Rating: –1

Bill Summary:

House Bill 398 makes extensive revisions to Idaho’s Public Works Contractor Licensing Act, expanding regulatory oversight and enforcement authority within the Division of Occupational and Professional Licenses. It clarifies that licensing is required for contractors engaged in public works projects exceeding $50,000 and extends licensing provisions to include certain professional services tied to construction. The bill also increases license bonding requirements, modifies license classifications, and raises application and renewal fees.

In addition to financial impacts, the bill grants the administrator broad new authority to impose disciplinary actions—including license suspension or revocation—for a range of violations, such as dishonest business practices, criminal convictions, or violations of bidding procedures. It adds provisions related to responsible bidder determinations and adjusts administrative procedures related to licensing enforcement.

Reason for Rating:

House Bill 398 conflicts with the Idaho Republican Party Platform’s commitment to limited government, deregulation, and the protection of small businesses from bureaucratic overreach. By increasing financial and administrative burdens on public works contractors—including higher bonding requirements, new fees, and expanded enforcement tools—it risks pushing smaller contractors out of the bidding process entirely. The bill also grants vague discretionary power to state administrators to penalize licensees for broadly defined violations. Rather than streamlining public procurement, this legislation materially expands government function and enforcement authority. For these reasons, H0398 is rated –1.