Committee advances bill keeping Idaho construction disputes in Idaho courts

The House Business Committee voted to send Senate Bill 1006 to the floor with a due-pass recommendation. The bill says that contracts relating to construction, private work or improvements in Idaho are governed by Idaho law and adjudicated in Idaho courts, preventing choice-of-law or venue clauses in favor of other states from applying to projects in Idaho.

Representative Brent Crane described the bill as a business-friendly measure that protects Idaho contractors and subcontractors from being forced to litigate in other states. "What we're doing with Senate bill 1,006 is if there's any disputes it's going to be settled in Idaho courts and according to Idaho law," Crane said. He added the bill is designed to prevent out-of-state contractors from requiring Idaho subcontractors to go to another jurisdiction for disputes.

Sean Shupak of the Idaho Associated General Contractors testified that member firms increasingly confront out-of-state developers and contractors and supported the bill. "It makes it so that Idaho contractors only have to follow Idaho law, Idaho law, just the way it should be," Shupak told the committee.

Committee members asked whether the bill applies retroactively to existing contracts and whether it affects building-code requirements; witnesses said it generally applies to contracts entered after the effective date and does not change which building codes apply.

Representative Wheeler moved to send Senate Bill 1006 to the floor with a due-pass recommendation; the committee approved the motion by voice vote.