Senate committee backs bill to require Idaho law for in-state construction projects

State Sen. Todd Leahy, R–District 23, told the Senate Commerce Committee that Senate Bill 1006 would establish that private construction projects physically located in Idaho are governed by Idaho law and Idaho jurisdiction, countering contractual clauses that attempt to impose the laws or dispute‑resolution forums of other states.

Leahy said contractors building projects in Idaho have increasingly faced contract provisions that would require litigation or arbitration under another state’s laws, forcing Idaho contractors to travel and hire counsel familiar with those laws. SB1006 is intended to provide a legal backstop so Idaho projects default to Idaho law and courts for disputes over construction work performed in the state.

Sean Shupak, director of government affairs for the Idaho Associated General Contractors, testified in support and said the organization’s members — which represent more than 750 companies statewide — want Idaho construction projects to follow Idaho law. After public testimony, Senator Nichols moved to send SB1006 to the floor with a due‑pass recommendation; the motion was seconded and the committee voted in favor.

Supporters said the bill addresses practical challenges contractors face when attempting to litigate under an unfamiliar state’s law; proponents argued the measure preserves access to local courts and avoids added time and expense of out‑of‑state litigation. The committee did not adopt any amendments on the record and the bill was reported to the Senate floor with a due pass recommendation.