IDAHO CONTRACTORS BOARD

Bureau of Occupational Licenses

1109 Main Street, Suite 220

Boise, Idaho

(208) 334-3233

Minutes of January 16, 2008

THIS DRAFT NOT APPROVED BY THE BOARD

PRESENT:                 Jerry Nemec-Chair

Tony Hughes

Art G Elliott III

Steve R Pinther

Pamela Prather

BUREAU STAFF:     Tana Cory, Bureau Chief

                                    Budd Hetrick, Deputy Bureau Chief

                                    Dawn Hall, Deputy Bureau Chief

                                    Dave Hotchkiss, Hearing and Appeals Technician

                                    Roger Hales, Administrative Attorney

                                    Erin Anderson, Secretary

Meeting called to order by Board Chair, Jerry Nemec, at 8:40 a.m. 

MINUTES

The Board approved the January 8, 2008 Board meeting minutes.  Motion to approve by Ms. Prather, seconded by Mr. Pinther, motion carried.

LEGISLATIVE/STAFF REPORT

Ms. Cory let the Board know that the Legislature was in session, and that the Legislature would be reviewing the Board’s request for honorarium and the temporary felony rule for approval.

Ms. Cory discussed her conversation with the Industrial Commission regarding workers’ compensation.  The decision was made to send an e-mail after each meeting with a list of applicants that the Board had requested to be flagged for review.  Mr. Pinther inquired about the legal notice of an individual being sued by the Industrial Commission.  He had submitted an article for discussion in an earlier meeting.  It was decided by the Board to request that Ms. Kristi Simon from the Industrial Commission be invited to the next face-to-face meeting so that the Board can discuss any other questions on workers comp and the legal notice in question with her.

Ms. Cory reported on her conversation with Mr. Kevin Kempf, Chief of the Division of Community Corrections, and stated that she had faxed him the letters of reference that had been received from the parole/probation officers for felony applicants.  He discussed the letters with his staff, asking them to provide clearer information in their letters of status to the Board.

DISCUSSION

With an inquiry made by Mr. Hughes about the proposed temporary felony rule that the Legislature was reviewing, Mr. Hales gave Mr. Hughes a synopsis of the existing felony rule, and why the additional rule was created.

FINANCIAL REPORT

Mr. Hetrick presented the financial report, discussing the Board’s balance, expenditures, and revenue.  The Board inquired about budget balances, and Mr. Hetrick expressed that he pays lease payments for office space and the Attorney General’s Office at the beginning of the year out of the Board’s budget.

INVESTIGATIVE REPORT

Mr. Hetrick presented the following information from investigations:

Fiscal Year 2008 (to date)

Total Complaints received                     271

Including liability insurance files 110

Status:

Closed by Board action                        3

Closed following disciplinary action       1

Pending legal review by the Office of the Attorney General        28

Remaining under investigation    176

Awaiting Board determination   58

Fiscal Year 2007

Total Complaints received                     635

Including liability insurance files 422

Status:

Closed by Board action                        306

Closed following disciplinary action       7

Pending legal review by the Office of the Attorney General 104

Remaining under investigation    105

Awaiting Board determination   113

Fiscal Year 2006

Total Complaints received                     56

Status:

Closed by Board action                        39

Closed following disciplinary action       5

Pending legal review by the Office of the Attorney General 8

Remaining under investigation    1

Awaiting Board determination   3

Complaint issues are as follows:

Unregistered practice                116
Misrepresentation                     9
Competency                             32
Unsafe / Incomplete Construction   71
Standard of Practice                 33
Contract issue                           37
Failure to deliver                       42
Fraud/Dishonest conduct          42
Non-payment of Debt               25
Failure to Obtain Permit            13
False Application                      3
Conviction                                3
Insurance                                  534
Consumer Protection                1
Child Support Order                 1

For Board Determination:

I-CON-2006-9C alleges that R will not warranty the concrete driveway of the home that was purchased. R sent C a notice indicating that the written guarantee excludes concrete. INV revealed that C wanted R to fix 1/8 inch cracks in concrete. INV review of contract revealed that cracks must be at least 1/4 inch wide in order to be covered by warranty, and R notified C of that condition. INV did not reveal evidence of a violation. IBOL recommends the Board authorize closure.

I-CON-2006-14C alleged that R failed to remedy several problems that arose during a routine walk through of new home; that the quality of work preformed on the home was quite serious and needed immediate attention; that C hired a home inspector who found more errors; that C gave R the opportunity to correct the errors but R refused to cooperate. INV revealed that the work in question took place before the registration act. Though R did subsequently become registered, R has take no action to remedy C's complaints. While action against R may be warranted, Board jurisdiction in this matter is questionable. Sent to DAG for review and recommendation. DAG review determined that the acts, including R's agreement to repair certain items, took place prior to the effective date of the CON act. No evidence was revealed to show a violation. Based on the DAG review, IBOL recommends closure with an advisory that future conduct of this nature could result in discipline.

I-CON-2006-33C alleges that R will not complete warranted work on home siding. INV revealed that R was delayed in accomplishing repairs due to the weather. INV revealed that repairs were subsequently completed. IBOL recommends the Board authorize closure.

I-CON-2007-16 C alleges that R was hired to install an RV gate and did not install the correct size or put it in the correct place. INV revealed that the work was performed according to the contract and that C signed off on the finished job. INV did not reveal evidence to support the allegations or a violation. IBOL recommends the Board authorize closure.

I-CON-2007-364 C alleged that R is aware of the contractor registration and has not registered and is doing jobs that exceed $2000. Record shows R registered within 10 days of the complaint being filed. IBOL recommends the Board authorize closure per R's compliance.

I-CON-2007-452 C alleged R was hired to frame C's new home. It took over three months to complete framing due to very poor workmanship which caused a NO pass from the inspector. C fixed the errors himself just to pass the second inspection. INV revealed that C failed to return the INV calls to provide supporting information in the original complaint. INV revealed that the R noted that the blue prints for the project were in error and the required changes caused the problems in the framing. R stated that all problems were corrected. INV did not reveal evidence to support the allegations or a violation. IBOL recommends the Board authorize closure.

I-CON-2007-469 C alleged R's have been paid $2838.33 for drywall work which later cracked. R informed C that he will not guarantee his work. R used taping methods not recommended by leading manufacture which was mesh tape and hot mud. INV revealed that C refused to provide requested information. INV also revealed that the matter was heard in court and no substandard work was identified. R noted that upon receiving payment, R would fix any problems identified by C. INV did not reveal evidence to support the allegations or a violation. IBOL recommends the Board authorize closure.

I-CON-2007-479 C alleged R failed to disclose all information required for registration. C was severely injured while working in the employ of R. R did not have workers compensation and C was forced to file a claim. C was awarded monies by of the Industrial Commission. IBOL records show R's registration application noted no employees & self-employed. INV revealed that the incident in question took place in 2004 and that R was not required to disclose the matter on the registration application. It has been confirmed that R is self-employed and without employees. INV did not reveal evidence to support the allegations or a violation. IBOL recommends the Board authorize closure.

I-CON-2007-562 R is alleged to have failed to refund all money allegedly due to C. INV revealed this case is regarding the sale of an appliance and is not a contractor complaint. IBOL recommends the Board authorize closure.

I-CON-2007-567 C alleged R failed to complete warranty work on a home. Inv revealed that R had tried to fix C's cracked patio per the warranty but failed, and that C did not believe R was moving fast enough to correct the problem. INV met with both parties and agreement was ultimately reached. INV did not reveal evidence to support the allegations or a violation. IBOL recommends the Board authorize closure.

I-CON-2007-582 C alleged R performed unsafe construction practices causing fire and water damage at residence. INV revealed that C directed R to slope the barn floor to the back instead of the front, which may have caused the water problem. R addressed the problem of water entering the barn by adding a threshold. The C then hired a third party to replace the threshold with a drain in front of the door. INV also revealed that C did not like the way the home was wired, but the home passed the initial electrical inspection, and the contract did not address specific or unusual wiring issues. INV revealed that a sink was scratched sometime within the 7 months after construction and that R agreed to replace the sink if C would be responsible for any damage that may occur to the counter. C would not agree. While it appears R has made efforts to address C's concerns, it is unclear what changes were made to the home after it was completed by R. INV did not reveal evidence to support the allegations of a violation. IBOL recommends the Board authorize closure with an advisory that warranty issues be addressed in a timely manner.

I-CON-2007-638 C alleged R was an unregistered contractor. IBOL sent letter requesting response. IBOL received a response stating that R built and owned the house and hired contractors for the framing. All contractors hired were licensed and the house passed all inspections. No evidence was revealed to support the allegations. IBOL recommends the Board authorize closure.

I-CON-2007-118;439;363;442;460;462;464;466;485;486;487;490;493;501;502;510;526;555;559;560;608;627;630;632
C alleged that R failed to provide proof of liability insurance. No response to initial IBOL request. Certified letter sent requesting response. Documentation was received confirming insurance. IBOL recommends the Board authorize closure.

I-CON-2007-102;110;133;155;172;173;175;176;191;196;204;259;300;304;319;329;348;350;351;361;362;381;386;390;391;392;400;
401;421;425;437;461;465;488;489;492;494;495;496;498;516;517;518;522;529;534;539;542;548;549;550;551;553;558;
583;584;585;586;597;598;601;602;603;605;609;610;611;612;613;628;629;633;634
C alleged that R failed to provide proof of liability insurance after cancellation notice from insurance company. No response to initial IBOL request. Certified letter sent requesting response. Record shows registration has expired either by request or for failure to renew. IBOL recommends the Board authorize closure, as insurance proof will be required at reinstatement.

I-CON-2007-22;54;76;178;331;540;552;
C alleged that R failed to provide proof of liability insurance after cancellation notice from insurance company. IBOL sent notice of cancellation to R and request for current liability documentation. R submitted certificate of liability showing that R was without liability insurance for 6 - 130 days. IBOL recommends the Board authorize closure with an advisory letter regarding the mandatory requirement to maintain current insurance.

I-CON-2008-23 C states that R is not registered. A search of the IBOL database reveals the R is not registered. Certified response letter was sent requesting response. Response with application was received and registration was issued. Based on compliance, IBOL recommends the Board authorize closure.

I-CON-2008-38 C alleged the R took a draw of$163,000 and refused to pay the subcontractors. INV revealed that the C had filed the complaint in anticipation of an issue that could take place. INV did not reveal evidence to support the allegations or a violation. IBOL recommends the Board authorize closure.

I-CON-2008-48 R allegedly has failed to complete a project and/or failed to return advanced monies. INV revealed that R completed the project as required and no monies were due C. INV did not reveal evidence to support the allegation. IBOL recommends the Board authorize closure.

I-CON-2008-49 C alleged that R is an unregistered contractor. Sent cert letter requesting response. Received email from R confirming registration in Idaho as a Contractor under a business name. IBOL records confirm registration. IBOL recommends the Board authorize closure.

I-CON-2008-50 C alleged R was operating with an expired registration. INV revealed that R subsequently reinstated registration and provided proof of insurance. IBOL recommends the Board authorize closure with an advisory regarding maintaining a current registration.

I-CON-2008-53 C alleged poor workmanship, failure to adequately complete the project, and no disclosure document. INV revealed that C confirmed that all allegations had been addressed by R and C wished to withdraw the complaint. INV did not reveal evidence to support a violation. IBOL recommends the Board authorize closure.

I-CON-2008-78 C alleged R is practicing contracting without registration. Sent cert letter requesting response. R provided documentation of current registration. Records confirm that R was registered at the time of the complaint. IBOL recommends the Board authorize closure.

I-CON-2008-114 C alleged the R was hired for a building project and that R was paid in full by the C. R failed to pay a supplier and a lien was filed against the C's property. INV revealed that C had worked out an agreement with R to pay the money and that C wanted to with draw the complaint. A written request to withdraw was received. Based on the unwillingness of C to pursue the matter, IBOL recommends the Board authorize closure.

I-CON-2008-172 C alleged that R did an unsatisfactory job installing carpet and r will not respond to correct the problem. INV revealed that all activity occurred in another state and outside the Board's jurisdiction. C was advised to file a complaint with the other state. IBOL recommends the Board authorize closure.

I-CON-2008-177 C alleged R was paid for an incomplete job. A search of the IBOL database reveals R is not registered. INV revealed that R was not registered and claimed to not being aware of the registration requirement. R subsequently obtained registration. INV also revealed that the contract was not clear as to the scope of the work to be done, but C allowed additional work to be done by R that almost doubled the project. INV did not reveal evidence to support a violation other than the initial failure to register. IBOL recommends the Board authorize closure with an advisory that contracts are clear as to work scope and change orders.

I-CON-2008-204 C alleged that R used C's registration number to start 2 construction projects and has never had permission to use the license number and is no longer an employee of R. INV revealed that a building inspector made an assumption that R was still an employee of C. INV confirmed that R did not present or otherwise use C's registration number and that R is appropriately registered. IBOL recommends the Board authorize closure.

I-CON-2008-207 C alleged that R hung a walk through door to low and when the concrete was poured the level had to be dropped to accommodate for the door. Due to the concrete being poured to low, rain water continues to come in around the door. C later submitted information confirming that the R was not responsible for the problem. C also requested that the complaint be withdrawn. Based on the additional information and C's withdrawal, IBOL recommends the Board authorize closure.

I-CON-2008-230 C alleged that R installed six sprinkler systems and failed to obtain the required permits. INV revealed that R failed to obtain the required permits and was sent to collection. INV also revealed that R admitted to not obtaining the permits as required because the regulations are confusing. R promised to contact the appropriate authorities and initiate a plan to insure that permits are obtained as required. IBOL recommends the Board authorize closure with an advisory letter.

I-CON-2008-235 C alleged that R installed a sprinkler system and failed to request the required permit or inspection. A search of IBOL database revealed R's business is no longer in operation and the registration is expired. INV did reveal evidence to confirm that R was the installer of the valve in question and should have obtained the permit and inspection. The project was subsequently finished by another contractor and all inspections were conducted. IBOL recommends the Board authorize closure.

I-CON-2008-4;8;9;13;17;19;21;33;44;46;65;88;93107;110;129;131;132;
C alleged that R failed to provide proof of liability insurance. No response to initial IBOL request. Certified letter sent requesting response. Documentation was received confirming insurance. IBOL recommends the Board authorize closure.

I-CON-2008-3;6;12;15;16;20;22;25;26;30;32;47;62;64;67;68;82;83;86;89;90;103;105;108;109;125;
C alleged that R failed to provide proof of liability insurance after cancellation notice from insurance company. No response to initial IBOL request. Certified letter sent requesting response. Record shows registration has expired either by request or for failure to renew. IBOL recommends the Board authorize closure, as insurance proof will be required at reinstatement.

At the end of Mr. Hetrick’s investigative report, Ms. Prather inquired if a small fee for not complying with the contractors registration act should apply to some of these complaints.  Mr. Hetrick expressed that the Board needs to handle these complaints in the most timely and effective manner possible.

Mr. Pinther inquired if it would be okay if while at the legislative luncheon he would be attending if he could take the investigative memorandum to use as a tool for discussion.  Mr. Hales expressed that this would be okay, if it was used as a tool to provide statistics or trends in the conversation. 

Motion made to approve all above recommendations by Mr. Elliott, seconded by Ms. Prather, motion carried. 

DISCUSSION

Mr. Pinther presented the information that he had obtained from his attendance at the NASCLA meeting.  Mr. Pinther expressed that this association could be a great tool to assist the Idaho Contractors Board for possible future licensing of registrants and a disciplinary data bank that the Board could join that is accessed by all members.  Mr. Pinther also stated that soon NASCLA would be generating their 2008 Contractors State Licensing Information Directory, and that they should be in contact with Ms. Anderson to obtain the Bureau’s contact information.  Mr. Pinther and Mr. Hetrick also expressed that future attendance to one of NASCLA’s meetings would be very informative for all board members and staff.

Motion to approve the attendance at the NASCLA Santa Barbara meeting for Mr. Pinther and Mr. Hales was made by Mr. Hughes, seconded by Ms. Prather, motion carried.

Mr. Hales let the Board know that he had spoken with Mr. Pisca, and that Mr. Pisca would not be pursuing the owner/builder exemption this year, and that it would be placed on the legislative agenda for next year.  Discussion was also held on the public’s limited access to registrant’s records, when a request for public records is made.  Mr. Hales stated that the Board could consider adopting a rule that would allow insurance information to be available to the public.

Mr. Hales addressed the Board in regard to their participation with the Idaho Contractors Association.  He advised that generally the Bureau recommends a Board member resign from any association director or officer position.  This recommendation is based upon the difference in charges between the Board and association and concerns over the open meeting law.

Ms. Cory discussed with the Board the problems that the Bureau was having in regard to contractor renewal forms.  Mr. Hetrick and Ms. Anderson discussed that changes could be made to the construction type code and the possible changes to require additional insurance information if the registrant’s registration had been allowed to lapse.  This should ease the confusion of renewals.

Ms. Cory presented to the chairman a letter that was drafted to thank the Ada County Prosecutor’s office for their great efforts in prosecuting persons who had operated outside of the Idaho rules and laws for contractor registration.  Mr. Nemec approved the letter and signed.

EXECUTIVE SESSION

Motion was made by Mr. Elliott 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 Mr. Hughes, motion carried.  Individual vote for this motion were Mr. Nemec aye, Mr. Pinther aye, Mr. Elliott aye, Mr. Hughes aye, and Ms. Prather aye.

Motion was made to exit from executive session by Mr. Hughes, seconded by Ms. Prather, motion carried.  Individual vote for this motion was Mr. Nemec aye, Mr. Pinther aye, Mr. Hughes, Mr. Elliott aye, and Ms. Prather aye.

Motion to approve all applications made by Ms. Prather, seconded by Mr. Hughes, motion carried. 

Approval was given to the application listed below, when further information is received or information clarified by Ms. Anderson.

CONA-24155

The following applicants were approved:

The following applicants will be flagged for the Industrial Commission to review:

CONA-24273

CONA-24275

DISCUSSION

Ms. Anderson presented the Board with information she obtained in regard to reciprocity of workers comp with other states that she had found.  The states that Idaho currently has reciprocity with are Colorado, Montana, Nevada, North Dakota, Oregon, Utah, Washington, and Wyoming.  The Board asked Ms. Anderson to create a form letter that would go out to registrants who state they have reciprocity for workers comp, with the letter asking for documentation.

Ms. Prather asked to have Mr. Hales research how the Board could catch contractors that had existing registration numbers, were filing bankruptcy on these existing businesses, and then reapplying for a new registration number, under a new contractor business name.

The following meeting dates were scheduled:

2-12-08    10:00 a.m. conference call

3-11-08 10:00 a.m. conference call

4-8-08    10:00 a.m. conference call

5-13-08 8:30 a.m. face to face meeting

Meeting was adjourned at 12:07.