2007 Legislation
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HOUSE BILL NO. 45 – Contractors, licensure requirements

HOUSE BILL NO. 45

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H0045...........................................................by BUSINESS
CONTRACTORS - LICENSURE - Amends existing law to revise licensure
requirements for electrical and specialty electrical contractors; to revise
powers and duties of the Idaho Plumbing Board relating to licensure
requirements; to revise requirements for certificates of competency for
heating, ventilation and air conditioning contractors and specialty
contractors; to revise contractor registration requirements; and to revise
requirements for a dealer's license under the Idaho Liquefied Petroleum Gas
Public Safety Act.
                                                                        
01/24    House intro - 1st rdg - to printing
01/25    Rpt prt - to Bus

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 45
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROFESSIONS; AMENDING  SECTION  54-1006,  IDAHO  CODE,  TO  REVISE
  3        LICENSURE REQUIREMENTS FOR ELECTRICAL AND SPECIALTY ELECTRICAL CONTRACTORS
  4        AND TO REVISE TERMINOLOGY; AMENDING SECTION 54-2606, IDAHO CODE, TO REVISE
  5        POWERS  AND  DUTIES  OF  THE  IDAHO  PLUMBING  BOARD RELATING TO LICENSURE
  6        REQUIREMENTS; AMENDING SECTION 54-5007, IDAHO CODE, TO REVISE REQUIREMENTS
  7        FOR CERTIFICATES OF COMPETENCY FOR HEATING, VENTILATION AND AIR CONDITION-
  8        ING CONTRACTORS AND SPECIALTY CONTRACTORS; AMENDING SECTION 54-5210, IDAHO
  9        CODE, TO REVISE CONTRACTOR  REGISTRATION  REQUIREMENTS;  AMENDING  SECTION
 10        54-5307,  IDAHO  CODE, TO REVISE REQUIREMENTS FOR A DEALER'S LICENSE UNDER
 11        THE IDAHO LIQUEFIED PETROLEUM GAS PUBLIC  SAFETY  ACT;  AND  PROVIDING  AN
 12        EFFECTIVE DATE.
                                                                        
 13    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 14        SECTION  1.  That  Section 54-1006, Idaho Code, be, and the same is hereby
 15    amended to read as follows:
                                                                        
 16        54-1006.  IDAHO ELECTRICAL BOARD. (1) The Idaho electrical board,  herein-
 17    after known as the board, is hereby created and made a part of the division of
 18    building  safety. It shall be the responsibility and duty of the administrator
 19    of the division of building safety to administer and enforce the provisions of
 20    this act chapter, and to serve as secretary to the Idaho electrical board.
 21        (2)  The board shall consist of nine (9) members to be  appointed  by  the
 22    governor  with  power  of removal for cause. Two (2) members shall be licensed
 23    journeymen or master electricians; two (2) members shall be employees or offi-
 24    cers of licensed electrical contractors; one (1) member shall  be  a  licensed
 25    specialty  journeyman  or  contractor;  one (1) member shall be an employee or
 26    officer of an electrical power provider; one (1) member shall be  an  employee
 27    or  officer of a manufacturing plant or other large power user; one (1) member
 28    shall be an employee or director of a manufacturer or distributor of  electri-
 29    cal  supplies  or  materials;  and  one (1) member shall be from the public at
 30    large not directly associated with  the  electrical  industry.  Board  members
 31    shall  be  appointed  for a term of four (4) years. Members of the board shall
 32    hold office until expiration of the term to which the member was appointed and
 33    until his successor has been duly appointed and qualified. Whenever a  vacancy
 34    occurs,  the governor shall appoint a qualified person to fill the vacancy for
 35    the unexpired portion of the term.
 36        (3)  All members of the board shall be citizens of the United States, res-
 37    idents of this state for not less than two (2) years and shall be qualified by
 38    experience, knowledge and integrity in formulating rules for examinations,  in
 39    passing  on  the  fitness and qualifications of applicants for electrical con-
 40    tractor and journeyman electrician licenses and in establishing standards  for
 41    electrical  products  to  be used in electrical installations coming under the
 42    provisions of this act chapter.
 43        (4)  The members of the board shall, at their first regular  meeting  fol-
                                                                        
                                       2
                                                                        
  1    lowing  the  effective  date  of  this act and every two (2) years thereafter,
  2    elect by majority vote of the members of the board, a chairman who shall  pre-
  3    side at meetings of the board. In the event the chairman is not present at any
  4    board meeting, the board may by majority vote of the members present appoint a
  5    temporary  chairman. A majority of the members of the board shall constitute a
  6    quorum.
  7        (5)  The board is authorized and directed to  prescribe  and  amend  rules
  8    consistent with this act chapter for the administration of this chapter and to
  9    effectuate the purpose thereof, and for the examination and licensing of elec-
 10    trical  contractors,  journeyman electricians,  master electricians, specialty
 11    electricians, specialty electrical contractors, specialty electrical  trainees
 12    and  apprentice  electricians.  The board shall also establish the classifica-
 13    tions for specialty electrician and specialty electrical contractor  licensing
 14    and  the fees to be charged for permits and inspections of electrical systems.
 15    The board shall establish by administrative rule the  fines  to  be  paid  for
 16    citations issued and shall hear appeals regarding the imposition of civil pen-
 17    alties  for  violations  of this chapter and the rules of the Idaho electrical
 18    board. The board is authorized to affirm, reject,  decrease  or  increase  the
 19    penalty  imposed  by  the administrator. However, in no case shall the penalty
 20    exceed one thousand dollars ($1,000) for each offense.
 21        (6)  Each member of the board not otherwise compensated by  public  moneys
 22    shall be compensated as provided by section 59-509(h), Idaho Code.
 23        (7)  The  board  shall  require  applicants  for issuance or renewal of an
 24    electrical or specialty electrical contractor license to file with the board a
 25    bond with one (1) or more corporate surety companies authorized to do business
 26    in this state as follows:
 27        (a)  The bond shall be conditioned that an electrical or  specialty  elec-
 28        trical contractor faithfully comply with applicable rules of the board and
 29        the  terms  of  any contract that may be included within the scope of such
 30        bond as may be determined by the board. The board  shall  adopt  rules  to
 31        implement the provisions of this paragraph (a);
 32        (b)  The  bond  shall  be in the amount of ten thousand dollars ($10,000),
 33        executed by a surety company with the applicant as principal and the state
 34        of Idaho as obligee, for its benefit and that of  consumers  dealing  with
 35        the  applicant;  provided  however, the board may reduce the amount of the
 36        bond required by this paragraph (b) to five thousand dollars ($5,000) upon
 37        a showing that the applicant does not perform work exceeding  forty  thou-
 38        sand dollars ($40,000) in gross annual volume and does not enter into con-
 39        tracts with consumers that exceed five thousand dollars ($5,000);
 40        (c)  A  surety company shall pay all amounts due to a consumer pursuant to
 41        a bond, provided that the board has determined that:
 42             (i)   An electrical or specialty electrical contractor has failed  to
 43             comply with any applicable rule adopted by the board; or
 44             (ii)  An electrical or specialty electrical contractor has breached a
 45             contract with a consumer, including negligent or improper work in the
 46             conduct  of  the  contracting  business or failure to fully perform a
 47             contract, provided that such contract is  within  the  scope  of  the
 48             bond;
 49        (d)  In  order for a claim to be payable by the surety company, it must be
 50        established that the claim is within the scope of  the  bond  provided  in
 51        this  subsection (7); provided however, it is not necessary for a consumer
 52        to reduce a claim to judgment through a court  of  competent  jurisdiction
 53        before submitting a claim to a surety company;
 54        (e)  A  bond shall be continuous unless terminated as provided for in this
 55        subsection (7), and the aggregate liability of a surety  company,  regard-
                                                                        
                                       3
                                                                        
  1        less  of the number of claims made against the bond or the number of years
  2        the bond remains in force, shall in no event  exceed  the  amount  of  the
  3        bond; and
  4        (f)  The  bond  may  be terminated at any time by the contractor. A surety
  5        company may terminate the bond on the anniversary date of  the  bond  upon
  6        providing thirty (30) days' written notice to the board and to an electri-
  7        cal  or  specialty  electrical  contractor on whose behalf a bond has been
  8        issued.
  9        (8)  License applications for electrical contractors and  specialty  elec-
 10    trical contractors shall be accompanied by proof of liability insurance in the
 11    amount of three hundred thousand dollars ($300,000) and proof of worker's com-
 12    pensation insurance, if applicable.
                                                                        
 13        SECTION  2.  That  Section 54-2606, Idaho Code, be, and the same is hereby
 14    amended to read as follows:
                                                                        
 15        54-2606.  POWERS AND DUTIES OF THE IDAHO PLUMBING  BOARD.  (1)  The  board
 16    shall have the general administration and supervision of the design, construc-
 17    tion,  installation,  improvement,  extension  and  alteration of plumbing and
 18    plumbing systems, except  that  which  has  been  heretofore  and  hereinafter
 19    exempted  from  the  jurisdiction of this board, in connection with all build-
 20    ings, residences and structures in this state including buildings,  residences
 21    and structures owned by the state or any political subdivision thereof.
 22        (2)  The  division  of building safety shall enforce the minimum standards
 23    and requirements therefor as provided by this chapter.
 24        (3)  The board may exercise such powers and duties as are reasonably  nec-
 25    essary  to  carry  out  the provisions of this chapter, and it may among other
 26    things:
 27        (a)  Establish the fees to be  charged  for  permits  and  inspections  of
 28        plumbing systems.
 29        (b)  Hold  public  meetings and attend or be represented at such meetings,
 30        within or without the state, prepare and publish rules pertaining to  this
 31        chapter,  and such other information as may be necessary, and furnish cop-
 32        ies thereof to those engaged in the business, trade, practice or  work  of
 33        plumbing and pipefitting and to the public upon request.
 34        (c)  Furnish  standards  and procedures and prescribe reasonable rules for
 35        examinations, qualification and certification of plumbing contractors  and
 36        journeymen  and  apprentice plumbers not herein prescribed., including the
 37        furnishing of a compliance bond in an amount not to  exceed  two  thousand
 38        dollars  ($2,000)  for  the  contractor classification or evidence of such
 39        coverage by a corporate industry group bond acceptable to the board.
 40        (d)  Furnish standards and procedures and prescribe  reasonable  rules  to
 41        provide for the certification of specialty contractors, specialty journey-
 42        men,  and  specialty apprentices, including the furnishing of a compliance
 43        bond in an amount not to exceed two thousand dollars ($2,000) for the spe-
 44        cialty contractor classification or evidence of coverage  by  a  corporate
 45        industry group bond acceptable to the board.
 46        (e)  Establish  by  administrative  rule civil penalties not to exceed one
 47        thousand dollars ($1,000) for each count or separate offense, to  be  paid
 48        for  violations of this chapter and rules of the Idaho plumbing board; and
 49        to establish by administrative rule the process by which appeals from  the
 50        imposition  of  civil  penalties  may be heard. The board is authorized to
 51        affirm, reject, decrease or increase the  penalty  imposed;  however,  the
 52        board  shall  not  increase any penalty imposed to an amount exceeding one
 53        thousand dollars ($1,000) for each individual count or separate offense.
                                                                        
                                       4
                                                                        
  1        (f)  Require applicants for issuance or renewal of a  plumbing  contractor
  2        license  to  file  with  the  board  a bond with one (1) or more corporate
  3        surety companies authorized to do business in this state as follows:
  4             (i)   The bond shall be conditioned that a plumbing contractor faith-
  5             fully comply with applicable rules of the board and the terms of  any
  6             contract that may be included within the scope of such bond as may be
  7             determined by the board. The board shall adopt rules to implement the
  8             provisions of this paragraph (f)(i);
  9             (ii)  The  bond  shall  be  in  the  amount  of  ten thousand dollars
 10             ($10,000), executed by a surety company with the applicant as princi-
 11             pal and the state of Idaho as obligee, for its benefit  and  that  of
 12             consumers dealing with the applicant; provided however, the board may
 13             reduce  the  amount of the bond required by this paragraph (f)(ii) to
 14             five thousand dollars ($5,000) upon a showing that the applicant does
 15             not perform work exceeding forty thousand dollars ($40,000) in  gross
 16             annual  volume  and does not enter into contracts with consumers that
 17             exceed five thousand dollars ($5,000);
 18             (iii) A surety company shall pay all amounts due to a consumer pursu-
 19             ant to a bond, provided that the board has determined that:
 20                  (A)  A plumbing contractor has failed to comply with any  appli-
 21                  cable rule adopted by the board; or
 22                  (B)  A  plumbing  contractor has breached a contract with a con-
 23                  sumer, including negligent or improper work in  the  conduct  of
 24                  the contracting business or failure to fully perform a contract,
 25                  provided that such contract is within the scope of the bond;
 26             (iv)  In  order  for  a claim to be payable by the surety company, it
 27             must be established that the claim is within the scope  of  the  bond
 28             provided in this paragraph (f); provided however, it is not necessary
 29             for  a consumer to reduce a claim to judgment through a court of com-
 30             petent jurisdiction before submitting a claim to a surety company;
 31             (v)  A bond shall be continuous unless terminated as provided for  in
 32             this  paragraph (f), and the aggregate liability of a surety company,
 33             regardless of the number of claims made against the bond or the  num-
 34             ber  of years the bond remains in force, shall in no event exceed the
 35             amount of the bond; and
 36             (vi)  The bond may be terminated at any time  by  the  contractor.  A
 37             surety  company may terminate the bond on the anniversary date of the
 38             bond upon providing thirty (30) days' written notice to the board and
 39             to the plumbing contractor on whose behalf a bond has been issued.
 40        (g)  License applications for plumbing contractors shall also be  accompa-
 41        nied  by proof of liability insurance in the amount of three hundred thou-
 42        sand dollars ($300,000) and proof of worker's compensation  insurance,  if
 43        applicable.
                                                                        
 44        SECTION  3.  That  Section 54-5007, Idaho Code, be, and the same is hereby
 45    amended to read as follows:
                                                                        
 46        54-5007.  REQUIREMENTS FOR CERTIFICATES OF COMPETENCY. (1) The Idaho heat-
 47    ing, ventilation and air conditioning board shall provide standards and proce-
 48    dures and prescribe reasonable rules for examination, qualification and certi-
 49    fication of heating, ventilation and air conditioning contractors, journeymen,
 50    apprentices, specialty contractors, specialty journeymen and specialty appren-
 51    tices. HVAC contractors and specialty contractors shall provide a bond in  the
 52    amount of two thousand dollars ($2,000) or evidence of such coverage by a cor-
 53    porate industry group bond acceptable to the board.
                                                                        
                                       5
                                                                        
  1        (2)  The board shall require applicants for issuance or renewal of a heat-
  2    ing,  ventilation and air conditioning contractor or specialty contractor cer-
  3    tificate of competency to file with the board a bond with one (1) or more cor-
  4    porate surety companies authorized to do business in this state as follows:
  5        (a)  The bond shall be conditioned that a  heating,  ventilation  and  air
  6        conditioning  contractor  or  specialty  contractor faithfully comply with
  7        applicable rules of the board and the terms of any contract  that  may  be
  8        included  within the scope of such bond as may be determined by the board.
  9        The board shall adopt rules to implement the provisions of this  paragraph
 10        (a);
 11        (b)  The  bond  shall  be in the amount of ten thousand dollars ($10,000),
 12        executed by a surety company with the applicant as principal and the state
 13        of Idaho as obligee, for its benefit and that of  consumers  dealing  with
 14        the  applicant;  provided  however, the board may reduce the amount of the
 15        bond required by this paragraph (b) to five thousand dollars ($5,000) upon
 16        a showing that the applicant does not perform work exceeding  forty  thou-
 17        sand dollars ($40,000) in gross annual volume and does not enter into con-
 18        tracts with consumers that exceed five thousand dollars ($5,000);
 19        (c)  A  surety company shall pay all amounts due to a consumer pursuant to
 20        a bond, provided that the board has determined that:
 21             (i)   A heating, ventilation and air conditioning contractor or  spe-
 22             cialty  contractor  has  failed  to  comply  with any applicable rule
 23             adopted by the board; or
 24             (ii)  A heating, ventilation and air conditioning contractor or  spe-
 25             cialty  contractor has breached a contract with a consumer, including
 26             negligent or improper work in the conduct of the contracting business
 27             or failure to fully perform a contract, provided that  such  contract
 28             is within the scope of the bond;
 29        (d)  In  order for a claim to be payable by the surety company, it must be
 30        established that the claim is within the scope of  the  bond  provided  in
 31        this  subsection (2); provided however, it is not necessary for a consumer
 32        to reduce a claim to judgment through a court  of  competent  jurisdiction
 33        before submitting a claim to a surety company;
 34        (e)  A  bond shall be continuous unless terminated as provided for in this
 35        subsection (2), and the aggregate liability of a surety  company,  regard-
 36        less  of the number of claims made against the bond or the number of years
 37        the bond remains in force, shall in no event  exceed  the  amount  of  the
 38        bond; and
 39        (f)  The  bond  may  be terminated at any time by the contractor. A surety
 40        company may terminate the bond on the anniversary date of  the  bond  upon
 41        providing  thirty (30) days' written notice to the board and to a heating,
 42        ventilation and air conditioning contractor  or  specialty  contractor  on
 43        whose behalf a bond has been issued.
 44        (3)  Certificate  of  competency applications for heating, ventilation and
 45    air conditioning contractors and specialty contractors shall also be  accompa-
 46    nied  by  proof of liability insurance in the amount of three hundred thousand
 47    dollars ($300,000) and proof of worker's compensation insurance,  if  applica-
 48    ble.
                                                                        
 49        SECTION  4.  That  Section 54-5210, Idaho Code, be, and the same is hereby
 50    amended to read as follows:
                                                                        
 51        54-5210.  APPLICATION FOR REGISTRATION. (1) An applicant for  registration
 52    as  a contractor shall submit an application under oath upon a form to be pre-
 53    scribed by the board and which shall include the  following  information  per-
                                                                        
                                       6
                                                                        
  1    taining to the applicant:
  2        (a)  Social  security number for natural persons or employer tax identifi-
  3        cation number for other persons;
  4        (b)  The name and address under which the applicant conducts business;
  5        (c)  The name and address of each principal, member, partner, shareholder,
  6        or any other person claiming an ownership interest in the business  entity
  7        for which registration is being applied for;
  8        (d)  A  certificate  issued by an insurance company authorized to do busi-
  9        ness in the state of Idaho or other satisfactory proof that the  applicant
 10        has procured and has in effect worker's compensation insurance or a state-
 11        ment  by  the  contractor  as  to  why such certificate or coverage is not
 12        required for the applicant;
 13        (e)  A certificate issued by an insurance company authorized to  do  busi-
 14        ness  in  the  state  of  Idaho that the applicant has procured and has in
 15        effect a general liability policy, including products and continued opera-
 16        tions insurance covering the applicant's construction  operations  in  the
 17        sum  of  not  less  than  three hundred thousand dollars ($300,000) single
 18        limit;
 19        (f)  A statement of the type of  construction  to  be  undertaken  by  the
 20        applicant,  or such other information as may be required by the board pur-
 21        suant to administrative rules adopted by the board; and
 22        (g)  A statement that the applicant and each principal,  member,  partner,
 23        shareholder,  or  any  other  person claiming an ownership interest in the
 24        business entity for which registration is being  applied  for  herein  has
 25        never  been  denied  or had revoked a contractor's license or registration
 26        privilege in this or any other state or,  if  a  license  or  registration
 27        privilege has been denied or revoked in this or any other state, an expla-
 28        nation of any such denial or revocation; and
 29        (h)  A  bond with one (1) or more corporate surety companies authorized to
 30        do business in this state as follows:
 31             (i)   The bond shall be conditioned that a contractor faithfully com-
 32             ply with applicable rules of the board and the terms of any  contract
 33             that  may  be included within the scope of such bond as may be deter-
 34             mined by the board. The board shall adopt rules to implement the pro-
 35             visions of this paragraph (h)(i);
 36             (ii)  The bond shall  be  in  the  amount  of  ten  thousand  dollars
 37             ($10,000), executed by a surety company with the applicant as princi-
 38             pal  and  the  state of Idaho as obligee, for its benefit and that of
 39             consumers dealing with the applicant; provided however, the board may
 40             reduce the amount of the bond required by this paragraph  (h)(ii)  to
 41             five thousand dollars ($5,000) upon a showing that the applicant does
 42             not  perform work exceeding forty thousand dollars ($40,000) in gross
 43             annual volume and does not enter into contracts with  consumers  that
 44             exceed five thousand dollars ($5,000);
 45             (iii) A surety company shall pay all amounts due to a consumer pursu-
 46             ant to a bond, provided that the board has determined that:
 47                  (A)  A  contractor has failed to comply with any applicable rule
 48                  adopted by the board; or
 49                  (B)  A contractor has  breached  a  contract  with  a  consumer,
 50                  including  negligent or improper work in the conduct of the con-
 51                  tracting business or failure to fully perform a  contract,  pro-
 52                  vided that such contract is within the scope of the bond;
 53             (iv)  In  order  for  a claim to be payable by the surety company, it
 54             must be established that the claim is within the scope  of  the  bond
 55             provided in this paragraph (h); provided however, it is not necessary
                                                                        
                                       7
                                                                        
  1             for  a consumer to reduce a claim to judgment through a court of com-
  2             petent jurisdiction before submitting a claim to a surety company;
  3             (v)  A bond shall be continuous unless terminated as provided for  in
  4             this  paragraph (h), and the aggregate liability of a surety company,
  5             regardless of the number of claims made against the bond or the  num-
  6             ber  of years the bond remains in force, shall in no event exceed the
  7             amount of the bond; and
  8             (vi)  The bond may be terminated at any time  by  the  contractor.  A
  9             surety  company may terminate the bond on the anniversary date of the
 10             bond upon providing thirty (30) days' written notice to the board and
 11             to the contractor on whose behalf a bond has been issued.
 12        (2)  Along with such application, the applicant shall submit  a  registra-
 13    tion  fee  as may be set by the board to cover its administrative and enforce-
 14    ment costs, not to exceed one hundred fifty dollars ($150) per year.
 15        (3)  An application for registration that has been  denied  by  the  board
 16    shall  be considered a contested case as provided for in chapter 52, title 67,
 17    Idaho Code, and shall be subject to the provisions of that chapter as well  as
 18    the administrative rules adopted by the board governing contested cases.
                                                                        
 19        SECTION  5.  That  Section 54-5307, Idaho Code, be, and the same is hereby
 20    amended to read as follows:
                                                                        
 21        54-5307.  QUALIFICATIONS FOR A DEALER'S LICENSE. Except as  herein  other-
 22    wise  provided,  the  following shall be considered minimum requirements for a
 23    dealer's license. All applicants shall:
 24        (1)  Provide verification acceptable to the board of:
 25        (a)  Being at least eighteen (18) years of age; and
 26        (b)  Good moral character; and
 27        (c)  Never having had a license revoked or otherwise sanctioned as part of
 28        disciplinary action from this or any other state; and
 29        (d)  Never having been convicted, found guilty,  or  received  a  withheld
 30        judgment for any felony; and
 31        (e)  Never  having been found by the board to have engaged in conduct pro-
 32        hibited by this chapter.
 33    The board may take into consideration the rehabilitation of the applicant  and
 34    other mitigating circumstances when considering applications for a license.
 35        (2)  Provide  documentation  satisfactory  to the board that the applicant
 36    has successfully completed a certified educational training  program  approved
 37    by the board.
 38        (3)  Provide  documentation  satisfactory  to the board that the applicant
 39    has successfully completed such experience as may be required by the board.
 40        (4)  Provide documentation that the applicant has successfully  passed  an
 41    examination approved by the board.
 42        (5)  Prior  to  July  1, 2006, the board may deem other education, experi-
 43    ence, or examinations equivalent to the licensing requirements  set  forth  in
 44    this chapter, provided that the board is satisfied, and the applicant provides
 45    documentation acceptable to the board that such applicant has:
 46        (a)  Documented experience in this state prior to July 1, 2005, in the LPG
 47        industry; and
 48        (b)  Practiced  for  not  less  than five (5) years in the field for which
 49        such applicant is applying for a license; and
 50        (c)  Applied for a license prior to July 1, 2006. File with  the  board  a
 51        bond  with  one  (1)  or  more corporate surety companies authorized to do
 52        business in this state as follows:
 53        (a)  The bond shall be conditioned that a dealer  faithfully  comply  with
                                                                        
                                       8
                                                                        
  1        applicable  rules  of  the board and the terms of any contract that may be
  2        included within the scope of such bond as may be determined by the  board.
  3        The  board shall adopt rules to implement the provisions of this paragraph
  4        (a);
  5        (b)  The bond shall be in the amount of ten  thousand  dollars  ($10,000),
  6        executed by a surety company with the applicant as principal and the state
  7        of  Idaho  as  obligee, for its benefit and that of consumers dealing with
  8        the applicant; provided however, the board may reduce the  amount  of  the
  9        bond required by this paragraph (b) to five thousand dollars ($5,000) upon
 10        a  showing  that the applicant does not perform work exceeding forty thou-
 11        sand dollars ($40,000) in gross annual volume and does not enter into con-
 12        tracts with consumers that exceed five thousand dollars ($5,000);
 13        (c)  A surety company shall pay all amounts due to a consumer pursuant  to
 14        a bond, provided that the board has determined that:
 15             (i)   A  dealer has failed to comply with any applicable rule adopted
 16             by the board; or
 17             (ii)  A dealer has breached a contract  with  a  consumer,  including
 18             negligent  or improper work in the conduct of the business or failure
 19             to fully perform a contract, provided that such  contract  is  within
 20             the scope of the bond;
 21        (d)  In  order for a claim to be payable by the surety company, it must be
 22        established that the claim is within the scope of  the  bond  provided  in
 23        this  subsection (5); provided however, it is not necessary for a consumer
 24        to reduce a claim to judgment through a court  of  competent  jurisdiction
 25        before submitting a claim to a surety company;
 26        (e)  A  bond shall be continuous unless terminated as provided for in this
 27        subsection (5), and the aggregate liability of a surety  company,  regard-
 28        less  of the number of claims made against the bond or the number of years
 29        the bond remains in force, shall in no event  exceed  the  amount  of  the
 30        bond; and
 31        (f)  The  bond  may be terminated at any time by the dealer. A surety com-
 32        pany may terminate the bond on the anniversary date of the bond upon  pro-
 33        viding  thirty (30) days' written notice to the board and to the dealer on
 34        whose behalf a bond has been issued.
 35        (6)  Provide with a license application proof of  liability  insurance  in
 36    the  amount of three hundred thousand dollars ($300,000) and proof of worker's
 37    compensation insurance, if applicable.
                                                                        
 38        SECTION 6.  This act shall be in full force and effect on and  after  July
 39    1, 2008.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16733

This legislation will apply identical insurance and bonding
requirements to all electrical, plumbing, heating and ventilating
("HVAC"), LP gas and general 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 a 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, HVAC,
LP Gas or general 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: (208) 332-1000
Sen.  John Andreason
(208) 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                              H 45