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House advances construction licensing changes to allow bonding-company certification for higher bids
Summary
House Bill 22 clarifies contractor monetary limits and allows a surety/bonding company to certify a contractor’s financial capacity so the state may accept bids above a contractor’s licensed limit; sponsor declared a conflict and said the change provides enforcement 'teeth.'
Representative Ray Short introduced HB22 to address cases when a contractor’s known bid limit turns out to be lower than the job’s cost. The bill allows a contractor who discovers the shortfall to notify the department and seek an increase in limit, and it permits the department to accept bonding-company certification that a contractor can meet a higher monetary obligation.
Short declared a conflict of interest (he is a subcontractor) and described the policy as creating enforceable standards and practical remedies to allow fair bidding when costs exceed estimates. Representative Jorgensen questioned enforcement and whether the state could or would accept contracts awarded in violation of bid limits; the sponsor explained the department could pull licenses and that the bill aims to create 'teeth' for enforcement.
The Clerk reported HB22 passed the House with 67 affirmative and 1 negative vote; the bill was transmitted to the Senate.
