therefor are  available.
 18    Copies of the lists may also be furnished by the administrator upon request to
 19    any firm or individual upon payment of a reasonable fee fixed by the board.
 20        Whenever  funds  are available for the purpose, the administrator may pub-
 21    lish and disseminate to licensees and to public  officials  or  other  persons
 22    interested  in  or  allied  with  the building and construction industry, such
 23    information with relation to the administration and enforcement of this  chap-
 24    ter as deemed necessary to carry out its purposes.
                                                                        
 25        SECTION  28.  That Section 54-1914, Idaho Code, be, and the same is hereby
 26    amended to read as follows:
                                                                        
 27        54-1914.  DISCIPLINARY ADMINISTRATIVE  ENFORCEMENT  PROCEEDINGS.  (1)  The
 28    administrator  may  upon  his own motion or at the direction of the board, and
 29    shall upon the verified complaint in writing of any  person,  investigate  the
 30    actions  of  any public works contractor within the state and may undertake to
 31    reclassify, retype, place  on  probation,  defer  or  precondition  licensure,
 32    impose  an  administrative  fine  not  to  exceed five twenty thousand dollars
 33    ($520,000) per violation, impose the  administrative  costs  of  bringing  the
 34    action  including,  but  not  limited to, hearing officer fees, expert witness
 35    fees, attorney's fees,  costs of hearing  transcripts and copies,  temporarily
 36    suspend  or  permanently revoke any license if the holder, while a licensee or
 37    applicant hereunder, is guilty of or commits any one (1) or more of  the  fol-
 38    lowing acts or omissions:
 39        (a)  Abandonment without legal excuse of any construction project or oper-
 40        ation engaged in or undertaken by the licensee as a contractor.
 41        (b)  Diversion  of  funds or property received under express agreement for
 42        prosecution or completion of a specific construction project or operation,
 43        or for a specified purpose in the prosecution or completion  of  any  con-
 44        struction project or operation, and their application or use for any other
 45        construction  project  or operation, obligation or purpose, with intent to
 46        defraud or deceive creditors or the owner.
 47        (c)  Willful departure from or disregard of, plans  or  specifications  in
 48        any  material  respect, and prejudicial to another, without consent of the
 49        owner or his duly authorized representative, and without  the  consent  of
 50        the  person entitled to have the particular construction project or opera-
 51        tion completed in accordance with such plans and specifications.
 52        (d)  Willful or deliberate disregard and violation of valid building  laws
                                                                        
                                           25
                                                                        
  1        of  the  state,  or of any political subdivision thereof, or of the safety
  2        laws or labor laws or compensation insurance laws of the state.
  3        (e)  Misrepresentation of a material fact by an applicant in  obtaining  a
  4        license.
  5        (f)  Aiding  or  abetting  an unlicensed person to evade the provisions of
  6        this chapter or conspiring with an unlicensed person,  or  allowing  one's
  7        license  to be used by an unlicensed person, or acting as agent or partner
  8        or associate or otherwise, of an unlicensed  person  with  the  intent  to
  9        evade the provisions of this chapter.
 10        (g)  Failure in any material respect to comply with the provisions of this
 11        chapter.
 12        (h)  Acting in the capacity of a contractor under any license issued here-
 13        under  except:  (1)  in  the  name  of  the licensee as set forth upon the
 14        license, or (2) in accordance with the personnel of the  licensee  as  set
 15        forth in the application for such license, or as later changed as provided
 16        in this chapter.
 17        (i)  Knowingly  accepting  a  bid  from,  or entering into a contract with
 18        another contractor for a portion of a public works project if at that time
 19        such contractor does not possess the appropriate license to do  that  work
 20        as provided in this chapter.
 21        (j)  Willful  failure  or  refusal  without  legal excuse on the part of a
 22        licensee as a contractor to finish a  construction  project  or  operation
 23        with reasonable diligence, causing material injury to another.
 24        (k)  Willful  or  deliberate  failure by any licensee, or agent or officer
 25        thereof, to pay any moneys when due, for any materials  or  services  ren-
 26        dered  in connection with  his operations as a contractor, when he has the
 27        capacity to pay or when he has received sufficient funds therefor as  pay-
 28        ment  for the particular construction work, project or operation for which
 29        the services or materials were rendered or purchased;  or  denial  of  any
 30        such amount due or the validity of the claim thereof with intent to secure
 31        for himself, his employer, or other person, any discount upon such indebt-
 32        edness  or with intent to hinder, delay or defraud the person to whom such
 33        indebtedness is due.
 34        (l)  Suffers a change in financial  circumstances  which  may  impair  the
 35        licensee's financial responsibility.
 36        (m)  Holding  oneself  or  one's  firm out as a public works contractor by
 37        engaging in any act meeting the definition or character of a public  works
 38        contractor as defined herein without a legally required license.
 39        (2)  The  administrator may upon his own motion or at the direction of the
 40    board, and shall upon the verified complaint in writing of any licensed public
 41    works contractor eligible to perform public works contracting duties, investi-
 42    gate the actions of any public entity within  the  state  and  may  impose  an
 43    administrative fine not to exceed five thousand dollars ($5,000) per violation
 44    or  impose  the administrative costs of bringing the action including, but not
 45    limited to, hearing officer fees, expert witness fees, attorney's fees,  costs
 46    of  hearing  transcripts and copies, if the public agency contracts for public
 47    works construction with an unlicensed or improperly licensed contractor.
                                                                        
 48        SECTION 29.  That Section 54-1915, Idaho Code, be, and the same is  hereby
 49    amended to read as follows:
                                                                        
 50        54-1915.  PROCEDURE  FOR IMPOSITION OF DISCIPLINE. (1)  Upon the filing of
 51    a verified complaint with the administrator  charging  a  licensee  or  public
 52    entity  with  the  commission of any act constituting a cause for disciplinary
 53    action within two (2) years prior to the date of filing, or upon such a  find-
                                                                        
                                           26
                                                                        
  1    ing  made  by  the administrator following an investigation, the administrator
  2    shall forthwith issue a notice,  accompanied  by  a  copy  of  the  complaint,
  3    directing the licensee or public entity, within ten (10) days after service of
  4    the  notice,  to  appear by filing with the administrator a verified answer to
  5    the complaint.
  6        (2)  The administrator shall have the power to appoint,  by  an  order  in
  7    writing, a hearing officer to take testimony, who shall have power to adminis-
  8    ter oaths, issue subpoenas and compel the attendance of witnesses.
  9        (3)  Service  of  the  notice  and  complaint  upon the licensee or public
 10    entity shall be fully effected by mailing a true copy of the notice  and  com-
 11    plaint  by  certified  mail  addressed  to the licensee at his last address of
 12    record with the administrator or to the public entity at its  principal  place
 13    of business. Service of the notice and complaint shall be complete at the time
 14    of  deposit in accordance with the provisions of the Idaho rules of civil pro-
 15    cedure relating to service by mail.
 16        (4)  The hearing shall be conducted in accordance with the  provisions  of
 17    chapter 52, title 67, Idaho Code, and the Idaho rules of administrative proce-
 18    dure.
 19        (5)  Following  the  hearing,  the hearing officer shall issue recommended
 20    findings of fact, conclusions of law, and order. The recommended order may:
 21        (a)  Provide for the immediate complete suspension by the licensee of  all
 22        operations as a contractor during the period fixed by the decision.
 23        (b)  Permit  the licensee to complete any or all contracts shown by compe-
 24        tent evidence taken at the hearing to be then uncompleted.
 25        (c)  Impose upon the licensee compliance with such specific conditions  as
 26        may be just in connection with his operations as a contractor disclosed at
 27        the  hearing  and  may further provide that until such conditions are com-
 28        plied with no application for restoration  of  the  suspended  or  revoked
 29        license shall be accepted by the administrator.
 30        (d)  Provide  for  the imposition of any of the sanctions provided by sec-
 31        tion 54-1914, Idaho Code.
 32        (6)  Following a review of the entire hearing  record,  the  administrator
 33    shall issue a final decision.
                                                                        
 34        SECTION  30.  That Section 54-1916, Idaho Code, be, and the same is hereby
 35    amended to read as follows:
                                                                        
 36        54-1916.  JUDICIAL REVIEW -- APPEALS PROCEDURE. (1)  The applicant, public
 37    entity, or licensee, as the case may be, shall  have  the  right  to  judicial
 38    review  of  an  action of the administrator refusing issuance of a license, or
 39    actions taken by the board pursuant to section 54-1914, Idaho Code, in  accor-
 40    dance with the provisions of chapter 52, title 67, Idaho Code.
 41        (2)  Appeals  may be taken from the judgment of said district court to the
 42    supreme court of Idaho by either party in the same  manner  that  appeals  are
 43    taken and records prepared on appeal in civil actions.
 44        (3)  On  any appeal to the district court by a licensee, the court may, in
 45    its discretion, upon the filing of a proper bond by the licensee in an  amount
 46    to  be  fixed  by  the court, but not less than one thousand dollars ($1,000),
 47    guaranteeing the compliance by the licensee with specific  conditions  imposed
 48    upon  him  by the board's decision, if any, permit the licensee to continue to
 49    do business as a contractor pending entry of judgment by the district court.
 50        (4)  On any appeal to the district court by a  public  entity,  the  court
 51    may, in its discretion, suspend the action taken by the board pursuant to sec-
 52    tion 54-1914, Idaho Code, pending entry of judgment by the district court.
                                                                        
                                           27
                                                                        
  1        SECTION  31.  That Section 54-1926, Idaho Code, be, and the same is hereby
  2    amended to read as follows:
                                                                        
  3        54-1926.  PERFORMANCE AND PAYMENT BONDS REQUIRED OF CONTRACTORS FOR PUBLIC
  4    BUILDINGS AND PUBLIC WORKS OF THE STATE, POLITICAL SUBDIVISIONS AND OTHER PUB-
  5    LIC INSTRUMENTALITIES -- REQUIREMENTS FOR BONDS --  GOVERNMENTAL  OBLIGATIONS.
  6    Before  any contract for the construction, alteration, or repair of any public
  7    building or public work or improvement of  the  state  of  Idaho,  or  of  any
  8    county,  city,  town, municipal corporation, township, school district, public
  9    educational institution, or other political subdivision, public authority,  or
 10    public  instrumentality, or of any officer, board, commission, institution, or
 11    agency of the foregoing, is awarded to any person, he  shall  furnish  to  the
 12    state  of  Idaho,  or to such county, city, town, municipal corporation, town-
 13    ship, school district, public educational institution, or other political sub-
 14    division, public authority, or public instrumentality,  or  to  such  officer,
 15    board,  commission,  institution,  or agency thereof, bonds which shall become
 16    binding upon the award of the contract to such person, who is hereinafter des-
 17    ignated as "contractor":
 18        (1)  A performance bond in any amount to be fixed by the contracting body,
 19    but in no event less than eighty-five percent (85%)  of  the  contract  amount
 20    conditioned  upon  the faithful performance of the contract in accordance with
 21    the plans, specifications and conditions thereof. Said bond  shall  be  solely
 22    for the protection of the public body awarding the contract.
 23        (2)  A  payment  bond in an amount to be fixed by the contracting body but
 24    in no event less than eighty-five percent (85%) of the contract amount, solely
 25    for the protection of persons supplying labor or materials, or renting,  leas-
 26    ing,  or otherwise supplying equipment to the contractor or his subcontractors
 27    in the prosecution of the work provided for in such contract.
 28        (3)  Public bodies requiring a performance bond or payment bond in  excess
 29    of fifty percent (50%) of the total contract amount shall not be authorized to
 30    withhold  from  the contractor or subcontractor any amount exceeding five per-
 31    cent (5%) of the total amount payable as retainage. Further, the  public  body
 32    shall  release to the contractor any retainage for those portions of the proj-
 33    ect accepted by the contracting public body and the  contractors  as  complete
 34    within  thirty  (30) days after such acceptance. Contractors, contracting with
 35    subcontractors pursuant to contract work with a  public  body,  shall  not  be
 36    authorized  to  withhold from the subcontractor any amount exceeding five per-
 37    cent (5%) of the total amount payable to the subcontractor as  retainage.  The
 38    contractor  shall  remit the retainage to the subcontractor within thirty (30)
 39    days after completion of the subcontract.
 40        Each bond shall be executed by a surety company or companies  duly  autho-
 41    rized  to  do business in this state, or the contractor may deposit any of the
 42    type of government obligations listed in subsection (2)(h) of section 54-1901,
 43    Idaho Code, in lieu of furnishing a surety company performance or payment bond
 44    or bonds. In the case of contracts of the state or a department,  board,  com-
 45    mission,  institution,  or agency thereof the aforesaid bonds shall be payable
 46    to the state, or particular state agency where  authorized.  In  case  of  all
 47    other contracts subject to this act chapter, the bonds shall be payable to the
 48    public body concerned.
 49        Said  bonds shall be filed in the office of the department, board, commis-
 50    sion, institution, agency or other contracting body awarding the contract.
 51        Nothing in this section shall be construed to limit the authority  of  the
 52    state of Idaho or other public body hereinabove mentioned to require a perfor-
 53    mance  bond or other security in addition to these, or in cases other than the
 54    cases specified in this act chapter.
                                                                        
                                           28
                                                                        
  1        It shall be illegal for the invitation for bids, or any person  acting  or
  2    purporting  to  act,  on  behalf  of the contracting body to require that such
  3    bonds be furnished by a particular surety company,  or  through  a  particular
  4    agent or broker.
                                                                        
  5        SECTION 32.  That Section 54-1926A, Idaho Code, be, and the same is hereby
  6    amended to read as follows:
                                                                        
  7        54-1926A.  USE OF GOVERNMENT OBLIGATIONS INSTEAD OF SURETY BONDS. (a) If a
  8    person  is  required  under a law of the state of Idaho to give a surety bond,
  9    the person may give a government obligation, as defined in  subsection  (2)(h)
 10    of section 54-1901, Idaho Code. The government obligation shall:
 11        (1)  Be given to the official having authority to approve the surety bond,
 12        or its authorized custodian;
 13        (2)  Be  in  an  amount equal at fair market value to the penal sum of the
 14        required surety bond; and
 15        (3)  Authorize the official receiving the obligation to  collect  or  sell
 16        the obligation if the person defaults on a required condition.
 17        (b)  (1) An  official  receiving  a government obligation under subsection
 18        (a) of this section may deposit it with:
 19             1.  The state treasurer;
 20             2.  A national or state chartered bank; or
 21             3.  A depository designated by the state treasurer.
 22        (2)  The state treasurer, bank, or depository shall  issue  a  safekeeping
 23        receipt that describes the obligation deposited.
 24        (c)  Using  a  government obligation instead of a surety bond for security
 25    is the same as using:
 26        (1)  A corporate surety bond;
 27        (2)  A certified check;
 28        (3)  A bank draft;
 29        (4)  A post office money order; or
 30        (5)  Cash.
 31        (d)  When security is no longer required, a  government  obligation  given
 32    instead  of  a  surety bond shall be returned to the person giving the obliga-
 33    tion. If a person supplying labor or material to a contractor defaulting under
 34    the public contracts bond act, sections 54-1925 through 54-1930,  Idaho  Code,
 35    files  with  the contracting body the application and affidavit provided under
 36    section 54-1927, Idaho Code, the contracting body:
 37        (1)  May return to the contractor the government obligation given as secu-
 38        rity or proceeds of the government obligation given under the public  con-
 39        tracts  bond act, sections 54-1925 through 54-1930, Idaho Code, only after
 40        the ninety (90) day period for  bringing  a  civil  action  under  section
 41        54-1927, Idaho Code;
 42        (2)  Shall  hold  the government obligation or the proceeds subject to the
 43        order of the court having jurisdiction of the action if a civil action  is
 44        brought in the ninety (90) day period.
 45        (e)  The provisions of this section do not affect the:
 46        (1)  Priority  of  a  claim  of  the contracting body against a government
 47        obligation given under this section;
 48        (2)  Right or remedy of the contracting body for default on an  obligation
 49        provided under this section;
 50        (3)  Authority  of  a court over a government obligation given as security
 51        in a civil action; and
 52        (4)  Authority of an official of the state of Idaho authorized by  another
 53        law to receive a government obligation as security.
                                                                        
                                           29
                                                                        
  1        (f)  To  avoid  frequent substitution of government obligations, the state
  2    treasurer may promulgate rules and regulations limiting the effect of the pro-
  3    visions of this section, to a government obligation maturing more than one (1)
  4    year after the date the obligation is given as security.
                                                                        
  5        SECTION 33.  That Section 54-4503, Idaho Code, be, and the same is  hereby
  6    amended to read as follows:
                                                                        
  7        54-4503.  DEFINITIONS. As used in this chapter:
  8        (1)  "Applicant"  means an individual who applies for a license or interim
  9    license pursuant to the provisions of this chapter.
 10        (2)  "Board" means the public works contractors state license board estab-
 11    lished in section 54-1905, Idaho Code.
 12        (3)  "Construction manager" means an individual who performs  construction
 13    management services.
 14        (4)  "Construction  management  services" means representation of an owner
 15    in public works construction, as defined in section 54-1901(2)(c), Idaho Code,
 16    by a person with substantial discretion and authority to plan including sched-
 17    uling, estimating and approval, coordinate, manage or direct phases of a proj-
 18    ect for the construction, demolition, alteration, repair or reconstruction  of
 19    any  public  work.  This definition shall not include general contracting ser-
 20    vices provided by public works contractors who actually perform  the  work  of
 21    construction,  alteration, repair or reconstruction. This definition shall not
 22    include services for which the laws of this  state  require  a  person  to  be
 23    licensed  as  an architect or registered as a professional engineer, nor shall
 24    it include services traditionally and customarily provided by licensed  archi-
 25    tects or registered professional engineers.
 26        (5)  "Firm"  means any business organization, including individuals, part-
 27    nerships, corporations, associations or any combination thereof  acting  as  a
 28    unit.
 29        (6)  "Licensure" means the issuance of a license to an applicant under the
 30    provisions  of  this  chapter authorizing such individual to offer and perform
 31    construction management services.
 32        (7)  "Person" includes an individual, partnership,  corporation,  associa-
 33    tion or other organization.
                                                                        
 34        SECTION  34.  That Section 54-4508, Idaho Code, be, and the same is hereby
 35    amended to read as follows:
                                                                        
 36        54-4508.  DISCIPLINARY PROCEEDINGS. (1) The board shall have the authority
 37    to deny or refuse to renew a license or certificate  of  authority,  defer  or
 38    precondition  licensure, suspend or revoke a license, impose an administrative
 39    fine not to exceed five twenty  thousand  dollars  ($520,000)  per  violation,
 40    impose  the  administrative  costs  of  bringing  the  action before the board
 41    including, but not limited to, hearing  officer  fees,  expert  witness  fees,
 42    attorney's fees, costs of hearing transcripts and copies, or impose probation-
 43    ary  conditions  on  the holder of a license or certificate of authority, upon
 44    the following grounds:
 45        (a)  Fraud or deception in the procurement of a license or certificate  of
 46        authority or in the taking of an examination required under the provisions
 47        of this chapter;
 48        (b)  Incompetence in the performance of a construction manager's duties;
 49        (c)  Holding oneself or one's firm out as a construction manager by engag-
 50        ing  in any act meeting the definition or character of a construction man-
 51        ager as defined herein without a legally required license;
                                                                        
                                           30
                                                                        
  1        (d)  Fraud or deceit  in  the  performance  of  a  construction  manager's
  2        duties; or
  3        (de)  Willful  violation  of  the  provisions of this chapter or the rules
  4        promulgated by the board.
  5        (2)  Proceedings which may result in the suspension  or  revocation  of  a
  6    license  or  certificate  of  authority,  or the imposition of probationary or
  7    other disciplinary conditions on the holder of a  license  or  certificate  of
  8    authority, shall be conducted in accordance with the provisions of chapter 52,
  9    title  67,  Idaho Code; provided however, that the suspension of a certificate
 10    of authority, upon the notification by its holder that the  construction  man-
 11    ager  it  has  designated to the board no longer is a principal or employee of
 12    the firm, shall not be required to be conducted in accordance with the  provi-
 13    sions of chapter 52, title 67, Idaho Code.
 14        (3)  The board may, by rule, provide for the reinstatement of suspended or
 15    revoked licenses upon such terms as it may impose.
                                                                        
 16        SECTION  35.  That Section 59-1026, Idaho Code, be, and the same is hereby
 17    repealed.
                                                                        
 18        SECTION 36.  That Chapter 10, Title 59, Idaho Code, be, and  the  same  is
 19    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 20    ignated as Section 59-1026, Idaho Code, and to read as follows:
                                                                        
 21        59-1026.  WILLFUL AND KNOWING AVOIDANCE OF COMPETITIVE  BIDDING  AND  PRO-
 22    CUREMENT STATUTES -- CIVIL PENALTIES. It is a violation of this section for an
 23    official  of  any  political  subdivision  or the state itself to willfully or
 24    knowingly avoid compliance with procurement or competitive bidding statutes or
 25    to willfully or knowingly split or separate purchases or  work  projects  with
 26    the  intent  of  avoiding  compliance  with  such  statutes. If any officer or
 27    employee of any public entity willfully or knowingly  violates  this  section,
 28    the  public  entity  which  the officer or employee serves shall be liable for
 29    civil penalties not to exceed five thousand dollars ($5,000) for each offense,
 30    such civil penalty to be payable to the office of the public  agency  bringing
 31    an  enforcement  action, upon court order, to reimburse the reasonable expense
 32    of enforcing compliance with competitive bidding and procurement statutes.
                                                                        
 33        SECTION 37.  That Title 67, Idaho Code, be, and the same is hereby amended
 34    by the addition thereto of a NEW CHAPTER, to be known and designated as  Chap-
 35    ter 28, Title 67, Idaho Code, and to read as follows:
                                                                        
 36                                      CHAPTER 28
 37                         PURCHASING BY POLITICAL SUBDIVISIONS
                                                                        
 38        67-2801.  LEGISLATIVE  INTENT. Efficient and cost-effective procurement of
 39    goods, services and public works construction is an important aspect of  local
 40    government  operations.  Local  public  agencies should endeavor to buy goods,
 41    services and public works construction by way of a publicly accountable  proc-
 42    ess  that respects the shared goals of economy and quality. Political subdivi-
 43    sions of the state shall endeavor to purchase goods and services from  vendors
 44    with a significant Idaho economic presence.
                                                                        
 45        67-2802.  APPLICABILITY. The provisions of this chapter establish procure-
 46    ment  requirements  for  all political subdivisions of the state of Idaho. The
 47    public works construction procurement process set forth in this chapter  shall
 48    function  in  a complementary manner with the public works contractors license
                                                                        
                                           31
                                                                        
  1    board and the procedures which that board administers. Any general procurement
  2    procedures set forth in this chapter shall be supplemented by  the  provisions
  3    of  any  specific  statute  pertaining to the awarding of any contract for the
  4    purchase or acquisition of any service,  commodity  or  thing  made  expressly
  5    applicable  to  any  particular political subdivision or by means of any addi-
  6    tional administrative process that otherwise  establishes  additional  express
  7    requirements.
                                                                        
  8        67-2803.  EXCLUSIONS.  The  procurement  requirements  established in this
  9    chapter shall not be applicable to:
 10        (1)  The acquisition of personal property when the procurement  duplicates
 11    the price and substance of a contract for like goods or services that has been
 12    competitively  bid  by  the  state of Idaho, one (1) of its political subdivi-
 13    sions, or an agency of the federal government;
 14        (2)  Contracts or purchases wherein expenditures are less than twenty-five
 15    thousand dollars ($25,000), provided such  contracts  or  purchases  shall  be
 16    guided  by the best interests of the political subdivision procuring the goods
 17    and services as determined by the governing board;
 18        (3)  Disbursement of wages or compensation to any  employee,  official  or
 19    agent  of a political subdivision for the performance of personal services for
 20    the political subdivision;
 21        (4)  Procurement of personal or professional services to be  performed  by
 22    an independent contractor for the political subdivision;
 23        (5)  Procurement of an interest in real property;
 24        (6)  Procurement of insurance; or
 25        (7)  Costs  of  participation in a joint powers agreement with other units
 26    of government.
                                                                        
 27        67-2804.  WAIVER. (1) Whenever the provisions of this  chapter  require  a
 28    public  works  contractor's license to bid upon a public construction project,
 29    such requirement shall be deemed waived whenever federal law prohibits requir-
 30    ing licensure as a precondition for submitting a bid.
 31        (2)  Nothing in this section shall be deemed to prohibit a political  sub-
 32    division  from  performing  construction  or  repair  work  on  the  political
 33    subdivision's own facilities.
 34        (3)  Whenever  this  chapter provides time limits for objection or appeal,
 35    any objection or appeal not perfected within such time  limitations  shall  be
 36    deemed  to constitute a waiver of any rights to raise such objection or appeal
 37    thereafter.
                                                                        
 38        67-2805.  PROCUREMENT OF PUBLIC WORKS CONSTRUCTION. (1)  For  any  contem-
 39    plated  public works construction project with an estimated total cost of less
 40    than fifty thousand dollars ($50,000), where the political subdivision  deter-
 41    mines  that there may be a lack of available licensed contractors, a political
 42    subdivision may publish a notice of intent to procure in  its  official  news-
 43    paper,  concurrently  sending  such  notice  to  the  public works contractors
 44    license board, in order to solicit statements of interest from licensed public
 45    works contractors to determine whether one (1) or more licensed contractors is
 46    interested in submitting bids. Such notice of intent to procure shall be  pro-
 47    vided  by  the  same  means required for published solicitation of competitive
 48    bids and shall contain essentially the  same  information  as  such  published
 49    notice.  If  no licensed public works contractor submits a statement of inter-
 50    est, the political subdivision may purchase  public  works  construction  from
 51    other  than  a  licensed public works contractor by using the same procurement
 52    procedures otherwise specified herein.
                                                                        
                                           32
                                                                        
  1        (2)  When a political subdivision contemplates an expenditure  to  procure
  2    public  works  construction  valued  in excess of twenty-five thousand dollars
  3    ($25,000) but not to exceed one hundred thousand dollars ($100,000), the  pro-
  4    curement procedures of this subsection (2) shall apply:
  5        (a)  The  solicitation  for  bids  for the public works construction to be
  6        performed shall be supplied to no fewer than  three  (3)  owner-designated
  7        licensed  public  works contractors by written means, either by electronic
  8        or physical delivery. The solicitation  shall  describe  the  construction
  9        work  to  be completed in sufficient detail to allow an experienced public
 10        works contractor to understand the construction project the political sub-
 11        division seeks to build.
 12        (b)  The solicitation for bids shall describe the electronic  or  physical
 13        delivery  method  or methods authorized to submit a bid, the date and time
 14        by which a bid proposal must be received by the clerk, secretary or  other
 15        authorized official of the political subdivision, and shall provide a rea-
 16        sonable  time  to respond to the solicitation, provided that except in the
 17        event of an emergency, such time shall not be less than three (3) business
 18        days.
 19        (c)  Written objections  to  specifications  or  bid  procedures  must  be
 20        received  by  the  clerk,  secretary  or  other authorized official of the
 21        political subdivision at least one (1) business day before  the  date  and
 22        time upon which bids are scheduled to be received.
 23        (d)  When  written  bids  have  been received, by either physical or elec-
 24        tronic delivery, they shall be submitted to the governing board or govern-
 25        ing board-authorized official which shall approve the responsive bid  pro-
 26        posing  the lowest procurement price or reject all bids and publish notice
 27        for bids, as before.
 28        (e)  If the political subdivision finds that it is impractical or impossi-
 29        ble to obtain three (3) bids for the proposed  public  works  procurement,
 30        the political subdivision may acquire the work in any manner the political
 31        subdivision  deems  best  from a qualified public works contractor quoting
 32        the lowest price. When  fewer  than  three  (3)  bids  are  considered,  a
 33        description  of  the efforts undertaken to procure at least three (3) bids
 34        shall be documented by the political subdivision  and  such  documentation
 35        shall  be  maintained  for  at  least six (6) months after the procurement
 36        decision is made. If two (2) or more price quotations offered by different
 37        licensed public works contractors are the same and the  lowest  responsive
 38        bids,  the  governing  board  or  governing-board  authorized official may
 39        accept the one (1) it chooses.
 40        (3)  When a political subdivision contemplates an expenditure to  purchase
 41    public  works  construction  valued  in excess of one hundred thousand dollars
 42    ($100,000), the procurement procedures of this subsection (3) shall apply. The
 43    purchase of construction services shall be  made  pursuant  to  a  competitive
 44    sealed  bid  process  with  the  purchase to be made from the qualified public
 45    works contractor submitting the lowest bid price complying with bidding proce-
 46    dures and meeting the prequalifications, if any are provided,  established  by
 47    the  bid  documents.  Competitive bidding for public works may proceed through
 48    either of two (2) alternative procedures as set forth below:
 49        (a)  Category A. Competitive bidding procedures shall be open  to  receipt
 50        of  bids  from any licensed public works contractor desiring to bid upon a
 51        public works project. For a category A bid, the political subdivision  may
 52        only  consider  the  amount  bid,  bidder  compliance  with administrative
 53        requirements of the bidding process, and whether the bidder holds the req-
 54        uisite license.
 55             (i)    The request for bids for a category A procurement shall set  a
                                                                        
                                           33
                                                                        
  1             date and place for the public opening of bids. Two (2) notices solic-
  2             iting bids shall be published in the official newspaper of the polit-
  3             ical  subdivision.  The  first notice shall be published at least two
  4             (2) weeks before the date for opening bids, with the second notice to
  5             be published in the succeeding week at least seven  (7)  days  before
  6             the  date  that  bids  are  scheduled  to be opened. The notice shall
  7             succinctly describe the project to be constructed. Copies of specifi-
  8             cations, bid forms, bidder's instructions,  contract  documents,  and
  9             general and special instructions shall be made available upon request
 10             and payment of a reasonable plan copy fee by any interested bidder.
 11             (ii)   Written  objections  to  specifications  or bidding procedures
 12             must be received by the clerk, secretary or other authorized official
 13             of the political subdivision at least three (3) business days  before
 14             the  date  and  time  upon which bids are scheduled to be opened. The
 15             administrative officer or governing  board  supervising  the  bidding
 16             process  shall  respond to any such objection in writing and communi-
 17             cate such response to  the  objector  and  all  other  plan  holders,
 18             adjusting bidding timeframes if necessary.
 19             (iii)  All  bids  shall  be  presented  or  otherwise delivered under
 20             sealed cover to the clerk  of  the  political  subdivision  or  other
 21             authorized  agent  of  the  political  subdivision  designated by the
 22             information provided to bidders by the political subdivision  with  a
 23             concise  statement  marked  on  the outside generally identifying the
 24             expenditure to which the bid pertains.
 25             (iv)   If the political subdivision deems  it  is  in  the  political
 26             subdivision's best interest, it may require the bidder to provide bid
 27             security  in  an  amount  equal  to at least five percent (5%) of the
 28             amount bid. If required, a bid shall not be considered unless one (1)
 29             of the forms of bidder's security is enclosed with it, and unless the
 30             bid is submitted in a form which substantially complies with the form
 31             provided by the political subdivision. The political subdivision  may
 32             require that the bid security be in one (1) of the following forms:
 33                  (A)  Cash;
 34                  (B)  A  cashier's  check  made payable to the political subdivi-
 35                  sion;
 36                  (C)  A certified check made payable to  the  political  subdivi-
 37                  sion; or
 38                  (D)  A  bidder's  bond  executed  by a qualified surety company,
 39                  made payable to the political subdivision.
 40             (v)    Any bid received by the political subdivision may not be with-
 41             drawn after the date and time set in the notice for opening of  bids.
 42             When  sealed  bids have been received, they shall be opened in public
 43             at a designated place and time, thereafter to be compiled and submit-
 44             ted to the governing board for award.
 45             (vi)   If the successful bidder fails to execute  the  contract,  the
 46             amount  of  his  bidder's  security may be forfeited to the political
 47             subdivision at the sole discretion of the political  subdivision  and
 48             the proceeds shall be deposited in a designated fund out of which the
 49             expenses of procuring substitute performance are paid.
 50             (vii)  The  political  subdivision  may, on the refusal or failure of
 51             the successful bidder to execute the contract, award the contract  to
 52             the  qualified  bidder  submitting the next lowest responsive bid. If
 53             the governing board awards the contract to the next lowest  qualified
 54             bidder,  the  amount of the lowest qualified bidder's security may be
 55             applied by the political subdivision to the  difference  between  the
                                                                        
                                           34
                                                                        
  1             lowest  responsive  bid  and  the next lowest responsive bid, and the
  2             surplus, if any, shall be returned to the lowest bidder  if  cash  or
  3             check  is  used,  or  to the surety on the bidder's bond if a bond is
  4             used, less reasonable administrative costs not to exceed  twenty-five
  5             percent (25%) of the amount of the bidder's security to the owner.
  6             (viii) In  its  discretion,  the  governing board may reject all bids
  7             presented and re-bid, or the governing board may, after finding it to
  8             be a fact, pass a resolution declaring that the project sought to  be
  9             accomplished by the expenditure can be performed more economically by
 10             purchasing  goods  and services on the open market. If identical bids
 11             are received, the governing board may choose the bidder  it  prefers.
 12             If no bids are received, the governing board may procure the goods or
 13             services without further competitive bidding procedures.
 14             (ix)   If the governing board of any political subdivision chooses to
 15             award  a competitively bid contract involving the procurement of pub-
 16             lic works construction to a bidder other than the apparent  low  bid-
 17             der, the political subdivision shall declare its reason or reasons on
 18             the record and shall communicate such reason or reasons in writing to
 19             all persons who have submitted a competing bid.
 20             (x)    If any participating bidder objects to such award, such bidder
 21             shall respond in writing to the notice from the political subdivision
 22             within  seven  (7)  calendar  days  of the date of transmittal of the
 23             notice, setting forth in such response the express reason or  reasons
 24             that  the award decision of the governing board is in error. Thereaf-
 25             ter, staying performance of any procurement  until  after  addressing
 26             the  contentions  raised by the objecting bidder, the governing board
 27             shall review its decision and determine whether to affirm  its  prior
 28             award,  modify the award, or choose to re-bid, setting forth its rea-
 29             son or reasons therefor. After completion of the review process,  the
 30             political  subdivision  may  proceed  as it deems to be in the public
 31             interest.
 32        (b)  Category B. Competitive bidding procedures shall be open to  licensed
 33        public works contractors only after meeting preliminary supplemental qual-
 34        ifications  established by the political subdivision. The solicitation for
 35        bids in a category B procurement shall consist of two (2) stages, an  ini-
 36        tial  stage  determining  supplemental prequalifications for licensed con-
 37        tractors, either prime or specialty contractors, followed by a stage  dur-
 38        ing which bid prices will be accepted only from prequalified contractors.
 39             (i)    Notice of the prequalification stage of the category B compet-
 40             itive  bidding  process shall be given in the same manner that notice
 41             of competitive bidding is provided for a category A  competitive  bid
 42             request,  providing  a specific date and time by which qualifications
 43             statements must be received.  Political  subdivisions  may  establish
 44             prequalification  standards premised upon demonstrated technical com-
 45             petence, experience constructing similar facilities, prior experience
 46             with the political  subdivision,  available  nonfinancial  resources,
 47             equipment  and  personnel  as they relate to the subject project, and
 48             overall performance history based upon a contractor's entire body  of
 49             work.  Such  request  must  include  the standards for evaluating the
 50             qualifications of prospective bidders.
 51             (ii)   During the initial stage of the category  B  bidding  process,
 52             licensed  contractors desiring to be prequalified to bid on a project
 53             must submit a written response to a political  subdivision's  request
 54             for qualifications.
 55             (iii)  Written  objections  to  prequalification  procedures  must be
                                                                        
                                           35
                                                                        
  1             received by the clerk, secretary or other authorized official of  the
  2             political  subdivision  at  least  three (3) business days before the
  3             date and time upon which prequalification  statements  are  due.  The
  4             administrative  officer  or  governing  board supervising the bidding
  5             process shall respond to any such objection in writing  and  communi-
  6             cate  such response to the objector and all other contractors seeking
  7             to prequalify, adjusting bidding timeframes  if  necessary.  After  a
  8             review  of  qualification  submittals,  the political subdivision may
  9             select licensed contractors that meet the prequalification standards.
 10             If any licensed contractor submits a statement of qualifications  but
 11             is  not  selected  as  a  qualified bidder, the political subdivision
 12             shall supply a written statement of the reason  or  reasons  why  the
 13             contractor failed to meet prequalification standards.
 14             (iv)   Any  licensed contractor that fails the prequalification stage
 15             can appeal any such determination to the governing board within seven
 16             (7) days after transmittal of the prequalification results to contest
 17             the determination. If the governing board sustains the decision  that
 18             a contractor fails to meet prequalification standards, it shall state
 19             its reason or reasons for the record. A governing board decision con-
 20             cerning prequalification may be appealed to the public works contrac-
 21             tors  license  board  no  more  than fourteen (14) days following any
 22             decision on appeal made by the governing board. The public works con-
 23             tractors license board shall decide any such  appeal  within  thirty-
 24             five  (35)  days  of  the filing of a timely appeal. The public works
 25             contractors license board shall allow participation, written or oral,
 26             by the appealing contractor and the political subdivision, either  by
 27             employing  a  hearing officer or otherwise. The public works contrac-
 28             tors license board shall not substitute its judgment for that of  the
 29             political subdivision, limiting its review to determining whether the
 30             decision  of  the  governing  board  is consistent with the announced
 31             prequalification standards, whether  the  prequalification  standards
 32             comport  with  the  law and whether the governing board's decision is
 33             supported by the entirety of the record. The decision of  the  public
 34             works  contractors license board shall be written and shall state the
 35             reason or reasons for the decision. Category B prequalification  pro-
 36             cedures  that are appealed shall be stayed during the pendency of the
 37             prequalification appeal until the public  works  contractors  license
 38             board  completes  its review, but in no instance more than forty-nine
 39             (49) days after the appellate decision of the governing board regard-
 40             ing prequalification. Any licensed public works  contractor  affected
 41             by a decision on appeal by the public works contractors license board
 42             may,  within twenty-eight (28) days of the final decision, seek judi-
 43             cial review as provided by chapter 52, title 67, Idaho Code.
 44             (v)    Following the conclusion of the  prequalification  administra-
 45             tive  procedures, the bidding stage shall proceed by the setting of a
 46             time, date and place for the public opening of bids. A notice  solic-
 47             iting  bids  shall  be  transmitted  to prequalified bidders at least
 48             fourteen (14) days before the date of opening the  bids.  The  notice
 49             shall  succinctly  describe  the project to be constructed. Copies of
 50             specifications, bid forms, bidder's instructions, contract documents,
 51             and general and special instructions shall  be  made  available  upon
 52             request and payment of a reasonable plan copy fee by any prequalified
 53             bidder.
 54             (vi)   Written  objections  to  specifications  or bidding procedures
 55             must be received by the clerk, secretary or other authorized official
                                                                        
                                           36
                                                                        
  1             of the political subdivision at least three (3) business days  before
  2             the date and time upon which bids are scheduled to be opened.
  3             (vii)  All  category B bids shall be presented or otherwise delivered
  4             under sealed cover to the clerk or  other  authorized  agent  of  the
  5             political  subdivision designated by the instructions to bidders with
  6             a concise statement marked on the outside generally  identifying  the
  7             expenditure to which the bid pertains.
  8             (viii) If  the  political  subdivision  deems  it is in the political
  9             subdivision's best interest, it may require the bidder to provide bid
 10             security in an amount equal to at least  five  percent  (5%)  of  the
 11             amount bid. If required, a bid shall not be considered unless one (1)
 12             of the forms of bidder's security is enclosed with it, and unless the
 13             bid is submitted in a form which substantially complies with the form
 14             provided  by the political subdivision. The political subdivision may
 15             require that the bid security be in one (1) of the following forms:
 16                  (A)  Cash;
 17                  (B)  A cashier's check made payable to  the  political  subdivi-
 18                  sion;
 19                  (C)  A  certified  check  made payable to the political subdivi-
 20                  sion; or
 21                  (D)  A bidder's bond executed by  a  qualified  surety  company,
 22                  made payable to the political subdivision.
 23             (ix)   Any category B bid received by a political subdivision may not
 24             be withdrawn after the date and time set in the notice for opening of
 25             bids.  When  sealed  bids have been received, they shall be opened in
 26             public at a designated place and time, thereafter to be compiled  and
 27             submitted  to  the  governing  board for award. If identical bids are
 28             received, the governing board may choose the bidder  it  prefers.  If
 29             the  successful  bidder  fails to execute the contract, the amount of
 30             his bidder's security may be forfeited to the political  subdivision,
 31             in the sole discretion of the political subdivision, and the proceeds
 32             shall be deposited in a designated fund out of which the expenses for
 33             procuring substitute performance are paid.
 34             (x)    The  political  subdivision  may, on the refusal or failure of
 35             the successful bidder to execute the contract, award the contract  to
 36             the  qualified  bidder  submitting the next lowest responsive bid. If
 37             the governing board awards the contract to the next lowest  qualified
 38             bidder, the amount of the lowest qualified bidder's security, if for-
 39             feited,  shall be applied by the political subdivision to the differ-
 40             ence between the lowest responsive bid and the next lowest responsive
 41             bid, and the surplus, if any, shall be returned to the lowest  bidder
 42             if  cash or check is used, or to the surety on the bidder's bond if a
 43             bond is used, less reasonable  administrative  costs  not  to  exceed
 44             twenty-five percent (25%) of the amount of the bidder's security.
 45             (xi)   In  its  discretion,  the  governing board may reject any bids
 46             presented and re-bid, or the governing board may, after finding it to
 47             be a fact, pass a resolution declaring that the project sought to  be
 48             accomplished by the expenditure can be performed more economically by
 49             purchasing  goods  and  services  on  the open market. If no bids are
 50             received, the governing board may make the expenditure  without  fur-
 51             ther competitive bidding procedures.
 52             (xii)  If the governing board of any political subdivision chooses to
 53             award  a competitively bid contract involving the procurement of pub-
 54             lic works construction to a bidder  other than the apparent low  bid-
 55             der, the political subdivision shall declare its reason or reasons on
                                                                        
                                           37
                                                                        
  1             the record and shall communicate such reason or reasons in writing to
  2             all persons who have submitted a competing bid.
  3             (xiii) If any participating bidder objects to such award, such bidder
  4             shall respond in writing to the notice from the political subdivision
  5             within  seven  (7)  calendar  days  of the date of transmittal of the
  6             notice, setting forth in such response the express reason or  reasons
  7             that  the award decision of the governing board is in error. Thereaf-
  8             ter, staying performance of any procurement  until  after  addressing
  9             the  contentions  raised by the objecting bidder, the governing board
 10             shall review its decision and determine whether to affirm  its  prior
 11             award,  modify the award, or choose to re-bid, setting forth its rea-
 12             son or reasons therefor. After completion of the review process,  the
 13             political  subdivision  may  proceed  as it deems to be in the public
 14             interest.
                                                                        
 15        67-2806.  PURCHASING SERVICES OR PERSONAL PROPERTY. (1) When  a  political
 16    subdivision contemplates an expenditure to purchase or lease personal property
 17    or to procure services, other than those services excluded pursuant to section
 18    67-2803,  Idaho  Code,  valued  in  excess  of  twenty-five  thousand  dollars
 19    ($25,000)  but not to exceed fifty thousand dollars ($50,000), the procurement
 20    procedures of this subsection (1) shall apply.
 21        (a)  The solicitation for bids shall be supplied to no  fewer  than  three
 22        (3)  vendors  by written means, either by electronic or physical delivery.
 23        The solicitation shall describe the personal property or  services  to  be
 24        purchased  in sufficient detail to allow a vendor dealing in such goods or
 25        services to understand what the political subdivision seeks to purchase.
 26        (b)  The solicitation for bids shall describe the electronic  or  physical
 27        delivery  method  or methods authorized to submit a bid, the date and time
 28        by which a bid proposal must be received by the clerk, secretary or  other
 29        authorized official of the political subdivision, and shall provide a rea-
 30        sonable  time  to respond to the solicitation, provided that except in the
 31        event of an emergency, such time shall not be less than three (3) business
 32        days.
 33        (c)  Written objections  to  specifications  or  bid  procedures  must  be
 34        received  by  the  clerk,  secretary  or  other authorized official of the
 35        political subdivision at least one (1) business day before  the  date  and
 36        time upon which bids are scheduled to be received.
 37        (d)  When  written  bids  have  been received, by either physical or elec-
 38        tronic delivery, they shall be compiled and  submitted  to  the  governing
 39        board or governing board-authorized official which shall approve the qual-
 40        ified  bid  proposing  the lowest procurement price or reject all bids and
 41        publish notice for bids, as before.
 42        (e)  If the political subdivision finds that it is impractical or impossi-
 43        ble to obtain three (3) bids for the proposed procurement,  the  political
 44        subdivision  may acquire the property in any manner the political subdivi-
 45        sion deems best from a qualified vendor quoting  the  lowest  price.  When
 46        fewer  than  three  (3)  bids are considered, a description of the efforts
 47        undertaken to procure at least three (3) bids shall be documented  by  the
 48        political  subdivision  and  such documentation shall be maintained for at
 49        least six (6) months after any such purchase is made. If two (2)  or  more
 50        price  quotations  are  the same and the lowest qualified bids, the autho-
 51        rized decision maker may accept the one (1) it chooses.
 52        (2)  When a political subdivision contemplates an expenditure to  purchase
 53    or  lease  personal property or to procure services, other than those services
 54    excluded pursuant to section 67-2803, Idaho Code, valued in  excess  of  fifty
                                                                        
                                           38
                                                                        
  1    thousand  dollars ($50,000), the procurement procedures of this subsection (2)
  2    shall apply.
  3        (a)  The purchase shall be made pursuant to an open competitive sealed bid
  4        process with the purchase to be made from the qualified bidder  submitting
  5        the  lowest  bid  price  complying with bidding procedures and meeting the
  6        specifications for the goods and/or services sought to be purchased.
  7        (b)  The request for bids shall set a date, time and place for the opening
  8        of bids. Two (2) notices soliciting bids shall be published in  the  offi-
  9        cial  newspaper  of  the  political subdivision. The first notice shall be
 10        published at least two (2) weeks before the date for  opening  bids,  with
 11        the  second  notice  to be published in the succeeding week at least seven
 12        (7) days before the date that bids are scheduled to be opened. The  notice
 13        shall  succinctly describe the personal property and/or service to be pro-
 14        cured. Copies of specifications, bid forms,  bidder's  instructions,  con-
 15        tract documents, and general and special instructions shall be made avail-
 16        able upon request by any interested bidder.
 17        (c)  Written  objections  to  specifications or bidding procedures must be
 18        received by the clerk, secretary  or  other  authorized  official  of  the
 19        political subdivision at least three (3) business days before the date and
 20        time upon which bids are scheduled to be opened.
 21        (d)  If   the   political   subdivision  deems  it  is  in  the  political
 22        subdivision's best interest, it may require  the  bidder  to  provide  bid
 23        security  in  an  amount equal to at least five percent (5%) of the amount
 24        bid. If required, a bid shall not be considered  unless  one  (1)  of  the
 25        forms of bidder's security is enclosed with it, and unless the bid is sub-
 26        mitted  in  a  form which substantially complies with the form provided by
 27        the political subdivision. The political subdivision may require that  the
 28        bid security be in one (1) of the following forms:
 29             (i)   Cash;
 30             (ii)  A cashier's check made payable to the political subdivision;
 31             (iii) A certified check made payable to the political subdivision; or
 32             (iv)  A  bidder's  bond  executed by a qualified surety company, made
 33             payable to the political subdivision.
 34        (e)  Any bid received by the political subdivision may  not  be  withdrawn
 35        after  the  time  set  in the notice for opening of bids. When sealed bids
 36        have been received, they shall be opened in public at a  designated  place
 37        and time, thereafter to be compiled and submitted to the governing board.
 38        (f)  If the successful bidder fails to execute the contract, the amount of
 39        his bidder's security may be forfeited to the political subdivision at the
 40        sole  discretion of the governing board and thereafter the proceeds may be
 41        deposited in a designated fund out of which the  reasonable  expenses  for
 42        procuring substitute performance are paid.
 43        (g)  The  political subdivision may, on the refusal or failure of the suc-
 44        cessful bidder to execute the contract, award the  contract  to  the  next
 45        lowest qualified bidder. If the governing board awards the contract to the
 46        next  lowest qualified bidder, the amount of the lowest qualified bidder's
 47        security may be applied by the political  subdivision  to  the  difference
 48        between  the  lowest  qualified bid and the next lowest qualified bid, and
 49        the surplus, if any, shall be returned to the lowest  bidder  if  cash  or
 50        check  is  used,  or to the surety on the bidder's bond if a bond is used,
 51        less reasonable administrative costs not  to  exceed  twenty-five  percent
 52        (25%) of the amount of the bidder's security.
 53        (h)  In its discretion, the governing board may reject any bids presented
 54        and  re-bid,  or  the  governing board may, after finding it to be a fact,
 55        pass a resolution declaring that the subject goods or services can be pur-
                                                                        
                                           39
                                                                        
  1        chased more economically on the open market. If two (2) or more  bids  are
  2        the same and the lowest qualified bids, the governing board may accept the
  3        one  (1) it chooses. In its discretion, the governing board of a political
  4        subdivision may preauthorize the purchase of equipment at  a  public  auc-
  5        tion.
  6        (i)  If  the governing board of any political subdivision chooses to award
  7        a competitively bid contract involving the procurement of  personal  prop-
  8        erty  or  services  to  a  bidder  other than the apparent low bidder, the
  9        political subdivision shall declare its reason or reasons  on  the  record
 10        and  shall  communicate  such reason or reasons in writing to all who have
 11        submitted a competing bid.
 12        (j)  If any participating bidder objects to such award, such bidder  shall
 13        respond  in  writing  to  the notice from the political subdivision within
 14        seven (7) calendar days of the date of transmittal of the notice,  setting
 15        forth  in such response the express reason or reasons that the award deci-
 16        sion of the governing board is in error. Thereafter,  staying  performance
 17        of  any  procurement  until after addressing the contentions raised by the
 18        objecting bidder, the governing board shall review its decision and deter-
 19        mine whether to affirm its prior award, modify the award, or choose to re-
 20        bid, setting forth its reason or reasons therefor. After completion of the
 21        review process, the political subdivision may proceed as it deems to be in
 22        the public interest.
                                                                        
 23        67-2807.  JOINT PURCHASING AGREEMENTS -- NOT-FOR-PROFIT ASSOCIATIONS.
 24        (1)  Political subdivisions may enter  into  joint  purchasing  agreements
 25    with the state of Idaho or other political subdivisions and may participate in
 26    joint  purchasing  agreements  through a joint purchase program established by
 27    any not-for-profit association of political  subdivisions.  Personal  property
 28    procured  pursuant  to  such  joint  purchase  agreements shall be acquired in
 29    accordance with the provisions of this chapter, provided such  authority  does
 30    not  preclude  or  limit  political  subdivisions  from entering into purchase
 31    agreements as otherwise provided by statute.
 32        (2)  Political subdivisions may participate in a  program  established  by
 33    any  not-for-profit  association  of which they become a member to assist such
 34    political subdivisions in bidding and negotiating joint purchase contracts and
 35    discount purchase agreements. Participation in any such program does not obli-
 36    gate a political subdivision to purchase goods or services through the program
 37    or through an agreement negotiated by the program administrator or its  board.
 38    Political  subdivisions  shall  only be obligated to pay for goods or services
 39    where the governing board has approved the purchase. Any not-for-profit  asso-
 40    ciation  operating such a procurement program shall cause an independent, cer-
 41    tified audit of the program to be performed annually. The audit shall be  made
 42    available  to  the legislature upon request and a copy shall be made available
 43    for public inspection.
                                                                        
 44        67-2808.  EMERGENCY EXPENDITURES -- SOLE SOURCE EXPENDITURES.
 45        (1)  Emergency expenditures.
 46        (a)  The governing board of a political subdivision may  declare  that  an
 47        emergency  exists  and  that  the public interest and necessity demand the
 48        immediate expenditure of public money if:
 49             (i)   There is a great public  calamity,  such  as  an  extraordinary
 50             fire, flood, storm, epidemic or other disaster;
 51             (ii)  It  is  necessary  to  do  emergency  work  to  prepare for the
 52             national or local defense; or
 53             (iii) It is necessary to do emergency work to safeguard life,  health
                                                                        
                                           40
                                                                        
  1             or property.
  2        (b)  Upon  making  the  declaration  of emergency, any sum required in the
  3        emergency may be expended without compliance with  formal  bidding  proce-
  4        dures.
  5        (2)  Sole source expenditures.
  6        (a)  The governing board of a political subdivision may declare that there
  7        is  only  one  (1) vendor if there is only one (1) vendor for the personal
  8        property to be acquired. For purposes of this subsection (2), only one (1)
  9        vendor shall refer to situations where there is only one (1)  source  rea-
 10        sonably  available and shall include, but not be limited to, the following
 11        situations:
 12             (i)    Where property is required to respond  to  a  life-threatening
 13             situation or a situation which is immediately detrimental to the pub-
 14             lic welfare or property;
 15             (ii)   Where the compatibility of equipment, components, accessories,
 16             computer software, replacement parts or service is the paramount con-
 17             sideration;
 18             (iii)  Where  a sole supplier's item is needed for trial use or test-
 19             ing;
 20             (iv)   The purchase of mass-produced movies, videos, books  or  other
 21             copyrighted materials;
 22             (v)    The  purchase  of property for which it is determined there is
 23             no functional equivalent;
 24             (vi)   The purchase of public utility services;
 25             (vii)  The purchase of products, merchandise or trademarked goods for
 26             resale at a political subdivision facility; or
 27             (viii) Where competitive solicitation is impractical, disadvantageous
 28             or unreasonable under the circumstances.
 29        (b)  Upon making the declaration that there is only  one  (1)  vendor  for
 30        personal  property, unless the property is required for a life-threatening
 31        situation or a situation that is immediately  detrimental  to  the  public
 32        welfare  or  property,  notice  of a sole source procurement shall be pub-
 33        lished in the official newspaper of the  political  subdivision  at  least
 34        fourteen (14) calendar days prior to the award of the contract.
                                                                        
 35        SECTION  38.  That Section 67-4912, Idaho Code, be, and the same is hereby
 36    amended to read as follows:
                                                                        
 37        67-4912.  GENERAL POWERS OF BOARD. For and on behalf of the  district  the
 38    board shall have the following powers:
 39        (a)  To have perpetual existence;
 40        (b)  To have and use a corporate seal;
 41        (c)  To  sue  and  be sued, and be a party to suits, actions, and proceed-
 42    ings;
 43        (d)  Except as otherwise provided in this act chapter, to enter into  con-
 44    tracts and agreements, cooperative and otherwise, affecting the affairs of the
 45    district, including contracts with the United States of America and any of its
 46    agencies or instrumentalities, and contracts with corporations, public or pri-
 47    vate,  municipalities, or governmental subdivisions, and to cooperate with any
 48    one (1) or more of them  in  building,  erecting,  marketing  or  constructing
 49    facilities  within  the  district.  Except  in  cases in which a district will
 50    receive aid from a governmental agency, a notice shall be published  for  bids
 51    on  all  construction  contracts  for  work or material, or both, involving an
 52    expense of five thousand dollars ($5,000) or more.  The  district  may  reject
 53    any  and  all  bids,  and if it shall appear that the district can perform the
                                                                        
                                           41
                                                                        
  1    work or secure material for less than the lowest bid, it may proceed so to  do
  2    purchasing  shall be accomplished in accordance with the provisions of chapter
  3    28, title 67, Idaho Code;
  4        (e)  To borrow money and incur indebtedness and evidence the same by  cer-
  5    tificate, notes or debentures, and to issue bonds, in accordance with the pro-
  6    visions of this act chapter;
  7        (f)  To  acquire,  dispose of and encumber real and personal property, and
  8    any interest therein, including leases and easements within said district;
  9        (g)  To refund any bonded indebtedness of the district without  any  elec-
 10    tion;  provided,  however,  that  the obligations of the district shall not be
 11    increased by any refund of bonded indebtedness. Otherwise the terms and condi-
 12    tions of refunding bonds shall be substantially the same as those of an origi-
 13    nal issue of bonds;
 14        (h)  To have the management, control and supervision of all  the  business
 15    and affairs of the district, and the construction, installation, operation and
 16    maintenance of district facilities therein or therefor;
 17        (i)  To hire and retain agents, employees, engineers and attorneys;
 18        (j)  To construct and maintain works and establish and maintain facilities
 19    across  or along any public street or highway, and in, upon or over any vacant
 20    public lands, which public lands are now, or may become, the property  of  the
 21    state  of  Idaho, and to construct works and establish and maintain facilities
 22    across any stream of water or watercourse; provided, however,  that  the  dis-
 23    trict shall promptly restore any such street or highway to its former state of
 24    usefulness  as  nearly as may be, and shall not use the same in such manner as
 25    to completely or unnecessarily impair the usefulness thereof;
 26        (k)  To fix and from time to time to increase or decrease rates, tolls  or
 27    charges  for  services  or facilities furnished by the district, and to pledge
 28    such revenue for the payment of any indebtedness of the  district.  The  board
 29    shall fix rates, tolls and charges;
 30        (l)  To  petition  to enlarge the district by obtaining the consent of not
 31    less than ten percent (10%) of the qualified electors of any  area  to  be  so
 32    included,  and then to follow the procedure set forth herein for creating said
 33    district;
 34        (m)  To promote any functions for said district, provided that said  board
 35    shall  not engage in operations that are inconsistent with the purpose of said
 36    district; and it shall be the policy of the board not to compete with existing
 37    facilities and services in the district, wherever practicable;
 38        (n)  To adopt and amend by-laws bylaws not in conflict with the  constitu-
 39    tion  and  laws of the state for carrying on the business, objects and affairs
 40    of the board and of the districts;
 41        (o)  To have and exercise all rights and powers necessary or incidental to
 42    or implied from the specific powers  granted  herein,  except  that  districts
 43    formed  prior  to  January  1,  1987,  or  districts with twenty-five thousand
 44    (25,000) or more population shall have no power to levy and collect ad valorem
 45    property taxes. Such specific powers shall not be considered as  a  limitation
 46    upon  any  power necessary or appropriate to carry out the purposes and intent
 47    of this act chapter.
                                                                        
 48        SECTION 39.  That Section 67-5711, Idaho Code, be, and the same is  hereby
 49    amended to read as follows:
                                                                        
 50        67-5711.  CONSTRUCTION,  ALTERATION,  EQUIPPING,  FURNISHING AND REPAIR OF
 51    PUBLIC BUILDINGS AND WORKS. The director of the department of  administration,
 52    or  his  designee, of the state of Idaho, is authorized and empowered, subject
 53    to the approval of the permanent  building fund advisory council,  to  provide
                                                                        
                                           42
                                                                        
  1    or  secure  all plans and specifications for, to let all contracts for, and to
  2    have charge of and supervision of the construction, alteration, equipping  and
  3    furnishing,  repair,  maintenance other than preventive maintenance of any and
  4    all buildings, improvements of public works of the state of Idaho, the cost of
  5    which construction, alteration, equipping and furnishing, repair,  maintenance
  6    other  than  preventive  maintenance  exceeds the sum of thirty fifty thousand
  7    dollars ($350,000) for labor, materials and equipment, which sum shall exclude
  8    design costs, bid advertising and related bidding expenses, provided, that the
  9    director or his designee, and permanent building fund advisory council  shall,
 10    in  the letting of contracts under this section, comply with the procedure for
 11    the calling of bids provided in section 67-5711C, Idaho Code;  provided,  how-
 12    ever,  that  this  section  shall  not  apply to the construction, alteration,
 13    equipping or furnishing or repair or maintenance other than preventive mainte-
 14    nance of public buildings under the jurisdiction and control of the  board  of
 15    regents  of the university of Idaho; provided further, that the bidding proce-
 16    dures required by this section and section 67-5711C,  Idaho  Code,  shall  not
 17    apply  to  performance  contracts as provided in section 67-5711D, Idaho Code;
 18    provided further, that public works for the Idaho  transportation  department,
 19    the  department  of fish and game, the department of parks and recreation, and
 20    the department of lands, except for administrative office  buildings  and  all
 21    associated  improvements,  are exempt from the provisions of this section that
 22    relate to the administration and review of such projects by  the  director  of
 23    the department of administration or his designee and by the permanent building
 24    fund  advisory council. This exemption shall not relieve the Idaho transporta-
 25    tion department, the department of fish and game, the department of parks  and
 26    recreation, and the department of lands in the letting of contracts for public
 27    works,  from  complying  with  the procedures of section 67-5711C, Idaho Code,
 28    related to the advertising and bidding for contracts. The  permanent  building
 29    fund  advisory council may adopt rules consistent with existing law, including
 30    rules for a program of inspection and maintenance, to carry out the provisions
 31    of this act chapter.
                                                                        
 32        SECTION 40.  That Section 67-5711C, Idaho Code, be, and the same is hereby
 33    amended to read as follows:
                                                                        
 34        67-5711C.  CONSTRUCTION OF PUBLIC PROJECTS -- COMPETITIVE SEALED  BIDDING.
 35    (1) All construction contracts for public works shall be awarded to the lowest
 36    responsible  and responsive bidder after receipt of competitive sealed bidding
 37    except as otherwise provided in sections 67-5711B, 67-5711D and 67-5713, Idaho
 38    Code.
 39        (2)  An invitation for bids shall be issued and shall  include  a  project
 40    description  and all contractual terms and conditions applicable to the public
 41    works.
 42        (3)  Adequate public notice of the invitation for bids shall be  given  at
 43    least  fourteen  (14) days prior to the date set forth therein for the opening
 44    of bids. Such notice shall include publication at  least  fourteen  (14)  days
 45    prior  to  bid opening in a newspaper of general circulation in the area where
 46    the work is located.
 47        (4)  When prequalification is deemed in the best interest  of  the  state,
 48    competitive  bidding  procedures  shall  be open only to licensed public works
 49    contractors that meet preliminary supplemental qualifications.  The  solicita-
 50    tion  for  bids in a prequalified bidder public works project shall consist of
 51    two (2) stages, an initial stage  for  identifying  prequalified  contractors,
 52    either  prime  or  specialty contractors, followed by a stage during which bid
 53    prices  are   submitted   by   prequalified   contractors.   Notice   of   the
                                                                        
                                           43
                                                                        
  1    prequalification  stage  shall be given in the same manner that notice of open
  2    competitive bidding is provided. Prequalification standards must  be  premised
  3    upon demonstrated technical competence, experience constructing similar facil-
  4    ities,  prior  experience  with  the  state, available nonfinancial resources,
  5    equipment and personnel as they relate to the  subject  project,  and  overall
  6    performance  history  based  upon a contractor's entire body of work. Licensed
  7    contractors desiring to be prequalified to bid on  a  project  must  submit  a
  8    written  response  to a request for qualifications. Any request for qualifica-
  9    tions must include the standards for evaluating the qualifications of prospec-
 10    tive bidders. After a review of qualification submittals, licensed contractors
 11    that meet the prequalification standards shall be notified.  Thereafter,  bids
 12    may  be  solicited  from contractors that meet the prequalification standards.
 13    The department may promulgate rules or develop  procedures  to  implement  the
 14    prequalification process.
 15        (5)  Bids shall be opened publicly at the time and place designated in the
 16    invitation  for  bids. The amount of each bid and such other relevant informa-
 17    tion as may be specified by rules, together with  the  name  of  each  bidder,
 18    shall  be  entered  on a record and the record shall be open to public inspec-
 19    tion. After the time of the award all bids and bid documents shall be open  to
 20    public  inspection in accordance with the provisions of sections 9-337 through
 21    9-347 and 67-5725, Idaho Code.
 22        (56)  With respect to a project having a written cost estimate of  greater
 23    than  two twenty-five thousand five hundred dollars ($2,525,000) but less than
 24    the public works limit established in section 67-5711, Idaho Code, the agency,
 25    if it does not perform the work with existing physical plant staff, must award
 26    a written contract to the  lowest  responsible  and  responsive  bidder  after
 27    soliciting  at  least  three  (3)  documented  informal  bids from contractors
 28    licensed in Idaho to perform public works contracts, if reasonably  available.
 29    Adequate  public  notice of the invitation for informal bids shall be given at
 30    least seven (7) days prior to the date set forth therein for  the  receipt  of
 31    the informal bids. Such notice may include publication at least seven (7) days
 32    prior  to  bid opening in a newspaper of general circulation in the area where
 33    the work is located; or the agency may advertise the invitation  for  bids  in
 34    appropriate trade journals, and otherwise notify persons believed to be inter-
 35    ested  in the award of a contract. Informal bids must be submitted by the con-
 36    tractor in writing in response to a prepared written document  describing  the
 37    project's  scope  of  work  in  sufficient detail so as to enable a contractor
 38    familiar with such work to prepare a responsible bid. Nothing  herein  exempts
 39    an agency from the responsibility of utilizing formal plans and specifications
 40    if  the  work  involves the public health or safety as described in chapters 3
 41    and 12, title 54, Idaho Code. The agency must document receipt of the informal
 42    bids in the project file.
 43        (67)  Any personal property including goods, parts, supplies and equipment
 44    which is to be supplied or provided by a state agency for use  in  any  public
 45    work,  project,  or  preventive maintenance programs, whether the public work,
 46    project, or preventive maintenance program is constructed, undertaken or  per-
 47    formed  by  agency  in-house  personnel,  or by delegation pursuant to section
 48    67-5710A, Idaho Code, or otherwise provided or supplied by  the  agency  to  a
 49    contractor,  the  personal  property, goods, parts, supplies or equipment sup-
 50    plied or provided by the agency must be purchased or procured  by  the  agency
 51    through the division of purchasing in accordance with the Idaho Code.
                                                                        
 52        SECTION  41.  That Section 70-1612, Idaho Code, be, and the same is hereby
 53    amended to read as follows:
                                                                        
                                           44
                                                                        
  1        70-1612.  PURCHASING PROCEDURES  --  CONTRACTS.  (1)  Upon  all  purchases
  2    and/or  works  involving twenty-five thousand dollars ($25,000) or less, based
  3    upon the liability assumed by a port district thereon, all  material  required
  4    by  a  port district may be procured in the open market or by contract and all
  5    work ordered may be done by contract or day labor. All such  purchases  and/or
  6    works  involving  in  excess  of twenty-five thousand dollars ($25,000), as so
  7    measured, shall be let upon contract in the manner herein provided.  All  such
  8    contracts  shall  be let at public bidding upon notice published at least once
  9    in a newspaper in the district at least ten  (10)  days  before  the  letting,
 10    calling  for  sealed  bids  upon  the work, plans and specifications for which
 11    shall then be on file in the office of the commission for  public  inspection.
 12    The  same  notice  Except as otherwise provided in this section and in section
 13    70-1613, Idaho Code, procurement by port districts shall comply with the  pro-
 14    visions  of  chapter  28,  title  67, Idaho Code. In addition to the standards
 15    established thereby, a port district may also call for bids on  such  work  or
 16    material based upon plans and specifications submitted by the bidder.
 17        (2)  Should  emergency  repairs  to,  or  replacements of any equipment or
 18    other property owned or operated by any port  district,  become  necessary  in
 19    order  to keep the port from ceasing operations, the port commission may, upon
 20    passing a resolution declaring such emergency, cause such repairs or  replace-
 21    ments  to  be  made without the necessity of compliance with subsection (1) of
 22    this section.
 23        (3)  The provisions of subsection (1) of this section shall not  apply  to
 24    the purchase or acquisition of used personal property.
                                                                        
 25        SECTION  42.  That Section 70-1613, Idaho Code, be, and the same is hereby
 26    amended to read as follows:
                                                                        
 27        70-1613.  NOTICE -- AWARD OF CONTRACT -- BOND. The notice shall state gen-
 28    erally the nature of the work to be done and require that bids be  sealed  and
 29    filed  with  the  commission  at  a  time specified therein. Each bid shall be
 30    accompanied by a bid proposal deposit in the form of a cashier's check,  money
 31    order  or  surety bid bond to the commission for a sum to be determined by the
 32    commission but not less than five per cent (5%) of the amount of the bid,  and
 33    no  bid shall be considered unless accompanied by such bid proposal deposit or
 34    bond. Such notice shall further state the time and place at  which  such  bids
 35    shall  be  opened, and at such time and place a quorum of the commission shall
 36    attend and publicly open and read such bids, and Upon following the procedural
 37    steps established by chapter 28, title 67, Idaho Code, for receipt of bids, as
 38    modified by provisions of this title, the port  commission  shall  proceed  to
 39    canvass  the bids, and at the proper time thereafter may let the contract upon
 40    the bid which the commission  determines  to  be  the  best  responsible  bid,
 41    whether  or  not the same be the lowest bid, upon the plans and specifications
 42    on file, or the best responsible bid of a bidder submitting his own plans  and
 43    specifications. If, in the opinion of the commission, all bids are unsatisfac-
 44    tory,  they  may  reject all of them and re-advertise readvertise, and in such
 45    case all such bid proposal deposits shall be returned to the bidders; but,  if
 46    the  contract  is let, then all bid proposal deposits shall be returned to the
 47    bidders, except that of the successful bidder, which shall be retained until a
 48    contract is entered into for the purchase of such material or  doing  of  such
 49    work.  A bond shall be given to the port district by the successful bidder for
 50    the performance of the contract and otherwise conditioned as required by  law,
 51    with  surety  satisfactory  to the commission, in an amount to be fixed by the
 52    commission, but not in any event less than twenty-five per cent percent  (25%)
 53    of  the  contract  price.  If  said bidder fails to enter into the contract in
                                                                        
                                           45
                                                                        
  1    accordance with his bid and furnish such bond within ten (10)  days  from  the
  2    date  on  which  he is notified that he is the successful bidder, the check or
  3    money order and the amount thereof shall be forfeited to the port district, or
  4    the port district shall recover the amount of the  surety  bid  bond.  In  the
  5    alternative,  a  port district may, by passage of a resolution by the board of
  6    commissioners, elect to exclusively follow the provisions of chapter 28, title
  7    67, Idaho Code, concerning procurement.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                            RS 15003
                                      
This bill is the work of a broad-spectrum task force including private 
contractors and public officials to improve the accountability and 
efficiency of the public works procurement and construction process.  
Among the central components of this bill are: (1) improvements to the
public works contractor licensing process through better reporting of 
information; (2) increased responsibility for license holders; 
(3) clarification of jurisdiction for the public works contractor 
licensing board; and (4) increased consequences for ethical or performance
failures by public works contractors.  The purchasing process would be made
more cost-effective for local governments and the state. It would better 
define procedures for procuring goods and services including a 
pre-qualification process for contractors, documentation of semi-formal 
purchasing and providing recourse for disappointed bidders.  Violators on
the purchasing side would be exposed to greater penalties at the same time 
that procedures would require better record keeping to enable scrutiny of 
the competitive bidding process. Purchasing of personal property and commercial
services would be governed by similar procedures. The end result would be a 
unified purchasing law that will simplify compliance issues for contractors 
or vendors while standardizing procurement procedures for political subdivisions. 
The changes better enable education of owners and contractors that should result 
in increased contracting opportunities for the private sector.  The length of the
proposal is the result of numerous changes to section-to-section references.
               

                             FISCAL NOTE
                                      
There will be no impact to the state general fund. Contractor license fees pay for 
the costs of operating the Idaho Public Works License Board.  
          


Contact:
Rep. Max Black       332-1000
Rep. Leon Smith      332-1000
Rep. Mike Mitchell   332-1000
Sen. John Andreason  332-1333
David Bennion, Chair, ID Public Works Licensing Board   867-2338
Michael Gifford, Associated General Contractors         344-2531
Ken Harward & Jerry Mason, Assn. of ID Cities           344-8594
          
          
          
STATEMENT OF PURPOSE/FISCAL NOTE                                     H 248