BUILDING CONTRACTORS

ASSOCIATION OF

SOUTHWESTERN IDAHO

2002 LEGISLATIVE

SESSION REVIEW

2002 Session Wrap Up

The 2002 Session started off with a bang with the

Term Limits debate. BCASWI supported H425 to

repeal the term limits initiative, and the bill is

included in the voting record at the back of this

document. The bill passed the 50-20 in the House,

27-8 in the Senate, and was vetoed by the governor.

The legislature then came back with the same

majority and overrode the veto.

A group of out-of-state contributors has vowed to

place the issue back on the ballot this fall. Ironically,

many legislators proved term limits to be unnecessary

in April when the deadline for filing for re-election

passed. Eighteen legislators (one out of six) from the

2002 Session did not file – including many members

of leadership in both the House and Senate. Even if

no other incumbents lose (a highly unlikely event

given the large number of candidates this year), the

legislature is already guaranteed a 17 percent

turnover.

House Bill 607, sponsored by the BCASWI and

others, was signed into law on March 27, 2002.

H607 amends the impact fee statute to clarify several

sections that have been misinterpreted by the Ada

County Highway District (ACHD) in the

development of their latest impact fee schedule, and

mandate them to base the fee off of a Capital

Improvements Plan (CIP). ACHD will now be

required to adopt a current CIP, and base their impact

fee off the projected costs of future expansions

attributable to new development.

H607 also makes clear that a residential developer

can apply for an individual assessment. ACHD is

currently operating under a legal opinion from their

staff attorney that a residential developer is not a

developer as defined by the statute, and therefore is

not allowed to apply for an Individual Assessment.

For the record, the definition of a “developer” in the

statute was: “any person or legal entity undertaking

development.” This deliberate misinterpretation of

the statute in order to limit the fee payers access to

impact fee reductions is the typical kind of action fee

payers have been dealing with from ACHD, and that

were addressed in H607.

We remain hopeful, now that H607 has pass into law,

ACHD will work with the development community

to help draft a new Impact Fee Ordinance that

conforms to the statute, and that we can all support.

ACHD has begun the process by forming a Impact

Fee Task Force and soliciting some input from

various sectors of the community. Unfortunately,

they have also made several comments in the media

demeaning the intent of the fee payers that sponsored

the legislation, and have generally taken a “Chicken

Little” approach to the issue.

The legislature passed HB 586 to mandate adoption

of the 2000 International Building Code,

International Residential Code, and the International

Energy Conservation Code in jurisdictions that

currently have building codes.

BCASWI and IBCA were both co-sponsors of the

legislation. The National Association of Home

Builders supports adoption of the I-Codes, and

BCASWI was heavily involved in reviewing the

potential effects of the legislation. The new codes

will have to be in place by the beginning of 2003.

BCASWI has already started meeting with local

jurisdictions regarding adoption of the new codes,

and will be working with them to smooth the

transition throughout Ada County. We will also be

working to provide educational opportunities to our

membership to help make you aware of the any

changes in building practices necessitated by the new

codes.

A large-scale annexation in the West Boise area a

few years ago spawned a three year battle by a local

citizens group to pass legislation severely restricting

the right of municipalities to annex without a vote of

the people. The proposed legislation would have

wrecked the cities ability to plan effectively for land

use, and would have created great uncertainty in the

building and development community with regard to

future projects.

The BCASWI joined with the Association of Idaho

Cities to oppose the citizen group legislation, and

helped draft Senate Bill 1391 as competing

legislation. After spending two prior sessions dealing

with annexation bills, several key legislators were

intent that 2002 would be the year to resolve the

issue. SB 1391 passed the legislature, and has been

signed into law. SB 1391 will provide more notice to

local residents when any controversial annexation

procedures are begun by a municipality, but will

continue to allow for annexations to occur in an

orderly and predicable fashion in order to

accommodate new growth and development.

Two years ago the legislature passed a bill allowing

local jurisdictions to transfer development rights

from a designated “sending zone” to a “receiving

zone”. For instance, Boise City could set up a plan to

allow a developer with land in the foothills (where

development is limited) to sell their development

rights to another developer in West Boise. The West

Boise developer would then be allowed to build to a

greater density than was previously zoned.

Last year, Blaine County set about writing an

ordinance to set up a program to allow transferable

development rights (TDRs). They discovered the

law, as written, only allowed TDRs to be designated

as a commodity for a period of ten years. This

limited window creates a pseudo-commodity with

limited viability in the marketplace.

House Bill 443 would have amended current law to

allow local jurisdictions (at their option) to create

permanent TDRs in their jurisdiction – thereby

creating a solid marketplace.

H443 died in the House Local Government

Committee primarily due to the efforts of Rep. Kent

Higgins (R-Idaho Falls) and Rep. Dave Callister (RBoise).

BCASWI supported the legislation, and will

work with the sponsors to bring this issue back in the

2003 Session.

The Idaho Real Estate Commission (IREC) filed RS

11453, relating to disclosure of information obtained

during an inspection, with the legislature early in the

session. BCASWI worked with the Idaho

Association of Realtors to convince IREC to pull the

legislation for 2002, and give the industry a chance to

thoroughly review the consequences of the proposal

before reintroducing the idea in 2003.

RS 11453 stated: “The commission may disclose

information obtained from an inspection, survey,

audit or investigation, and any matter related thereto,

to a state or federal regulatory agency or law

enforcement agency, or to the association of real

estate license law officials, where the such

information is deemed relevant to the enforcement of

regulatory or criminal laws by such agency.”

If this legislation had been passed, it would have

given IREC investigators that do routine audits of

real estate transaction files the ability to disclose any

information in those files to whatever agency they

deem necessary. For instance, sensitive

environmental information about a real estate project

could be released to DEQ or EPA without the

knowledge or consent of the landowner. BCASWI

will continue to monitor this issue during the interim.

The Idaho Uniform Law Commission introduced

Senate Bill 1280 to adopt the “Uniform Arbitration

Act” in the State of Idaho. This Act was drafted and

approved by the National Conference of

Commissioners on Uniform State Laws at its 2000

annual meeting.

Although the intent of the law was to bring

uniformity to Arbitration Laws throughout the

country, one significant addition to Idaho Code in the

legislation includes a provision to allow punitive

damages to be awarded in binding arbitration settings

without judicial review.

BCASWI joined with the Idaho Association of

Commerce and Industry to oppose this legislation on

the grounds that allowing punitive damages to be

awarded without judicial oversight opens the

arbitration process to abuse. In the face of this

opposition, the legislation was pulled for 2002 and

will be reworked for next year. BCASWI will

continue to monitor this issue during the interim.

A number of large Utility Companies introduced

legislation to stop “repeat offenders” from excavating

without calling the Dig Line and locating utilities.

The Utility Companies claimed that the existing fines

in the Statute where too small, and did not deter some

excavators from digging without calling first.

Representatives of IBCA met with the Utilities and

were successful in changing many aspects of the

legislation that could have harmed contractors that

were trying to follow the law. The original bill

included fines for repeat offenders of up to $75,000,

with the Utility company having the ability to

prosecute the offenders without having to go through

the Attorney General’s office. The final bill removed

the ability of the Utilities to seek punitive damages,

and dropped the to fine to $10,000.

Senator Clint Stennet (D-Ketchum) introduced

Senate Joint Resolution 102 relating to State Land

Use Management. The legislation would have added

language to the Idaho Constitution making State

Lands subject to the Local Land Use Planning Act.

BCASWI took a position against the legislation, and

worked with the Idaho Association of Commerce and

Industry to point out the potential impacts of the

change on state land management practices. If

enacted, the legislation would have had a devastating

effect on any commercial activity on state lands. The

legislation was not scheduled for a hearing.

BCASWI will continue to monitor this issue in the

future.

The BCASWI has traditionally taken a hard stance

against Local Option Taxes. Currently these taxes

are extremely limited in use, however some

legislators have been trying for years to allow local

jurisdictions to levy taxes on top of state taxes at the

discretion of local voters. BCASWI and many

representatives of the business community oppose the

taxes because of the potential for abuse by local

jurisdictions. At the end of Session, Rep. Frank

Bruneel (R-Lewiston) and Sen. Joe Stegner (RLewiston)

introduced House Bill 725 to allow local

jurisdictions to levy the taxes with a 60% vote of the

people. The legislation was introduced too late in the

Session to have a chance of passing, however it could

signal the intent of some legislators to take up the

issue at the beginning of the 2003 Session. BCASWI

will continue to oppose Local Option Taxes

whenever they are introduced.

House Joint Resolution 3 was introduced by Speaker

Bruce Newcomb in combination with the Water

Users and Cattleman’s Association’s. The legislation

would have amended the Idaho Constitution to allow

for partial takings claims. Several concerns were

raised by the BCASWI and others in the business

community as to the effects of the legislation on local

land use planning. Specifically, it was unclear what

effect the legislation would have on local

jurisdictions undertaking zoning for the purposes of a

Comprehensive Plan. Ultimately, the legislation was

held until next year, and a study committee put in

place to review possible implications. BCASWI will

be present and have a voice on the study committee.

One of the most contentious political issues of the

Session for builders was an amendment to the state’s

Lien Laws proposed by the Idaho Land Title

Association. First drafts of the legislation put

significant burdens on builders to take more

responsibility for lien claims on potential job sites.

Representatives of the Idaho Building Contractors

Association worked with the sponsors, and ultimately

drafted compromise legislation. Senate Bill 1454

will require general contractors to provide the

business names, addresses and telephone numbers of

first-tier subcontractors, materialmen and rental

equipment providers to the homeowners and

residential real property purchasers within a

reasonable time prior to the closing on any purchase

and sale agreement with a prospective residential real

property purchaser or prior to final payment to the

general contractor by the homeowner or residential

real property purchaser for construction, alteration, or

repair of any improvement of residential real

property.

The Division of Building Safety, Electrical Bureau,

renews licenses for master, journeyman and specialty

electricians on an annual basis. (July of each year).

The Electrical Bureau proposes to increase the

duration of licenses to three years rather than each

year, and stagger the renewals based on the original

issue date. This would be more convenient for the

licensee. By staggering the license renewals every

three years, the bureau could provide a timelier

processing of the renewals and a more even

distribution of workload and service.

This legislation amends the State Fire Marshall Act

to adopt the International Fire Code in place of the

Uniform Fire Code. Legislation is being proposed by

the Division of Building Safety to adopt the

International Building Code in place of the Uniform

Building Code. This legislation is needed to maintain

consistency between the building code and the fire

code.

Chapter 6 (H410)

The purpose of this amendment is to define

"signature" as used in conjunction with the

professional seals used to identify the engineer or

land surveyor who has been in responsible charge of

a work product and to allow that signature to be

either a handwritten message or a digital

identification which meets certain security

parameters. Approval of the amendment would

allow the electronic exchange of documents with the

assurance that the documents are unaltered. This

legislation also allows the Board of Professional

Engineers and Professional Land Surveyors to waive

the requirement for passage of an examination in the

fundamentals of engineering for exceptional persons

with a minimum of 12 years of appropriate

experience in engineering. The current requirement

of 25 years is excessive, and the Board believes that

the public will remain protected if persons with 12

years of experience are not required to take and pass

the exam.

The purpose of this amendment is to eliminate an

obsolete reference to engineers who, since 1978, have

not been licensed to practice land surveying and also

to replace obsolete terminology with more current

terminology.

Repeals Term Limits for the State of Idaho, and

declares and emergency. This bill was vetoed by the

governor, and overridden by the legislature. The

emergency clause allowed candidates that would

have been term limited to file for the May primary.

The purpose of this bill is to outline the method of

assessing small rural housing developments, in

counties below 100,000 population, for taxing

purposes. The present system allows the county

assessor to assess platted parcels as residential

property before such property is actually sold for

building purposes. In many cases this limits the

development process to large developers with

finances adequate to fund the higher property taxes

during the development and sales period. In many

instances this precludes the original owner of

agricultural land, with limited resources, from

participating in the development process.

Assessment of platted lots in a rural subdivision will

be classed as agricultural until each lot is sold to the

first purchaser.

This legislation will align the State Electrical Board

with the law applying to other appointed professional

boards by allowing an existing board member to

serve until a new appointment is made.

Increases the amount of an expenditure for which

bidding and contracting is required for irrigation

districts e from $15,000 to $25,000 to match the

dollar limit for other political subdivisions.

Relating to transportation, this legislation provides

that a person using an electric personal assistive

mobility device is, for the purposes of the motor

vehicle statutes, a pedestrian and that such devices

are not a motor vehicle. The specific type of vehicle

to which this legislation relates is the Segway Human

Transporter. The Segway HT is a two wheeled

electrically powered vehicle with the two wheels

positioned side by side and a platform for the rider

placed between the wheels. The vehicle is self

balancing through a sophisticated computer balancing

system. The speed of the vehicle is limited to 15

miles per hour or less. The United States Postal

Service is currently using the vehicle in tests to

determine whether the vehicle provides greater

delivery efficiency. Under this legislation, riders of

these vehicles would be treated as pedestrians in the

same manner as the riders of motorized wheelchairs.

Allows a manufactured home on a permanent

foundation to be considered real property if the

permanent foundation on leased land. Previously the

land had to be owned by the home owner.

This bill amends existing law regulating disciplinary

investigations and administrative actions of the Idaho

Real Estate Commission. The bill provides that the

commission shall review an investigative report

prepared by the executive director of the commission

and, upon a finding by the commission that such

report merits further proceedings, the commission

shall authorize the filing of an administrative

complaint against the licensee being investigated.

This bill clarifies and enhances the commission's

administrative oversight of the investigatory and

disciplinary process.

Deletes the requirement for an apprentice to wait

until 4 years have elapsed to apply for a journeyman

license. An apprentice may apply after proof of

completion of the prescribed education training, (144

hours classroom training per year for 4 years, and at

least 2000 hours of on the job training each year for

four years.)

Requires all jurisdictions in Idaho that currently

adopt building codes to adopt the 2000 International

Building Code, International Residential Code, and

International Energy Conservation Code. All Codes

must be adopted by the local jurisdictions by January

1, 2003.

The purpose of this legislation is to revise the general

requirements for examination and licensure of

professional land surveyors and land surveyors-intraining

effective as of July 1, 2010.

The purpose of this legislation is to establish the

criteria for the licensing and regulation of contractors

engaging in public works construction.

Amends existing law relating to development impact

fees to govern the process for individual assessment

of proportionate share; to require an update of the

capital improvements plan and inclusion of tax and

revenues invested in system improvements in

determining proportionate share; and to provide for

adjustments of proportionate share.

Allows Highway District Commissioners to set their

own salary. Previously the salary had been set by

statute.

This legislation clarifies that only the State of Idaho,

Building Safety Division, may issue electrical

licenses. Currently some cities are requiring

registration fees rather than license fees in order to

circumvent the current legislation disallowing the

issuance of an electrical license by other than the

State.

The purpose of the bill is to require that the

Department of Environmental Quality notify the

public, the Board of Environmental Quality, and the

Legislature when it proposes a rule that is more

stringent or broader in scope than federal law or

regulation or when it proposes to regulate an activity

not regulated by the federal government.

Amends the Underground Facilities Damage

Prevention law. Increases the potential maximum

civil penalties that may be imposed on excavators

($5000), and particularly on those excavators who

repeatedly cause damage to underground facilities

($10,000). The legislation also makes technical

changes in current law to clarify marking

requirements for the areas of proposed excavation by

the excavator and of existing underground facilities

by the owners of the facilities.

To provide a uniform means of allowing all fire

districts which were impacted by abnormally low

levies prior to the enactment of §63-2220A Idaho

Code to reach a district levy of .24% with the

approval of the voters within the fire district. This

amendment seeks to avoid penalizing fire districts

which traditionally have been frugal from obtaining

adequate funding as a result of the enactment of §63-

2220A Idaho Code.

Removes current requirements that force the Real

Estate Commission office to retrieve existing license

certificates and print and deliver new certificates

every time a licensee updates personal or business

information. The bill "paves the way" for the

licensees to transact business with the Commission

on line. A variety of housekeeping items are also

addressed in the bill, including the addition of

definitions previously contained in rule; clarification

of the license expiration date; correction as to when

licenses are "terminated" rather than made inactive;

clarification that only entrusted moneys relating to a

"regulated real estate transaction" may be deposited

Provides for annexation by municipalities to occur

based on three categories of land classifications. This

legislation would provide for more notice to citizens

effected by proposed annexations, while still

allowing annexations to occur and land use planning

to continue. Allows uncontested annexations to

continue to follow the current regulations.

Adds to existing law to provide that no insurer

regulated pursuant to Title 41, Idaho Code, shall

charge a higher premium or cancel a policy or

coverage based primarily upon an individual's credit

rating or credit history; to define "based primarily";

and to limit application to certain property or casualty

insurance.

H = House Bill (i.e. H102)

S = Senate Bill (i.e. S1102)

a = Amended Bill (i.e. H102a, S1102a)

HCR or SCR = House or Senate Concurrent Resolution (i.e. HCR2 or SCR102)

HJM or SJM = House or Senate Joint Memorial (i.e. HJM2 or SJM102)

HJR or SJR = House or Senate Joint Resolution (i.e. HJR2 or SJR102)

HR or SR = House or Senate Resolution (i.e. HJ2 or SJ102)