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H0761aa....................................................by STATE AFFAIRS
CONTRACTOR LICENSING - BONDS - Amends existing law relating to contractor
licensing to authorize the Idaho Electrical Board to set forth bonding
requirements and to set forth license application requirements; to revise
powers and duties of the Idaho Plumbing Board and to set forth license
application requirements; and to revise provisions applicable to
requirements for certificates of competency for heating, ventilation and
air conditioning contractors and specialty contractors.
03/02 House intro - 1st rdg - to printing
03/03 Rpt prt - to Bus
03/16 Rpt out - to Gen Ord
03/28 Rpt out amen - to engros
03/29 Rpt engros - 1st rdg - to 2nd rdg as amen
03/30 2nd rdg - to 3rd rdg as amen
Rls susp - PASSED - 40-26-4
AYES -- Anderson, Barraclough, Bastian, Bell, Bilbao, Black, Block,
Boe, Bradford, Chadderdon, Collins, Deal, Edmunson, Ellsworth,
Eskridge, Field(18), Garrett, Henbest, Henderson, Jaquet, LeFavour,
Martinez, Miller, Mitchell, Nonini, Pasley-Stuart, Pence, Ring,
Ringo, Rusche, Rydalch, Sayler, Shepherd(2), Skippen, Smith(30),
Smith(24), Snodgrass, Stevenson, Trail, Wills
NAYS -- Andrus, Barrett, Bayer, Bedke, Bolz, Brackett, Cannon, Clark,
Crow, Denney, Field(23), Hart, Harwood, Lake, Loertscher, Mathews,
McKague, Moyle, Nielsen, Raybould, Roberts, Sali, Schaefer,
Shepherd(8), Shirley, Wood
Absent and excused -- Kemp, McGeachin, Smylie, Mr. Speaker
Floor Sponsor - Black
Title apvd - to Senate
03/31 Senate intro - 1st rdg - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 761
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO CONTRACTOR LICENSING; AMENDING SECTION 54-1003, IDAHO CODE, TO
3 REQUIRE THAT LICENSE APPLICATIONS FOR ELECTRICAL CONTRACTORS AND SPECIALTY
4 ELECTRICAL CONTRACTORS BE ACCOMPANIED BY A BOND, TO SET AN AMOUNT FOR THE
5 BOND, TO PROVIDE TERMS AND CONDITIONS, TO REQUIRE THAT SUCH APPLICATIONS
6 BE ACCOMPANIED BY PROOF OF LIABILITY INSURANCE, TO SET AN AMOUNT FOR SUCH
7 INSURANCE AND TO REQUIRE THAT SUCH APPLICATIONS BE ACCOMPANIED BY PROOF OF
8 WORKER'S COMPENSATION INSURANCE, IF APPLICABLE; AMENDING SECTION 54-2606,
9 IDAHO CODE, TO DELETE LANGUAGE RELATING TO BONDS, TO REQUIRE THAT LICENSE
10 APPLICATIONS FROM PLUMBING CONTRACTORS BE ACCOMPANIED BY A BOND, TO SET AN
11 AMOUNT FOR THE BOND, TO PROVIDE TERMS AND CONDITIONS, TO REQUIRE THAT SUCH
12 APPLICATIONS BE ACCOMPANIED BY PROOF OF LIABILITY INSURANCE, TO SET AN
13 AMOUNT FOR SUCH INSURANCE AND TO REQUIRE THAT SUCH APPLICATIONS BE ACCOM-
14 PANIED BY PROOF OF WORKER'S COMPENSATION INSURANCE, IF APPLICABLE; AND
15 AMENDING SECTION 54-5007, IDAHO CODE, TO DELETE LANGUAGE RELATING TO
16 BONDS, TO REQUIRE THAT LICENSE APPLICATIONS FROM HEATING, VENTILATION AND
17 AIR CONDITIONING CONTRACTORS AND SPECIALTY CONTRACTORS BE ACCOMPANIED BY A
18 BOND, TO SET AN AMOUNT FOR THE BOND, TO PROVIDE TERMS AND CONDITIONS, TO
19 REQUIRE THAT SUCH APPLICATIONS BE ACCOMPANIED BY PROOF OF LIABILITY INSUR-
20 ANCE, TO SET THE AMOUNT FOR SUCH INSURANCE AND TO REQUIRE THAT SUCH APPLI-
21 CATIONS BE ACCOMPANIED BY PROOF OF WORKER'S COMPENSATION INSURANCE, IF
22 APPLICABLE.
23 Be It Enacted by the Legislature of the State of Idaho:
24 SECTION 1. That Section 54-1003, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 54-1003. ADMINISTRATOR AUTHORITY. (1) Only the administrator of the divi-
27 sion of building safety of the state of Idaho is authorized and empowered to
28 conduct examinations and to pass upon the qualifications of applicants, and to
29 grant and issue licenses or registrations to such applicants as are found to
30 be qualified to engage in the trade, business or calling of a journeyman elec-
31 trician, electrical contractor, master electrician, specialty electrician,
32 specialty electrical contractor, specialty electrical trainee or apprentice
33 electrician in the manner and upon the terms and conditions hereinafter pro-
34 vided.
35 (2) License applications for electrical and specialty electrical contrac-
36 tors shall be accompanied by a bond in the amount of ten thousand dollars
37 ($10,000) executed by a surety company authorized to do business in Idaho as
38 surety with the applicant as principal and the state of Idaho as obligee, for
39 its benefit and that of consumers dealing with the applicant, conditioned that
40 the applicant shall faithfully perform the duties and in all things comply
41 with the laws and rules pertaining to the license or registration applied for
42 and shall pay all amounts due to the consumer for reason of the contractor's
43 breach of contract including negligent or improper work in the conduct of the
2
1 contracting business or failure to fully perform a contract. In order for a
2 claim to be payable by the surety, it must be established that the claim is
3 within the scope of the bond as described in this subsection; however, it is
4 not necessary for a claimant to reduce a claim to judgment before submitting a
5 claim to the surety.
6 The bond shall be continuous unless canceled as provided for in this sub-
7 section, and the aggregate liability of the surety, regardless of the number
8 of claims made against the bond or the number of years the bond remains in
9 force, shall in no event exceed the amount of the bond. The bond may be termi-
10 nated at any time by the surety upon sending thirty (30) days' notice in writ-
11 ing to the state of Idaho at the office where the bond is filed and to the
12 contractor.
13 (3) License applications for electrical contractors and specialty elec-
14 trical contractors shall also be accompanied by proof of liability insurance
15 in the amount of three hundred thousand dollars ($300,000) and proof of wor-
16 ker's compensation insurance, if applicable.
17 (4) No licenses granted hereunder shall be transferable. Licenses shall
18 be issued upon the condition that the holder thereof shall comply with all
19 provisions of this chapter.
20 (35) The administrator of the division of building safety is authorized
21 to impose civil penalties as provided in this chapter.
22 SECTION 2. That Section 54-2606, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 54-2606. POWERS AND DUTIES OF THE IDAHO PLUMBING BOARD. (1) The board
25 shall have the general administration and supervision of the design, construc-
26 tion, installation, improvement, extension and alteration of plumbing and
27 plumbing systems, except that which has been heretofore and hereinafter
28 exempted from the jurisdiction of this board, in connection with all build-
29 ings, residences and structures in this state including buildings, residences
30 and structures owned by the state or any political subdivision thereof.
31 (2) The division of building safety shall enforce the minimum standards
32 and requirements therefor as provided by this chapter.
33 (3) The board may exercise such powers and duties as are reasonably nec-
34 essary to carry out the provisions of this chapter, and it may among other
35 things:
36 (a) Establish the fees to be charged for permits and inspections of
37 plumbing systems.
38 (b) Hold public meetings and attend or be represented at such meetings,
39 within or without the state, prepare and publish rules pertaining to this
40 chapter, and such other information as may be necessary, and furnish cop-
41 ies thereof to those engaged in the business, trade, practice or work of
42 plumbing and pipefitting and to the public upon request.
43 (c) Furnish standards and procedures and prescribe reasonable rules for
44 examinations, qualification and certification of plumbing contractors and
45 journeymen and apprentice plumbers not herein prescribed., including the
46 furnishing of a compliance bond in an amount not to exceed two thousand
47 dollars ($2,000) for the contractor classification or evidence of such
48 coverage by a corporate industry group bond acceptable to the board.
49 (d) Furnish standards and procedures and prescribe reasonable rules to
50 provide for the certification of specialty contractors, specialty journey-
51 men, and specialty apprentices, including the furnishing of a compliance
52 bond in an amount not to exceed two thousand dollars ($2,000) for the spe-
53 cialty contractor classification or evidence of coverage by a corporate
3
1 industry group bond acceptable to the board.
2 (e) Establish by administrative rule civil penalties not to exceed one
3 thousand dollars ($1,000) for each count or separate offense, to be paid
4 for violations of this chapter and rules of the Idaho plumbing board; and
5 to establish by administrative rule the process by which appeals from the
6 imposition of civil penalties may be heard. The board is authorized to
7 affirm, reject, decrease or increase the penalty imposed; however, the
8 board shall not increase any penalty imposed to an amount exceeding one
9 thousand dollars ($1,000) for each individual count or separate offense.
10 (f) License applications for plumbing contractors shall be accompanied by
11 a bond in the amount of ten thousand dollars ($10,000) executed by a
12 surety company authorized to do business in Idaho as surety with the
13 applicant as principal and the state of Idaho as obligee, for its benefit
14 and that of consumers dealing with the applicant, conditioned that the
15 applicant shall faithfully perform the duties and in all things comply
16 with the laws and rules pertaining to the license applied for and shall
17 pay all amounts due to the consumer for reason of the contractor's breach
18 of contract including negligent or improper work in the conduct of the
19 contracting business or failure to fully perform a contract. In order for
20 a claim to be payable by the surety, it must be established that the claim
21 is within the scope of the bond as described in this paragraph; however,
22 it is not necessary for a claimant to reduce a claim to judgment before
23 submitting a claim to the surety. The bond shall be continuous unless can-
24 celed as provided for in this paragraph, and the aggregate liability of
25 the surety, regardless of the number of claims made against the bond or
26 the number of years the bond remains in force, shall in no event exceed
27 the amount of the bond. The bond may be terminated at any time by the
28 surety upon sending thirty (30) days' notice in writing to the state of
29 Idaho at the office where the bond is filed and to the contractor.
30 (g) License applications for plumbing contractors shall also be accompa-
31 nied by proof of liability insurance in the amount of three hundred thou-
32 sand dollars ($300,000) and proof of worker's compensation insurance, if
33 applicable.
34 SECTION 3. That Section 54-5007, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 54-5007. REQUIREMENTS FOR CERTIFICATES OF COMPETENCY. (1) The Idaho heat-
37 ing, ventilation and air conditioning board shall provide standards and proce-
38 dures and prescribe reasonable rules for examination, qualification and certi-
39 fication of heating, ventilation and air conditioning contractors, journeymen,
40 apprentices, specialty contractors, specialty journeymen and specialty appren-
41 tices. HVAC contractors and specialty contractors shall provide a bond in the
42 amount of two thousand dollars ($2,000) or evidence of such coverage by a cor-
43 porate industry group bond acceptable to the board.
44 (2) Applications for certificates of competency for heating, ventilation
45 and air conditioning contractors and specialty contractors shall be accompa-
46 nied by a bond in the amount of ten thousand dollars ($10,000) executed by a
47 surety company authorized to do business in Idaho as surety with the applicant
48 as principal and the state of Idaho as obligee, for its benefit and that of
49 consumers dealing with the applicant, conditioned that the applicant shall
50 faithfully perform the duties and in all things comply with the laws and rules
51 pertaining to the license applied for and shall pay all amounts due to the
52 consumer for reason of the contractor's breach of contract including negligent
53 or improper work in the conduct of the contracting business or failure to
4
1 fully perform a contract. In order for a claim to be payable by the surety, it
2 must be established that the claim is within the scope of the bond as
3 described in this subsection; however, it is not necessary for a claimant to
4 reduce a claim to judgment before submitting a claim to the surety.
5 The bond shall be continuous unless canceled as provided for in this sub-
6 section and the aggregate liability of the surety, regardless of the number of
7 claims made against the bond or the number of years the bond remains in force,
8 shall in no event exceed the amount of the bond. The bond may be terminated at
9 any time by the surety upon sending thirty (30) days' notice in writing to the
10 state of Idaho at the office where the bond is filed and to the contractor.
11 (3) License applications for heating, ventilation and air conditioning
12 contractors and specialty contractors shall also be accompanied by proof of
13 liability insurance in the amount of three hundred thousand dollars ($300,000)
14 and proof of worker's compensation insurance, if applicable.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
Moved by Deal
Seconded by Black
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENTS TO H.B. NO. 761
1 AMENDMENTS TO SECTION 1
2 On page 1 of the printed bill, in line 24, delete "54-1003" and insert:
3 "54-1006"; delete lines 26 through 43, and on page 2 delete lines 1 through 21
4 and insert:
5 "54-1006. IDAHO ELECTRICAL BOARD. (1) The Idaho electrical board, herein-
6 after known as the board, is hereby created and made a part of the division of
7 building safety. It shall be the responsibility and duty of the administrator
8 of the division of building safety to administer and enforce the provisions of
9 this act chapter, and to serve as secretary to the Idaho electrical board.
10 (2) The board shall consist of nine (9) members to be appointed by the
11 governor with power of removal for cause. Two (2) members shall be licensed
12 journeymen or master electricians; two (2) members shall be employees or offi-
13 cers of licensed electrical contractors; one (1) member shall be a licensed
14 specialty journeyman or contractor; one (1) member shall be an employee or
15 officer of an electrical power provider; one (1) member shall be an employee
16 or officer of a manufacturing plant or other large power user; one (1) member
17 shall be an employee or director of a manufacturer or distributor of electri-
18 cal supplies or materials; and one (1) member shall be from the public at
19 large not directly associated with the electrical industry. Board members
20 shall be appointed for a term of four (4) years. Members of the board shall
21 hold office until expiration of the term to which the member was appointed and
22 until his successor has been duly appointed and qualified. Whenever a vacancy
23 occurs, the governor shall appoint a qualified person to fill the vacancy for
24 the unexpired portion of the term.
25 (3) All members of the board shall be citizens of the United States, res-
26 idents of this state for not less than two (2) years and shall be qualified by
27 experience, knowledge and integrity in formulating rules for examinations, in
28 passing on the fitness and qualifications of applicants for electrical con-
29 tractor and journeyman electrician licenses and in establishing standards for
30 electrical products to be used in electrical installations coming under the
31 provisions of this act chapter.
32 (4) The members of the board shall, at their first regular meeting fol-
33 lowing the effective date of this act and every two (2) years thereafter,
34 elect by majority vote of the members of the board, a chairman who shall pre-
35 side at meetings of the board. In the event the chairman is not present at any
36 board meeting, the board may by majority vote of the members present appoint a
37 temporary chairman. A majority of the members of the board shall constitute a
38 quorum.
39 (5) The board is authorized and directed to prescribe and amend rules
40 consistent with this act chapter for the administration of this chapter and to
41 effectuate the purpose thereof, and for the examination and licensing of elec-
42 trical contractors, journeyman electricians, master electricians, specialty
43 electricians, specialty electrical contractors, specialty electrical trainees
2
1 and apprentice electricians. The board shall also establish the classifica-
2 tions for specialty electrician and specialty electrical contractor licensing
3 and the fees to be charged for permits and inspections of electrical systems.
4 The board shall establish by administrative rule the fines to be paid for
5 citations issued and shall hear appeals regarding the imposition of civil pen-
6 alties for violations of this chapter and the rules of the Idaho electrical
7 board. The board is authorized to affirm, reject, decrease or increase the
8 penalty imposed by the administrator. However, in no case shall the penalty
9 exceed one thousand dollars ($1,000) for each offense.
10 (6) Each member of the board not otherwise compensated by public moneys
11 shall be compensated as provided by section 59-509(h), Idaho Code.
12 (7) The board shall require applicants for issuance or renewal of an
13 electrical or specialty electrical contractor license to file with the board a
14 bond with one (1) or more corporate surety companies authorized to do business
15 in this state as follows:
16 (a) The bond shall be conditioned that an electrical or specialty elec-
17 trical contractor faithfully comply with applicable rules of the board and
18 the terms of any contract that may be included within the scope of such
19 bond as may be determined by the board. The board shall adopt rules to
20 implement the provisions of this paragraph (a);
21 (b) The bond shall be in the amount of ten thousand dollars ($10,000),
22 executed by a surety company with the applicant as principal and the state
23 of Idaho as obligee, for its benefit and that of consumers dealing with
24 the applicant; provided however, the board may reduce the amount of the
25 bond required by this paragraph (b) to five thousand dollars ($5,000) upon
26 a showing that the applicant does not perform work exceeding forty thou-
27 sand dollars ($40,000) in gross annual volume and does not enter into con-
28 tracts with consumers that exceed five thousand dollars ($5,000);
29 (c) A surety company shall pay all amounts due to a consumer pursuant to
30 a bond, provided that the board has determined that:
31 (i) An electrical or specialty electrical contractor has failed to
32 comply with any applicable rule adopted by the board; or
33 (ii) An electrical or specialty electrical contractor has breached a
34 contract with a consumer, including negligent or improper work in the
35 conduct of the contracting business or failure to fully perform a
36 contract, provided that such contract is within the scope of the
37 bond;
38 (d) In order for a claim to be payable by the surety company, it must be
39 established that the claim is within the scope of the bond provided in
40 this subsection (7); provided however, it is not necessary for a consumer
41 to reduce a claim to judgment through a court of competent jurisdiction
42 before submitting a claim to a surety company;
43 (e) A bond shall be continuous unless canceled as provided for in this
44 subsection (7), and the aggregate liability of a surety company, regard-
45 less of the number of claims made against the bond or the number of years
46 the bond remains in force, shall in no event exceed the amount of the
47 bond; and
48 (f) The bond may be terminated at any time by the contractor. A surety
49 company may terminate the bond on the anniversary date of the bond upon
50 providing thirty (30) days' written notice to the board and to an electri-
51 cal or specialty electrical contractor on whose behalf a bond has been
52 issued.
53 (8) License applications for electrical contractors and specialty elec-
54 trical contractors shall be accompanied by proof of liability insurance in the
55 amount of three hundred thousand dollars ($300,000) and proof of worker's com-
3
1 pensation insurance, if applicable.".
2 AMENDMENTS TO SECTION 2
3 On page 2, delete lines 51 through 53; and on page 3, delete line 1 and
4 insert: "men, and specialty apprentices, including the furnishing of a compli-
5 ance bond in an amount not to exceed two thousand dollars ($2,000) for the
6 specialty contractor classification or evidence of coverage by a corporate
7 industry group bond acceptable to the board."; also on page 3, delete lines 10
8 through 29 and insert:
9 "(f) Require applicants for issuance or renewal of a plumbing contractor
10 license to file with the board a bond with one (1) or more corporate
11 surety companies authorized to do business in this state as follows:
12 (i) The bond shall be conditioned that a plumbing contractor faith-
13 fully comply with applicable rules of the board and the terms of any
14 contract that may be included within the scope of such bond as may be
15 determined by the board. The board shall adopt rules to implement the
16 provisions of this paragraph (f)(i);
17 (ii) The bond shall be in the amount of ten thousand dollars
18 ($10,000), executed by a surety company with the applicant as princi-
19 pal and the state of Idaho as obligee, for its benefit and that of
20 consumers dealing with the applicant; provided however, the board may
21 reduce the amount of the bond required by this paragraph (ii) to five
22 thousand dollars ($5,000) upon a showing that the applicant does not
23 perform work exceeding forty thousand dollars ($40,000) in gross
24 annual volume and does not enter into contracts with consumers that
25 exceed five thousand dollars ($5,000);
26 (iii) A surety company shall pay all amounts due to a consumer pursu-
27 ant to a bond, provided that the board has determined that:
28 (A) A plumbing contractor has failed to comply with any appli-
29 cable rule adopted by the board; or
30 (B) A plumbing contractor has breached a contract with a con-
31 sumer, including negligent or improper work in the conduct of
32 the contracting business or failure to fully perform a contract,
33 provided that such contract is within the scope of the bond;
34 (iv) In order for a claim to be payable by the surety company, it
35 must be established that the claim is within the scope of the bond
36 provided in this paragraph (f); provided however, it is not necessary
37 for a consumer to reduce a claim to judgment through a court of com-
38 petent jurisdiction before submitting a claim to a surety company;
39 (v) A bond shall be continuous unless canceled as provided for in
40 this paragraph (f), and the aggregate liability of a surety company,
41 regardless of the number of claims made against the bond or the num-
42 ber of years the bond remains in force, shall in no event exceed the
43 amount of the bond; and
44 (vi) The bond may be terminated at any time by the contractor. A
45 surety company may terminate the bond on the anniversary date of the
46 bond upon providing thirty (30) days' written notice to the board and
47 to the plumbing contractor on whose behalf a bond has been issued.".
48 AMENDMENTS TO SECTION 3
49 On page 3, delete lines 44 through 53; and on page 4, delete lines 1
50 through 10 and insert:
51 "(2) The board shall require applicants for issuance or renewal of a
52 heating, ventilation and air conditioning contractor or specialty contractor
53 certificate of competency to file with the board a bond with one (1) or more
4
1 corporate surety companies authorized to do business in this state as follows:
2 (a) The bond shall be conditioned that a heating, ventilation and air
3 conditioning contractor or specialty contractor faithfully comply with
4 applicable rules of the board and the terms of any contract that may be
5 included within the scope of such bond as may be determined by the board.
6 The board shall adopt rules to implement the provisions of this paragraph
7 (a);
8 (b) The bond shall be in the amount of ten thousand dollars ($10,000),
9 executed by a surety company with the applicant as principal and the state
10 of Idaho as obligee, for its benefit and that of consumers dealing with
11 the applicant; provided however, the board may reduce the amount of the
12 bond required by this paragraph (b) to five thousand dollars ($5,000) upon
13 a showing that the applicant does not perform work exceeding forty thou-
14 sand dollars ($40,000) in gross annual volume and does not enter into con-
15 tracts with consumers that exceed five thousand dollars ($5,000);
16 (c) A surety company shall pay all amounts due to a consumer pursuant to
17 a bond, provided that the board has determined that:
18 (i) A heating, ventilation and air conditioning contractor or spe-
19 cialty contractor has failed to comply with any applicable rule
20 adopted by the board; or
21 (ii) A heating, ventilation and air conditioning contractor or spe-
22 cialty contractor has breached a contract with a consumer, including
23 negligent or improper work in the conduct of the contracting business
24 or failure to fully perform a contract, provided that such contract
25 is within the scope of the bond;
26 (d) In order for a claim to be payable by the surety company, it must be
27 established that the claim is within the scope of the bond provided in
28 this subsection (2); provided however, it is not necessary for a consumer
29 to reduce a claim to judgment through a court of competent jurisdiction
30 before submitting a claim to a surety company;
31 (e) A bond shall be continuous unless canceled as provided for in this
32 subsection (2), and the aggregate liability of a surety company, regard-
33 less of the number of claims made against the bond or the number of years
34 the bond remains in force, shall in no event exceed the amount of the
35 bond; and
36 (f) The bond may be terminated at any time by the contractor. A surety
37 company may terminate the bond on the anniversary date of the bond upon
38 providing thirty (30) days' written notice to the board and to a heating,
39 ventilation and air conditioning contractor or specialty contractor on
40 whose behalf a bond has been issued.";
41 also on page 4, in line 11, delete "License" and insert: "Certificate of com-
42 petency".
43 AMENDMENT TO THE BILL
44 On page 4, following line 14, insert:
45 "SECTION 4. This act shall be in full force and effect on and after July
46 1, 2007.".
47 CORRECTIONS TO TITLE
48 On page 1, delete lines 2 through 22 and insert:
49 "RELATING TO CONTRACTOR LICENSING; AMENDING SECTION 54-1006, IDAHO CODE, TO
50 AUTHORIZE THE IDAHO ELECTRICAL BOARD TO SET FORTH BONDING REQUIREMENTS, TO
51 SET FORTH LICENSE APPLICATION REQUIREMENTS AND TO REVISE TERMINOLOGY;
52 AMENDING SECTION 54-2606, IDAHO CODE, TO REVISE THE POWERS AND DUTIES OF
53 THE IDAHO PLUMBING BOARD AND TO SET FORTH LICENSE APPLICATION REQUIRE-
5
1 MENTS; AMENDING SECTION 54-5007, IDAHO CODE, TO REVISE PROVISIONS APPLICA-
2 BLE TO REQUIREMENTS FOR CERTIFICATES OF COMPETENCY FOR HEATING, VENTILA-
3 TION AND AIR CONDITIONING CONTRACTORS AND SPECIALTY CONTRACTORS; AND PRO-
4 VIDING AN EFFECTIVE DATE.".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 761, As Amended
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO CONTRACTOR LICENSING; AMENDING SECTION 54-1006, IDAHO CODE, TO AU-
3 THORIZE THE IDAHO ELECTRICAL BOARD TO SET FORTH BONDING REQUIREMENTS, TO
4 SET FORTH LICENSE APPLICATION REQUIREMENTS AND TO REVISE TERMINOLOGY;
5 AMENDING SECTION 54-2606, IDAHO CODE, TO REVISE THE POWERS AND DUTIES OF
6 THE IDAHO PLUMBING BOARD AND TO SET FORTH LICENSE APPLICATION REQUIRE-
7 MENTS; AMENDING SECTION 54-5007, IDAHO CODE, TO REVISE PROVISIONS APPLICA-
8 BLE TO REQUIREMENTS FOR CERTIFICATES OF COMPETENCY FOR HEATING, VENTILA-
9 TION AND AIR CONDITIONING CONTRACTORS AND SPECIALTY CONTRACTORS; AND PRO-
10 VIDING AN EFFECTIVE DATE.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Section 54-1006, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 54-1006. IDAHO ELECTRICAL BOARD. (1) The Idaho electrical board, herein-
15 after known as the board, is hereby created and made a part of the division of
16 building safety. It shall be the responsibility and duty of the administrator
17 of the division of building safety to administer and enforce the provisions of
18 this act chapter, and to serve as secretary to the Idaho electrical board.
19 (2) The board shall consist of nine (9) members to be appointed by the
20 governor with power of removal for cause. Two (2) members shall be licensed
21 journeymen or master electricians; two (2) members shall be employees or offi-
22 cers of licensed electrical contractors; one (1) member shall be a licensed
23 specialty journeyman or contractor; one (1) member shall be an employee or
24 officer of an electrical power provider; one (1) member shall be an employee
25 or officer of a manufacturing plant or other large power user; one (1) member
26 shall be an employee or director of a manufacturer or distributor of electri-
27 cal supplies or materials; and one (1) member shall be from the public at
28 large not directly associated with the electrical industry. Board members
29 shall be appointed for a term of four (4) years. Members of the board shall
30 hold office until expiration of the term to which the member was appointed and
31 until his successor has been duly appointed and qualified. Whenever a vacancy
32 occurs, the governor shall appoint a qualified person to fill the vacancy for
33 the unexpired portion of the term.
34 (3) All members of the board shall be citizens of the United States, res-
35 idents of this state for not less than two (2) years and shall be qualified by
36 experience, knowledge and integrity in formulating rules for examinations, in
37 passing on the fitness and qualifications of applicants for electrical con-
38 tractor and journeyman electrician licenses and in establishing standards for
39 electrical products to be used in electrical installations coming under the
40 provisions of this act chapter.
41 (4) The members of the board shall, at their first regular meeting fol-
42 lowing the effective date of this act and every two (2) years thereafter,
43 elect by majority vote of the members of the board, a chairman who shall pre-
2
1 side at meetings of the board. In the event the chairman is not present at any
2 board meeting, the board may by majority vote of the members present appoint a
3 temporary chairman. A majority of the members of the board shall constitute a
4 quorum.
5 (5) The board is authorized and directed to prescribe and amend rules
6 consistent with this act chapter for the administration of this chapter and to
7 effectuate the purpose thereof, and for the examination and licensing of elec-
8 trical contractors, journeyman electricians, master electricians, specialty
9 electricians, specialty electrical contractors, specialty electrical trainees
10 and apprentice electricians. The board shall also establish the classifica-
11 tions for specialty electrician and specialty electrical contractor licensing
12 and the fees to be charged for permits and inspections of electrical systems.
13 The board shall establish by administrative rule the fines to be paid for
14 citations issued and shall hear appeals regarding the imposition of civil pen-
15 alties for violations of this chapter and the rules of the Idaho electrical
16 board. The board is authorized to affirm, reject, decrease or increase the
17 penalty imposed by the administrator. However, in no case shall the penalty
18 exceed one thousand dollars ($1,000) for each offense.
19 (6) Each member of the board not otherwise compensated by public moneys
20 shall be compensated as provided by section 59-509(h), Idaho Code.
21 (7) The board shall require applicants for issuance or renewal of an
22 electrical or specialty electrical contractor license to file with the board a
23 bond with one (1) or more corporate surety companies authorized to do business
24 in this state as follows:
25 (a) The bond shall be conditioned that an electrical or specialty elec-
26 trical contractor faithfully comply with applicable rules of the board and
27 the terms of any contract that may be included within the scope of such
28 bond as may be determined by the board. The board shall adopt rules to
29 implement the provisions of this paragraph (a);
30 (b) The bond shall be in the amount of ten thousand dollars ($10,000),
31 executed by a surety company with the applicant as principal and the state
32 of Idaho as obligee, for its benefit and that of consumers dealing with
33 the applicant; provided however, the board may reduce the amount of the
34 bond required by this paragraph (b) to five thousand dollars ($5,000) upon
35 a showing that the applicant does not perform work exceeding forty thou-
36 sand dollars ($40,000) in gross annual volume and does not enter into con-
37 tracts with consumers that exceed five thousand dollars ($5,000);
38 (c) A surety company shall pay all amounts due to a consumer pursuant to
39 a bond, provided that the board has determined that:
40 (i) An electrical or specialty electrical contractor has failed to
41 comply with any applicable rule adopted by the board; or
42 (ii) An electrical or specialty electrical contractor has breached a
43 contract with a consumer, including negligent or improper work in the
44 conduct of the contracting business or failure to fully perform a
45 contract, provided that such contract is within the scope of the
46 bond;
47 (d) In order for a claim to be payable by the surety company, it must be
48 established that the claim is within the scope of the bond provided in
49 this subsection (7); provided however, it is not necessary for a consumer
50 to reduce a claim to judgment through a court of competent jurisdiction
51 before submitting a claim to a surety company;
52 (e) A bond shall be continuous unless canceled as provided for in this
53 subsection (7), and the aggregate liability of a surety company, regard-
54 less of the number of claims made against the bond or the number of years
55 the bond remains in force, shall in no event exceed the amount of the
3
1 bond; and
2 (f) The bond may be terminated at any time by the contractor. A surety
3 company may terminate the bond on the anniversary date of the bond upon
4 providing thirty (30) days' written notice to the board and to an electri-
5 cal or specialty electrical contractor on whose behalf a bond has been
6 issued.
7 (8) License applications for electrical contractors and specialty elec-
8 trical contractors shall be accompanied by proof of liability insurance in the
9 amount of three hundred thousand dollars ($300,000) and proof of worker's com-
10 pensation insurance, if applicable.
11 SECTION 2. That Section 54-2606, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 54-2606. POWERS AND DUTIES OF THE IDAHO PLUMBING BOARD. (1) The board
14 shall have the general administration and supervision of the design, construc-
15 tion, installation, improvement, extension and alteration of plumbing and
16 plumbing systems, except that which has been heretofore and hereinafter
17 exempted from the jurisdiction of this board, in connection with all build-
18 ings, residences and structures in this state including buildings, residences
19 and structures owned by the state or any political subdivision thereof.
20 (2) The division of building safety shall enforce the minimum standards
21 and requirements therefor as provided by this chapter.
22 (3) The board may exercise such powers and duties as are reasonably nec-
23 essary to carry out the provisions of this chapter, and it may among other
24 things:
25 (a) Establish the fees to be charged for permits and inspections of
26 plumbing systems.
27 (b) Hold public meetings and attend or be represented at such meetings,
28 within or without the state, prepare and publish rules pertaining to this
29 chapter, and such other information as may be necessary, and furnish cop-
30 ies thereof to those engaged in the business, trade, practice or work of
31 plumbing and pipefitting and to the public upon request.
32 (c) Furnish standards and procedures and prescribe reasonable rules for
33 examinations, qualification and certification of plumbing contractors and
34 journeymen and apprentice plumbers not herein prescribed., including the
35 furnishing of a compliance bond in an amount not to exceed two thousand
36 dollars ($2,000) for the contractor classification or evidence of such
37 coverage by a corporate industry group bond acceptable to the board.
38 (d) Furnish standards and procedures and prescribe reasonable rules to
39 provide for the certification of specialty contractors, specialty journey-
40 men, and specialty apprentices, including the furnishing of a compliance
41 bond in an amount not to exceed two thousand dollars ($2,000) for the spe-
42 cialty contractor classification or evidence of coverage by a corporate
43 industry group bond acceptable to the board.
44 (e) Establish by administrative rule civil penalties not to exceed one
45 thousand dollars ($1,000) for each count or separate offense, to be paid
46 for violations of this chapter and rules of the Idaho plumbing board; and
47 to establish by administrative rule the process by which appeals from the
48 imposition of civil penalties may be heard. The board is authorized to
49 affirm, reject, decrease or increase the penalty imposed; however, the
50 board shall not increase any penalty imposed to an amount exceeding one
51 thousand dollars ($1,000) for each individual count or separate offense.
52 (f) Require applicants for issuance or renewal of a plumbing contractor
53 license to file with the board a bond with one (1) or more corporate
4
1 surety companies authorized to do business in this state as follows:
2 (i) The bond shall be conditioned that a plumbing contractor faith-
3 fully comply with applicable rules of the board and the terms of any
4 contract that may be included within the scope of such bond as may be
5 determined by the board. The board shall adopt rules to implement the
6 provisions of this paragraph (f)(i);
7 (ii) The bond shall be in the amount of ten thousand dollars
8 ($10,000), executed by a surety company with the applicant as princi-
9 pal and the state of Idaho as obligee, for its benefit and that of
10 consumers dealing with the applicant; provided however, the board may
11 reduce the amount of the bond required by this paragraph (ii) to five
12 thousand dollars ($5,000) upon a showing that the applicant does not
13 perform work exceeding forty thousand dollars ($40,000) in gross
14 annual volume and does not enter into contracts with consumers that
15 exceed five thousand dollars ($5,000);
16 (iii) A surety company shall pay all amounts due to a consumer pursu-
17 ant to a bond, provided that the board has determined that:
18 (A) A plumbing contractor has failed to comply with any appli-
19 cable rule adopted by the board; or
20 (B) A plumbing contractor has breached a contract with a con-
21 sumer, including negligent or improper work in the conduct of
22 the contracting business or failure to fully perform a contract,
23 provided that such contract is within the scope of the bond;
24 (iv) In order for a claim to be payable by the surety company, it
25 must be established that the claim is within the scope of the bond
26 provided in this paragraph (f); provided however, it is not necessary
27 for a consumer to reduce a claim to judgment through a court of com-
28 petent jurisdiction before submitting a claim to a surety company;
29 (v) A bond shall be continuous unless canceled as provided for in
30 this paragraph (f), and the aggregate liability of a surety company,
31 regardless of the number of claims made against the bond or the num-
32 ber of years the bond remains in force, shall in no event exceed the
33 amount of the bond; and
34 (vi) The bond may be terminated at any time by the contractor. A
35 surety company may terminate the bond on the anniversary date of the
36 bond upon providing thirty (30) days' written notice to the board and
37 to the plumbing contractor on whose behalf a bond has been issued.
38 (g) License applications for plumbing contractors shall also be accompa-
39 nied by proof of liability insurance in the amount of three hundred thou-
40 sand dollars ($300,000) and proof of worker's compensation insurance, if
41 applicable.
42 SECTION 3. That Section 54-5007, Idaho Code, be, and the same is hereby
43 amended to read as follows:
44 54-5007. REQUIREMENTS FOR CERTIFICATES OF COMPETENCY. (1) The Idaho heat-
45 ing, ventilation and air conditioning board shall provide standards and proce-
46 dures and prescribe reasonable rules for examination, qualification and certi-
47 fication of heating, ventilation and air conditioning contractors, journeymen,
48 apprentices, specialty contractors, specialty journeymen and specialty appren-
49 tices. HVAC contractors and specialty contractors shall provide a bond in the
50 amount of two thousand dollars ($2,000) or evidence of such coverage by a cor-
51 porate industry group bond acceptable to the board.
52 (2) The board shall require applicants for issuance or renewal of a heat-
53 ing, ventilation and air conditioning contractor or specialty contractor cer-
5
1 tificate of competency to file with the board a bond with one (1) or more cor-
2 porate surety companies authorized to do business in this state as follows:
3 (a) The bond shall be conditioned that a heating, ventilation and air
4 conditioning contractor or specialty contractor faithfully comply with
5 applicable rules of the board and the terms of any contract that may be
6 included within the scope of such bond as may be determined by the board.
7 The board shall adopt rules to implement the provisions of this paragraph
8 (a);
9 (b) The bond shall be in the amount of ten thousand dollars ($10,000),
10 executed by a surety company with the applicant as principal and the state
11 of Idaho as obligee, for its benefit and that of consumers dealing with
12 the applicant; provided however, the board may reduce the amount of the
13 bond required by this paragraph (b) to five thousand dollars ($5,000) upon
14 a showing that the applicant does not perform work exceeding forty thou-
15 sand dollars ($40,000) in gross annual volume and does not enter into con-
16 tracts with consumers that exceed five thousand dollars ($5,000);
17 (c) A surety company shall pay all amounts due to a consumer pursuant to
18 a bond, provided that the board has determined that:
19 (i) A heating, ventilation and air conditioning contractor or spe-
20 cialty contractor has failed to comply with any applicable rule
21 adopted by the board; or
22 (ii) A heating, ventilation and air conditioning contractor or spe-
23 cialty contractor has breached a contract with a consumer, including
24 negligent or improper work in the conduct of the contracting business
25 or failure to fully perform a contract, provided that such contract
26 is within the scope of the bond;
27 (d) In order for a claim to be payable by the surety company, it must be
28 established that the claim is within the scope of the bond provided in
29 this subsection (2); provided however, it is not necessary for a consumer
30 to reduce a claim to judgment through a court of competent jurisdiction
31 before submitting a claim to a surety company;
32 (e) A bond shall be continuous unless canceled as provided for in this
33 subsection (2), and the aggregate liability of a surety company, regard-
34 less of the number of claims made against the bond or the number of years
35 the bond remains in force, shall in no event exceed the amount of the
36 bond; and
37 (f) The bond may be terminated at any time by the contractor. A surety
38 company may terminate the bond on the anniversary date of the bond upon
39 providing thirty (30) days' written notice to the board and to a heating,
40 ventilation and air conditioning contractor or specialty contractor on
41 whose behalf a bond has been issued.
42 (3) Certificate of competency applications for heating, ventilation and
43 air conditioning contractors and specialty contractors shall also be accompa-
44 nied by proof of liability insurance in the amount of three hundred thousand
45 dollars ($300,000) and proof of worker's compensation insurance, if applica-
46 ble.
47 SECTION 4. This act shall be in full force and effect on and after July
48 1, 2007.
STATEMENT OF PURPOSE
RS 16193
This legislation will apply identical insurance and bonding
requirements to all electrical, plumbing, and heating and
ventilating ("HVAC") contractors. Current Idaho code provisions
provide different requirements for different trades. The new
bonding requirements in this legislation provide that a consumer
can obtain up to $10,000 for the failure of an electrical,
plumbing, or HVAC contractor to comply with applicable rules, codes
or statutory requirements or comply with the terms of a contract to
perform work.
The requirements provided by this bill are: (1) proof of worker's
compensation insurance, (2)proof of liability insurance in the
amount of $300,000, and(3) a surety bond in the amount of $10,000
payable to a consumer in the event the electrical, plumbing, or
HVAC contractor fails to meet the requirements of applicable codes
or rules.
FISCAL NOTE
There is no impact to the general fund.
Contact
Name: Rep. Max Black
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 761