How a bad idea became a bad law

Several years ago the insurance companies in Idaho devised a way to fleece tens of millions from Idaho people having construction work done. They co-opted popular sentiment of people clamoring for protection from unscrupulous contractors and, with the Legislature in hand, provided a false sense of security. Our senators and representatives proudly supported the bill, claiming it would provide protection at almost no cost to the consumer.

Sadly, that was not to be. No bonding is required, but the law requires an expensive liability insurance policy for each contractor that ranges from a few thousand dollars for specialty contractors to well over $10,000 per year for even the smallest general contractors. These costs are then passed on the consumer. Since it was passed two years ago, only eight actions have been taken by the contractor board, and four were only because the insurance was not kept current. The other four were for shoddy work, but in no case was there any compensation for the harmed consumer. If a harmed person wanted made whole they took the contractor to court, just like they would have before contractor registration.

The law even requires that if you buy a house to repair and then rent or sell, you are not allowed to hire a contractor until you become one yourself. Insurance brokers need to make their living, after all. Exemptions are given to commercial property owners, as well as the real estate agents. This is how a bad idea becomes a bad law.

LARRY SPENCER

Spirit Lake