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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 - 2005
IN 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
42 left let, after thirty (30) days' notice for proposals, to the lowest bidder
43 who will give security for the completion of any contract he may make respect-
44 ing the same; and, provided further, no contracts for the purchase of furni-
45 ture must be let under the provisions of this section when the expenses there-
46 under will exceed one thousand dollars ($1,000). And, provided further, that
47 no part of the provisions of this section shall be construed to prevent the
48 board of county commissioners, from entering into a lease for courthouse prem-
49 ises, rooms and jail for any period in their discretion, not to exceed thirty
50 (30) years, and provided that the county commissioners may contract with
51 responsible parties for the leasing of a courthouse, jail and hospital, or a
52 combination of courthouse, jail and hospital, or fairground buildings and
3
1 facilities, to be constructed upon premises owned by the county or otherwise,
2 provided that said contract shall be let subject to the provisions of chapter
3 4028, of this title 67, Idaho Code; the contract also may provide that at the
4 expiration of the term of the lease, upon full performance of such lease by
5 the county, the said courthouse premises, rooms and jail, fairground buildings
6 and facilities, or so much thereof as is leased, may become the property of
7 the county. The board must also provide all necessary books of record for the
8 county auditor and recorder, county treasurer, county assessor, and tax col-
9 lector, clerk of the district court, county surveyor, and the books and sta-
10 tionery for the use of the board, and so much as is necessary for the use of
11 said county officers in the transaction of official business. Nothing herein
12 shall be construed as limiting or otherwise affecting a lease or other trans-
13 action between the Idaho health facilities authority and the board of county
14 commissioners as provided in section 31-836, Idaho Code.
15 SECTION 2. That Section 31-3615, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 31-3615. CONTRACTING AND PROCUREMENT POWERS OF BOARD. The county hospital
18 board shall have power to contract for, purchase and pay for all material,
19 equipment, services and supplies necessary or convenient for the efficient,
20 economical and successful operation and maintenance of the county hospital
21 properties. Notwithstanding the provisions of section 31-4003, Idaho Code,
22 tThe county hospital board may make expenditures which are not in excess of
23 ten thousand dollars ($10,000) without submitting the expenditure to bidding
24 procedures if the board believes that only one (1) supplier is available for
25 the product or service to be purchased in accordance with the provisions of
26 chapter 28, title 67, Idaho Code. Moreover, the county hospital board which
27 participates with other hospitals as a member of a group purchasing associa-
28 tion that engages in a formal competitive bidding process on behalf of member
29 institutions for the purchase of hospital supplies and equipment may utilize
30 that bidding process in lieu of the bidding requirements in established by
31 chapter 4028, title 3167, Idaho Code. Verification of participation in such
32 a group purchasing association shall be provided by the county hospital board
33 upon request of appropriate governmental officials. For purposes of this sub-
34 section, payment for services may include reasonable expenses incident to the
35 hiring or maintaining of hospital staff, chief executive officers, board mem-
36 bers or operating employee personnel, to be incurred and paid under rules and
37 regulations adopted and approved as described in section 31-3610, Idaho Code.
38 SECTION 3. That Chapter 40, Title 31, Idaho Code, be, and the same is
39 hereby repealed.
40 SECTION 4. That Section 33-402, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 33-402. NOTICE REQUIREMENTS. a. Notice of all school elections must be
43 given by posting and publishing notice of said elections and such notice shall
44 state:
45 1. The date of holding the election;
46 2. The hours between which the polls will be open;
47 3. The definite place or places of holding the election;
48 4. In the case of election of trustees, the offices to be filled, the
49 trustee zones, and a statement that declarations of candidacy must be
50 filed not later than 5:00 p.m. on the fifth Friday prior to the day of the
4
1 election;
2 5. In the case of bond election, the amount of the issue, the purpose and
3 period of the issue;
4 6. In the case of the assumption of a debt, the amount of any such debt
5 to be assumed by each district, or part of a district; and
6 7. In all other elections, a brief statement of the question being sub-
7 mitted to the electors.
8 b. In school elections involving (i) the incurring or increasing of a
9 debt, (ii) approving a levy for a plant facilities reserve fund and term
10 thereof, (iii) excising and annexing territory, (iv) consolidating districts,
11 or (v) dividing a district, notice of the election shall be posted not less
12 than twenty-one (21) days prior to the day of the election in at least three
13 (3) places in each district participating in or affected by such election, one
14 (1) of which places shall be at or near the main door of the administrative
15 offices of each such district, and by publishing at least once each week for
16 three (3) consecutive weeks prior to the day of the election in a newspaper as
17 provided in section 60-106, Idaho Code, published in the county or in any
18 county in which such district may lie and having general circulation within
19 such district.
20 c. Notice of all other school elections shall be given in the same man-
21 ner, except that the posting shall be for not less than ten (10) days, and
22 publishing shall be at least once each week for two (2) consecutive weeks
23 prior to the day of the election.
24 d. Notice of the deadline for filing declaration of candidacy for elec-
25 tion of trustees shall be posted for not less than ten (10) days and published
26 at least once each week for two (2) consecutive weeks prior to the last day
27 for filing nominating petitions as required by section 33-502, Idaho Code.
28 e. In elections for excising and annexing the territory of school dis-
29 tricts, or to create new school districts by consolidation or division, the
30 clerk of the board of county commissioners of the county in which the district
31 lies, or of the home county if the district be a joint district, shall pre-
32 pare, post, sign and arrange for the publishing of, the notice of election. In
33 all other elections it shall be the duty of the clerk of the board of trustees
34 so to do.
35 f. Notice of annual meeting of elementary school districts as provided
36 for in section 33-510, Idaho Code, and of intent to discontinue a school, as
37 provided for in section 33-511, Idaho Code, and annual budget hearing as pro-
38 vided for in section 33-801, Idaho Code, shall be given by posting and pub-
39 lishing as outlined in subsection b of this section except that posting shall
40 be for not less than ten (10) days, and publishing shall be once in a news-
41 paper as provided in section 60-106, Idaho Code, published within the dis-
42 trict, or, if there be none, then in a newspaper as provided in section
43 60-106, Idaho Code, published in the county in which such district lies. If
44 more than one (1) newspaper is printed and published in said district or
45 county, then in the newspaper most likely to give best general notice of the
46 election within said district; provided that if no newspaper is published in
47 the said district or county, then in a newspaper as provided in section
48 60-106, Idaho Code, most likely to give best general notice of the election
49 within the district.
50 g. Notices calling for bids for the acquisition, use, or disposal of real
51 and personal property as provided for in section 33-601, Idaho Code, and con-
52 tracting for transportation services as provided for in section 33-1510, Idaho
53 Code, shall be given by publishing twice, not less than one (1) week apart in
54 a newspaper as provided in section 60-106, Idaho Code, published within the
55 district, or, if there be none, then in a newspaper as provided in section
5
1 60-106, Idaho Code, published in the county in which such district lies. If
2 more than one (1) newspaper is printed and published in said district or
3 county, then in the newspaper most likely to give best general notice of the
4 election within said district; provided that if no newspaper is published in
5 the said district or county, then in a newspaper as provided in section
6 60-106, Idaho Code, most likely to give best general notice of the election
7 within the district. The notice inviting bids shall set a date and place for
8 opening bids. The first publication of the notice shall be at least two (2)
9 weeks before the date of opening the bids; as required by chapter 28, title
10 67, Idaho Code, except that the notice for contracting for transportation ser-
11 vices shall be made not less than four (4) weeks before the date of opening
12 bids.
13 h. Proof of posting notice shall be upon the affidavit of the person
14 posting the same; and proof of publication shall be upon the affidavit of the
15 publisher of the newspaper or newspapers respectively. Such affidavits shall
16 be filed with his board by the clerk responsible for the posting and the pub-
17 lishing of said notice, before the day of the election named in the notice.
18 SECTION 5. That Section 33-601, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 33-601. REAL AND PERSONAL PROPERTY -- ACQUISITION, USE OR DISPOSAL OF
21 SAME. The board of trustees of each school district shall have the following
22 powers and duties:
23 1. To rent to or from others, school buildings or other property used, or
24 to be used, for school purposes.
25 2. To contract for the construction, repair, or improvement of any real
26 property, or the acquisition, purchase or repair of any equipment, or other
27 personal property necessary for the operation of the school district.
28 Except for the purchase of curricular materials as defined in section
29 33-118A, Idaho Code, no such contract shall be executed which entails the
30 expenditure of twenty-five thousand dollars ($25,000) or more without notice
31 first being given by publishing twice in the manner required by subsections g.
32 and h. of section 33-402, Idaho Code, unless in cooperation with a cooperative
33 agency established pursuant to chapter 23, title 67, and/or sections 33-315
34 through 33-318, Idaho Code, or through a contract that has been competitively
35 bid by the state of Idaho, one (1) of its subdivisions, or an agency of the
36 federal government. The board of trustees may let the contract to the lowest
37 responsible bidder, or reject any bid, or reject all bids and publish notice
38 for bids, as before. If, thereafter, no satisfactory bid is received, the
39 board may proceed under its own direction in accordance with the provisions of
40 chapter 28, title 67, Idaho Code.
41 3. To designate and purchase any real property necessary for school pur-
42 poses or in the operation of the district, or remove any building, or dispose
43 of any real property. Prior to, but not more than one (1) year prior to, any
44 purchase or disposal of real property, the board shall have such property
45 appraised by an appraiser certified in the state of Idaho, which appraisal
46 shall be entered in the records of the board of trustees, and shall be used to
47 establish the value of the real property. The board of trustees shall deter-
48 mine the size of the site necessary for school purposes. The site shall be
49 located within the incorporated limits of any city within the district; pro-
50 vided, however, that if the board finds that it is not in the best interests
51 of the electors and the students of the district to locate the site within the
52 incorporated limits of a city, the board, by duly adopted resolution setting
53 forth the reasons for its finding, may designate a site located elsewhere
6
1 within the district. In elementary school districts, except upon removal for
2 highway purposes, a site may be designated or changed only after approval of
3 two-thirds (2/3) or more of the electors voting at the annual meeting.
4 4. (a) To convey, except as provided by paragraph (b) of this subsection,
5 by deed, bill of sale, or other appropriate instrument, all of the estate
6 and interest of the district in any property, real or personal. In elemen-
7 tary school districts, except such conveyance as is authorized by subsec-
8 tion 6. of this section, any of the transactions authorized in this sub-
9 section shall be subject to the approval of two-thirds (2/3) or more of
10 the electors voting at the annual meeting.
11 Prior to such sale or conveyance, the board shall have the property
12 appraised pursuant to this section, which appraisal shall be entered in
13 the records of the board of trustees. The property may be sold at public
14 auction or by sealed bids, as the board of trustees shall determine, to
15 the highest bidder. Such property may be sold for cash or for such terms
16 and conditions as the board of trustees shall determine for a period not
17 exceeding ten (10) years, with the annual rate of interest on all deferred
18 payments not less than seven percent (7%) per annum. The title to all
19 property sold on contract shall be retained in the name of the school dis-
20 trict until full payment has been made by the purchaser, and title to all
21 property sold under a note and mortgage or deed of trust shall be trans-
22 ferred to the purchaser at the point of sale under the terms and condi-
23 tions of the mortgage or deed of trust as the board of trustees shall
24 determine. Notice of the time and the conditions of such sale shall be
25 published twice, and proof thereof made, in accordance with subsections g.
26 and h. of section 33-402, Idaho Code, except that when the appraised value
27 of the property is less than one thousand dollars ($1,000), one (1) single
28 notice by publication shall be sufficient and the property shall be sold
29 by sealed bids or at public auction.
30 The board of trustees may accept the highest bid, may reject any bid,
31 or reject all bids. If the real property was donated to the school dis-
32 trict the board may, within a period of one (1) year from the time of the
33 appraisal, sell the property without additional advertising or bidding.
34 Otherwise, the board of trustees must have new appraisals made and again
35 publish notice for bids, as before. If, thereafter, no satisfactory bid is
36 made and received, the board may proceed under its own direction to sell
37 and convey the property. In no case shall any real property of the school
38 district be sold for less than its appraisal.
39 The board of trustees may sell personal property, with an estimated
40 value of less than one thousand dollars ($1,000), without appraisal, by
41 sealed bid or at public auction, provided that there has been not less
42 than one (1) published advertisement prior to the sale of said property.
43 If the board, by a unanimous vote of those members present, finds that the
44 property has an estimated value of less than five hundred dollars ($500)
45 and is of insufficient value to defray the costs of arranging a sale, the
46 property may be disposed of in the most cost-effective and expedient man-
47 ner by an employee of the district empowered for that purpose by the
48 board.
49 (b) Real and personal property may be exchanged hereunder for other prop-
50 erty. Provided, however, that aside from the provisions of this paragraph,
51 any school district may by a vote of one-half (1/2) plus one (1) of the
52 members of the full board of trustees, by resolution duly adopted, author-
53 ize the transfer or conveyance of any real or personal property owned by
54 such school district to the government of the United States, any city,
55 county, the state of Idaho, any hospital district organized under chapter
7
1 13, title 39, Idaho Code, any other school district, any library district,
2 any community college district, or any recreation district, with or with-
3 out any consideration accruing to the school district, when in the judg-
4 ment of the board of trustees it is for the interest of such school dis-
5 trict that said transfer or conveyance be made. Prior to any transfer or
6 conveyance of any real or personal property pursuant to this paragraph
7 4.(b), the board shall have the property appraised by an appraiser certi-
8 fied in the state of Idaho, which appraisal shall be entered in the
9 records of the board of trustees, and shall be used to establish the value
10 of the real or personal property.
11 5. To enter into contracts with any city located within the boundaries of
12 the school district for the joint purchase, construction, development, mainte-
13 nance and equipping of playgrounds, ball parks, swimming pools, and other rec-
14 reational facilities upon property owned either by the school district or the
15 city.
16 6. To convey rights-of-way and easements for highway, public utility, and
17 other purposes over, upon or across any school property and, when necessary to
18 the use of such property for any such purpose, to authorize the removal of
19 school buildings to such new location, or locations, as shall be determined by
20 the board of trustees, and such removal shall be made at no cost or expense to
21 the school district.
22 7. To authorize the use of any school building of the district as a com-
23 munity center, or for any public purpose, and to establish a policy of
24 charges, if any, to be made for such use.
25 8. To exercise the right of eminent domain under the provisions of chap-
26 ter 7, title 7, Idaho Code, for any of the uses and purposes provided in sec-
27 tion 7-701, Idaho Code.
28 9. If there is a great public calamity, such as an extraordinary fire,
29 flood, storm, epidemic, or other disaster, or if it is necessary to do emer-
30 gency work to prepare for national or local defense, or it is necessary to do
31 emergency work to safeguard life, health or property, the board of trustees
32 may pass a resolution declaring that the public interest and necessity demand
33 the immediate expenditure of public money to safeguard life, health or prop-
34 erty. Upon adoption of the resolution, the board may expend any sum required
35 in the emergency without compliance with this section.
36 SECTION 6. That Section 33-601A, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 33-601A. LEASING OF GOODS, EQUIPMENT, BUSES AND PORTABLE CLASSROOMS. No
39 provision of chapter 6, title 33, or chapter 28, title 67, Idaho Code, shall
40 be construed to prevent a board of trustees from entering into lease-purchase
41 agreements for goods, equipment, buses or portable classrooms, provided the
42 agreement is in writing and meets all of the following requirements:
43 (1) The annual lease payments shall reflect reasonable compensation for
44 use;
45 (2) No penalty shall be imposed on the school district for proper cancel-
46 lation of the lease;
47 (3) The right to exercise the option to purchase shall be at the sole
48 discretion of the school district; and
49 (4) The cost of purchase shall not exceed the reasonable value of the
50 goods, equipment, buses or portable classrooms as of the time the option to
51 purchase is exercised.
52 For the purposes of this section, "portable classroom" means a facility
53 which is not so related to particular real estate that an interest in it
8
1 arises under real estate law.
2 SECTION 7. That Section 40-901, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 40-901. APPLICATION. The requirements for contracts and bids shall that
5 apply to all county highway systems and highway districts of the state, but
6 shall be subject to the provisions of chapter 28, title 67, Idaho Code, in
7 concert with the provisions of any specific statute pertaining to the letting
8 of any contract or the purchase or acquisition of any commodity or thing by
9 any system or highway district by soliciting and receiving competitive bids,
10 and shall not be construed as modifying or amending the provisions of any
11 statute, nor preventing the district from doing any work by its own employees.
12 SECTION 8. That Sections 40-906, 40-907, 40-908, 40-909, 40-910, 40-911,
13 40-912 and 40-916, Idaho Code, be, and the same are hereby repealed.
14 SECTION 9. That Section 42-3115, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 42-3115. COMMISSIONERS -- POWERS AND DUTIES. The board of commissioners
17 of flood control districts shall have the following powers and duties:
18 1. To annually fix and determine, the amount of money required to be
19 raised by taxation to supply funds for costs of construction, costs of opera-
20 tion and maintenance of the work and equipment of the district, and to levy
21 and cause to be collected assessments on real property within the district in
22 an amount not to exceed six hundredths of one percent (.06%) of the market
23 value for assessment purposes on all taxable property within the district,
24 provided however that a higher levy may be approved and ratified by the quali-
25 fied voters at an election to be held, subject to the provisions of section
26 34-106, Idaho Code, for that purpose in the same manner as provided for the
27 approval and ratification of contracts, in section 42-3117, Idaho Code, and
28 said levy shall be certified by the board to the board of county commissioners
29 of the county, or counties, in which said district is located, with directions
30 that at the time and in the manner required by law for levying taxes for
31 county purposes, such board, or boards, of county commissioners shall levy
32 such tax upon the market value for assessment purposes of the real property
33 within the boundaries of the district. Such certification of levies shall be
34 prepared and forwarded by the board of the flood control district to the
35 board, or boards, of county commissioners on or before September 1 of each
36 year.
37 Such levies shall be levied and collected in the manner provided by law,
38 and the moneys collected shall be turned over to the treasurer or treasurers,
39 of the county, or counties, in which said district is located.
40 Said moneys shall be public funds and subject to the provisions of the
41 public depository laws of the state.
42 2. To employ such personnel as may be necessary to carry out the purposes
43 and objects of this act chapter, with the full power to bind said district for
44 the compensation of such personnel.
45 3. To sue and be sued in the name of the district; to have a seal, which
46 seal shall be judicially noticed; to have perpetual succession unless termi-
47 nated as hereinafter provided; to make and execute contracts and other instru-
48 ments necessary or convenient to the exercise of its power and to promulgate,
49 amend and repeal rules not consistent with the provisions of this chapter.
50 4. To manage and conduct the business and affairs of the district, both
9
1 within and without the district.
2 5. To construct, operate and maintain structural works of improvement for
3 the prevention of floodwater and sediment damages, and the conservation,
4 development, utilization, and disposal of water, whether within or without the
5 boundaries of the district, and to enter into contract for the purposes set
6 forth above, provided however, that the board shall not enter into contracts
7 that necessitate an expenditure in excess of fifteen thousand dollars
8 ($15,000), without first advertising for sealed competitive bids as herein
9 provided purchase goods and services in accordance with the provisions of
10 chapter 28, title 67, Idaho Code. However, where it is determined by order of
11 the board that there is an existing emergency, or where it is determined that
12 the district is in a flood fight resulting from unanticipated conditions, the
13 requirement for sealed competitive bids shall not apply.
14 6. To prescribe the duties of officers, agents and employees as may be
15 required.
16 7. To establish the fiscal year of the district and to keep records of
17 all business transactions of the district.
18 8. To prepare a statement of the financial condition of the district at
19 the end of each fiscal year, in a form to be prescribed by the director or by
20 the legislative services office, and publish in at least one (1) issue of some
21 newspaper published, or in general circulation in, the county, or counties, in
22 which such district is located and to file a certified copy of such financial
23 report with the director and the legislative services office on or before Feb-
24 ruary 2 of each year.
25 9. To have an audit of the financial affairs of the district as required
26 in section 67-450B, Idaho Code. A certified copy of said audit shall be filed
27 with the director on or before February 2 following the audit.
28 10. To obtain options upon and acquire by purchase, exchange, lease, gift,
29 grant, bequest, devise, or otherwise, any property, real or personal, and
30 improve any properties acquired; to receive income from such properties and to
31 expend such income in carrying out the purposes and provisions of this chap-
32 ter; to lease any of its property or interest therein in furtherance of the
33 purposes and provisions of this chapter, provided that no contract or agree-
34 ment for the acquisition, purchase or repair of personal property involving
35 expenditure in excess of one thousand dollars ($1,000), shall be entered into
36 without first advertising for sealed competitive bids as herein provided.
37 11. To have the power of eminent domain for the use of the district in the
38 construction, operation, maintenance and upkeep of its structures, waterways,
39 dikes, dams, basins, or any other use necessary in the carrying out of the
40 provisions of this chapter.
41 12. To convey rights-of-way and easements for highways, public roads, pub-
42 lic utilities, and for other purposes, over district property, as shall be
43 determined by the board to be in the best interests of the district.
44 13. To convey, by deed, bill of sale, or other appropriate instrument, all
45 of the estate and interest of the district, in any real or personal property.
46 Prior to such sale or conveyance, the board shall have the property appraised
47 by three (3) disinterested residents of the district, which appraisal shall be
48 entered in the minutes of the board. The property may be sold at public auc-
49 tion or at a private sale by sealed competitive bids, as the board shall
50 determine, to the highest cash bidder, provided that in no case shall any
51 property of a district be sold for less than its appraised value. All sales by
52 sealed competitive bids shall be advertised as herein provided.
53 14. To use natural streams and to improve the same for use as a flood con-
54 trol structure. However, in the event that the use of the natural stream
55 involves alteration of the stream channel, no such alteration shall be made by
10
1 the district until such alteration is approved by the director.
2 15. To enter into contracts or agreements with the United States or any of
3 its officers, agents, or subdivisions, or with the state or any of its offi-
4 cers, agents or political subdivisions, and to cooperate with such govern-
5 ments, persons or agencies in effectuating, promoting and accomplishing the
6 purposes of this chapter, provided that the district has sufficient moneys on
7 hand, or in their budget for the year in which said contract is entered into,
8 to defray the expenditure of funds called for in such contract without the
9 creation of any indebtedness.
10 Whenever any such contract shall, by its terms, require the expenditure of
11 funds by the district in excess of the moneys on hand or the funds to be real-
12 ized from their budget for the year in which said contract is entered into,
13 then such contract may not be entered into by the district until ratified by
14 two-thirds (2/3) of the qualified voters voting at an election to be held,
15 subject to the provisions of section 34-106, Idaho Code, for that purpose,
16 according to the provisions of this chapter.
17 16. To bear its allocated share of the cost of any project resulting from
18 any contract or agreement entered into as provided herein.
19 17. To take over, administer and maintain pursuant to any agreement or
20 contract entered into in accordance with the provisions of this act chapter,
21 any flood control project within or without the boundaries of the district
22 undertaken in cooperation with the United States or any of its agencies, or
23 with the state of Idaho or any of its agencies, or any combinations thereof.
24 18. To accept donations, gifts and contributions in money, services, or
25 materials, or otherwise, from the United States or any of its agencies, or the
26 state of Idaho or any of its agencies or any combinations thereof, and to
27 expend such moneys, services, or materials in carrying on its operations.
28 19. To exercise all other powers necessary, convenient or incidental to
29 carrying out the purposes and provisions of the chapter.
30 SECTION 10. That Section 42-3116, Idaho Code, be, and the same is hereby
31 repealed.
32 SECTION 11. That Section 42-3212, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 42-3212. GENERAL POWERS OF BOARD. For and on behalf of the district the
35 board shall have the following powers:
36 (a) To have perpetual existence;
37 (b) To have and use a corporate seal;
38 (c) To sue and be sued, and be a party to suits, actions and proceedings;
39 (d) Except as otherwise provided in this chapter, to enter into contracts
40 and agreements, cooperative and otherwise, affecting the affairs of the dis-
41 trict, including contracts with the United States of America and any of its
42 agencies or instrumentalities, and contracts with corporations, public or pri-
43 vate, municipalities, or governmental subdivisions, and to cooperate with any
44 one (1) or more of them in building, erecting or constructing works, canals,
45 pipelines, sewage treatment plants, and other facilities within or without the
46 district. Except in cases in which a district will receive aid from a govern-
47 mental agency, a notice shall be published for bids on all construction con-
48 tracts involving an expense of fifteen thousand dollars ($15,000) or more for
49 labor, materials and equipment, which sum shall exclude design costs, bid
50 advertising and related bidding expenses. The district may reject any and all
51 bids, and if it shall appear that the district can perform the work or secure
52 material for less than the lowest bid, it may proceed so to do procurement of
11
1 goods or services shall be in accordance with the provisions of chapter 28,
2 title 67, Idaho Code;
3 (e) To borrow money and incur indebtedness and evidence the same by cer-
4 tificate, notes or debentures, and to issue bonds, in accordance with the
5 provisions of this chapter;
6 (f) To acquire, dispose of and encumber real and personal property,
7 water, water rights, water and sewage systems and plants, and any interest
8 therein, including leases and easements within or without said district;
9 (g) To refund any bonded indebtedness of the district without an elec-
10 tion; provided, however, that the obligations of the district shall not be
11 increased by any refund of bonded indebtedness. Otherwise, the terms and con-
12 ditions of refunding bonds shall be substantially the same as those of an
13 original issue of bonds;
14 (h) To have the management, control and supervision of all the business
15 and affairs of the district, and the construction, installation, operation and
16 maintenance of district improvements therein or therefor;
17 (i) To hire and retain agents, employees, engineers and attorneys;
18 (j) To have and exercise the power of eminent domain in the manner pro-
19 vided by law for the condemnation of private property for public use to take
20 any property necessary to the exercise of the powers herein granted, both
21 within and without the district;
22 (k) To construct and maintain works and establish and maintain facilities
23 across or along any public street or highway, and in, upon, or over any vacant
24 public lands, which public lands are now, or may become, the property of the
25 state of Idaho, and to construct works and establish and maintain facilities
26 across any stream of water or watercourse, and to maintain access to facili-
27 ties and works by the removal of snow from roads and lands; provided, however,
28 that the district shall promptly restore any such street or highway to its
29 former state of usefulness as nearly as may be, and shall not use the same in
30 such manner as to completely or unnecessarily impair the usefulness thereof;
31 (l) To fix and from time to time to increase or decrease water and sewer
32 rates, tolls or charges for services or facilities furnished by the district,
33 and to pledge such revenue for the payment of any indebtedness of the dis-
34 trict. The board shall fix rates, tolls and charges and the time or times for
35 the payment thereof. All such rates, tolls and charges not paid within thirty
36 (30) days after the date fixed for the payment thereof shall become delin-
37 quent; the board shall certify all such delinquent rates, tolls and charges to
38 the tax collector of the county by the district, not later than the first day
39 of August and shall be, by said tax collector, placed upon the tax roll and
40 collected in the same manner and subject to the same penalties as other dis-
41 trict taxes; provided, however, that special assessments certified to the tax
42 collector which are placed on property qualifying for a hardship exemption may
43 be returned to the taxing district from which they originated if the special
44 assessments are not paid within three (3) years. The date of priority of such
45 lien shall be the date upon which such charge becomes delinquent. The board
46 shall shut off or discontinue service for delinquencies in the payment of such
47 rates, tolls or charges, or in the payment of taxes levied pursuant to this
48 chapter, and prescribe and enforce rules and regulations for the connection
49 with and the disconnection from properties of the facilities of the district.
50 For health and sanitary purposes the board shall have the power to compel the
51 owners of inhabited property within a sewer district to connect their property
52 with the sewer system of such district, and upon a failure so to connect
53 within sixty (60) days after written notice by the board so to do the board
54 may cause such connection to be made and a lien to be filed against the prop-
55 erty for the expense incurred in making such connection, provided, however,
12
1 that no owner shall be compelled to connect his property with such system
2 unless a service line is brought, by the district, to a point within two hun-
3 dred (200) feet of his dwelling place;
4 (m) To adopt and amend bylaws not in conflict with the constitution and
5 laws of the state for carrying on the business, objects and affairs of the
6 board and of the district;
7 (n) To have and exercise all rights and powers necessary or incidental to
8 or implied from the specific powers granted herein. Such specific powers shall
9 not be considered as a limitation upon any power necessary or appropriate to
10 carry out the purposes and intent of this chapter.
11 SECTION 12. That Section 42-4416, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 42-4416. COMMISSIONERS -- POWERS AND DUTIES. The board of commissioners
14 of levee districts shall have the following powers and duties:
15 (1) To annually fix and determine the amount of money required to be
16 raised by taxation to supply funds for costs of maintenance, operation, and/or
17 construction of the levees and equipment of the district, and to levy and
18 cause to be collected assessments on real property within the district in an
19 amount not to exceed eight hundredths percent (.08%) of each dollar of market
20 value for assessment purposes; provided, however, that a higher levy may be
21 approved and ratified by the qualified voters at an election to be held, sub-
22 ject to the provisions of section 34-106, Idaho Code, for that purpose, and
23 said levy shall be certified by the board to the board of county commissioners
24 of the county, or counties, in which said district is located, with directions
25 that at the time and in the manner required by law for levying taxes for
26 county purposes, such board, or boards, of county commissioners shall levy
27 such tax upon the real property within the boundaries of the district. Such
28 certification of levies shall be prepared and forwarded by the board of the
29 levee district to the board, or boards, of county commissioners on or before
30 September 1, of each year.
31 Such levies shall be levied and collected in the manner provided by law,
32 and the moneys collected shall be turned over to the treasurer or treasurers,
33 of the county, or counties, in which said district is located.
34 Said moneys shall be public funds and subject to the provisions of the
35 public depository laws of the state.
36 (2) To employ such personnel as may be necessary to carry out the pur-
37 poses and objects of this chapter, with the full power to bind said district
38 for the compensation of such personnel.
39 (3) To sue and be sued in the name of the district; to have a seal, which
40 seal shall be judicially noticed; to have perpetual succession unless termi-
41 nated as hereinafter provided; to make and execute contracts and other instru-
42 ments necessary or convenient to the exercise of its power and to promulgate,
43 amend and repeal rules and regulations not consistent with the provisions of
44 this chapter.
45 (4) To manage and conduct the business and affairs of the district, both
46 within and without the district.
47 (5) To maintain, operate and/or construct levees for containment of irri-
48 gation water and for the prevention of floodwater whether within or without
49 the boundaries of the district, and to enter into contract for the purposes
50 set forth above; provided, however, that the board shall not enter into con-
51 tracts that necessitate an expenditure in excess of five thousand dollars
52 ($5,000), without first advertising for sealed competitive bids as herein pro-
53 vided except in accordance with the provisions of chapter 28, title 67, Idaho
13
1 Code. However, where it is determined by order of the board that there is an
2 existing emergency, the requirement for sealed competitive bids shall not
3 apply.
4 (6) To prescribe the duties of officers, agents and employees as may be
5 required.
6 (7) To establish the fiscal year of the district and to keep records of
7 all business transactions of the district.
8 (8) To prepare a statement of the financial condition of the district at
9 the end of each fiscal year according to generally accepted accounting princi-
10 ples, and publish in at least one (1) issue of some newspaper published, or in
11 general circulation in, the county, or counties, in which such district is
12 located and to file a certified copy of such financial report with the direc-
13 tor of the department of water resources.
14 (9) To have an audit of the financial affairs of the district as required
15 in section 67-450B, Idaho Code.
16 (10) To obtain options upon and acquire by purchase, exchange, lease,
17 gift, grant, bequest, devise, or otherwise, any property, real or personal,
18 and improve any properties acquired; to receive income from such properties
19 and to expend such income in carrying out the purposes and provisions of this
20 chapter; to lease any of its property or interest therein in furtherance of
21 the purposes and provisions of this chapter, provided that no any contract or
22 agreement for the acquisition, purchase or repair of personal property involv-
23 ing expenditure in excess of one thousand dollars ($1,000), shall be entered
24 into without first advertising for sealed competitive bids as herein provided
25 in accordance with the provisions of chapter 28, title 67, Idaho Code.
26 (11) To have the power of eminent domain for the use of the district in
27 the maintenance, operation, and construction of its levees or any other use
28 necessary in the carrying out of the provisions of this chapter.
29 (12) To convey rights-of-way and easements for highways, public roads,
30 public utilities, and for other purposes, over district property, as shall be
31 determined by the board to be in the best interests of the district.
32 (13) To convey, by deed, bill of sale, or other appropriate instrument,
33 all of the estate and interest of the district, in any real or personal prop-
34 erty. Prior to such sale or conveyance, the board shall have the property
35 appraised by three (3) disinterested residents of the district, which
36 appraisal shall be entered in the minutes of the board. The property may be
37 sold at public auction or at a private sale by sealed competitive bids, as the
38 board shall determine, to the highest cash bidder, provided that in no case
39 shall any property of a district be sold for less than its appraised value.
40 All sales by sealed competitive bids shall be advertised as herein provided.
41 (14) To enter into contracts or agreements with the United States or any
42 of its officers, agents or subdivisions, or with the state or any of its offi-
43 cers, persons or agencies in effectuating, promoting and accomplishing the
44 purposes of this chapter, provided that the district has sufficient moneys on
45 hand, or in their budget for the year in which said contract is entered into,
46 to defray the expenditure of funds called for in such contract without the
47 creation of any indebtedness.
48 Whenever any such contract shall, by its terms, require the expenditure of
49 funds by the district in excess of the moneys on hand or the funds to be real-
50 ized from their budget for the year in which said contract is entered into,
51 then such contract may not be entered into by the district until ratified by
52 two-thirds (2/3) of the qualified voters voting at an election to be held,
53 subject to the provisions of section 34-106, Idaho Code, for that purpose,
54 according to the provisions of this chapter.
55 (15) To bear its allocated share of the cost of any project resulting from
14
1 any contract or agreement entered into as provided herein.
2 (16) To take over, administer and maintain pursuant to any agreement or
3 contract entered into in accordance with the provisions of this chapter, any
4 levee project within or without the boundaries of the district undertaken in
5 cooperation with the United States or any of its agencies, or with the state
6 of Idaho or any of its agencies, or any combinations thereof.
7 (17) To accept donations, gifts and contributions in money, services, or
8 materials or otherwise, from the United States or any of its agencies, or the
9 state of Idaho or any of its agencies or any combinations thereof, and to
10 expend such moneys, services, or materials in carrying on its operations.
11 (18) To exercise all other powers necessary, convenient or incidental to
12 carrying out the purposes and provisions of this chapter.
13 SECTION 13. That Section 43-318A, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 43-318A. TRADE-IN OR EXCHANGE OF DISTRICT PROPERTY. Whenever the board of
16 directors of an irrigation district finds and by resolution declares that the
17 district no longer has use for any personal property of the district, or finds
18 and declares that such property is no longer economical to use, the district
19 may, in lieu of the sale of said property as provided in section 43-318, Idaho
20 Code, dispose of the property by exchanging the same in part payment for new
21 or replacement property.
22 If the acquisition of the new or replacement property is required to be
23 let to bid under the provisions of section 43-901 chapter 28, title 67, Idaho
24 Code, the district shall include in its request for bids, a full description
25 of the property to be exchanged as part payment, and shall permit any inter-
26 ested bidder to examine the same, and any contract let as a result of said bid
27 shall be awarded on the basis of net cost to the district after allowance for
28 the property to be exchanged in part payment.
29 Exchange of property will be permitted only when, in the opinion of the
30 board of directors of the district, the sale of the property under the provi-
31 sions of section 43-318, Idaho Code, will yield a lesser monetary return to
32 the district than the exchange thereof as herein provided.
33 SECTION 14. That Section 43-901, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 43-901. CONTRACTS FOR CONSTRUCTION WORK AND PURCHASING. A. The following
36 provisions relative to competitive bidding set forth in chapter 28, title 67,
37 Idaho Code, apply to all irrigation districts of the state of Idaho, but shall
38 be subject to the provisions of any specific statute pertaining to the letting
39 of any contract, purchase or acquisition of any commodity or thing by solic-
40 iting and receiving competitive bids therefor, and shall not be construed as
41 modifying or amending the provisions of any such statute, nor preventing the
42 irrigation district from doing any work by its own employees.
43 B. The word "expenditure" shall mean the granting of a contract to
44 another by the irrigation district, the construction of any works, or any por-
45 tion thereof, and every manner and means whereby the irrigation district dis-
46 burses funds or obligates itself to disburse funds; provided, however, that
47 "expenditure" does not include disbursement of funds to any irrigation dis-
48 trict employee, official, agent, or for the performance of personal services
49 to the irrigation district, or for the acquisition of personal property
50 through a contract that has been competitively bid by the state of Idaho, one
51 of its subdivisions or an agency of the federal government, and does not
15
1 include the purchase of used personal property.
2 C. When the expenditure contemplated exceeds twenty-five thousand dollars
3 ($25,000), the expenditure shall be contracted for and let to the lowest
4 responsible bidder.
5 D. The notice inviting bids shall set a date and place for the opening of
6 bids. The first publication of the notice shall be at least two (2) weeks
7 before the date of opening the bids. Notice shall be published at least twice,
8 not less than one (1) week apart, in the official newspaper of such irrigation
9 district. The notice shall succinctly set forth the project or construction to
10 be done. Any of the following documents shall be made available, upon reason-
11 able deposit, to any interested bidder: bid form, bidder's instructions, con-
12 tract documents, general and special instructions, drawings and specifica-
13 tions.
14 E. All bids shall be presented or otherwise delivered under sealed cover
15 to the secretary with a concise statement marked on the outside thereof gener-
16 ally identifying the expenditure to which said bid pertains. All bids shall
17 contain one (1) of the following forms of bidder's security:
18 a. Cash;
19 b. Cashier's check made payable to the irrigation district;
20 c. A certified check made payable to the irrigation district;
21 d. A bidder's bond executed by a qualified surety company, made payable
22 to the irrigation district.
23 F. The security shall be an amount equal to at least ten percent (10%) of
24 the amount bid. A bid shall not be considered unless one (1) of the forms of
25 bidder's security is enclosed with it, and unless the bid is submitted in a
26 form which substantially complies with the form provided by the irrigation
27 district.
28 G. Any bid received by the irrigation district may not be withdrawn after
29 the time set in the notice for opening of bids. All bids received must be
30 opened at the time and place set in the notice inviting bids, and no person
31 shall be denied the right to be present at the opening of bids.
32 H. If the successful bidder fails to execute the contract, the amount of
33 his bidder's security shall be forfeited to the irrigation district and the
34 proceeds shall be deposited in the fund out of which the expenses of prepara-
35 tion and printing of the plans and specifications, estimates of costs and pub-
36 lication of notice are paid.
37 I. The irrigation district may, on refusal or failure of the successful
38 bidder to execute the contract, award it to the next lowest responsible bid-
39 der. If the board awards the contract to the next lowest responsible bidder,
40 the amount of the said lowest responsible bidder's security shall be applied
41 by the irrigation district to the difference between the said lowest responsi-
42 ble bid and the said next lowest responsible bid, and the surplus, if any,
43 shall be returned to the said lowest bidder if cash or check is used, or to
44 the surety on the bidder's bond if a bond is used.
45 J. In its discretion, the board may reject any bids presented and read-
46 vertise. If two (2) or more bids are the same and the lowest responsible bids,
47 the board may accept the one it chooses. If no bids are received, the board
48 may make the expenditure without further compliance with this section.
49 K. After rejecting bids, the board may, after finding it to be a fact,
50 pass a resolution declaring that the thing sought to be accomplished by the
51 expenditure can be performed more economically by day labor, or the materials
52 or supplies furnished at a lower price in the open market. Upon adoption of
53 the resolution, it may have the thing sought to be accomplished done in the
54 manner stated without further compliance with this section.
55 L. If there is a great public calamity, as an extraordinary fire, flood,
16
1 storm, epidemic or other disaster, or if it is necessary to do emergency work
2 to prepare for national or local defense, or if the irrigation system of the
3 district has been seriously damaged or impaired, the board may pass a resolu-
4 tion declaring that the public interest and necessity demand the immediate
5 expenditure of public money to safeguard life, health or property or to
6 replace or repair any damaged portion of the irrigation system or to remove
7 any impediment therefrom. Upon adoption of the resolution, it may expend any
8 sum required in the emergency without compliance with this section.
9 SECTION 15. That Section 43-903, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 43-903. NOTICE FOR BIDS DISPENSED WITH. On the petition of fifty (50) or
12 a majority of the owners of land in said district, to be determined as pro-
13 vided by section 43-101, Idaho Code, the board of directors may do any work
14 mentioned in the preceding section on behalf of the district, and it may use
15 the construction fund therefor; in such case they need not publish notice for
16 bids as provided in the last preceding section 43-901, Idaho Code.
17 SECTION 16. That Section 43-2508, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 43-2508. RESOLUTION CREATING LOCAL IMPROVEMENT DISTRICT AND PROCEDURE FOR
20 CONSTRUCTION BIDS. If, after the hearing on the creation of the district, the
21 board finds that the local improvement district will be for the best interest
22 of the property affected and the district; that there is reasonable probabil-
23 ity that the obligations of such local improvement district will be paid; and
24 the value of the property within the proposed local improvement district is
25 sufficient; it shall then adopt a resolution providing for such improvements
26 and creating a local improvement district to be called "Local Improvement Dis-
27 trict No. ... for ............ Irrigation District, Idaho," which shall
28 include all of the property within said local improvement district in accor-
29 dance with the findings of the board, and said resolution shall set forth the
30 boundaries of the local improvement district, provide the improvements which
31 shall be made, and state that the total cost and expenses thereof shall be
32 assessed according to the percentage or calculation hereinbefore mentioned on
33 all benefited property in the local improvement district by using the gross
34 acreage method of assessment contemplated in the notice of intention subject
35 to any variation therefrom as a result of the board's determining that the
36 benefits to be derived by certain lots or parcels of property warrant such
37 variations. The board shall appoint an engineer and shall have prepared the
38 necessary plans and specifications for the construction work ordered. Except
39 as hereinafter otherwise provided, the board shall authorize the advertisement
40 for bids therefor by giving notice calling for sealed bids for the construc-
41 tion of the work in accordance with the provisions of chapter 28, title 67,
42 Idaho Code.
43 Notice of advertisement for bids shall be published in the official news-
44 paper of the district in three (3) consecutive weekly issues, which notice
45 shall contain a general description of the kind and amount of work to be done,
46 state that the plans and specifications for said work are on file in the
47 office of the engineer or secretary for inspection and state the date, hour
48 and place of the bid opening.
49 Each bidder shall accompany his bid with bidder's security as provided in
50 section 43-901, Idaho Code, in the amount of ten percent (10%) of his bid. In
51 case the contract for any such work is offered to such bidder and he fails or
17
1 refuses to enter into the contract, then such security shall be forfeited to
2 the district and placed in the local improvement fund of such district. These
3 provisions also shall appear in said notice.
4 Award shall be made to the lowest responsible bidder fulfilling the
5 requirements.
6 Any contract made by a district for any improvements authorized by this
7 code shall be made by the board in the name of the district upon such terms of
8 payment as shall be fixed by the board. The contract shall be authorized by
9 resolution empowering the authorized officer of the district to execute the
10 contract. The resolution need not set out the contract in full but it shall be
11 sufficient if the resolution refers to a copy of the contract on file in the
12 office of the secretary where it is available for public inspection.
13 Any provision in this local improvement district for irrigation districts
14 code notwithstanding, if any district shall elect to exercise the powers
15 herein granted jointly with another irrigation district or districts, or with
16 any other public agency or agencies as authorized by the provisions of section
17 67-2328, Idaho Code, the improvements as contemplated within the local
18 improvement district may be constructed jointly and as part of a larger proj-
19 ect with such other agency or agencies upon the letting of a single contract
20 after compliance with the required bidding procedure for any Idaho public
21 agency jointly participating in the work.
22 SECTION 17. That Section 50-341, Idaho Code, be, and the same is hereby
23 repealed.
24 SECTION 18. That Section 50-342, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 50-342. ELECTRIC POWER -- PURCHASE OR DISPOSAL. In addition to the powers
27 otherwise conferred on cities of this state, a city owning and operating an
28 electric distribution system shall have the authority to:
29 (a) Purchase, or generate, or both, electric power and energy for the
30 purpose of disposing of such power and energy to the United States of America,
31 department of energy, acting by and through the Bonneville power administra-
32 tion, or its successor, through exchange, net billing or any arrangement which
33 is used for supplying the needs of the city for electric power or energy;
34 (b) Enter into power sales or power purchase contracts with entities
35 engaged in generating, transmitting, or distributing electric power and energy
36 to provide for the purchase, sale or exchange of electric power or energy upon
37 such terms and conditions as shall be specified in the power sales or purchase
38 contract; and
39 (c) Establish, operate and fund energy conservation or other public pur-
40 pose programs for the purpose of promoting efficient use of energy and energy
41 conservation by city consumers including, but not limited to, programs to
42 install energy efficient and energy conservation devices or measures in con-
43 sumer buildings and structures served by the city and to grant low-interest
44 loans to city consumers for the installation of such measures, provided such
45 measures are provided on a nondiscriminatory basis to all classes of customers
46 similarly situated;
47 and such authority shall not be subject to the requirements, limitations, or
48 procedures contained in sections 50-325, 50-327 and 50-341 chapter 28, title
49 67, Idaho Code.
50 SECTION 19. That Section 50-344, Idaho Code, be, and the same is hereby
51 amended to read as follows:
18
1 50-344. SOLID WASTE DISPOSAL. (1) Cities shall have the power to maintain
2 and operate solid waste collection systems. Such maintenance and operation
3 may, by exclusive or nonexclusive means, be performed by:
4 (a) Employees, facilities, equipment and supplies engaged or acquired by
5 cities;
6 (b) Contracts, franchises or otherwise providing maintenance and opera-
7 tion performed by private persons;
8 (c) Contracts providing for maintenance and operation performed by
9 another unit of government;
10 (d) Contracts, franchises or otherwise for maintenance and operation that
11 may provide solid waste collection for all or geographic parts of a city;
12 (e) Any combination of paragraphs (a), (b), (c), and (d) of this section.
13 (2) Upon a finding by the mayor or city manager for public safety or nec-
14 essary protection of public health and welfare and property, the provisions of
15 section 50-341 chapter 28, title 67, Idaho Code, shall not apply to solid
16 waste collection, as provided herein.
17 (3) Before entering into such contracts, franchises or otherwise, a city
18 may require such security for the performance thereof as it deems appropriate
19 or may waive such undertaking.
20 SECTION 20. That Section 50-1710, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 50-1710. ORDINANCE CREATING IMPROVEMENT DISTRICT AND PROCEDURE FOR CON-
23 STRUCTION BIDS. If, after the hearing on the creation of the district, the
24 council finds (a) that the district will be for the best interest of the prop-
25 erty affected and the municipality, (b) that there is reasonable probability
26 that the obligations of such district will be paid, and (c) the value of the
27 property within the proposed district, including the proposed improvements, is
28 sufficient, it shall then enact an ordinance providing for such improvements
29 and creating a local improvement district to be called "Local Improvement Dis-
30 trict No. ...... for ............, Idaho," which shall include all of the
31 property within said district in accordance with the findings of the council,
32 and said ordinance shall set forth the boundaries of the district, provide the
33 improvements which shall be made, and state that the total cost and expenses
34 thereof shall be assessed according to the percentage or calculation hereinbe-
35 fore mentioned on all benefited property in the district by using the method
36 of assessment contemplated in the notice of intention subject to any variation
37 therefrom as a result of the council's determining that the benefits to be
38 derived by certain lots or parcels of property warrant such variations. The
39 council may either purchase, acquire or construct the improvements. The coun-
40 cil shall appoint an engineer. If the council elects to construct the improve-
41 ments, the engineer shall have prepared the necessary plans and specifications
42 for the construction work ordered.
43 Except as hereinafter otherwise provided, the council shall authorize the
44 advertisement for bids therefor by giving notice calling for sealed bids for
45 the construction of the work. Notice of advertisement for bids shall be pub-
46 lished in the official newspaper of the municipality in three (3) consecutive
47 weekly issues, which notice shall (a) contain a general description of the
48 kind and amount of work to be done, (b) state that the plans and specifica-
49 tions for said work are on file in the office of the engineer or clerk for
50 inspection and (c) state the date, hour and place of the bid opening in accor-
51 dance with the provisions of chapter 28, title 67, Idaho Code.
52 Each bidder shall accompany his bid with bidder's security as provided in
53 section 50-341, Idaho Code, in the amount of five percent (5%) of his bid. In
19
1 case the contract for any such work is offered to such bidder and he fails or
2 refuses to enter into the contract, then such security shall be forfeited to
3 the municipality and placed in the local improvement fund of such district.
4 These provisions also shall appear in said notice.
5 Award shall be made to the lowest responsible bidder fulfilling the
6 requirements.
7 Any acquisition, purchase or construction contract made by a municipality
8 for any improvements authorized by this code shall be made by the council in
9 the name of the municipality upon such terms of payment as shall be fixed by
10 the council. The contract shall be authorized by resolution empowering the
11 authorized officer of the municipality to execute the contract. The resolution
12 need not set out the contract in full but it shall be sufficient if the reso-
13 lution refers to a copy of the contract on file in the office of the clerk
14 where it is available for public inspection.
15 Any provision in this local improvement district code notwithstanding, if
16 any municipality shall elect to exercise the powers herein granted jointly
17 with any other public agency or agencies as authorized by the provisions of
18 section 67-2328, Idaho Code, the improvements as contemplated within the local
19 improvement district may be constructed jointly and as part of a larger proj-
20 ect with such other agency or agencies upon the letting of a single contract
21 after compliance with the required bidding procedure for any Idaho public
22 agency jointly participating in the work.
23 SECTION 21. That Section 50-2006, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 50-2006. URBAN RENEWAL AGENCY. (a) There is hereby created in each munic-
26 ipality an independent public body corporate and politic to be known as the
27 "urban renewal agency" for the municipality; provided, that such agency shall
28 not transact any business or exercise its powers hereunder until or unless the
29 local governing body has made the findings prescribed in section 50-2005,
30 Idaho Code.
31 (b) Upon the local governing body making such findings, the urban renewal
32 agency is authorized to transact the business and exercise the powers hereun-
33 der by a board of commissioners to be appointed or designated as follows:
34 (1) The mayor, by and with the advice and consent of the local governing
35 body, shall appoint a board of commissioners of the urban renewal agency
36 which shall consist of not less than three (3) commissioners nor more than
37 nine (9) commissioners. In the order of appointment, the mayor shall des-
38 ignate the number of commissioners to be appointed, and the term of each,
39 provided that the original term of office of no more than two (2) commis-
40 sioners shall expire in the same year. The commissioners shall serve for
41 terms not to exceed five (5) years, from the date of appointment, except
42 that all vacancies shall be filled for the unexpired term. For ineffi-
43 ciency or neglect of duty or misconduct in office, a commissioner may be
44 removed only after a hearing and after he shall have been given a copy of
45 the charges at least ten (10) days prior to such hearings and have had an
46 opportunity to be heard in person or by counsel.
47 (2) By enactment of an ordinance, the local governing body may appoint
48 and designate itself to be the board of commissioners of the urban renewal
49 agency, in which case all the rights, powers, duties, privileges and immu-
50 nities vested by the urban renewal law of 1965, and as amended, in an
51 appointed board of commissioners, shall be vested in the local governing
52 body, who shall, in all respects when acting as an urban renewal agency,
53 be acting as an arm of state government, entirely separate and distinct
20
1 from the municipality, to achieve, perform and accomplish the public pur-
2 poses prescribed and provided by said urban renewal law of 1965, and as
3 amended.
4 (3) By enactment of an ordinance, the local governing body may terminate
5 the appointed board of commissioners and thereby appoint and designate
6 itself as the board of commissioners of the urban renewal agency.
7 (c) A commissioner shall receive no compensation for his services but
8 shall be entitled to the necessary expenses, including traveling expenses,
9 incurred in the discharge of his duties. Each commissioner shall hold office
10 until his successor has been appointed and has qualified. A certificate of the
11 appointment or reappointment of any commissioner shall be filed with the clerk
12 of the municipality and such certificate shall be conclusive evidence of the
13 due and proper appointment of such commissioner.
14 The powers of an urban renewal agency shall be exercised by the commis-
15 sioners thereof. A majority of the commissioners shall constitute a quorum for
16 the purpose of conducting business and exercising the powers of the agency and
17 for all other purposes. Action may be taken by the agency upon a vote of a
18 majority of the commissioners present, unless in any case the bylaws shall
19 require a larger number.
20 The mayor may appoint a chairman, a cochairman, or a vice chairman for a
21 term of office of one (1) year from among the commissioners, thereafter the
22 commissioners shall elect the chairman, cochairman or vice chairman for a term
23 of one (1) year from among their members. An agency may employ an executive
24 director, technical experts and such other agents and employees, permanent and
25 temporary, as it may require, and determine their qualifications, duties and
26 compensation. For such legal service as it may require, an agency may employ
27 or retain its own counsel and legal staff. An agency authorized to transact
28 business and exercise powers under this act chapter shall file, with the local
29 governing body, on or before March 31 of each year a report of its activities
30 for the preceding calendar year, which report shall include a complete finan-
31 cial statement setting forth its assets, liabilities, income and operating
32 expense as of the end of such calendar year. At the time of filing the report,
33 the agency shall publish in a newspaper of general circulation in the commu-
34 nity a notice to the effect that such report has been filed with the munici-
35 pality and that the report is available for inspection during business hours
36 in the office of the city clerk or county recorder and in the office of the
37 agency.
38 (d) An urban renewal agency shall have the same fiscal year as a munici-
39 pality and shall be subject to the same audit requirements as a municipality.
40 An urban renewal agency shall be required to prepare and file with its local
41 governing body an annual financial report and shall prepare, approve and adopt
42 an annual budget for filing with the local governing body, for informational
43 purposes. A budget means an annual estimate of revenues and expenses for the
44 following fiscal year of the agency.
45 (e) An urban renewal agency shall comply with the public records law pur-
46 suant to chapter 3, title 9, Idaho Code, open meetings law pursuant to chapter
47 23, title 67, Idaho Code, the ethics in government law pursuant to chapter 7,
48 title 59, Idaho Code, and the competitive bidding provisions of section 50-341
49 chapter 28, title 67, Idaho Code.
50 SECTION 22. That Section 50-2620, Idaho Code, be, and the same is hereby
51 amended to read as follows:
52 50-2620. BIDS REQUIRED -- MONETARY AMOUNT. Any city authorized by this
53 chapter to establish a business improvement district shall call for competi-
21
1 tive bids by appropriate public notice and award contracts, whenever the esti-
2 mated cost of such work or improvement, including cost of materials, supplies
3 and equipment, exceeds the sum of five thousand dollars ($5,000) conduct its
4 purchasing activities in accordance with the provisions of chapter 28, title
5 67, Idaho Code.
6 SECTION 23. That Section 50-2621, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 50-2621. COMPUTING COST OF IMPROVEMENT FOR BID REQUIREMENT. The cost of
9 the improvement for the purposes of this chapter shall be aggregate of all
10 amounts to be paid for the labor, materials and equipment on one (1) continu-
11 ous or interrelated project where work is to be performed simultaneously or in
12 near sequence. Breaking an improvement into small units for the purposes of
13 avoiding the minimum dollar amount prescribed in section 50-2620 chapter 28,
14 title 67, Idaho Code, is contrary to public policy and is prohibited.
15 SECTION 24. That Section 54-1901, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 54-1901. LEGISLATIVE INTENT -- DEFINITIONS. (1) The legislature finds
18 that it is in the best interests of the people of the state of Idaho to estab-
19 lish a process for licensure of public works contractors to be administered
20 through the public works contractors license board. To assure that experienced
21 and qualified contractors provide services to public entities in Idaho, the
22 board is charged with licensing as provided in this chapter. Effective licens-
23 ing procedures should assure that contractors of integrity provide work for
24 which they have specific experience and expertise and that public facilities
25 are constructed and rebuilt by efficient and cost-effective means. Licensing
26 should also protect the public health and safety through judicious exercise of
27 investigative, disciplinary and enforcement activities.
28 (2) For the interpretation of this chapter, unless the context indicates
29 a different meaning:
30 (a) "Person" includes any individual, firm, copartnership, corporation,
31 limited liability company, limited liability partnership, association or
32 other organization, or any combination thereof acting as a unit.
33 (b) "Public works contractor," which term is synonymous with the term
34 "builder," "subcontractor" and "specialty contractor," and in this chapter
35 referred to as "contractor" or "licensee," includes any person who, in any
36 capacity, undertakes, or offers to undertake, or purports to have the
37 capacity to undertake any construction, repair or reconstruction of any
38 public work, or submits a proposal to, or enters into a contract with, the
39 state of Idaho, or any county, city, school district, sewer district, fire
40 district, or any other taxing subdivision or district of any public or
41 quasi-public corporation of the state, or with any agency, or with any
42 other public board, body, commission, department or agency, or officer or
43 representative thereof, authorized to let or award contracts for the con-
44 struction, repair or reconstruction of any public work.
45 (c) "Public works construction" includes any or all of the following
46 branches:
47 (1i) Heavy construction, which is defined as constructing substan-
48 tially in its entirety any fixed works and structures (not including
49 "building construction"), without limitation, for any or all of the
50 following divisions of subjects: irrigation, drainage, sanitation,
51 sewage, water power, water supply, reservoirs, flood control, recla-
22
1 mation, inland waterways, railroads, grade separations, track eleva-
2 tion, elevated highways, hydroelectric developments, aqueducts,
3 transmission lines, duct lines, pipelines, locks, dams, dykes dikes,
4 levees, revetments, channels, channel cutoffs, intakes, drainage,
5 excavation and disposal of earth and rocks, foundations, piers, abut-
6 ments, retaining walls, viaducts, shafts, tunnels, airports, air
7 bases and airways, and other facilities incidental to the same;
8 (2ii) Highway construction, which is defined as all work included in
9 highway construction contracts, including, without limitation, high-
10 ways, roads, streets, bridges, tunnels, sewer and street grading,
11 street paving, curb setting, surfacing and other facilities inci-
12 dental to any of the same;
13 (3iii) Building construction, which is defined as all work in con-
14 nection with any structure now built, being built, or hereafter
15 built, for the support, shelter and inclosure enclosure of persons,
16 chattels, personal and movable property of any kind, requiring in its
17 construction the use of more than two (2) unrelated building trades
18 or crafts.
19 (4iv) Specialty construction, which is defined as any work in con-
20 nection with any public works construction, requiring special skill
21 and the use of specially skilled trades or crafts.
22 (d) "Board" means the board created by this chapter under the name of
23 "public works contractors license board."
24 (e) "Administrator" means the administrator of the division of building
25 safety.
26 (f) "Year" means the fiscal year ending June 30, each year.
27 (g) "Federal aid funds" means a direct grant in aid, matching funds, or
28 loan from an agency of the federal government and designated for a spe-
29 cific public works project. Revenue sharing funds, federal impact funds,
30 timber stumpage fees, and similar indirect allowances and subsidies not
31 designated for a specific public works project shall not be regarded as
32 "federal aid funds" within the meaning of this section.
33 (h) "Government obligation" means a public debt obligation of the United
34 States government or the state of Idaho and an obligation whose principal
35 and interest is unconditionally guaranteed by the United States government
36 or the state of Idaho.
37 (i) "Public entity" means the state of Idaho, or any county, city, school
38 district, sewer district, fire district, or any other taxing subdivision
39 or district of any public or quasi-public corporation of the state, or any
40 agency thereof, or with any other public board, body, commission, depart-
41 ment or agency, or officer or representative thereof.
42 (j) "Bid" or "bidder" means any proposal submitted by a public works con-
43 tractor to a public entity in competitive bidding for the construction,
44 alteration, repair or improvement of any public works construction.
45 SECTION 25. That Section 54-1903, Idaho Code, be, and the same is hereby
46 amended to read as follows:
47 54-1903. EXEMPTIONS. This act chapter shall not apply to:
48 (a) An authorized representative of the United States government, the
49 state of Idaho, or any incorporated town, city, county, irrigation district,
50 reclamation district or other municipal or political corporation or subdivi-
51 sion of this state.
52 (b) Officers of a court when they are acting within the scope of their
53 office.
23
1 (c) Public utilities operating under the jurisdiction of the public util-
2 ities commission of the state of Idaho on construction, maintenance and devel-
3 opment work incidental to their own business.
4 (d) The sale or installation of any finished products, materials or arti-
5 cles of merchandise, which are not actually fabricated into and do not become
6 a permanent fixed part of the structure.
7 (e) Any construction, alteration, improvement or repair of personal prop-
8 erty.
9 (f) Any construction, alteration, improvement or repair carried on within
10 the limits and boundaries of any site or reservation, the title of which rests
11 in the federal government.
12 (g) Any construction or operation incidental to the construction and
13 repair of irrigation and drainage ditches of regularly constituted irrigation
14 districts, drainage districts or reclamation districts, except when performed
15 by a person required to be licensed under this act chapter.
16 (h) Duly licensed architects, civil licensed engineers, and land sur-
17 veyors when acting solely in their professional capacity.
18 (i) Any construction, alteration, improvement or repair involving any
19 single project involving any number of trades or crafts with an estimated cost
20 of less than ten thousand dollars ($10,000), or a project estimated to cost
21 less than fifty thousand dollars ($50,000) for which no responsive statement
22 of interest was received from a licensed public works contractor when state-
23 ments of interest were solicited as provided in section 67-2805, Idaho Code.
24 (j) Any construction, operation, alteration or maintenance of a solid
25 waste disposal site including those operated by, for, or at the direction of a
26 city or a county.
27 (k) Any construction, operation or repair carried on in response to an
28 emergency that has been officially declared by the governor pursuant to the
29 provisions of chapter 10, title 46, Idaho Code, or an emergency that has been
30 declared by a governing body (city or county) in anticipation of a governor's
31 declaration, for a period of time not to exceed seven (7) calendar days.
32 SECTION 26. That Section 54-1904A, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 54-1904A. FILING OF NOTICES AND INCOME TAX RETURNS -- PAYMENT OF INCOME
35 TAXES BY CONTRACTORS. Within thirty (30) days after any public works contrac-
36 tor who is required to be licensed pursuant to this chapter has been awarded a
37 contract for construction to be performed within the state of Idaho involving
38 the expenditure of any public moneys, the contract awarding agency prime con-
39 tractor shall file with the tax commission a signed statement showing the date
40 on which such contract was made or awarded, the names and addresses of the
41 home offices of the contracting parties, including all subcontractors, the
42 state of incorporation if the party is a corporation, the project number and a
43 general description of the type and location of the work to be performed, the
44 amount of the prime contract and all subcontracts, and all other relevant
45 information which may be required on forms which may be prescribed by the tax
46 commission with a copy to be sent to the administrator. Every contractor or
47 subcontractor whose name appears on any such notice shall be required to file
48 income tax returns with the state tax commission and to pay all income taxes
49 which may be due thereon pursuant to law for all years in which any public
50 moneys were received by him in connection with any construction work which was
51 performed within the state of Idaho.
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. DISCIPLINARY ADMINISTRATIVE 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 exceed five twenty 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 this act chapter, the bonds shall be payable to the
48 public body concerned.
49 Said bonds shall be filed in the office of the department, board, commis-
50 sion, institution, agency or other contracting body awarding the contract.
51 Nothing in this section shall be construed to limit the authority of the
52 state of Idaho or other public body hereinabove mentioned to require a perfor-
53 mance bond or other security in addition to these, or in cases other than the
54 cases specified in this act chapter.
28
1 It shall be illegal for the invitation for bids, or any person acting or
2 purporting to act, on behalf of the contracting body to require that such
3 bonds be furnished by a particular surety company, or through a particular
4 agent or broker.
5 SECTION 32. That Section 54-1926A, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 54-1926A. USE OF GOVERNMENT OBLIGATIONS INSTEAD OF SURETY BONDS. (a) If a
8 person is required under a law of the state of Idaho to give a surety bond,
9 the person may give a government obligation, as defined in subsection (2)(h)
10 of section 54-1901, Idaho Code. The government obligation shall:
11 (1) Be given to the official having authority to approve the surety bond,
12 or its authorized custodian;
13 (2) Be in an amount equal at fair market value to the penal sum of the
14 required surety bond; and
15 (3) Authorize the official receiving the obligation to collect or sell
16 the obligation if the person defaults on a required condition.
17 (b) (1) An official receiving a government obligation under subsection
18 (a) of this section may deposit it with:
19 1. The state treasurer;
20 2. A national or state chartered bank; or
21 3. A depository designated by the state treasurer.
22 (2) The state treasurer, bank, or depository shall issue a safekeeping
23 receipt that describes the obligation deposited.
24 (c) Using a government obligation instead of a surety bond for security
25 is the same as using:
26 (1) A corporate surety bond;
27 (2) A certified check;
28 (3) A bank draft;
29 (4) A post office money order; or
30 (5) Cash.
31 (d) When security is no longer required, a government obligation given
32 instead of a surety bond shall be returned to the person giving the obliga-
33 tion. If a person supplying labor or material to a contractor defaulting under
34 the public contracts bond act, sections 54-1925 through 54-1930, Idaho Code,
35 files with the contracting body the application and affidavit provided under
36 section 54-1927, Idaho Code, the contracting body:
37 (1) May return to the contractor the government obligation given as secu-
38 rity or proceeds of the government obligation given under the public con-
39 tracts bond act, sections 54-1925 through 54-1930, Idaho Code, only after
40 the ninety (90) day period for bringing a civil action under section
41 54-1927, Idaho Code;
42 (2) Shall hold the government obligation or the proceeds subject to the
43 order of the court having jurisdiction of the action if a civil action is
44 brought in the ninety (90) day period.
45 (e) The provisions of this section do not affect the:
46 (1) Priority of a claim of the contracting body against a government
47 obligation given under this section;
48 (2) Right or remedy of the contracting body for default on an obligation
49 provided under this section;
50 (3) Authority of a court over a government obligation given as security
51 in a civil action; and
52 (4) Authority of an official of the state of Idaho authorized by another
53 law to receive a government obligation as security.
29
1 (f) To avoid frequent substitution of government obligations, the state
2 treasurer may promulgate rules and regulations limiting the effect of the pro-
3 visions of this section, to a government obligation maturing more than one (1)
4 year after the date the obligation is given as security.
5 SECTION 33. That Section 54-4503, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 54-4503. DEFINITIONS. As used in this chapter:
8 (1) "Applicant" means an individual who applies for a license or interim
9 license pursuant to the provisions of this chapter.
10 (2) "Board" means the public works contractors state license board estab-
11 lished in section 54-1905, Idaho Code.
12 (3) "Construction manager" means an individual who performs construction
13 management services.
14 (4) "Construction management services" means representation of an owner
15 in public works construction, as defined in section 54-1901(2)(c), Idaho Code,
16 by a person with substantial discretion and authority to plan including sched-
17 uling, estimating and approval, coordinate, manage or direct phases of a proj-
18 ect for the construction, demolition, alteration, repair or reconstruction of
19 any public work. This definition shall not include general contracting ser-
20 vices provided by public works contractors who actually perform the work of
21 construction, alteration, repair or reconstruction. This definition shall not
22 include services for which the laws of this state require a person to be
23 licensed as an architect or registered as a professional engineer, nor shall
24 it include services traditionally and customarily provided by licensed archi-
25 tects or registered professional engineers.
26 (5) "Firm" means any business organization, including individuals, part-
27 nerships, corporations, associations or any combination thereof acting as a
28 unit.
29 (6) "Licensure" means the issuance of a license to an applicant under the
30 provisions of this chapter authorizing such individual to offer and perform
31 construction management services.
32 (7) "Person" includes an individual, partnership, corporation, associa-
33 tion or other organization.
34 SECTION 34. That Section 54-4508, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 54-4508. DISCIPLINARY PROCEEDINGS. (1) The board shall have the authority
37 to deny or refuse to renew a license or certificate of authority, defer or
38 precondition licensure, suspend or revoke a license, impose an administrative
39 fine not to exceed five twenty thousand dollars ($520,000) per violation,
40 impose the administrative costs of bringing the action before the board
41 including, but not limited to, hearing officer fees, expert witness fees,
42 attorney's fees, costs of hearing transcripts and copies, or impose probation-
43 ary conditions on the holder of a license or certificate of authority, upon
44 the following grounds:
45 (a) Fraud or deception in the procurement of a license or certificate of
46 authority or in the taking of an examination required under the provisions
47 of this chapter;
48 (b) Incompetence in the performance of a construction manager's duties;
49 (c) Holding oneself or one's firm out as a construction manager by engag-
50 ing in any act meeting the definition or character of a construction man-
51 ager as defined herein without a legally required license;
30
1 (d) Fraud or deceit in the performance of a construction manager's
2 duties; or
3 (de) Willful violation of the provisions of this chapter or the rules
4 promulgated by the board.
5 (2) Proceedings which may result in the suspension or revocation of a
6 license or certificate of authority, or the imposition of probationary or
7 other disciplinary conditions on the holder of a license or certificate of
8 authority, shall be conducted in accordance with the provisions of chapter 52,
9 title 67, Idaho Code; provided however, that the suspension of a certificate
10 of authority, upon the notification by its holder that the construction man-
11 ager it has designated to the board no longer is a principal or employee of
12 the firm, shall not be required to be conducted in accordance with the provi-
13 sions of chapter 52, title 67, Idaho Code.
14 (3) The board may, by rule, provide for the reinstatement of suspended or
15 revoked licenses upon such terms as it may impose.
16 SECTION 35. That Section 59-1026, Idaho Code, be, and the same is hereby
17 repealed.
18 SECTION 36. That Chapter 10, Title 59, Idaho Code, be, and the same is
19 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
20 ignated as Section 59-1026, Idaho Code, and to read as follows:
21 59-1026. WILLFUL AND KNOWING AVOIDANCE OF COMPETITIVE BIDDING AND PRO-
22 CUREMENT STATUTES -- CIVIL PENALTIES. It is a violation of this section for an
23 official of any political subdivision or the state itself to willfully or
24 knowingly avoid compliance with procurement or competitive bidding statutes or
25 to willfully or knowingly split or separate purchases or work projects with
26 the intent of avoiding compliance with such statutes. If any officer or
27 employee of any public entity willfully or knowingly violates this section,
28 the public entity which the officer or employee serves shall be liable for
29 civil penalties not to exceed five thousand dollars ($5,000) for each offense,
30 such civil penalty to be payable to the office of the public agency bringing
31 an enforcement action, upon court order, to reimburse the reasonable expense
32 of enforcing compliance with competitive bidding and procurement statutes.
33 SECTION 37. That Title 67, Idaho Code, be, and the same is hereby amended
34 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
35 ter 28, Title 67, Idaho Code, and to read as follows:
36 CHAPTER 28
37 PURCHASING BY POLITICAL SUBDIVISIONS
38 67-2801. LEGISLATIVE INTENT. Efficient and cost-effective procurement of
39 goods, services and public works construction is an important aspect of local
40 government operations. Local public agencies should endeavor to buy goods,
41 services and public works construction by way of a publicly accountable proc-
42 ess that respects the shared goals of economy and quality. Political subdivi-
43 sions of the state shall endeavor to purchase goods and services from vendors
44 with a significant Idaho economic presence.
45 67-2802. APPLICABILITY. The provisions of this chapter establish procure-
46 ment requirements for all political subdivisions of the state of Idaho. The
47 public works construction procurement process set forth in this chapter shall
48 function in a complementary manner with the public works contractors license
31
1 board and the procedures which that board administers. Any general procurement
2 procedures set forth in this chapter shall be supplemented by the provisions
3 of any specific statute pertaining to the awarding of any contract for the
4 purchase or acquisition of any service, commodity or thing made expressly
5 applicable to any particular political subdivision or by means of any addi-
6 tional administrative process that otherwise establishes additional express
7 requirements. 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 this act chapter, 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 bids
41
1 on all construction contracts for work or material, or both, involving an
2 expense of five thousand dollars ($5,000) or more. The district may reject
3 any and all bids, and if it shall appear that the district can perform the
4 work or secure material for less than the lowest bid, it may proceed so to do
5 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 this act chapter;
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 amend by-laws bylaws 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 collect ad valorem
48 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 this act chapter.
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 of thirty one 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 this act chapter.
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 than two twenty-five thousand five hundred dollars ($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 purchases
4 and/or works involving twenty-five thousand dollars ($25,000) or less, based
5 upon the liability assumed by a port district thereon, all material required
6 by a port district may be procured in the open market or by contract and all
7 work ordered may be done by contract or day labor. All such purchases and/or
8 works involving in excess of twenty-five thousand dollars ($25,000), as so
9 measured, shall be let upon contract in the manner herein provided. All such
10 contracts shall be let at public bidding upon notice published at least once
11 in a newspaper in the district at least ten (10) days before the letting,
12 calling for sealed bids upon the work, plans and specifications for which
13 shall then be on file in the office of the commission for public inspection.
14 The same notice Except 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 on such work 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-
30 erally the nature of the work to be done and require that bids be sealed and
31 filed with the commission at a time specified therein. Each bid shall be
32 accompanied by a bid proposal deposit in the form of a cashier's check, money
33 order or surety bid bond to the commission for a sum to be determined by the
34 commission but not less than five per cent (5%) of the amount of the bid, and
35 no bid shall be considered unless accompanied by such bid proposal deposit or
36 bond. Such notice shall further state the time and place at which such bids
37 shall be opened, and at such time and place a quorum of the commission shall
38 attend and publicly open and read such bids, and Upon 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 and re-advertise readvertise, 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-five per cent percent (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