A political subdivision or state agency that requires a permit as a precondition to construction, alteration, improvement, demolition, or other repair work and requires a contractor license shall:
(1) require each contractor applying for a permit to include in the application a signed statement verifying that the contractor holds a current contractor license and providing the license number;
(2) require any contractor applying for a permit that is claiming an exemption from the contractor licensing requirement a signed statement that includes the exemption and provides the license number of any contractor that the person intends to hire to perform work under the permit;
(3) issue a permit when no contractor has been selected at the time of application on the condition that the applicant will:
(a) select a currently licensed contractor;
(b) provide the license number to the issuing entity; and
(c) display the license number on the permit;
(4) require the contractor, upon issuance of the permit, to affix the contractor's license number to the permit for public display; and
(5) require the contractor to provide proof of:
(a) workers' compensation insurance;
(b) contributions to the unemployment insurance fund;
(c) health insurance coverage as required under federal or state law; and
(d) proper withholding of all applicable taxes from worker pay.