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H0263......................................................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. 02/24 House intro - 1st rdg - to printing 02/25 Rpt prt - to Bus 02/28 Rpt out - rec d/p - to 2nd rdg 03/01 2nd rdg - to 3rd rdg 03/07 3rd rdg - PASSED - 62-4-4 AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Jones, Kemp, LeFavour, Martinez, Mathews, McGeachin, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Trail, Wills, Mr. Speaker NAYS -- Barrett, Loertscher, McKague, Wood Absent and excused -- Cannon, Lake, Ring, Stevenson Floor Sponsors - Smith(24) & Black Title apvd - to Senate 03/08 Senate intro - 1st rdg - to Com/HuRes 03/18 Rpt out - rec d/p - to 2nd rdg 03/21 2nd rdg - to 3rd rdg 03/22 3rd rdg - PASSED - 30-3-1, 1 vacancy AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Cameron, Coiner, Compton, Corder, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Richardson, Schroeder, Stegner, Stennett, Sweet, Werk NAYS -- Burtenshaw, Pearce, Williams Absent and excused -- Keough, (District 21 seat vacant) Floor Sponsor - Andreason Title apvd - to House 03/23 To enrol 03/24 Rpt enrol - Sp signed 03/25 Pres signed 03/28 To Governor 03/31 Governor signed Session Law Chapter 213 Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 263 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 PROCURING 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 42leftlet, 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 34028,of thistitle 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,22tThe county hospital board may make expenditureswhich are not in excess of23ten thousand dollars ($10,000) without submitting the expenditure to bidding24procedures if the board believes that only one (1) supplier is available for25the product or service to be purchasedin 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 processin lieu of the bidding requirements inestablished by 31 chapter4028, title3167, Idaho Code.Verification of participation in such32a group purchasing association shall be provided by the county hospital board33upon 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 givenby publishing twice, not less than one (1) week apart in54a newspaper as provided in section 60-106, Idaho Code, published within the55district, or, if there be none, then in a newspaper as provided in section5 160-106, Idaho Code, published in the county in which such district lies. If2more than one (1) newspaper is printed and published in said district or3county, then in the newspaper most likely to give best general notice of the4election within said district; provided that if no newspaper is published in5the said district or county, then in a newspaper as provided in section660-106, Idaho Code, most likely to give best general notice of the election7within the district. The notice inviting bids shall set a date and place for8opening bids. The first publication of the notice shall be at least two (2)9weeks 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,nosuch contract shall be executedwhich entails the30expenditure of twenty-five thousand dollars ($25,000) or more without notice31first being given by publishing twice in the manner required by subsections g.32and h. of section 33-402, Idaho Code, unless in cooperation with a cooperative33agency established pursuant to chapter 23, title 67, and/or sections 33-31534through 33-318, Idaho Code, or through a contract that has been competitively35bid by the state of Idaho, one (1) of its subdivisions, or an agency of the36federal government. The board of trustees may let the contract to the lowest37responsible bidder, or reject any bid, or reject all bids and publish notice38for bids, as before. If, thereafter, no satisfactory bid is received, the39board may proceed under its own directionin 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 bidsshallthat 5 apply to all county highway systems and highway districts of the state, but6 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 thisactchapter, 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 shallnot enter into contracts7that necessitate an expenditure in excess of fifteen thousand dollars8($15,000), without first advertising for sealed competitive bids as herein9providedpurchase 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 thisactchapter, 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-48tracts involving an expense of fifteen thousand dollars ($15,000) or more for49labor, materials and equipment, which sum shall exclude design costs, bid50advertising and related bidding expenses. The district may reject any and all51bids, and if it shall appear that the district can perform the work or secure52material for less than the lowest bid, it may proceed so to doprocurement 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 tractsthat necessitate an expenditure in excess of five thousand dollars52($5,000), without first advertising for sealed competitive bids as herein pro-53videdexcept 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 thatnoany contract or 22 agreement for the acquisition, purchase or repair of personal propertyinvolv-23ing expenditure in excess of one thousand dollars ($1,000),shall be entered 24 intowithout first advertising for sealed competitive bids as herein provided25 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 ofsection 43-901chapter 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.Thefollowing36 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. 43B. The word "expenditure" shall mean the granting of a contract to44another by the irrigation district, the construction of any works, or any por-45tion thereof, and every manner and means whereby the irrigation district dis-46burses funds or obligates itself to disburse funds; provided, however, that47"expenditure" does not include disbursement of funds to any irrigation dis-48trict employee, official, agent, or for the performance of personal services49to the irrigation district, or for the acquisition of personal property50through a contract that has been competitively bid by the state of Idaho, one51of its subdivisions or an agency of the federal government, and does not15 1include the purchase of used personal property.2C. When the expenditure contemplated exceeds twenty-five thousand dollars3($25,000), the expenditure shall be contracted for and let to the lowest4responsible bidder.5D. The notice inviting bids shall set a date and place for the opening of6bids. The first publication of the notice shall be at least two (2) weeks7before the date of opening the bids. Notice shall be published at least twice,8not less than one (1) week apart, in the official newspaper of such irrigation9district. The notice shall succinctly set forth the project or construction to10be done. Any of the following documents shall be made available, upon reason-11able deposit, to any interested bidder: bid form, bidder's instructions, con-12tract documents, general and special instructions, drawings and specifica-13tions.14E. All bids shall be presented or otherwise delivered under sealed cover15to the secretary with a concise statement marked on the outside thereof gener-16ally identifying the expenditure to which said bid pertains. All bids shall17contain one (1) of the following forms of bidder's security:18a. Cash;19b. Cashier's check made payable to the irrigation district;20c. A certified check made payable to the irrigation district;21d. A bidder's bond executed by a qualified surety company, made payable22to the irrigation district.23F. The security shall be an amount equal to at least ten percent (10%) of24the amount bid. A bid shall not be considered unless one (1) of the forms of25bidder's security is enclosed with it, and unless the bid is submitted in a26form which substantially complies with the form provided by the irrigation27district.28G. Any bid received by the irrigation district may not be withdrawn after29the time set in the notice for opening of bids. All bids received must be30opened at the time and place set in the notice inviting bids, and no person31shall be denied the right to be present at the opening of bids.32H. If the successful bidder fails to execute the contract, the amount of33his bidder's security shall be forfeited to the irrigation district and the34proceeds shall be deposited in the fund out of which the expenses of prepara-35tion and printing of the plans and specifications, estimates of costs and pub-36lication of notice are paid.37I. The irrigation district may, on refusal or failure of the successful38bidder to execute the contract, award it to the next lowest responsible bid-39der. If the board awards the contract to the next lowest responsible bidder,40the amount of the said lowest responsible bidder's security shall be applied41by the irrigation district to the difference between the said lowest responsi-42ble bid and the said next lowest responsible bid, and the surplus, if any,43shall be returned to the said lowest bidder if cash or check is used, or to44the surety on the bidder's bond if a bond is used.45J. In its discretion, the board may reject any bids presented and read-46vertise. If two (2) or more bids are the same and the lowest responsible bids,47the board may accept the one it chooses. If no bids are received, the board48may make the expenditure without further compliance with this section.49K. After rejecting bids, the board may, after finding it to be a fact,50pass a resolution declaring that the thing sought to be accomplished by the51expenditure can be performed more economically by day labor, or the materials52or supplies furnished at a lower price in the open market. Upon adoption of53the resolution, it may have the thing sought to be accomplished done in the54manner stated without further compliance with this section.55L. If there is a great public calamity, as an extraordinary fire, flood,16 1storm, epidemic or other disaster, or if it is necessary to do emergency work2to prepare for national or local defense, or if the irrigation system of the3district has been seriously damaged or impaired, the board may pass a resolu-4tion declaring that the public interest and necessity demand the immediate5expenditure of public money to safeguard life, health or property or to6replace or repair any damaged portion of the irrigation system or to remove7any impediment therefrom. Upon adoption of the resolution, it may expend any8sum 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 inthe last precedingsection 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. 43Notice of advertisement for bids shall be published in the official news-44paper of the district in three (3) consecutive weekly issues, which notice45shall contain a general description of the kind and amount of work to be done,46state that the plans and specifications for said work are on file in the47office of the engineer or secretary for inspection and state the date, hour48and place of the bid opening.49Each bidder shall accompany his bid with bidder's security as provided in50section 43-901, Idaho Code, in the amount of ten percent (10%) of his bid. In51case the contract for any such work is offered to such bidder and he fails or17 1refuses to enter into the contract, then such security shall be forfeited to2the district and placed in the local improvement fund of such district. These3provisions also shall appear in said notice.4Award shall be made to the lowest responsible bidder fulfilling the5requirements.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 and50-341chapter 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 15section 50-341chapter 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 bidsfor45the construction of the work. Notice of advertisement for bids shall be pub-46lished in the official newspaper of the municipality in three (3) consecutive47weekly issues, which notice shall (a) contain a general description of the48kind and amount of work to be done, (b) state that the plans and specifica-49tions for said work are on file in the office of the engineer or clerk for50inspection and (c) state the date, hour and place of the bid openingin accor- 51 dance with the provisions of chapter 28, title 67, Idaho Code. 52Each bidder shall accompany his bid with bidder's security as provided in53section 50-341, Idaho Code, in the amount of five percent (5%) of his bid. In19 1case the contract for any such work is offered to such bidder and he fails or2refuses to enter into the contract, then such security shall be forfeited to3the municipality and placed in the local improvement fund of such district.4These provisions also shall appear in said notice.5Award shall be made to the lowest responsible bidder fulfilling the6requirements.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 thisactchapter 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 ofsection 50-34149 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 shallcall for competi-21 1tive bids by appropriate public notice and award contracts, whenever the esti-2mated cost of such work or improvement, including cost of materials, supplies3and 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 insection 50-2620chapter 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,dykesdikes, 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 andinclosureenclosure 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. Thisactchapter 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 thisactchapter. 16 (h) Duly licensed architects,civillicensed 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, thecontract awarding agencyprime 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. 24 1 SECTION 27. That Section 54-1913, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 54-1913. RECORDS, LISTS AND INFORMATION. The administrator shall main- 4 tain, open to public inspection during office hours, a complete record of all 5 retained applications, licenses issued, licenses renewed, data collected 6 through the provisions of section 54-1904A, Idaho Code, and all revocations, 7 cancellations and suspensions of licenses, and shall furnish a certified copy 8 of any license issued, upon receipt of the sum of fifty cents (50¢), which 9 certified copy shall be received in all courts and elsewhere as evidence of 10 the facts stated therein. 11 Whenever funds are available for the purpose, the administrator shall pub- 12 lish a list of the names and addresses of contractors licensed under this 13 chapter and such further information with respect to this chapter and its 14 administration as the administrator deems proper. The administrator may fur- 15 nish the lists to such public works and building departments, public officials 16 or public bodies, and other persons interested in or allied with the building 17 and construction industry in this or any other state as deemed advisable, and 18 at such intervals as deemed necessary, whenever funds therefor are available. 19 Copies of the lists may also be furnished by the administrator upon request to 20 any firm or individual upon payment of a reasonable fee fixed by the board. 21 Whenever funds are available for the purpose, the administrator may pub- 22 lish and disseminate to licensees and to public officials or other persons 23 interested in or allied with the building and construction industry, such 24 information with relation to the administration and enforcement of this chap- 25 ter as deemed necessary to carry out its purposes. 26 SECTION 28. That Section 54-1914, Idaho Code, be, and the same is hereby 27 amended to read as follows: 28 54-1914.DISCIPLINARYADMINISTRATIVE ENFORCEMENT PROCEEDINGS. (1) The 29 administrator may upon his own motion or at the direction of the board, and 30 shall upon the verified complaint in writing of any person, investigate the 31 actions of any public works contractor within the state and may undertake to 32 reclassify, retype, place on probation, defer or precondition licensure, 33 impose an administrative fine not to exceedfivetwenty thousand dollars 34 ($520,000) per violation, impose the administrative costs of bringing the 35 action including, but not limited to, hearing officer fees, expert witness 36 fees, attorney's fees, costs of hearing transcripts and copies, temporarily 37 suspend or permanently revoke any license if the holder, while a licensee or 38 applicant hereunder, is guilty of or commits any one (1) or more of the fol- 39 lowing acts or omissions: 40 (a) Abandonment without legal excuse of any construction project or oper- 41 ation engaged in or undertaken by the licensee as a contractor. 42 (b) Diversion of funds or property received under express agreement for 43 prosecution or completion of a specific construction project or operation, 44 or for a specified purpose in the prosecution or completion of any con- 45 struction project or operation, and their application or use for any other 46 construction project or operation, obligation or purpose, with intent to 47 defraud or deceive creditors or the owner. 48 (c) Willful departure from or disregard of, plans or specifications in 49 any material respect, and prejudicial to another, without consent of the 50 owner or his duly authorized representative, and without the consent of 51 the person entitled to have the particular construction project or opera- 52 tion completed in accordance with such plans and specifications. 25 1 (d) Willful or deliberate disregard and violation of valid building laws 2 of the state, or of any political subdivision thereof, or of the safety 3 laws or labor laws or compensation insurance laws of the state. 4 (e) Misrepresentation of a material fact by an applicant in obtaining a 5 license. 6 (f) Aiding or abetting an unlicensed person to evade the provisions of 7 this chapter or conspiring with an unlicensed person, or allowing one's 8 license to be used by an unlicensed person, or acting as agent or partner 9 or associate or otherwise, of an unlicensed person with the intent to 10 evade the provisions of this chapter. 11 (g) Failure in any material respect to comply with the provisions of this 12 chapter. 13 (h) Acting in the capacity of a contractor under any license issued here- 14 under except: (1) in the name of the licensee as set forth upon the 15 license, or (2) in accordance with the personnel of the licensee as set 16 forth in the application for such license, or as later changed as provided 17 in this chapter. 18 (i) Knowingly accepting a bid from, or entering into a contract with 19 another contractor for a portion of a public works project if at that time 20 such contractor does not possess the appropriate license to do that work 21 as provided in this chapter. 22 (j) Willful failure or refusal without legal excuse on the part of a 23 licensee as a contractor to finish a construction project or operation 24 with reasonable diligence, causing material injury to another. 25 (k) Willful or deliberate failure by any licensee, or agent or officer 26 thereof, to pay any moneys when due, for any materials or services ren- 27 dered in connection with his operations as a contractor, when he has the 28 capacity to pay or when he has received sufficient funds therefor as pay- 29 ment for the particular construction work, project or operation for which 30 the services or materials were rendered or purchased; or denial of any 31 such amount due or the validity of the claim thereof with intent to secure 32 for himself, his employer, or other person, any discount upon such indebt- 33 edness or with intent to hinder, delay or defraud the person to whom such 34 indebtedness is due. 35 (l) Suffers a change in financial circumstances which may impair the 36 licensee's financial responsibility. 37 (m) Holding oneself or one's firm out as a public works contractor by 38 engaging in any act meeting the definition or character of a public works 39 contractor as defined herein without a legally required license. 40 (2) The administrator may upon his own motion or at the direction of the 41 board, and shall upon the verified complaint in writing of any licensed public 42 works contractor eligible to perform public works contracting duties, investi- 43 gate the actions of any public entity within the state and may impose an 44 administrative fine not to exceed five thousand dollars ($5,000) per violation 45 or impose the administrative costs of bringing the action including, but not 46 limited to, hearing officer fees, expert witness fees, attorney's fees, costs 47 of hearing transcripts and copies, if the public agency contracts for public 48 works construction with an unlicensed or improperly licensed contractor. 49 SECTION 29. That Section 54-1915, Idaho Code, be, and the same is hereby 50 amended to read as follows: 51 54-1915. PROCEDURE FOR IMPOSITION OF DISCIPLINE. (1) Upon the filing of 52 a verified complaint with the administrator charging a licensee or public 53 entity with the commission of any act constituting a cause for disciplinary 26 1 action within two (2) years prior to the date of filing, or upon such a find- 2 ing made by the administrator following an investigation, the administrator 3 shall forthwith issue a notice, accompanied by a copy of the complaint, 4 directing the licensee or public entity, within ten (10) days after service of 5 the notice, to appear by filing with the administrator a verified answer to 6 the complaint. 7 (2) The administrator shall have the power to appoint, by an order in 8 writing, a hearing officer to take testimony, who shall have power to adminis- 9 ter oaths, issue subpoenas and compel the attendance of witnesses. 10 (3) Service of the notice and complaint upon the licensee or public 11 entity shall be fully effected by mailing a true copy of the notice and com- 12 plaint by certified mail addressed to the licensee at his last address of 13 record with the administrator or to the public entity at its principal place 14 of business. Service of the notice and complaint shall be complete at the time 15 of deposit in accordance with the provisions of the Idaho rules of civil pro- 16 cedure relating to service by mail. 17 (4) The hearing shall be conducted in accordance with the provisions of 18 chapter 52, title 67, Idaho Code, and the Idaho rules of administrative proce- 19 dure. 20 (5) Following the hearing, the hearing officer shall issue recommended 21 findings of fact, conclusions of law, and order. The recommended order may: 22 (a) Provide for the immediate complete suspension by the licensee of all 23 operations as a contractor during the period fixed by the decision. 24 (b) Permit the licensee to complete any or all contracts shown by compe- 25 tent evidence taken at the hearing to be then uncompleted. 26 (c) Impose upon the licensee compliance with such specific conditions as 27 may be just in connection with his operations as a contractor disclosed at 28 the hearing and may further provide that until such conditions are com- 29 plied with no application for restoration of the suspended or revoked 30 license shall be accepted by the administrator. 31 (d) Provide for the imposition of any of the sanctions provided by sec- 32 tion 54-1914, Idaho Code. 33 (6) Following a review of the entire hearing record, the administrator 34 shall issue a final decision. 35 SECTION 30. That Section 54-1916, Idaho Code, be, and the same is hereby 36 amended to read as follows: 37 54-1916. JUDICIAL REVIEW -- APPEALS PROCEDURE. (1) The applicant, public 38 entity, or licensee, as the case may be, shall have the right to judicial 39 review of an action of the administrator refusing issuance of a license, or 40 actions taken by the board pursuant to section 54-1914, Idaho Code, in accor- 41 dance with the provisions of chapter 52, title 67, Idaho Code. 42 (2) Appeals may be taken from the judgment of said district court to the 43 supreme court of Idaho by either party in the same manner that appeals are 44 taken and records prepared on appeal in civil actions. 45 (3) On any appeal to the district court by a licensee, the court may, in 46 its discretion, upon the filing of a proper bond by the licensee in an amount 47 to be fixed by the court, but not less than one thousand dollars ($1,000), 48 guaranteeing the compliance by the licensee with specific conditions imposed 49 upon him by the board's decision, if any, permit the licensee to continue to 50 do business as a contractor pending entry of judgment by the district court. 51 (4) On any appeal to the district court by a public entity, the court 52 may, in its discretion, suspend the action taken by the board pursuant to sec- 53 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 thisactchapter, 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 thisactchapter. 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 rulesand regulationslimiting 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 exceedfivetwenty 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. No provisions of this chapter shall be deemed to preclude the 8 use of procurement procedures otherwise authorized by law. 9 67-2803. EXCLUSIONS. The procurement requirements established in this 10 chapter shall not be applicable to: 11 (1) The acquisition of personal property when the procurement duplicates 12 the price and substance of a contract for like goods or services that has been 13 competitively bid by the state of Idaho, one (1) of its political subdivi- 14 sions, or an agency of the federal government; 15 (2) Contracts or purchases wherein expenditures are less than twenty-five 16 thousand dollars ($25,000), provided such contracts or purchases shall be 17 guided by the best interests of the political subdivision procuring the goods 18 and services as determined by the governing board; 19 (3) Disbursement of wages or compensation to any employee, official or 20 agent of a political subdivision for the performance of personal services for 21 the political subdivision; 22 (4) Procurement of personal or professional services to be performed by 23 an independent contractor for the political subdivision; 24 (5) Procurement of an interest in real property; 25 (6) Procurement of insurance; or 26 (7) Costs of participation in a joint powers agreement with other units 27 of government. 28 67-2804. WAIVER. (1) Whenever the provisions of this chapter require a 29 public works contractor's license to bid upon a public construction project, 30 such requirement shall be deemed waived whenever federal law prohibits requir- 31 ing licensure as a precondition for submitting a bid. 32 (2) Nothing in this section shall be deemed to prohibit a political sub- 33 division from performing construction or repair work on the political 34 subdivision's own facilities. 35 (3) Whenever this chapter provides time limits for objection or appeal, 36 any objection or appeal not perfected within such time limitations shall be 37 deemed to constitute a waiver of any rights to raise such objection or appeal 38 thereafter. 39 67-2805. PROCUREMENT OF PUBLIC WORKS CONSTRUCTION. (1) For any contem- 40 plated public works construction project with an estimated total cost of less 41 than fifty thousand dollars ($50,000), where the political subdivision deter- 42 mines that there may be a lack of available licensed contractors, a political 43 subdivision may publish a notice of intent to procure in its official news- 44 paper, concurrently sending such notice to the public works contractors 45 license board, in order to solicit statements of interest from licensed public 46 works contractors to determine whether one (1) or more licensed contractors is 47 interested in submitting bids. Such notice of intent to procure shall be pro- 48 vided by the same means required for published solicitation of competitive 49 bids and shall contain essentially the same information as such published 50 notice. If no licensed public works contractor submits a statement of inter- 51 est, the political subdivision may purchase public works construction from 52 other than a licensed public works contractor by using the same procurement 32 1 procedures otherwise specified herein. 2 (2) When a political subdivision contemplates an expenditure to procure 3 public works construction valued in excess of twenty-five thousand dollars 4 ($25,000) but not to exceed one hundred thousand dollars ($100,000), the pro- 5 curement procedures of this subsection (2) shall apply: 6 (a) The solicitation for bids for the public works construction to be 7 performed shall be supplied to no fewer than three (3) owner-designated 8 licensed public works contractors by written means, either by electronic 9 or physical delivery. The solicitation shall describe the construction 10 work to be completed in sufficient detail to allow an experienced public 11 works contractor to understand the construction project the political sub- 12 division seeks to build. 13 (b) The solicitation for bids shall describe the electronic or physical 14 delivery method or methods authorized to submit a bid, the date and time 15 by which a bid proposal must be received by the clerk, secretary or other 16 authorized official of the political subdivision, and shall provide a rea- 17 sonable time to respond to the solicitation, provided that except in the 18 event of an emergency, such time shall not be less than three (3) business 19 days. 20 (c) Written objections to specifications or bid procedures must be 21 received by the clerk, secretary or other authorized official of the 22 political subdivision at least one (1) business day before the date and 23 time upon which bids are scheduled to be received. 24 (d) When written bids have been received, by either physical or elec- 25 tronic delivery, they shall be submitted to the governing board or govern- 26 ing board-authorized official which shall approve the responsive bid pro- 27 posing the lowest procurement price or reject all bids and publish notice 28 for bids, as before. 29 (e) If the political subdivision finds that it is impractical or impossi- 30 ble to obtain three (3) bids for the proposed public works procurement, 31 the political subdivision may acquire the work in any manner the political 32 subdivision deems best from a qualified public works contractor quoting 33 the lowest price. When fewer than three (3) bids are considered, a 34 description of the efforts undertaken to procure at least three (3) bids 35 shall be documented by the political subdivision and such documentation 36 shall be maintained for at least six (6) months after the procurement 37 decision is made. If two (2) or more price quotations offered by different 38 licensed public works contractors are the same and the lowest responsive 39 bids, the governing board or governing-board authorized official may 40 accept the one (1) it chooses. 41 (3) When a political subdivision contemplates an expenditure to purchase 42 public works construction valued in excess of one hundred thousand dollars 43 ($100,000), the procurement procedures of this subsection (3) shall apply. The 44 purchase of construction services shall be made pursuant to a competitive 45 sealed bid process with the purchase to be made from the qualified public 46 works contractor submitting the lowest bid price complying with bidding proce- 47 dures and meeting the prequalifications, if any are provided, established by 48 the bid documents. Competitive bidding for public works may proceed through 49 either of two (2) alternative procedures as set forth below: 50 (a) Category A. Competitive bidding procedures shall be open to receipt 51 of bids from any licensed public works contractor desiring to bid upon a 52 public works project. For a category A bid, the political subdivision may 53 only consider the amount bid, bidder compliance with administrative 54 requirements of the bidding process, and whether the bidder holds the req- 55 uisite license. 33 1 (i) The request for bids for a category A procurement shall set a 2 date and place for the public opening of bids. Two (2) notices solic- 3 iting bids shall be published in the official newspaper of the polit- 4 ical subdivision. The first notice shall be published at least two 5 (2) weeks before the date for opening bids, with the second notice to 6 be published in the succeeding week at least seven (7) days before 7 the date that bids are scheduled to be opened. The notice shall 8 succinctly describe the project to be constructed. Copies of specifi- 9 cations, bid forms, bidder's instructions, contract documents, and 10 general and special instructions shall be made available upon request 11 and payment of a reasonable plan copy fee by any interested bidder. 12 (ii) Written objections to specifications or bidding procedures 13 must be received by the clerk, secretary or other authorized official 14 of the political subdivision at least three (3) business days before 15 the date and time upon which bids are scheduled to be opened. The 16 administrative officer or governing board supervising the bidding 17 process shall respond to any such objection in writing and communi- 18 cate such response to the objector and all other plan holders, 19 adjusting bidding timeframes if necessary. 20 (iii) All bids shall be presented or otherwise delivered under 21 sealed cover to the clerk of the political subdivision or other 22 authorized agent of the political subdivision designated by the 23 information provided to bidders by the political subdivision with a 24 concise statement marked on the outside generally identifying the 25 expenditure to which the bid pertains. 26 (iv) If the political subdivision deems it is in the political 27 subdivision's best interest, it may require the bidder to provide bid 28 security in an amount equal to at least five percent (5%) of the 29 amount bid. If required, a bid shall not be considered unless one (1) 30 of the forms of bidder's security is enclosed with it, and unless the 31 bid is submitted in a form which substantially complies with the form 32 provided by the political subdivision. The political subdivision may 33 require that the bid security be in one (1) of the following forms: 34 (A) Cash; 35 (B) A cashier's check made payable to the political subdivi- 36 sion; 37 (C) A certified check made payable to the political subdivi- 38 sion; or 39 (D) A bidder's bond executed by a qualified surety company, 40 made payable to the political subdivision. 41 (v) Any bid received by the political subdivision may not be with- 42 drawn after the date and time set in the notice for opening of bids. 43 When sealed bids have been received, they shall be opened in public 44 at a designated place and time, thereafter to be compiled and submit- 45 ted to the governing board for award. 46 (vi) If the successful bidder fails to execute the contract, the 47 amount of his bidder's security may be forfeited to the political 48 subdivision at the sole discretion of the political subdivision and 49 the proceeds shall be deposited in a designated fund out of which the 50 expenses of procuring substitute performance are paid. 51 (vii) The political subdivision may, on the refusal or failure of 52 the successful bidder to execute the contract, award the contract to 53 the qualified bidder submitting the next lowest responsive bid. If 54 the governing board awards the contract to the next lowest qualified 55 bidder, the amount of the lowest qualified bidder's security may be 34 1 applied by the political subdivision to the difference between the 2 lowest responsive bid and the next lowest responsive bid, and the 3 surplus, if any, shall be returned to the lowest bidder if cash or 4 check is used, or to the surety on the bidder's bond if a bond is 5 used, less reasonable administrative costs not to exceed twenty-five 6 percent (25%) of the amount of the bidder's security to the owner. 7 (viii) In its discretion, the governing board may reject all bids 8 presented and re-bid, or the governing board may, after finding it to 9 be a fact, pass a resolution declaring that the project sought to be 10 accomplished by the expenditure can be performed more economically by 11 purchasing goods and services on the open market. If identical bids 12 are received, the governing board may choose the bidder it prefers. 13 If no bids are received, the governing board may procure the goods or 14 services without further competitive bidding procedures. 15 (ix) If the governing board of any political subdivision chooses to 16 award a competitively bid contract involving the procurement of pub- 17 lic works construction to a bidder other than the apparent low bid- 18 der, the political subdivision shall declare its reason or reasons on 19 the record and shall communicate such reason or reasons in writing to 20 all persons who have submitted a competing bid. 21 (x) If any participating bidder objects to such award, such bidder 22 shall respond in writing to the notice from the political subdivision 23 within seven (7) calendar days of the date of transmittal of the 24 notice, setting forth in such response the express reason or reasons 25 that the award decision of the governing board is in error. Thereaf- 26 ter, staying performance of any procurement until after addressing 27 the contentions raised by the objecting bidder, the governing board 28 shall review its decision and determine whether to affirm its prior 29 award, modify the award, or choose to re-bid, setting forth its rea- 30 son or reasons therefor. After completion of the review process, the 31 political subdivision may proceed as it deems to be in the public 32 interest. 33 (b) Category B. Competitive bidding procedures shall be open to licensed 34 public works contractors only after meeting preliminary supplemental qual- 35 ifications established by the political subdivision. The solicitation for 36 bids in a category B procurement shall consist of two (2) stages, an ini- 37 tial stage determining supplemental prequalifications for licensed con- 38 tractors, either prime or specialty contractors, followed by a stage dur- 39 ing which bid prices will be accepted only from prequalified contractors. 40 (i) Notice of the prequalification stage of the category B compet- 41 itive bidding process shall be given in the same manner that notice 42 of competitive bidding is provided for a category A competitive bid 43 request, providing a specific date and time by which qualifications 44 statements must be received. Political subdivisions may establish 45 prequalification standards premised upon demonstrated technical com- 46 petence, experience constructing similar facilities, prior experience 47 with the political subdivision, available nonfinancial resources, 48 equipment and personnel as they relate to the subject project, and 49 overall performance history based upon a contractor's entire body of 50 work. Such request must include the standards for evaluating the 51 qualifications of prospective bidders. 52 (ii) During the initial stage of the category B bidding process, 53 licensed contractors desiring to be prequalified to bid on a project 54 must submit a written response to a political subdivision's request 55 for qualifications. 35 1 (iii) Written objections to prequalification procedures must be 2 received by the clerk, secretary or other authorized official of the 3 political subdivision at least three (3) business days before the 4 date and time upon which prequalification statements are due. The 5 administrative officer or governing board supervising the bidding 6 process shall respond to any such objection in writing and communi- 7 cate such response to the objector and all other contractors seeking 8 to prequalify, adjusting bidding timeframes if necessary. After a 9 review of qualification submittals, the political subdivision may 10 select licensed contractors that meet the prequalification standards. 11 If any licensed contractor submits a statement of qualifications but 12 is not selected as a qualified bidder, the political subdivision 13 shall supply a written statement of the reason or reasons why the 14 contractor failed to meet prequalification standards. 15 (iv) Any licensed contractor that fails the prequalification stage 16 can appeal any such determination to the governing board within seven 17 (7) days after transmittal of the prequalification results to contest 18 the determination. If the governing board sustains the decision that 19 a contractor fails to meet prequalification standards, it shall state 20 its reason or reasons for the record. A governing board decision con- 21 cerning prequalification may be appealed to the public works contrac- 22 tors license board no more than fourteen (14) days following any 23 decision on appeal made by the governing board. The public works con- 24 tractors license board shall decide any such appeal within thirty- 25 five (35) days of the filing of a timely appeal. The public works 26 contractors license board shall allow participation, written or oral, 27 by the appealing contractor and the political subdivision, either by 28 employing a hearing officer or otherwise. The public works contrac- 29 tors license board shall not substitute its judgment for that of the 30 political subdivision, limiting its review to determining whether the 31 decision of the governing board is consistent with the announced 32 prequalification standards, whether the prequalification standards 33 comport with the law and whether the governing board's decision is 34 supported by the entirety of the record. The decision of the public 35 works contractors license board shall be written and shall state the 36 reason or reasons for the decision. Category B prequalification pro- 37 cedures that are appealed shall be stayed during the pendency of the 38 prequalification appeal until the public works contractors license 39 board completes its review, but in no instance more than forty-nine 40 (49) days after the appellate decision of the governing board regard- 41 ing prequalification. Any licensed public works contractor affected 42 by a decision on appeal by the public works contractors license board 43 may, within twenty-eight (28) days of the final decision, seek judi- 44 cial review as provided by chapter 52, title 67, Idaho Code. 45 (v) Following the conclusion of the prequalification administra- 46 tive procedures, the bidding stage shall proceed by the setting of a 47 time, date and place for the public opening of bids. A notice solic- 48 iting bids shall be transmitted to prequalified bidders at least 49 fourteen (14) days before the date of opening the bids. The notice 50 shall succinctly describe the project to be constructed. Copies of 51 specifications, bid forms, bidder's instructions, contract documents, 52 and general and special instructions shall be made available upon 53 request and payment of a reasonable plan copy fee by any prequalified 54 bidder. 55 (vi) Written objections to specifications or bidding procedures 36 1 must be received by the clerk, secretary or other authorized official 2 of the political subdivision at least three (3) business days before 3 the date and time upon which bids are scheduled to be opened. 4 (vii) All category B bids shall be presented or otherwise delivered 5 under sealed cover to the clerk or other authorized agent of the 6 political subdivision designated by the instructions to bidders with 7 a concise statement marked on the outside generally identifying the 8 expenditure to which the bid pertains. 9 (viii) If the political subdivision deems it is in the political 10 subdivision's best interest, it may require the bidder to provide bid 11 security in an amount equal to at least five percent (5%) of the 12 amount bid. If required, a bid shall not be considered unless one (1) 13 of the forms of bidder's security is enclosed with it, and unless the 14 bid is submitted in a form which substantially complies with the form 15 provided by the political subdivision. The political subdivision may 16 require that the bid security be in one (1) of the following forms: 17 (A) Cash; 18 (B) A cashier's check made payable to the political subdivi- 19 sion; 20 (C) A certified check made payable to the political subdivi- 21 sion; or 22 (D) A bidder's bond executed by a qualified surety company, 23 made payable to the political subdivision. 24 (ix) Any category B bid received by a political subdivision may not 25 be withdrawn after the date and time set in the notice for opening of 26 bids. When sealed bids have been received, they shall be opened in 27 public at a designated place and time, thereafter to be compiled and 28 submitted to the governing board for award. If identical bids are 29 received, the governing board may choose the bidder it prefers. If 30 the successful bidder fails to execute the contract, the amount of 31 his bidder's security may be forfeited to the political subdivision, 32 in the sole discretion of the political subdivision, and the proceeds 33 shall be deposited in a designated fund out of which the expenses for 34 procuring substitute performance are paid. 35 (x) The political subdivision may, on the refusal or failure of 36 the successful bidder to execute the contract, award the contract to 37 the qualified bidder submitting the next lowest responsive bid. If 38 the governing board awards the contract to the next lowest qualified 39 bidder, the amount of the lowest qualified bidder's security, if for- 40 feited, shall be applied by the political subdivision to the differ- 41 ence between the lowest responsive bid and the next lowest responsive 42 bid, and the surplus, if any, shall be returned to the lowest bidder 43 if cash or check is used, or to the surety on the bidder's bond if a 44 bond is used, less reasonable administrative costs not to exceed 45 twenty-five percent (25%) of the amount of the bidder's security. 46 (xi) In its discretion, the governing board may reject all bids 47 presented and re-bid, or the governing board may, after finding it to 48 be a fact, pass a resolution declaring that the project sought to be 49 accomplished by the expenditure can be performed more economically by 50 purchasing goods and services on the open market. If no bids are 51 received, the governing board may make the expenditure without fur- 52 ther competitive bidding procedures. 53 (xii) If the governing board of any political subdivision chooses to 54 award a competitively bid contract involving the procurement of pub- 55 lic works construction to a bidder other than the apparent low bid- 37 1 der, the political subdivision shall declare its reason or reasons on 2 the record and shall communicate such reason or reasons in writing to 3 all persons who have submitted a competing bid. 4 (xiii) If any participating bidder objects to such award, such bidder 5 shall respond in writing to the notice from the political subdivision 6 within seven (7) calendar days of the date of transmittal of the 7 notice, setting forth in such response the express reason or reasons 8 that the award decision of the governing board is in error. Thereaf- 9 ter, staying performance of any procurement until after addressing 10 the contentions raised by the objecting bidder, the governing board 11 shall review its decision and determine whether to affirm its prior 12 award, modify the award, or choose to re-bid, setting forth its rea- 13 son or reasons therefor. After completion of the review process, the 14 political subdivision may proceed as it deems to be in the public 15 interest. 16 67-2806. PROCURING SERVICES OR PERSONAL PROPERTY. (1) When a political 17 subdivision contemplates an expenditure to purchase or lease personal property 18 or to procure services, other than those services excluded pursuant to section 19 67-2803, Idaho Code, valued in excess of twenty-five thousand dollars 20 ($25,000) but not to exceed fifty thousand dollars ($50,000), the procurement 21 procedures of this subsection (1) shall apply. 22 (a) The solicitation for bids shall be supplied to no fewer than three 23 (3) vendors by written means, either by electronic or physical delivery. 24 The solicitation shall describe the personal property or services to be 25 purchased or leased in sufficient detail to allow a vendor dealing in such 26 goods or services to understand what the political subdivision seeks to 27 procure. 28 (b) The solicitation for bids shall describe the electronic or physical 29 delivery method or methods authorized to submit a bid, the date and time 30 by which a bid proposal must be received by the clerk, secretary or other 31 authorized official of the political subdivision, and shall provide a rea- 32 sonable time to respond to the solicitation, provided that except in the 33 event of an emergency, such time shall not be less than three (3) business 34 days. 35 (c) Written objections to specifications or bid procedures must be 36 received by the clerk, secretary or other authorized official of the 37 political subdivision at least one (1) business day before the date and 38 time upon which bids are scheduled to be received. 39 (d) When written bids have been received, by either physical or elec- 40 tronic delivery, they shall be compiled and submitted to the governing 41 board or governing board-authorized official which shall approve the 42 responsive bid proposing the lowest procurement price or reject all bids 43 and publish notice for bids, as before. 44 (e) If the political subdivision finds that it is impractical or impossi- 45 ble to obtain three (3) bids for the proposed procurement, the political 46 subdivision may acquire the property in any manner the political subdivi- 47 sion deems best from a qualified vendor quoting the lowest price. When 48 fewer than three (3) bids are considered, a description of the efforts 49 undertaken to procure at least three (3) bids shall be documented by the 50 political subdivision and such documentation shall be maintained for at 51 least six (6) months after any such procurement is made. If two (2) or 52 more price quotations are the same and the lowest responsive bids, the 53 authorized decision maker may accept the one (1) it chooses. 54 (2) When a political subdivision contemplates an expenditure to purchase 38 1 or lease personal property or to procure services, other than those services 2 excluded pursuant to section 67-2803, Idaho Code, valued in excess of fifty 3 thousand dollars ($50,000), the procurement procedures of this subsection (2) 4 shall apply. 5 (a) The purchase or lease shall be made pursuant to an open competitive 6 sealed bid process with the procurement to be made from the qualified bid- 7 der submitting the lowest bid price complying with bidding procedures and 8 meeting the specifications for the goods and/or services sought to be pro- 9 cured. 10 (b) The request for bids shall set a date, time and place for the opening 11 of bids. Two (2) notices soliciting bids shall be published in the offi- 12 cial newspaper of the political subdivision. The first notice shall be 13 published at least two (2) weeks before the date for opening bids, with 14 the second notice to be published in the succeeding week at least seven 15 (7) days before the date that bids are scheduled to be opened. The notice 16 shall succinctly describe the personal property and/or service to be pro- 17 cured. Copies of specifications, bid forms, bidder's instructions, con- 18 tract documents, and general and special instructions shall be made avail- 19 able upon request by any interested bidder. 20 (c) Written objections to specifications or bidding procedures must be 21 received by the clerk, secretary or other authorized official of the 22 political subdivision at least three (3) business days before the date and 23 time upon which bids are scheduled to be opened. 24 (d) If the political subdivision deems it is in the political 25 subdivision's best interest, it may require the bidder to provide bid 26 security in an amount equal to at least five percent (5%) of the amount 27 bid. If required, a bid shall not be considered unless one (1) of the 28 forms of bidder's security is enclosed with it, and unless the bid is sub- 29 mitted in a form which substantially complies with the form provided by 30 the political subdivision. The political subdivision may require that the 31 bid security be in one (1) of the following forms: 32 (i) Cash; 33 (ii) A cashier's check made payable to the political subdivision; 34 (iii) A certified check made payable to the political subdivision; or 35 (iv) A bidder's bond executed by a qualified surety company, made 36 payable to the political subdivision. 37 (e) Any bid received by the political subdivision may not be withdrawn 38 after the time set in the notice for opening of bids. When sealed bids 39 have been received, they shall be opened in public at a designated place 40 and time, thereafter to be compiled and submitted to the governing board. 41 (f) If the successful bidder fails to execute the contract, the amount of 42 his bidder's security may be forfeited to the political subdivision at the 43 sole discretion of the governing board and thereafter the proceeds may be 44 deposited in a designated fund out of which the reasonable expenses for 45 procuring substitute performance are paid. 46 (g) The political subdivision may, on the refusal or failure of the suc- 47 cessful bidder to execute the contract, award the contract to the next 48 lowest qualified bidder. If the governing board awards the contract to the 49 next lowest qualified bidder, the amount of the lowest qualified bidder's 50 security may be applied by the political subdivision to the difference 51 between the lowest responsive bid and the next lowest responsive bid, and 52 the surplus, if any, shall be returned to the lowest bidder if cash or 53 check is used, or to the surety on the bidder's bond if a bond is used, 54 less reasonable administrative costs not to exceed twenty-five percent 55 (25%) of the amount of the bidder's security. 39 1 (h) In its discretion, the governing board may reject all bids presented 2 and re-bid, or the governing board may, after finding it to be a fact, 3 pass a resolution declaring that the subject goods or services can be pro- 4 cured more economically on the open market. If two (2) or more bids are 5 the same and the lowest responsive bids, the governing board may accept 6 the one (1) it chooses. In its discretion, the governing board of a polit- 7 ical subdivision may preauthorize the purchase of equipment at a public 8 auction. 9 (i) If the governing board of any political subdivision chooses to award 10 a competitively bid contract involving the procurement of personal prop- 11 erty or services to a bidder other than the apparent low bidder, the 12 political subdivision shall declare its reason or reasons on the record 13 and shall communicate such reason or reasons in writing to all who have 14 submitted a competing bid. 15 (j) If any participating bidder objects to such award, such bidder shall 16 respond in writing to the notice from the political subdivision within 17 seven (7) calendar days of the date of transmittal of the notice, setting 18 forth in such response the express reason or reasons that the award deci- 19 sion of the governing board is in error. Thereafter, staying performance 20 of any procurement until after addressing the contentions raised by the 21 objecting bidder, the governing board shall review its decision and deter- 22 mine whether to affirm its prior award, modify the award, or choose to re- 23 bid, setting forth its reason or reasons therefor. After completion of the 24 review process, the political subdivision may proceed as it deems to be in 25 the public interest. 26 67-2807. JOINT PURCHASING AGREEMENTS -- NOT-FOR-PROFIT ASSOCIATIONS. 27 (1) Political subdivisions may enter into joint purchasing agreements 28 with the state of Idaho or other political subdivisions and may participate in 29 joint purchasing agreements through a joint purchase program established by 30 any not-for-profit association of political subdivisions. Personal property 31 procured pursuant to such joint purchase agreements shall be acquired in 32 accordance with the provisions of this chapter, provided such authority does 33 not preclude or limit political subdivisions from entering into purchase 34 agreements as otherwise provided by statute. 35 (2) Political subdivisions may participate in a program established by 36 any not-for-profit association of which they become a member to assist such 37 political subdivisions in bidding and negotiating joint purchase contracts and 38 discount purchase agreements. Participation in any such program does not obli- 39 gate a political subdivision to purchase goods or services through the program 40 or through an agreement negotiated by the program administrator or its board. 41 Political subdivisions shall only be obligated to pay for goods or services 42 where the governing board has approved the purchase. Any not-for-profit asso- 43 ciation operating such a procurement program shall cause an independent, cer- 44 tified audit of the program to be performed annually. The audit shall be made 45 available to the legislature upon request and a copy shall be made available 46 for public inspection. 47 67-2808. EMERGENCY EXPENDITURES -- SOLE SOURCE EXPENDITURES. 48 (1) Emergency expenditures. 49 (a) The governing board of a political subdivision may declare that an 50 emergency exists and that the public interest and necessity demand the 51 immediate expenditure of public money if: 52 (i) There is a great public calamity, such as an extraordinary 53 fire, flood, storm, epidemic or other disaster; 40 1 (ii) It is necessary to do emergency work to prepare for the 2 national or local defense; or 3 (iii) It is necessary to do emergency work to safeguard life, health 4 or property. 5 (b) Upon making the declaration of emergency, any sum required in the 6 emergency may be expended without compliance with formal bidding proce- 7 dures. 8 (2) Sole source expenditures. 9 (a) The governing board of a political subdivision may declare that there 10 is only one (1) vendor if there is only one (1) vendor for the personal 11 property to be acquired. For purposes of this subsection (2), only one (1) 12 vendor shall refer to situations where there is only one (1) source rea- 13 sonably available and shall include, but not be limited to, the following 14 situations: 15 (i) Where property is required to respond to a life-threatening 16 situation or a situation which is immediately detrimental to the pub- 17 lic welfare or property; 18 (ii) Where the compatibility of equipment, components, accessories, 19 computer software, replacement parts or service is the paramount con- 20 sideration; 21 (iii) Where a sole supplier's item is needed for trial use or test- 22 ing; 23 (iv) The purchase of mass-produced movies, videos, books or other 24 copyrighted materials; 25 (v) The purchase of property for which it is determined there is 26 no functional equivalent; 27 (vi) The purchase of public utility services; 28 (vii) The purchase of products, merchandise or trademarked goods for 29 resale at a political subdivision facility; or 30 (viii) Where competitive solicitation is impractical, disadvantageous 31 or unreasonable under the circumstances. 32 (b) Upon making the declaration that there is only one (1) vendor for 33 personal property, unless the property is required for a life-threatening 34 situation or a situation that is immediately detrimental to the public 35 welfare or property, notice of a sole source procurement shall be pub- 36 lished in the official newspaper of the political subdivision at least 37 fourteen (14) calendar days prior to the award of the contract. 38 SECTION 38. That Section 67-4912, Idaho Code, be, and the same is hereby 39 amended to read as follows: 40 67-4912. GENERAL POWERS OF BOARD. For and on behalf of the district the 41 board shall have the following powers: 42 (a) To have perpetual existence; 43 (b) To have and use a corporate seal; 44 (c) To sue and be sued, and be a party to suits, actions, and proceed- 45 ings; 46 (d) Except as otherwise provided in thisactchapter, to enter into con- 47 tracts and agreements, cooperative and otherwise, affecting the affairs of the 48 district, including contracts with the United States of America and any of its 49 agencies or instrumentalities, and contracts with corporations, public or pri- 50 vate, municipalities, or governmental subdivisions, and to cooperate with any 51 one (1) or more of them in building, erecting, marketing or constructing 52 facilities within the district. Except in cases in which a district will 53 receive aid from a governmental agency,a notice shall be published for bids41 1on all construction contracts for work or material, or both, involving an2expense of five thousand dollars ($5,000) or more. The district may reject3any and all bids, and if it shall appear that the district can perform the4work or secure material for less than the lowest bid, it may proceed so to do5 purchasing shall be accomplished in accordance with the provisions of chapter 6 28, title 67, Idaho Code; 7 (e) To borrow money and incur indebtedness and evidence the same by cer- 8 tificate, notes or debentures, and to issue bonds, in accordance with the pro- 9 visions of thisactchapter; 10 (f) To acquire, dispose of and encumber real and personal property, and 11 any interest therein, including leases and easements within said district; 12 (g) To refund any bonded indebtedness of the district without any elec- 13 tion; provided, however, that the obligations of the district shall not be 14 increased by any refund of bonded indebtedness. Otherwise the terms and condi- 15 tions of refunding bonds shall be substantially the same as those of an origi- 16 nal issue of bonds; 17 (h) To have the management, control and supervision of all the business 18 and affairs of the district, and the construction, installation, operation and 19 maintenance of district facilities therein or therefor; 20 (i) To hire and retain agents, employees, engineers and attorneys; 21 (j) To construct and maintain works and establish and maintain facilities 22 across or along any public street or highway, and in, upon or over any vacant 23 public lands, which public lands are now, or may become, the property of the 24 state of Idaho, and to construct works and establish and maintain facilities 25 across any stream of water or watercourse; provided, however, that the dis- 26 trict shall promptly restore any such street or highway to its former state of 27 usefulness as nearly as may be, and shall not use the same in such manner as 28 to completely or unnecessarily impair the usefulness thereof; 29 (k) To fix and from time to time to increase or decrease rates, tolls or 30 charges for services or facilities furnished by the district, and to pledge 31 such revenue for the payment of any indebtedness of the district. The board 32 shall fix rates, tolls and charges; 33 (l) To petition to enlarge the district by obtaining the consent of not 34 less than ten percent (10%) of the qualified electors of any area to be so 35 included, and then to follow the procedure set forth herein for creating said 36 district; 37 (m) To promote any functions for said district, provided that said board 38 shall not engage in operations that are inconsistent with the purpose of said 39 district; and it shall be the policy of the board not to compete with existing 40 facilities and services in the district, wherever practicable; 41 (n) To adopt and amendby-lawsbylaws not in conflict with the constitu- 42 tion and laws of the state for carrying on the business, objects and affairs 43 of the board and of the districts; 44 (o) To have and exercise all rights and powers necessary or incidental to 45 or implied from the specific powers granted herein, except that districts 46 formed prior to January 1, 1987, or districts with twenty-five thousand 47 (25,000) or more population shall have no power to levy and collectad valorem48 property taxes. Such specific powers shall not be considered as a limitation 49 upon any power necessary or appropriate to carry out the purposes and intent 50 of thisactchapter. 51 SECTION 39. That Section 67-5711, Idaho Code, be, and the same is hereby 52 amended to read as follows: 42 1 67-5711. CONSTRUCTION, ALTERATION, EQUIPPING, FURNISHING AND REPAIR OF 2 PUBLIC BUILDINGS AND WORKS. The director of the department of administration, 3 or his designee, of the state of Idaho, is authorized and empowered, subject 4 to the approval of the permanent building fund advisory council, to provide or 5 secure all plans and specifications for, to let all contracts for, and to have 6 charge of and supervision of the construction, alteration, equipping and fur- 7 nishing, repair, maintenance other than preventive maintenance of any and all 8 buildings, improvements of public works of the state of Idaho, the cost of 9 which construction, alteration, equipping and furnishing, repair, maintenance 10 other than preventive maintenance exceeds the sum ofthirtyone hundred thou- 11 sand dollars ($3100,000) for labor, materials and equipment, which sum shall 12 exclude design costs, bid advertising and related bidding expenses, provided, 13 that the director or his designee, and permanent building fund advisory coun- 14 cil shall, in the letting of contracts under this section, comply with the 15 procedure for the calling of bids provided in section 67-5711C, Idaho Code; 16 provided, however, that this section shall not apply to the construction, 17 alteration, equipping or furnishing or repair or maintenance other than pre- 18 ventive maintenance of public buildings under the jurisdiction and control of 19 the board of regents of the university of Idaho; provided further, that the 20 bidding procedures required by this section and section 67-5711C, Idaho Code, 21 shall not apply to performance contracts as provided in section 67-5711D, 22 Idaho Code; provided further, that public works for the Idaho transportation 23 department, the department of fish and game, the department of parks and rec- 24 reation, and the department of lands, except for administrative office build- 25 ings and all associated improvements, are exempt from the provisions of this 26 section that relate to the administration and review of such projects by the 27 director of the department of administration or his designee and by the perma- 28 nent building fund advisory council. This exemption shall not relieve the 29 Idaho transportation department, the department of fish and game, the depart- 30 ment of parks and recreation, and the department of lands in the letting of 31 contracts for public works, from complying with the procedures of section 32 67-5711C, Idaho Code, related to the advertising and bidding for contracts. 33 The permanent building fund advisory council may adopt rules consistent with 34 existing law, including rules for a program of inspection and maintenance, to 35 carry out the provisions of thisactchapter. 36 SECTION 40. That Section 67-5711C, Idaho Code, be, and the same is hereby 37 amended to read as follows: 38 67-5711C. CONSTRUCTION OF PUBLIC PROJECTS -- COMPETITIVE SEALED BIDDING. 39 (1) All construction contracts for public works shall be awarded to the lowest 40 responsible and responsive bidder after receipt of competitive sealed bidding 41 except as otherwise provided in sections 67-5711B, 67-5711D and 67-5713, Idaho 42 Code. 43 (2) An invitation for bids shall be issued and shall include a project 44 description and all contractual terms and conditions applicable to the public 45 works. 46 (3) Adequate public notice of the invitation for bids shall be given at 47 least fourteen (14) days prior to the date set forth therein for the opening 48 of bids. Such notice shall include publication at least fourteen (14) days 49 prior to bid opening in a newspaper of general circulation in the area where 50 the work is located. 51 (4) When prequalification is deemed in the best interest of the state, 52 competitive bidding procedures shall be open only to licensed public works 53 contractors that meet preliminary supplemental qualifications. The solicita- 43 1 tion for bids in a prequalified bidder public works project shall consist of 2 two (2) stages, an initial stage for identifying prequalified contractors, 3 either prime or specialty contractors, followed by a stage during which bid 4 prices will be accepted only from prequalified contractors. Notice of the 5 prequalification stage shall be given in the same manner that notice of open 6 competitive bidding is provided. Prequalification standards must be premised 7 upon demonstrated technical competence, experience constructing similar facil- 8 ities, prior experience with the state, available nonfinancial resources, 9 equipment and personnel as they relate to the subject project, and overall 10 performance history based upon a contractor's entire body of work. Any request 11 for qualifications must include the standards for evaluating the qualifica- 12 tions of prospective bidders. Licensed contractors desiring to be prequalified 13 to bid on a project must submit a written response to a request for qualifica- 14 tions. After a review of qualification submittals, licensed contractors that 15 meet the prequalification standards shall be notified. Thereafter, bids may be 16 solicited from contractors that meet the prequalification standards. The 17 department may promulgate rules or develop procedures to implement the 18 prequalification process. 19 (5) Bids shall be opened publicly at the time and place designated in the 20 invitation for bids. The amount of each bid and such other relevant informa- 21 tion as may be specified by rules, together with the name of each bidder, 22 shall be entered on a record and the record shall be open to public inspec- 23 tion. After the time of the award all bids and bid documents shall be open to 24 public inspection in accordance with the provisions of sections 9-337 through 25 9-347 and 67-5725, Idaho Code. 26 (56) With respect to a project having a written cost estimate of greater 27 thantwotwenty-five thousandfive hundreddollars ($2,525,000) but less than 28 the public works limit established in section 67-5711, Idaho Code, the agency, 29 if it does not perform the work with existing physical plant staff, must award 30 a written contract to the lowest responsible and responsive bidder after 31 soliciting at least three (3) documented informal bids from contractors 32 licensed in Idaho to perform public works contracts, if reasonably available. 33 Adequate public notice of the invitation for informal bids shall be given at 34 least seven (7) days prior to the date set forth therein for the receipt of 35 the informal bids. Such notice may include publication at least seven (7) days 36 prior to bid opening in a newspaper of general circulation in the area where 37 the work is located; or the agency may advertise the invitation for bids in 38 appropriate trade journals, and otherwise notify persons believed to be inter- 39 ested in the award of a contract. Informal bids must be submitted by the con- 40 tractor in writing in response to a prepared written document describing the 41 project's scope of work in sufficient detail so as to enable a contractor 42 familiar with such work to prepare a responsible bid. Nothing herein exempts 43 an agency from the responsibility of utilizing formal plans and specifications 44 if the work involves the public health or safety as described in chapters 3 45 and 12, title 54, Idaho Code. The agency must document receipt of the informal 46 bids in the project file. 47 (67) Any personal property including goods, parts, supplies and equipment 48 which is to be supplied or provided by a state agency for use in any public 49 work, project, or preventive maintenance programs, whether the public work, 50 project, or preventive maintenance program is constructed, undertaken or per- 51 formed by agency in-house personnel, or by delegation pursuant to section 52 67-5710A, Idaho Code, or otherwise provided or supplied by the agency to a 53 contractor, the personal property, goods, parts, supplies or equipment sup- 54 plied or provided by the agency must be purchased or procured by the agency 55 through the division of purchasing in accordance with the Idaho Code. 44 1 SECTION 41. That Section 70-1612, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 70-1612. PURCHASING PROCEDURES -- CONTRACTS. (1)Upon all purchases4and/or works involving twenty-five thousand dollars ($25,000) or less, based5upon the liability assumed by a port district thereon, all material required6by a port district may be procured in the open market or by contract and all7work ordered may be done by contract or day labor. All such purchases and/or8works involving in excess of twenty-five thousand dollars ($25,000), as so9measured, shall be let upon contract in the manner herein provided. All such10contracts shall be let at public bidding upon notice published at least once11in a newspaper in the district at least ten (10) days before the letting,12calling for sealed bids upon the work, plans and specifications for which13shall then be on file in the office of the commission for public inspection.14The same noticeExcept as otherwise provided in this section and in section 15 70-1613, Idaho Code, procurement by port districts shall comply with the pro- 16 visions of chapter 28, title 67, Idaho Code. In addition to the standards 17 established thereby, a port district may also call for bids onsuchwork or 18 material based upon plans and specifications submitted by the bidder. 19 (2) Should emergency repairs to, or replacements of any equipment or 20 other property owned or operated by any port district, become necessary in 21 order to keep the port from ceasing operations, the port commission may, upon 22 passing a resolution declaring such emergency, cause such repairs or replace- 23 ments to be made without the necessity of compliance with subsection (1) of 24 this section. 25 (3) The provisions of subsection (1) of this section shall not apply to 26 the purchase or acquisition of used personal property. 27 SECTION 42. That Section 70-1613, Idaho Code, be, and the same is hereby 28 amended to read as follows: 29 70-1613. NOTICE -- AWARD OF CONTRACT -- BOND.The notice shall state gen-30erally the nature of the work to be done and require that bids be sealed and31filed with the commission at a time specified therein. Each bid shall be32accompanied by a bid proposal deposit in the form of a cashier's check, money33order or surety bid bond to the commission for a sum to be determined by the34commission but not less than five per cent (5%) of the amount of the bid, and35no bid shall be considered unless accompanied by such bid proposal deposit or36bond. Such notice shall further state the time and place at which such bids37shall be opened, and at such time and place a quorum of the commission shall38attend and publicly open and read such bids, andUpon following the procedural 39 steps established by chapter 28, title 67, Idaho Code, for receipt of bids, as 40 modified by provisions of this title, the port commission shall proceed to 41 canvass the bids, and at the proper time thereafter may let the contract upon 42 the bid which the commission determines to be the best responsible bid, 43 whether or not the same be the lowest bid, upon the plans and specifications 44 on file, or the best responsible bid of a bidder submitting his own plans and 45 specifications. If, in the opinion of the commission, all bids are unsatisfac- 46 tory, they may reject all of them andre-advertisereadvertise, and in such 47 case all such bid proposal deposits shall be returned to the bidders; but, if 48 the contract is let, then all bid proposal deposits shall be returned to the 49 bidders, except that of the successful bidder, which shall be retained until a 50 contract is entered into for the purchase of such material or doing of such 51 work. A bond shall be given to the port district by the successful bidder for 52 the performance of the contract and otherwise conditioned as required by law, 45 1 with surety satisfactory to the commission, in an amount to be fixed by the 2 commission, but not in any event less than twenty-fiveper centpercent (25%) 3 of the contract price. If said bidder fails to enter into the contract in 4 accordance with his bid and furnish such bond within ten (10) days from the 5 date on which he is notified that he is the successful bidder, the check or 6 money order and the amount thereof shall be forfeited to the port district, or 7 the port district shall recover the amount of the surety bid bond. In the 8 alternative, a port district may, by passage of a resolution by the board of 9 commissioners, elect to exclusively follow the provisions of chapter 28, title 10 67, Idaho Code, concerning procurement.
STATEMENT OF PURPOSE RS 15057 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 263