Contractor Licensing Bill Killed In Senate Lawmakers Reject Attempts To Narrow Focus Of Measure
Ardent opponents of licensing thousands of Idaho contractors finally torpedoed the idea this week, killing a proposed law before a formal vote in the Senate.
“The bill needs to be worked on a little further into next year or maybe a year or two down the road,” Republican Sen. Dean Cameron of Rupert said.
On a pair of unrecorded 16-14 votes, the Senate rejected attempts by licensing advocates to narrow the application of the legislation. They hoped to pick up the last few votes they needed to pass the bill by exempting thousands of small operators from the estimated 17,000 people the original bill would cover.
But the narrow Senate majority refused to adopt exemptions for so-called handymen who do projects worth $3,000 or less and clarifying the exemption of people helping a property owner on a project.
Idaho is one of the few states that do not require licensing of contractors, a fact that some say has left consumers unprotected against fly-by-night operators.
Building booms in Kootenai and Ada counties have attracted some contractors who bid for jobs and collect money without finishing their work.
Some supporters of licensing still wanted to put the measure to a formal Senate vote to get each member on the record, but the coalition of contractors that developed the bill authorized pulling it from further consideration. Spokesman Paul Pusey said they would use the summer and fall to try to iron out the remaining problems for another run at passage in the Legislature next year.
Licensing promoters claim it will weed out charlatans and protect consumers. Opponents contend it is an attempt by big contractors, many of them already holding licenses required for government projects, to limit their competition.
The House has already approved legislation intended to provide at least some of the consumer protection the licensing bill was intended to offer.
The latest drive for contractor licensing was prompted by the $4.5 million bankruptcy of a major builder in southwestern Idaho. Similar incidents over the years have triggered efforts to license builders and other contractors, but they have typically met their demise in the Senate.
This year’s proposal took a somewhat different tact, replacing penalties for failure to obtain a license with denial of the right to slap a lien on property for nonpayment.
To secure the required license, contractors need proof of worker’s compensation insurance, $300,000 liability coverage and a $10,000 bond.
The bonding and insurance package along with a $100 license fee is estimated to add no more than $700 to the annual cost of doing business.
The House bill would require contractors on jobs worth $5,000 or more to provide homeowners with a statement disclosing their rights and the contractor’s duties.