IDAHO CONTRACTORS BOARD

Bureau of Occupational Licenses

1109 Main Street, Suite 220

Boise, Idaho

(208) 334-3233

Minutes of June 14, 2007

PRESENT:                   Jerry Nemec-Chair

Pamela Prather

Alan H Gelet

Art G Elliott III - absent

Steve R Pinther

BUREAU STAFF:       Tana Cory, Bureau Chief

                                    Budd Hetrick, Deputy Bureau Chief

                                    Karl Klein, Deputy Attorney General

                                    Roger Hales, Administrative Attorney

Cherie Simpson, Management Assistant

Erin Anderson, Secretary

ALSO PRESENT:      Kevin Kempf, Chief, Division of Community Corrections

Meeting called to order by Board Chair, Jerry Nemec, at 8:25 a.m.

MINUTES

The Board reviewed the May 29, 2007 Board Meeting Minutes.  Ms. Prather asked for correction to the IDABO paragraph.  Motion made by Mr. Gelet to approve after corrections, seconded by Mr. Pinther, carried. 

FORMAL DISCIPLINARY ACTION

Mr. Klein presented CON-2007-67 stipulation and consent order for board to approve.  Motion was made by Mr. Gelet for approval.  Motion was seconded by Mr. Pinther, carried.  Motion was then made by Mr. Gelet for Mr. Nemec to sign consent order for board.  This motion was seconded by Mr. Pinther, carried.    

Mr. Klein presented memorandum for CON-2007-68.  Board requested that Mr. Klein obtain the date that registrant applied to help base their decision on.  Item was tabled so that further information could be obtained.

Discussion of the Board’s authority ensued, with Mr. Hales explaining the Board’s rights.  Mr. Hales also explained that the Attorney General’s office only becomes involved in investigative matters when complainant is not registered.  When a complaint has been made against a person/entity that is registered, the Board can then take action. 

Mr. Kempf was introduced to board members to discuss the procedure for people on probation/parole.  Mr. Kempf oversees Idaho’s 7 districts, and those districts service the area they are in.  Discussion was held in regards to the Board building a working relationship with Mr. Kempf and the ability to contact him for more thorough information if needed to evaluate eligibility of an applicant.

LEGISLATIVE/STAFF REPORT

Ms. Cory let the Board know that a new investigator had been hired.  She then presented the current number of registrants.  These numbers were compared to last year's.  It was explained that some of the non-renewal registrations were because of registrants that had registered as individuals last year and were re-registering as business’s this year.

FINANCIAL REPORT

Mr. Hetrick presented the financial report, discussing the Board’s balance, expenditures, and revenue.

Mr. Hetrick also presented to the Board the investigative structure and staff flow chart that explained how Idaho was broken down into territories and which investigator covered what territory.  Mr. Hetrick expressed that all above mentioned information was available via the website at any time.

INVESTIGATIVE REPORT

Mr. Hetrick presented the investigative report that shows for fiscal year 2007, five hundred and eighty (580) complaints have been received.  Of those, one hundred sixty-two (162) have been closed following Board determination; eighty-six (86) have been referred for disciplinary review; two hundred ninety-four (294) are under investigation; and thirty-eight (38) await Board determination.

Fiscal Year 2006: Fifty-six (56) complaints were received.  Of those, thirty (30) have been closed following Board determination; twelve (12) have been referred for disciplinary review; ten (10) remain under investigation; and four (4) await Board determination. 

For Board Determination:

CON-P3B-3-2006-4        C alleged that R has lied about work preformed, threatened and intimidated Cinto accepting Shoddy work, lied to adjusters and refused to correct poor performance. INV revealed that C was non-cooperative and refused to comply with INV requests. INV revealed that R provided full explanation, supportive documentation & witness statements showing that C was extremely difficult to work with. IBOL did not reveal evidence to support the allegations or a violation. IBOL recommends the Board authorize closure.  Ms. Prather moved to close, seconded by Mr. Pinther, motion carried.

CON-P4B-1-2006-5        C alleged that R does very poor work and embezzled about $120.000 during the process of building C home. IBOL records confirm that R became registered subsequent to being fired as C's General Contractor. INV revealed that R contracted with C to build a home, and revealed that plans were stamped by an Idaho engineer. The new GC and the Building inspector both documented numerous problems & code violations with the plans & construction of the residence, and noted that the plans should not have been approved. INV revealed that R denied any wrongdoing and blamed the C for any problems. INV revealed that both C & R made withdrawals from building account for personal purchases. DAG review concluded the alleged conduct occurred in 2005 prior to the CON registration act. IBOL recommends the Board authorize closure.  Ms. Prather moved to close, seconded by Mr. Pinther, motion carried.

CON-P4A-3-2006-24        C alleged R filed an invalid lien waiver and was paid $316,025 to build home and failed to deliver. R was unable to account for $155,000 of paid monies. Any outstanding debt for sub contractors hired by R placed liens on C's home. The signed contract between C&R is from Utah and not Idaho and the terms were not executed as R stated. IBOL records show R's registration expired 1/25/07. INV revealed that C would not respond to INV requests for information or documentation to support the allegations. INV revealed that R provided complete documentation of work and monies received. INV also revealed that C had filed suit against R and was using this complaint to add pressure to R. INV did not reveal evidence to support the allegations or a violation. IBOL recommends the Board authorize closure.  Ms. Prather moved to close, seconded by Mr. Pinther, motion carried.

CON-P4-3-2006-29        C alleged that R was hired as general contractor to perform a bathroom remodel. C was quoted on price for the job but later received several different invoices for added on costs that were not agreed to. R later threatened C with legal action if bill was not paid in full. C feels cheated and believes that R's way of doing business is dishonest and misleading. INV revealed that R provide all requested documentation & that R billed less than 50% of the contracted estimate. C failed to respond to subsequent INV requests for information. INV did not reveal evidence of a violation. IBOL recommends the Board authorize closure.  Mr. Gelet moved to close, seconded by Mr. Pinther, motion carried.

CON-P1-3-2007-8        C alleged that R is operating without the benefit of registration with the State of Idaho. INV confirmed that R was a painting contractor operating without registration. R admitted practice and indicated ignorance of the requirement. R also agreed to register immediately. IBOL records do not contain application or registration for R. IBOL recommends the Board authorize closure with an advisory letter, with a copy to the prosecuting attorney.  Mr. Gelet moved to follow with letter and close, seconded by Mr. Pinther, motion carried.

CON-B5A-4-2007-28         C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. IBOL sent notice of cancellation to R and request for current liability documentation & received R's request to cancel registration. R's registration has been cancelled. IBOL recommends the Board authorize closure. 

CON-B5A-1-2007-49            C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. Out of business notice was received from R & registration was cancelled. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-52             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. IBOL received notice that insurance cancelled. R did not respond to original IBOL request. Certified letter sent and documentation of insurance was received. IBOL recommends the Board authorize closure.

 CON-B5A-2-2007-53             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. IBOL received notice that insurance cancelled. R did not respond to original IBOL request. Certified letter sent and no response was received. R's registration later cancelled for non-renewal. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-55            C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. IBOL received notice that insurance cancelled. R did not respond to original IBOL request. R's registration later cancelled for non-renewal. IBOL recommends the Board authorize closure. 

CON-B5A-4-2007-61            C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. R's registration later cancelled for non-renewal. IBOL recommends the Board authorize closure. 

CON-B5A-4-2007-62             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. IBOL records confirm registration later cancelled. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-63             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request, or a certified letter request. Registration later expired. IBOL recommends the Board authorize closure. 

CON-B5A-3-2007-64             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. Following a Certified letter request, INV confirmed no lapse in current coverage. IBOL recommends the Board authorize closure.

CON-B5A-2-2007-65            C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. Following a Certified letter request, INV confirmed current insurance. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-67             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. Verification of insurance later received and confirmed. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-68             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. IBOL records show registration later expired. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-72             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. IBOL records show registration later expired. IBOL recommends the Board authorize closure. 

CON-B5A-4-2007-74             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. IBOL records show registration later expired. IBOL recommends the Board authorize closure.

 CON-B5A-1-2007-111             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. IBOL received notice that insurance cancelled. R did not respond to original IBOL request or a certified letter request. Documentation was subsequently received however, verifying current insurance coverage. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-134             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. IBOL received notice that insurance cancelled. R did not respond to original IBOL request or a certified letter request. Registration later expired. IBOL recommends the Board authorize closure.  

CON-B5A-4-2007-28, CON-B5A-2-2007-52, CON-B5A-1-2007-49, CON-B5A-2-2007-53, 55, CON-B5A-4-2007-61, 62, 63, CON-B5A-3-2007-64, CON-B5A-2-2007-65, 67, 68, 72, CON-B5A-4-2007-74, CON-B5A-1-2007-111, and CON-B5A-2-2007-134 - Motion by Mr. Pinther to close, seconded by Mr. Gelet, motion carried.

CON-P4C-2-2007-235             C alleged that R failed to pay sub-contractors, or material manufacturers, and over priced items to make a bigger profit. INV revealed that C signed a set contract and all change orders; and that C had full control of the building loan, which was frozen due to C's actions. INV received statements and complete documentation from R, showing that C did not pay R the full contract amount.  INV also revealed that C fired R when the required payment was requested. INV did not reveal evidence to support the allegations or a violation. IBOL recommends the Board authorize closure. 

CON-P3C-2-2007-272             C alleged R provided poor workmanship in completing a concrete step project. Rain water now puddles and drains beneath the home. C was charged $3,000.00 for the project. Search of IBOL records shows no registration for R. INV revealed that R did work as a contractor without registration. INV also revealed that R is currently running from an arrest warrant for probation violation, & R's whereabouts are unknown. INV revealed that C has obtained another contractor tore build the steps. Due to the unknown whereabouts of R and a lack of jurisdiction, IBOL recommends the Board authorize closure.

CON-P3C-3-2007-276             C alleged poor workmanship by the R, and that R was deceitful by providing different invoices of differing dollar amounts, and going over contract by 31%.INV revealed that C filed several complaints, including Consumer Protection, and then left the state leaving no forwarding information. INV also revealed that R provided a response to all allegations and supporting documentation. CPU closed the case determining the matter was "a private dispute." INV did not reveal evidence of a violation. IBOL recommends the Board authorize closure.

CON-P1-2-2007-298             C alleged that R was not registered and later billed C for work done on a deck. R later placed a lien on C's property and made threats to C. IBOL search reveals no registration for R. INV revealed that R performed contractor services on C's home and then filed a lien to collect. INV also revealed that R did not provide the necessary disclosures. A full review was conducted by the Office of the Attorney General. Based on that review the R was sent a C&D letter informing R that such practice without proper registration would be forwarded to the appropriate Prosecuting Attorney. IBOL, therefore, recommends the Board authorize closure. 

CON-S1-2-2007-299             C alleged R is practicing without the benefit of registration. IBOL records confirm NO registration record for R. INV revealed that R is practicing and refused to speak with the investigator. Sent to DAG for formal complaint. A full review was conducted by the Office of the Attorney General. Based on that review the R was sent a C&D letter informing R that such practice with out proper registration would be forwarded to the appropriate Prosecuting Attorney. IBOL, therefore, recommends the Board authorize closure. 

CON-B5A-2-2007-317             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. IBOL records show registration later expired. IBOL recommends the Board authorize closure. 

CON-P4C-2-2007-235, CON-P3C-2-2007-272, CON-P3C-3-2007-276, CON-P1-2-2007-298, CON-S1-2-2007-299, and CON-B5A-2-2007-317 - Motion by Mr. Gelet to close, seconded by Ms. Prather, motion carried.

CON-P5C-2-2007-326             C alleged R failed to obtain Irrigation District approval for an irrigation system installed in a development. ID rejected the system forcing homeowners to have to pay for city water for irrigation and R failed to correct problem. INV revealed that R made arrangements with another contractor to install the new irrigation system and C was happy with the plan. C also reported that the R had paid the difference in watering system bills for last year. All issues have been resolved to C's satisfaction. IBOL recommends the Board authorize closure.  Motion made by Mr. Gelet to close, seconded by Mr. Pinther, motion carried.

CON-B5A-2-2007-337             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. IBOL records show registration later expired. IBOL recommends the Board authorize closure.  Motion made by Ms. Prather to close, seconded by Mr. Gelet and Mr. Pinther, motion carried. 

CON-P5A-2-2007-343            C alleged that R has allowed his liability insurance to lapse & failed to withhold taxes or pay workers comp. INV revealed that R's liability insurance had been changed, but did not lapse and was current. INV also revealed R had no employees & was not registered as an employer with IIC. R admitted to hiring sub-contractor day labor. R also noted a change in profession was pending and that all construction activities would cease within the next 30 days. INV did not reveal evidence of a violation. IBOL recommends the Board authorize closure.  Motion made by Ms. Prather to close, seconded by Mr. Gelet, motion carried.

CON-B5A-4-2007-345             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. Verification of insurance was later received. IBOL recommends the Board authorize closure.  Motion made by Ms. Prather to close, seconded by Mr. Pinther, motion carried. 

CON-B5A-1-2007-352             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. IBOL received notification that R was out of business. IBOL recommends the Board authorize closure.

CON-B5A-2-2007-353             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. IBOL records show registration was later cancelled. IBOL recommends the Board authorize closure. 

CON-B5A-3-2007-355             C alleges that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. IBOL records show registration was later cancelled. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-356             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request, though documentation of insurance coverage was later received. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-357             C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request, though documentation of insurance coverage was later received. IBOL recommends the Board authorize closure. 

CON-B5A-1-2007-359            C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request. Notice was subsequently received that R was out of business. IBOL recommends the Board authorize closure.  

CON-B5A-1-2007-352, CON-B5A-2-2007-353, CON-B5A-3-2007-355, CON-B5A-2-2007-356, CON-B5A-2-2007-357, CON-B5A-1-2007-359 - Motion by Ms. Prather to close, seconded by Mr. Pinther, motion carried.

CON-L1-2-2007-373        C alleged R operated a drywall business without being registered; that C was a subcontractor under R & was underpaid for work performed. INV revealed that R became registered prior to contact by investigator. R stated to believing that grandfather rights exempted existing contractors from registration, until a supplier told R that registration was required. R admitted to practice in 2006without the benefit of registration. Due to R's compliance, IBOL recommends the Board authorize closure with an advisory to R regarding maintenance of a current registration.  Motion made by Mr. Pinther to close, seconded by Ms. Prather, motion carried.

CON-B5A-2-2007-388         C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. IBOL records show registration was later cancelled. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-396         C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request, though documentation of insurance coverage was later received. IBOL recommends the Board authorize closure. 

CON-P3C-1-2007-521         C alleged R failed to properly grade property, which caused flooding in home; and has failed to address repairs that are necessary due to sub-standard construction. C notes that original purchase was prior to registration act. IBOL records show R is registered. Review determined that the matter appears to be civil & is beyond the jurisdiction of the Board. IBOL recommends the Board authorize closure. 

CON-B5A-2-2007-556         C alleged that R failed to provide proof of liability insurance after receiving cancellation notice from insurance company. R did not respond to original IBOL request, though documentation of insurance coverage was later received. No lapse or violation revealed. IBOL recommends the Board authorize closure. 

CON-L1-2-2007-373, CON-B5A-2-2007-388, 396, CON-P3C-1-2007-521, and CON-B5A-2-2007-556 - Motion by Ms. Prather to close, seconded by Mr. Pinther, motion carried.

The Board made an inquiry regarding false complaints being filed.  The Board wondered if a fee should be charged for filing a complaint with IBOL.  It was determined that this would not be a good business practice, as many complainants may be on a fixed income, and unable to pay the fee to file, and this would deter them from filing the complaint, when they rightfully should.  Discussion was then held on the possibility of charging complainants who file false complaints, the investigative fees and charges that investigations incurred while researching the false complaint.  Mr. Hales let the Board know that this would be a new rule/law change and would have to be approved by legislature.  It was then suggested that we add verbiage to complaint forms to discourage the filing of a false complaint.  Mr. Hetrick then expressed that the number of false complaints being filed were not an issue.  No further action was taken in the matter.

RULE CLARIFICATION/PROPOSED RULES

Mr. Hales addressed with the Board their previous inquiry in regards to the Contractors registration requirement possibly falling under the statutes with Child Support Enforcement.  Title 7, Chapter 14 - 7-1404, Idaho Code was quoted by Mr. Hales, and he expressed that the registration act would fall under this rule.  Mr. Hetrick then expressed that the Child Support Delinquency agency tracks all delinquent accounts, and if they found a registrant whose registration could be suspended because of a delinquent child support case, then the Bureau would comply with their request, and suspend the registration.

Mr. Hales presented the new rule proposal for felony applicants.  This rule was reviewed by the Board, who made a few changes.  Mr. Hales stated that he had already submitted the proposal to the Governor’s attorney, Mr. Hensley, for review and will do so again with these changes.  Motion was made by Mr. Gelet to approve the rules as temporary and proposed, seconded by Ms. Prather, motion carried.

The Board discussed the possibility of receiving honorarium payment for their board meetings.  Ms. Cory let the Board know that she would research this request, that she had questions in regards to PERSI requirements, and how this might affect the Board at retirement.  Ms. Cory also stated she would check with Mr. Pisca, to make certain that this request did not affect the registration bill.  Motion was made by Ms. Prather to proceed with request of honorarium pay, motion seconded by Mr. Gelet, motion carried.

The Board inquired to other possible rule changes that had been mentioned in previous meetings, Ms. Simpson went over this list with the Board, it was determined that all previous inquires to rules and possible questions that the Board had with these rules had been answered.

CORRESPONDENCE

Correspondence was received by a Mr. Fred Raney in regards to a registrant's lien rights.  This correspondence was given to Mr. Hales, who would research and contact Mr. Raney himself.

DISCUSSION

Discussion was held in regards to NIBCA’s rule/law proposal.  Mr. Pinther feels that the Bureau may need to possibly transition into a CEU requirement stage, if this proposal passes.  He would like to see Board and Bureau prepare for this, to start thinking about building a parameter or guideline for this expected move.

Ms. Cory let the Board know that work had been done on website, and the search capabilities had been refined so that a person could search by business owner’s names, or by an individual name.  Upon testing of this correction to the system, it was discovered there was still work to do.

The Board reviewed the draft letter to be sent to the media; Mr. Nemec made a few changes.  Once changes are made, it was approved to be sent out via email from the list provided from the Governor’s office by Ms. Cory.

EXECUTIVE SESSION

Motion was made by Mr. Gelet to enter into executive session to discuss applications and matters not subject to public disclosure, per section IC 67-2345 (1) (d).  Motion was seconded by Ms. Pinther, motion carried.

Motion was then made to exit from executive session by Mr. Gelet, seconded by Ms. Prather, motion carried.

Application ID# 901093090 was held over for further information.  The following applications were approved by the Board: