Amends existing law to revise compliance provisions regarding the Contractor Registration Act.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 768 BY WAYS AND MEANS COMMITTEE AN ACT1 RELATING TO THE IDAHO CONTRACTOR REGISTRATION ACT; AMENDING SECTION2 54-5210, IDAHO CODE, TO REQUIRE CERTAIN INFORMATION TO BE PROVIDED3 IN APPLICATIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION4 54-5215, IDAHO CODE, TO REVISE AND ESTABLISH PROVISIONS REGARDING THE5 BOARD'S AUTHORITY TO INVESTIGATE AND DISCIPLINE; AMENDING SECTION6 54-5216, IDAHO CODE, TO PROVIDE FOR CERTAIN APPLICATIONS FOR NEW REGIS-7 TRATION; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.8

Be It Enacted by the Legislature of the State of Idaho:9

SECTION 1. That Section 54-5210, Idaho Code, be, and the same is hereby10 amended to read as follows:11 54-5210. APPLICATION FOR REGISTRATION. (1) An applicant for registra-12 tion as a contractor shall submit an application under oath upon on a form to13 be prescribed by the board and which that shall include the following infor-14 mation pertaining to the applicant:15 (a) Social security number for natural persons or employer tax identi-16 fication number for other persons;17 (b) The name and physical address under which the applicant conducts18 business. Any business doing business under an assumed name shall19 provide satisfactory proof of having legally filed a certificate of20 assumed name with the Idaho secretary of state;21 (c) The name and physical address of each principal, member, partner,22 shareholder, or any other person claiming an ownership interest in the23 business entity for which registration is being applied for that is ap-24 plying for registration;25 (d) A certificate issued by an insurance company authorized to do busi-26 ness in the state of Idaho or other satisfactory proof that the appli-27 cant has procured and has in effect worker's compensation insurance or28 a statement by the contractor as to why such certificate or coverage is29 not required for the applicant;30 (e) A certificate issued by an insurance company authorized to do busi-31 ness in the state of Idaho that the applicant has procured and has in ef-32 fect a general liability policy, including products and completed op-33 erations insurance covering the applicant's construction operations in34 the sum of not less than three hundred thousand dollars ($300,000) sin-35 gle limit. The name of the insurance company, the insured and policy36 number shall be made available only to persons or their insurers stating37 that they possess a claim against the contractor;38 (f) A statement of the type of construction to be undertaken by the ap-39 plicant, or such other information as may be required by the board pur-40 suant to administrative rules adopted by the board; and41

2 (g) A designated natural person to act as the individual responsible1 for compliance with the law and rules applicable to the registration;2 (h) A properly executed irrevocable consent to service of process, ap-3 plicable only to matters involving the registration, in the manner and4 form prescribed by the board; and5 (g) (i) A statement that the applicant and each principal, member,6 partner, shareholder or any other person claiming an ownership inter-7 est in the business entity for which registration is being applied for8 herein applying for registration pursuant to this section has never9 been denied, surrendered or had revoked a contractor's license or10 registration privilege in this or any other state or, if a license or11 registration privilege has been denied, surrendered or revoked in this12 or any other state, an explanation of any such denial, surrender or re-13 vocation.14 (2) Along with such application, the applicant shall submit a registra-15 tion fee as may be set by the board to cover its administrative and enforce-16 ment costs, not to exceed one hundred fifty dollars ($150) per year.17 (3) An application for registration that has been denied by the board18 shall be considered a contested case as provided for in chapter 52, title 67,19 Idaho Code, and shall be subject to the provisions of that chapter as well as20 the administrative rules adopted by the board governing contested cases.21 (4) An applicant or registrant shall provide the certificates of insur-22 ance required pursuant to subsection (1) of this section to the board upon23 request.24

SECTION 2. That Section 54-5215, Idaho Code, be, and the same is hereby25 amended to read as follows:26 54-5215. AUTHORITY TO INVESTIGATE AND DISCIPLINE -- SUSPENSION OR27 REVOCATION OF REGISTRATION. (1) The board may investigate any person engaged28 in contracting within the state of Idaho or any person believed to have acted29 as a contractor without being duly registered as required by this chapter.30 Upon receipt of a written complaint from a person who claims to have been in-31 jured or defrauded by such person, or upon information received by the board,32 the board shall perform an investigation of the facts alleged against such33 person. A contractor shall provide necessary documents and shall promptly34 answer all reasonable investigative questions asked by the board. Upon35 request, a contractor shall promptly make available to the board all of the36 documents that a contractor is required to disclose to owners and purchasers37 of residential real property pursuant to section 45-525, Idaho Code. Such38 documents shall be made available at the contractor's cost and at the loca-39 tion and in the manner requested by the board; provided, however, that the40 board may not request any trade secrets as defined in section 74-107(1),41 Idaho Code, or more than the minimum necessary amount of information needed42 to complete its investigation. If the board investigation reveals that the43 facts alleged or received are sufficient to proceed with a formal action, the44 board may authorize the filing of an administrative complaint against such45 person and may seek injunctive relief prohibiting such person from engaging46 in construction.47 (2) The board shall have the authority to issue informal letters of rep-48 rimand, suspend, refuse to renew, or revoke a registration, impose a civil49

3 penalty in an amount not to exceed one thousand dollars ($1,000) or per vi-1 olation, provided that no such penalty shall be issued for a violation of2 paragraph (e), (h), or (i) of this subsection. The board shall also have the3 authority to issue a formal reprimand against any registered contractor if,4 after an opportunity for a hearing, the board determines that:5 (a) A contractor has violated any of the provisions of this chapter in-6 cluding, but not limited to, failure to keep current or provide insur-7 ance coverage as required by this chapter;8 (b) A contractor has violated any of the provisions of chapter 6, title9 48, Idaho Code, relating to consumer protection including, but not lim-10 ited to, making fraudulent misrepresentations to consumers;11 (c) A contractor employed fraud or deception, made a misrepresentation12 or misstatement, or employed any unlawful means in applying for or se-13 curing registration as a contractor;14 (d) A contractor employed fraud or deception, made a misrepresentation15 or misstatement, or employed any unlawful means in applying for or se-16 curing a building permit or other permits for construction of any type;17 (e) A contractor failed to pay the required fee for registration as pro-18 vided in this chapter;19 (f) A contractor has been convicted of or has engaged in conduct consti-20 tuting a violation of public laws, ordinances or rules of this state,21 or any subdivision thereof, relevant to contracting, reflecting on22 the registered contractor's ability or qualifications to continue23 contracting for other persons, and making the registered contractor a24 threat to the public safety, health or well-being;25 (g) A contractor has engaged in any other conduct whether of the same26 or a different character than hereinabove specified which specified27 pursuant to this subsection that constitutes dishonest or dishonorable28 dealings;29 (h) A contractor had a license, registration or certification revoked,30 suspended or refused by this or another state, territory, incorporated31 municipality, county, alternative form of local government, or other32 municipal or political corporation or subdivision of this or another33 state, or omitted such information from any application to the board, or34 failed to divulge such information when requested by the board;35 (i) A contractor has been adjudged mentally incompetent by a court of36 competent jurisdiction; or37 (j) A contractor interfered with an investigation or disciplinary pro-38 ceeding by a willful misrepresentation of facts or by the use of threats39 or harassment against any person to prevent such person from providing40 evidence in a disciplinary proceeding, investigation or other legal ac-41 tion instituted in accordance with this chapter.42 (3) By order, the board may prohibit any individual associated with a43 registration from registering as a contractor under a different name after44 the registered individual has had:45 (a) Registration revoked; or46 (b) Three (3) or more formal discipline actions within five (5) years47 for one (1) or more violations of paragraph (b), (c), (d), (f), (g), or48 (j) of subsection (2) of this section.49

4 (3) (4) A contractor whose registration has been revoked or suspended1 shall be required to return his certificate of registration within the time2 determined by the board or, upon a failure to do so, shall be liable for civil3 penalties as set by the board but not to exceed fifty dollars ($50.00) per4 day for each day the certificate is not returned after the expiration of the5 period allowed.6 (4) (5) The suspension or revocation of a registration shall be consid-7 ered a contested case as provided for in chapter 52, title 67, Idaho Code, and8 shall be subject to the provisions of that chapter as well as the administra-9 tive rules adopted by the board governing contested cases.10 (5) (6) The assessment of attorney's fees and costs incurred in the in-11 vestigation and prosecution or defense of a person under this section shall12 be governed by the provisions of section 12-117(5), Idaho Code.13 (7) For a violation of this section, the board may require successful14 completion of a training course adopted by the board in lieu of formal disci-15 pline.16

SECTION 3. That Section 54-5216, Idaho Code, be, and the same is hereby17 amended to read as follows:18 54-5216. REINSTATEMENT OF REGISTRATION AFTER DISCIPLINE. (1) The19 board may reinstate a suspended or revoked registration upon a showing that:20 (1) (a) The grounds for such suspension or revocation have been elimi-21 nated;22 (2) (b) Such a violation is not likely to reoccur in the future; and23 (3) (c) The public interest is not jeopardized by reinstating the reg-24 istration.25 (2) An individual who is prohibited from registration pursuant to the26 provisions of section 54-5215(3), Idaho Code, shall be entitled to submit27 an application for new registration pursuant to the provisions of section28 67-2614(10), Idaho Code.29

SECTION 4. An emergency existing therefor, which emergency is hereby30 declared to exist, this act shall be in full force and effect on and after31 July 1, 2026.32