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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007IN 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 thisactchapter, 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 thisactchapter. 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 thisactchapter 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 the37furnishing of a compliance bond in an amount not to exceed two thousand38dollars ($2,000) for the contractor classification or evidence of such39coverage 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 compliance43bond in an amount not to exceed two thousand dollars ($2,000) for the spe-44cialty contractor classification or evidence of coverage by a corporate45industry 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 the52amount of two thousand dollars ($2,000) or evidence of such coverage by a cor-53porate 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;and22 (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-43ence, or examinations equivalent to the licensing requirements set forth in44this chapter, provided that the board is satisfied, and the applicant provides45documentation acceptable to the board that such applicant has:46(a) Documented experience in this state prior to July 1, 2005, in the LPG47industry; and48(b) Practiced for not less than five (5) years in the field for which49such applicant is applying for a license; and50(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 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