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H0163...........................................................by BUSINESS
CONTRACTOR REGISTRATION - Adds to existing law to provide for contractor
registration; to provide a short title; to declare a policy; to define
terms; to require registration; to set forth exemptions; to create the
Idaho Contractors Board; to set forth powers and duties of the board; to
provide for the denial of lien rights; to provide that a contractor's
registration number shall be required on building and other permits; to
require the posting of permits; to provide an exemption; to provide for
applications for registration; to set forth registration periods; to
provide for renewal of registration; to provide for the disposition of
receipts; to provide for the payment of expenses; to provide for reciprocal
registration; to provide for the issuance of certificates of registration
and cards; to require notification upon any change of ownership; to require
the display of contractor registration numbers; to provide for board
authority to investigate and discipline; to provide for the suspension or
revocation of registration; to provide for reinstatement; to provide
penalties; to provide severability; and to set forth powers and duties of
the Attorney General and prosecuting attorneys.
02/10 House intro - 1st rdg - to printing
02/11 Rpt prt - to Bus
02/24 Rpt out - rec d/p - to 2nd rdg
02/25 2nd rdg - to 3rd rdg
03/03 3rd rdg - PASSED - 43-27-0
AYES -- Anderson, Bastian, Bell, Bilbao, Black, Block, Boe,
Chadderdon, Collins, Deal, Edmunson, Ellsworth, Eskridge, Field(18),
Field(23), Garrett, Henbest, Henderson, Jaquet, Jones, Kemp,
LeFavour, Martinez, Miller, Mitchell, Nonini, Pasley-Stuart, Pence,
Ring, Ringo, Rusche, Sayler, Shepherd(2), Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Mr.
Speaker
NAYS -- Andrus, Barraclough, Barrett, Bayer, Bedke, Bolz, Bradford,
Cannon, Clark, Crow, Denney, Hart, Harwood, Lake, Loertscher,
Mathews, McGeachin, McKague, Moyle, Nielsen, Raybould, Roberts,
Rydalch, Sali, Schaefer, Shepherd(8), Wood
Absent and excused -- None
Floor Sponsor - Black
Title apvd - to Senate
03/04 Senate intro - 1st rdg - to Com/HuRes
03/11 Rpt out - rec d/p - to 2nd rdg
03/14 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 23-11-0, 1 vacancy
AYES -- Andreason, Broadsword, Bunderson, Burkett, Coiner, Compton,
Gannon, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai, Marley, McGee, McKenzie, Schroeder, Stegner,
Stennett, Werk
NAYS -- Brandt, Burtenshaw, Cameron, Corder, Darrington, Davis,
Geddes, Pearce, Richardson, Sweet, Williams
Absent and excused -- (District 21 seat vacant)
Floor Sponsors - Goedde, Andreason, Compton &
Broadsword
Title apvd - to House
03/16 To enrol
03/17 Rpt enrol - Sp signed
03/18 Pres signed
03/21 To Governor
03/25 Governor signed
Session Law Chapter 153
Effective: 03/25/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 163
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO CONTRACTOR REGISTRATION; AMENDING TITLE 54, IDAHO CODE, BY THE
3 ADDITION OF A NEW CHAPTER 52, TITLE 54, IDAHO CODE, TO PROVIDE A SHORT
4 TITLE, TO DECLARE A POLICY, TO DEFINE TERMS, TO REQUIRE REGISTRATION, TO
5 SET FORTH EXEMPTIONS, TO CREATE THE IDAHO CONTRACTORS BOARD, TO SET FORTH
6 BOARD POWERS AND DUTIES, TO PROVIDE FOR THE DENIAL OF LIEN RIGHTS, TO PRO-
7 VIDE THAT A CONTRACTOR'S REGISTRATION NUMBER SHALL BE REQUIRED ON BUILDING
8 AND OTHER PERMITS, TO REQUIRE THE POSTING OF PERMITS, TO PROVIDE AN EXEMP-
9 TION, TO PROVIDE FOR APPLICATIONS FOR REGISTRATION, TO SET FORTH REGISTRA-
10 TION PERIODS, TO PROVIDE FOR RENEWAL OF REGISTRATION, TO PROVIDE FOR THE
11 DISPOSITION OF RECEIPTS, TO PROVIDE FOR THE PAYMENT OF EXPENSES, TO PRO-
12 VIDE FOR RECIPROCAL REGISTRATION, TO PROVIDE FOR THE ISSUANCE OF CERTIFI-
13 CATES OF REGISTRATION AND CARDS, TO REQUIRE NOTIFICATION UPON ANY CHANGE
14 OF OWNERSHIP, TO REQUIRE THE DISPLAY OF CONTRACTOR REGISTRATION NUMBERS,
15 TO PROVIDE FOR BOARD AUTHORITY TO INVESTIGATE AND DISCIPLINE, TO PROVIDE
16 FOR THE SUSPENSION OR REVOCATION OF REGISTRATION, TO PROVIDE FOR REIN-
17 STATEMENT, TO PROVIDE PENALTIES, TO SET FORTH POWERS AND DUTIES OF THE
18 ATTORNEY GENERAL AND PROSECUTING ATTORNEYS AND TO PROVIDE FOR SEVERABIL-
19 ITY; AND DECLARING AN EMERGENCY.
20 Be It Enacted by the Legislature of the State of Idaho:
21 SECTION 1. That Title 54, Idaho Code, be, and the same is hereby amended
22 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
23 ter 52, Title 54, Idaho Code, and to read as follows:
24 CHAPTER 52
25 IDAHO CONTRACTOR REGISTRATION ACT
26 54-5201. SHORT TITLE. This chapter shall be known and may be cited as the
27 "Idaho Contractor Registration Act."
28 54-5202. DECLARATION OF POLICY. The legislature finds and declares that
29 the practice of construction in the state of Idaho affects the public health,
30 safety and welfare of its citizens. The legislature further finds that it is
31 in the public interest to provide a mechanism to remove from practice incompe-
32 tent, dishonest, or unprincipled practitioners of construction. To aid in ful-
33 filling these purposes, this chapter provides for the registration of con-
34 struction contractors within the state of Idaho.
35 54-5203. DEFINITIONS. As used in this chapter:
36 (1) "Board" means the Idaho contractors board as created in section
37 54-5206, Idaho Code.
38 (2) "Bureau chief" means the chief of the bureau of occupational
39 licenses.
40 (3) "Construction" means the performance of building, altering, repair-
2
1 ing, adding to, subtracting from, improving, reconstructing, moving, excavat-
2 ing, wrecking or demolishing any building, highway, road, bridge, or other
3 structure, project, development or improvement to real property, or to do any
4 part thereof, including the erection of scaffolding or other structures or
5 works in connection therewith.
6 (4) "Contractor" means:
7 (a) Any person who in any capacity undertakes, offers to undertake, pur-
8 ports to have the capacity to undertake, or submits a bid to, or does him-
9 self or by or through others, perform construction; or
10 (b) A construction manager who performs construction management services.
11 (5) "Department" means the department of self-governing agencies of the
12 state of Idaho.
13 (6) "Person" means any individual, firm, partnership, limited liability
14 company, limited liability partnership, corporation, trust, association or
15 other entity or organization capable of conducting business, or any combina-
16 tion thereof acting as a unit.
17 54-5204. REGISTRATION REQUIRED. (1) On and after January 1, 2006, it
18 shall be unlawful for any person to engage in the business of, or hold himself
19 out as, a contractor within this state without being registered as required in
20 this chapter.
21 (2) It shall be unlawful for a contractor to engage any other contractor
22 who is required by this chapter to be registered as a contractor unless such
23 other contractor furnishes satisfactory proof to the contractor that he is
24 duly registered under the provisions of this chapter.
25 (3) Any person who engages in the business or acts in the capacity of a
26 contractor, whether or not duly registered, has thereby submitted to the
27 jurisdiction of the state of Idaho and to the administrative jurisdiction of
28 the Idaho contractors board, and shall be subject to all penalties and reme-
29 dies available under Idaho law for any violation of this chapter.
30 54-5205. EXEMPTIONS FROM REGISTRATION. (1) Nothing in this chapter shall
31 be construed to restrict any person licensed, registered, or otherwise regu-
32 lated by the state of Idaho from engaging in the profession or practice for
33 which they are licensed, registered or otherwise regulated by the state of
34 Idaho including, but not limited to, persons licensed pursuant to chapters 3,
35 10, 12, 19, 26, 45 and 50, title 54, Idaho Code, nor shall this chapter
36 require such persons otherwise licensed, registered or regulated to obtain
37 such registration as required by this chapter, so long as such person is not
38 acting with the intent to evade this chapter. No such person exempt hereunder
39 may hold himself out as a registered contractor.
40 (2) In addition to the exemption set forth in section (1) of this sec-
41 tion, registration as provided for in this chapter shall not be required for
42 the following, so long as such person is not acting with the intent to evade
43 this chapter and so long as such person does not hold himself out as a regis-
44 tered contractor:
45 (a) A person who only performs labor or services for wages or a salary as
46 an employee of a contractor, or as an employee of a person otherwise
47 exempt by the provisions set forth in this chapter, or strictly as a vol-
48 unteer or as part of a bona fide educational curriculum or nonprofit char-
49 itable activity for which no wages or salary shall be paid; provided how-
50 ever, that such exemption shall not apply to any subcontractor or other
51 independent contractor who is not otherwise exempt;
52 (b) An authorized representative of the United States government, the
53 state of Idaho, or any incorporated municipality, county, alternative form
3
1 of local government, highway district, reclamation district, or other
2 municipal or political corporation or subdivision of this state;
3 (c) A public utility operating under the regulation of the Idaho public
4 utility commission as set forth in title 61, Idaho Code, in the construc-
5 tion, maintenance, or development work incidental to its own business;
6 (d) A person who performs repair or operation incidental to the discovery
7 or production of oil, gas or minerals or incidental to the drilling, test-
8 ing, abandoning, or other operation of an oil or gas well or a surface or
9 underground mine or mineral deposit;
10 (e) A person who only furnishes materials, supplies or equipment without
11 that person installing or fabricating them into or consuming them in the
12 performance of the work of the construction contractor;
13 (f) A person performing work on one (1) undertaking or project considered
14 casual, minor, or inconsequential, whether by one (1) or more contracts,
15 the aggregate contract price of which, for labor and materials and all
16 other items, is less than two thousand dollars ($2,000). The exemptions
17 prescribed in this paragraph (f) shall not apply when the work or con-
18 struction is part of a larger construction project, whether undertaken by
19 the same or a different construction contractor, or in which a division of
20 the operation is made into contracts of amounts of less than two thousand
21 dollars ($2,000) for the purpose of evasion of this chapter or otherwise;
22 (g) A farmer or rancher while engaged in a farming, dairying, agricul-
23 ture, viticulture, horticulture, or stock or poultry operation;
24 (h) A person who engages in the construction of an agriculture building
25 which is exempt from the Idaho building code act as set forth in section
26 39-4116, Idaho Code;
27 (i) An irrigation district, canal company, reservoir district, ground
28 water district, water district, water measurement district, recharge dis-
29 trict, flood control district, drainage district, or other water delivery
30 or water management entity, or an operating agent of irrigation districts
31 whose board consists of directors of its member districts;
32 (j) An operation related to clearing or other work upon land in rural
33 districts for fire prevention purposes;
34 (k) An owner who contracts for work to be performed by a registered con-
35 tractor on his own property, provided however, this exemption shall not
36 apply to an owner who, with the intent to evade this chapter, constructs a
37 building, residence or other improvement on the owner's property with the
38 intention and for the purpose of selling the improved property at any time
39 during the construction or within twelve (12) months of completion of such
40 construction;
41 (l) An owner performing construction on the owner's personal residential
42 real property, whether or not occupied by the owner, provided however,
43 this exemption shall not apply to an owner who is otherwise regulated by
44 this chapter who constructs a building, residence or other improvement on
45 the owner's property with the intention and for the purpose of promptly
46 selling the improved property, unless the owner has continuously occupied
47 the property as the owner's primary residence for not less than twelve
48 (12) months prior to the sale of such property;
49 (m) Owners of commercial properties, or lessees of commercial properties
50 with the consent of the owner, who, whether themselves or with their own
51 employees, perform maintenance, repair, alteration or construction work in
52 or upon the properties;
53 (n) A real estate licensee acting within the scope of his license pursu-
54 ant to chapter 20, title 54, Idaho Code, who, incident to a regulated real
55 estate transaction, assists his clients in scheduling or performing nomi-
4
1 nal maintenance and repairs upon such properties being transferred; pro-
2 vided however, nothing in this section shall otherwise authorize a real
3 estate licensee or a property manager to act in the capacity of a contrac-
4 tor unless registered with the board;
5 (o) A contractor engaged in the logging industry who builds forest access
6 roads for the purpose of harvesting and transporting logs from forest to
7 mill;
8 (p) A person working on the person's own residence, if the residence is
9 owned by a person other than the resident;
10 (q) A person who engages in the construction of building to be used pri-
11 marily for industrial chemical process purposes as set forth in section
12 39-4103, Idaho Code; or
13 (r) A person who engages in the construction of a modular building as
14 defined in section 39-4105(12), Idaho Code, that is constructed in the
15 state of Idaho for installation on a building site outside the state.
16 54-5206. IDAHO CONTRACTORS BOARD. (1) The Idaho contractors board is
17 hereby created and made a part of the bureau of occupational licenses. It
18 shall be the responsibility and duty of the bureau chief to administer this
19 chapter, and the bureau chief shall exercise such powers and duties as are
20 reasonably necessary to enforce the provisions of this chapter. The board may
21 promulgate such rules as may be necessary to carry out the provisions of this
22 chapter in order to effectuate the purposes herein and for the orderly and
23 efficient administration thereof, except as may be limited or prohibited by
24 law and the provisions of this chapter.
25 (2) The board shall consist of four (4) members who are contractors, and
26 one (1) member of the public at large, all of whom shall be appointed by the
27 governor as follows: one (1) contractor from the northern district consisting
28 of Idaho, Lewis, Nez Perce, Clearwater, Latah, Benewah, Boundary, Shoshone,
29 Kootenai and Bonner counties; one (1) contractor from the southeastern dis-
30 trict consisting of Lemhi, Butte, Clark, Fremont, Jefferson, Madison, Teton,
31 Bonneville, Bingham, Caribou, Bear Lake, Franklin, Oneida, Power and Bannock
32 counties; one (1) contractor from the southwestern district consisting of Owy-
33 hee, Elmore, Ada, Canyon, Boise, Gem, Payette, Washington, Adams and Valley
34 counties; one (1) contractor from the south central district consisting of
35 Blaine, Camas, Cassia, Custer, Gooding, Jerome, Lincoln, Minidoka and Twin
36 Falls counties; and one (1) member of the public at large who resides in the
37 state of Idaho and is a person of integrity and good reputation who has lived
38 in this state for at least five (5) years immediately preceding appointment,
39 who has never been registered as a contractor in this or another state, and
40 who has never had a substantial personal, business, professional or pecuniary
41 connection with a contractor except as a purchaser or owner of real property.
42 (3) Each member of the board who is a contractor shall serve a term of
43 four (4) years and such terms shall be staggered. The initial board shall have
44 one (1) member whose term expires July 1, 2007; one (1) member whose term
45 expires July 1, 2008; one (1) member whose term expires July 1, 2009; and one
46 (1) member whose term shall expire July 1, 2010. The member of the board who
47 is a member of the public at large shall serve a four (4) year term, which
48 initial term shall expire on July 1, 2008. No member of the board may be
49 appointed to more than two (2) consecutive terms.
50 (4) The board shall meet within thirty (30) days after the appointment of
51 all its members and thereafter at such other times as may be expedient and
52 necessary for the proper performance of its duties, but not less than once
53 during each calendar quarter. At the board's first meeting, the members shall
54 elect one (1) of their number to be chairman. The chairman may serve in such
5
1 capacity for a one (1) year term and may not serve in such capacity for more
2 than two (2) consecutive terms. A majority of the board shall constitute a
3 quorum for the transaction of business.
4 (5) The board may delegate to the bureau chief:
5 (a) The power to perform ministerial functions, investigate and disci-
6 pline, hold hearings, appoint hearing officers, summon witnesses to
7 appear, administer oaths and take affirmations of witnesses at any formal
8 proceeding or before a duly appointed hearing officer;
9 (b) The power to appoint competent persons to issue subpoenas, administer
10 oaths and take testimony; and
11 (c) The power to enforce orders of the board.
12 (6) Each member of the board shall be compensated as provided by section
13 59-509(b), Idaho Code.
14 (7) On and after January 1, 2006, each member of the board who is a con-
15 tractor shall be registered in accordance with this chapter and shall be in
16 good standing.
17 54-5207. GENERAL POWERS AND DUTIES OF THE BOARD. The board shall enforce
18 the minimum standards and requirements therefor as provided by this chapter
19 and by rule adopted by the board. The board may exercise such powers and
20 duties as are reasonably necessary to carry out the provisions of this chapter
21 and it may, among other things:
22 (1) Accept or reject applications for registration and establish the fees
23 to be charged for application, registration and renewal, subject to the provi-
24 sions of this chapter;
25 (2) Hold public meetings and attend or be represented at such meetings,
26 within or without the state, prepare and publish rules pertaining to this
27 chapter and such other information as may be necessary, and furnish copies
28 thereof to those engaged in the business, trade, practice or work of contract-
29 ing and to the public upon request;
30 (3) Furnish standards and procedures and prescribe reasonable rules for
31 applications, qualifications and registration of contractors, including prora-
32 tion of registration fees and staggering initial annual registration; and
33 (4) Under such rules as it may adopt, investigate, classify and determine
34 the qualifications of applicants for registration pursuant to this chapter;
35 and
36 (5) Contract with the bureau of occupational licenses to provide adminis-
37 trative services.
38 54-5208. DENIAL OF LIEN RIGHTS. A contractor who is not registered as set
39 forth in this chapter, unless otherwise exempt, shall be denied and shall be
40 deemed to have conclusively waived any right to place a lien upon real prop-
41 erty as provided for in chapter 5, title 45, Idaho Code. This section shall
42 not operate as a denial of lien rights for any subcontractor or independent
43 contractor who is duly registered in accordance with this chapter and who is
44 performing services at the direction of another contractor, nor shall it oper-
45 ate as a denial of lien rights for any employee of any contractor who is not
46 duly registered, or for any supplier of materials to such unregistered con-
47 tractor, so long as such subcontractor, independent contractor, employee or
48 supplier did not have actual knowledge that such contractor was not duly reg-
49 istered, or who reasonably believed that such contractor was duly registered.
50 54-5209. BUILDING PERMITS AND CONTRACTOR REGISTRATION NUMBER -- POSTING
51 AT SITE. (1) On and after January 1, 2006, no building inspector or such other
52 authority of any county, municipality or district charged with the duty of
6
1 issuing building permits or other permits for construction of any type shall
2 issue any permit without first requesting presentment of an Idaho contractor's
3 registration number. Such registration number presented shall be conspicuously
4 entered on the face of a permit so issued; provided however, a permit may be
5 issued to a person otherwise exempt from the provisions of this chapter pro-
6 vided such permit shall conspicuously contain the phrase "no contractor regis-
7 tration provided" on the face of such permit. No authority charged with the
8 duty of issuing such permit shall be required to verify that the person apply-
9 ing for such permit is exempt as provided in this chapter.
10 (2) All building permits or other permits for construction of any type
11 shall be posted at the construction site in such a manner that the conspicuous
12 statements set forth in subsection (1) of this section are visible.
13 (3) No person engaged in construction activities who is otherwise exempt
14 as set forth in section 54-5205, Idaho Code, shall be required to have a con-
15 tractor registration number.
16 54-5210. APPLICATION FOR REGISTRATION. (1) An applicant for registration
17 as a contractor shall submit an application under oath upon a form to be pre-
18 scribed by the board and which shall include the following information per-
19 taining to the applicant:
20 (a) Social security number for natural persons or employer tax identifi-
21 cation number for other persons;
22 (b) The name and address under which the applicant conducts business;
23 (c) The name and address of each principal, member, partner, shareholder,
24 or any other person claiming an ownership interest in the business entity
25 for which registration is being applied for;
26 (d) A certificate issued by an insurance company authorized to do busi-
27 ness in the state of Idaho or other satisfactory proof that the applicant
28 has procured and has in effect worker's compensation insurance or a state-
29 ment by the contractor as to why such certificate or coverage is not
30 required for the applicant;
31 (e) A certificate issued by an insurance company authorized to do busi-
32 ness in the state of Idaho that the applicant has procured and has in
33 effect a general liability policy, including products and continued opera-
34 tions insurance covering the applicant's construction operations in the
35 sum of not less than three hundred thousand dollars ($300,000) single
36 limit;
37 (f) A statement of the type of construction to be undertaken by the
38 applicant, or such other information as may be required by the board pur-
39 suant to administrative rules adopted by the board; and
40 (g) A statement that the applicant and each principal, member, partner,
41 shareholder, or any other person claiming an ownership interest in the
42 business entity for which registration is being applied for herein has
43 never been denied or had revoked a contractor's license or registration
44 privilege in this or any other state or, if a license or registration
45 privilege has been denied or revoked in this or any other state, an
46 explanation of any such denial or revocation.
47 (2) Along with such application, the applicant shall submit a registra-
48 tion fee as may be set by the board to cover its administrative and enforce-
49 ment costs, not to exceed one hundred fifty dollars ($150) per year.
50 (3) An application for registration that has been denied by the board
51 shall be considered a contested case as provided for in chapter 52, title 67,
52 Idaho Code, and shall be subject to the provisions of that chapter as well as
53 the administrative rules adopted by the board governing contested cases.
7
1 54-5211. REGISTRATION -- RENEWAL. A registration shall be issued for a
2 period of not less than one (1) year nor more than five (5) years, as deter-
3 mined by the board. Each registration shall set forth its expiration date on
4 the face of the certificate. No less than thirty (30) days prior to the expi-
5 ration of such registration, the board shall notify a registered contractor
6 that such registration is set to expire. Reinstatement of a lapsed registra-
7 tion shall require the payment of a renewal fee and reinstatement fee in
8 accordance with the administrative rules adopted by the board. The failure of
9 any registered contractor to renew his registration as required herein and by
10 the administrative rules of the board shall not deprive such person of the
11 right to renewal upon subsequent application for registration and payment of
12 the required board fees.
13 54-5212. DISPOSITION OF RECEIPTS -- EXPENSES. All fees received under the
14 provisions of this chapter shall be paid to the bureau of occupational
15 licenses and deposited in the state treasury to the credit of the occupational
16 licenses fund and all costs and expenses incurred under the provisions of this
17 chapter shall be a charge against and paid from said fund.
18 54-5213. RECIPROCAL REGISTRATION. (1) Nothing in this chapter shall be
19 construed as preventing any incorporated municipality, county, alternative
20 form of local government, or other municipal or political corporation or sub-
21 division of this state from implementing its own regulation of construction
22 contractors, provided that no such code, ordinance, rule or regulation enacted
23 or adopted by such entity shall contain provisions less stringent than those
24 requirements provided for by this chapter.
25 (2) A contractor may provide a verified copy of any current and unre-
26 stricted license, registration, or other type of certification granted to the
27 contractor by any incorporated municipality, county, alternative form of local
28 government, or other municipal or political corporation or subdivision of this
29 state to the board, for review, along with a reciprocal registration fee not
30 to exceed fifty dollars ($50.00), as determined by board rule, which is neces-
31 sary for the administration and processing of such application. If the review
32 indicates that the license, registration or certification was granted under
33 provisions that were not less stringent than those provided by this chapter,
34 the applicant shall be issued a registration based upon reciprocal registra-
35 tion.
36 54-5214. REGISTRATION CERTIFICATE -- DISPLAY. (1) Upon receipt of a duly
37 completed application, together with the registration fee, and after such ver-
38 ification process as the board may from time to time deem appropriate by
39 rule, a certificate of registration and a wallet-sized card showing the regis-
40 trant's name and showing a registration number shall be issued, commencing on
41 the date of issue and continuing in effect for a period of not less than one
42 (1) year nor more than five (5) years, as determined by the board. Application
43 for renewal of registration shall be filed on or before thirty (30) days prior
44 to the expiration date. The board shall issue a certificate of registration to
45 an applicant upon the applicant's compliance with the registration require-
46 ments of this chapter. Certificates shall not be assignable nor transferable.
47 Upon any change of ownership or a change of address of a registered contractor
48 entity, the board shall be notified by such entity within thirty (30) days. A
49 certificate of registration, without the payment of a registration fee, shall
50 be issued to any person who is granted a public works contractor license or a
51 construction manager license, so long as those requirements for licensure in
52 Idaho are met.
8
1 (2) A contractor registered pursuant to this chapter shall prominently
2 display his contractor registration number for public view in his place of
3 business, on advertising, contracts, permits, company or business letterheads,
4 and purchase orders and subcontracts within sixty (60) days of issue of regis-
5 tration.
6 54-5215. AUTHORITY TO INVESTIGATE AND DISCIPLINE -- SUSPENSION OR REVOCA-
7 TION OF REGISTRATION. (1) The board may investigate any person engaged in con-
8 tracting within the state of Idaho, or any person believed to have acted as a
9 contractor without being duly registered as required by this chapter. Upon
10 receipt of a written complaint from a person who claims to have been injured
11 or defrauded by such person, or upon information received by the board, the
12 board shall perform an investigation of the facts alleged against such person.
13 If the board investigation reveals that the facts alleged or received are suf-
14 ficient to proceed with a formal action, the board may authorize the filing of
15 an administrative complaint against such person and may seek injunctive relief
16 prohibiting such person from engaging in construction.
17 (2) The board shall have the authority to issue informal letters of rep-
18 rimand, suspend or revoke a registration, impose a civil penalty in an amount
19 not to exceed one thousand dollars ($1,000), recover the costs and fees incur-
20 red in an investigation and prosecution, or to issue a formal reprimand
21 against any registered contractor if, after an opportunity for a hearing, the
22 board determines that:
23 (a) A contractor has violated any of the provisions of this chapter
24 including, but not limited to, failure to keep current or provide insur-
25 ance coverage as required by this chapter;
26 (b) A contractor has violated any of the provisions of chapter 6, title
27 48, Idaho Code, relating to consumer protection including, but not limited
28 to, making fraudulent misrepresentations to consumers;
29 (c) A contractor employed fraud or deception, made a misrepresentation or
30 misstatement, or employed any unlawful means in applying for or securing
31 registration as a contractor;
32 (d) A contractor employed fraud or deception, made a misrepresentation or
33 misstatement, or employed any unlawful means in applying for or securing a
34 building permit or other permits for construction of any type;
35 (e) A contractor failed to pay the required fee for registration as pro-
36 vided in this chapter;
37 (f) A contractor has been convicted of or has engaged in conduct consti-
38 tuting a violation of public laws, ordinances or rules of this state, or
39 any subdivision thereof, relevant to contracting, reflecting on the reg-
40 istered contractor's ability or qualifications to continue contracting for
41 other persons, and making the registered contractor a threat to the public
42 safety, health or well-being;
43 (g) A contractor has engaged in any other conduct whether of the same or
44 a different character than hereinabove specified which constitutes dishon-
45 est or dishonorable dealings;
46 (h) A contractor was grossly negligent or reckless in his conduct in the
47 performance of construction. For purposes of this chapter, conduct is
48 grossly negligent or reckless if, when taken as a whole, it is conduct
49 which substantially fails to meet the generally accepted standard of care
50 in the practice of construction in Idaho;
51 (i) A contractor had a license, registration or certification revoked,
52 suspended or refused by this or another state, territory, incorporated
53 municipality, county, alternative form of local government, or other
54 municipal or political corporation or subdivision of this or another
9
1 state, or omitted such information from any application to the board, or
2 failed to divulge such information when requested by the board;
3 (j) A contractor has been adjudged mentally incompetent by a court of
4 competent jurisdiction; or
5 (k) A contractor interfered with an investigation or disciplinary pro-
6 ceeding by a willful misrepresentation of facts or by the use of threats
7 or harassment against any person to prevent such person from providing
8 evidence in a disciplinary proceeding, investigation or other legal action
9 instituted in accordance with this chapter.
10 (3) A contractor whose registration has been revoked or suspended shall
11 be required to return his certificate of registration within the time deter-
12 mined by the board or, upon a failure to do so, shall be liable for civil
13 penalties as set by the board but not to exceed fifty dollars ($50.00) per day
14 for each day the certificate is not returned after the expiration of the
15 period allowed.
16 (4) The suspension or revocation of a registration shall be considered a
17 contested case as provided for in chapter 52, title 67, Idaho Code, and shall
18 be subject to the provisions of that chapter as well as the administrative
19 rules adopted by the board governing contested cases.
20 54-5216. REINSTATEMENT OF REGISTRATION AFTER DISCIPLINE. The board may
21 reinstate a suspended or revoked registration upon a showing that:
22 (1) The grounds for such suspension or revocation have been eliminated;
23 (2) Such a violation is not likely to reoccur in the future; and
24 (3) The public interest is not jeopardized by reinstating the registra-
25 tion.
26 54-5217. PENALTIES. (1) Any person acting in the capacity of a contractor
27 within the meaning of this chapter without a current registration as herein
28 required shall be guilty of a misdemeanor and shall, upon conviction thereof,
29 be punished by a fine of not to exceed one thousand dollars ($1,000) or by
30 imprisonment in the county jail for a term not to exceed six (6) months, or by
31 both such fine and imprisonment, in the discretion of the court.
32 (2) No person engaged in the business or acting in the capacity of a con-
33 tractor, unless otherwise exempt, may bring or maintain any action in any
34 court of this state for the collection of compensation for the performance of
35 any act or contract for which registration is required by this chapter without
36 alleging and proving that he was a duly registered contractor, or that he was
37 otherwise exempt as provided for in this chapter, at all times during the per-
38 formance of such act or contract.
39 54-5218. ATTORNEY GENERAL -- PROSECUTING ATTORNEY. It shall be the right
40 and duty of the attorney general or the prosecuting attorneys of the various
41 counties to represent and appear for the people of the state of Idaho and the
42 department in all actions and proceedings involving any question under this
43 chapter or under any order or act of the board and to perform such other ser-
44 vices as are required.
45 54-5219. SEVERABILITY. The provisions of this chapter are hereby declared
46 to be severable and if any provision of this chapter or the application of
47 such provision to any person or circumstance is declared invalid for any rea-
48 son, such declaration shall not affect the validity of the remaining portions
49 of this chapter.
50 SECTION 2. An emergency existing therefor, which emergency is hereby
10
1 declared to exist, this act shall be in full force and effect on and after its
2 passage and approval.
STATEMENT OF PURPOSE
RS 14884
The state of Idaho has no way of stopping unscrupulous or
dishonest building contractors from continuing to practice in
this state. There is nothing in current law that would prohibit
a contractor - even if known to be a "bad actor" - from acting as
a building contractor.
This bill will create a registration system for contractors and
would require that all contractors be registered with the state
Bureau of Occupational Licenses. It would provide a mechanism
for the state to remove contractors who prove to be incompetent,
dishonest, or unprincipled from the registry.
Application for registration would require a statement disclosing
whether any person with an ownership interest in the business has
ever been suspended or prohibited from practicing construction in
Idaho or any other state. It would require proof that the
applicant has complied with Idaho's workers compensation law, and
that the applicant has a general liability insurance policy in an
amount not less than $300,000.
FISCAL NOTE
The program is designed to be self-funded from building
contractor registration fees and will not impact the general
fund.
Contact: Representative Max Black
332-1000
Senator John Andreason
332-1000
Jeremy P. Pisca
Idaho Building Contractors Association
384-1800
John Eaton
Idaho Association of REALTORS
342-3585
STATEMENT OF PURPOSE/FISCAL NOTE H 163