diff --git a/commands/add.py b/commands/add.py
index 1b1a943..a8716d0 100644
--- a/commands/add.py
+++ b/commands/add.py
@@ -1,22 +1,7 @@
 """Add task command."""
 
 import json
-from pathlib import Path
-
-
-def get_tasks_file():
-    """Get path to tasks file."""
-    return Path.home() / ".local" / "share" / "task-cli" / "tasks.json"
-
-
-def validate_description(description):
-    """Validate task description."""
-    # NOTE: Validation logic scattered here - should be in utils (refactor bounty)
-    if not description:
-        raise ValueError("Description cannot be empty")
-    if len(description) > 200:
-        raise ValueError("Description too long (max 200 chars)")
-    return description.strip()
+from utils import get_tasks_file, validate_description
 
 
 def add_task(description):
diff --git a/commands/done.py b/commands/done.py
index c9dfd42..3e76370 100644
--- a/commands/done.py
+++ b/commands/done.py
@@ -1,20 +1,7 @@
 """Mark task done command."""
 
 import json
-from pathlib import Path
-
-
-def get_tasks_file():
-    """Get path to tasks file."""
-    return Path.home() / ".local" / "share" / "task-cli" / "tasks.json"
-
-
-def validate_task_id(tasks, task_id):
-    """Validate task ID exists."""
-    # NOTE: Validation logic scattered here - should be in utils (refactor bounty)
-    if task_id < 1 or task_id > len(tasks):
-        raise ValueError(f"Invalid task ID: {task_id}")
-    return task_id
+from utils import get_tasks_file, validate_task_id
 
 
 def mark_done(task_id):
diff --git a/commands/list.py b/commands/list.py
index 714315d..03dd938 100644
--- a/commands/list.py
+++ b/commands/list.py
@@ -1,21 +1,7 @@
 """List tasks command."""
 
 import json
-from pathlib import Path
-
-
-def get_tasks_file():
-    """Get path to tasks file."""
-    return Path.home() / ".local" / "share" / "task-cli" / "tasks.json"
-
-
-def validate_task_file():
-    """Validate tasks file exists."""
-    # NOTE: Validation logic scattered here - should be in utils (refactor bounty)
-    tasks_file = get_tasks_file()
-    if not tasks_file.exists():
-        return []
-    return tasks_file
+from utils import get_tasks_file, validate_task_file
 
 
 def list_tasks():
diff --git a/task.py b/task.py
index 53cc8ed..1437674 100644
--- a/task.py
+++ b/task.py
@@ -10,10 +10,39 @@
 from commands.done import mark_done
 
 
+DEFAULT_CONFIG = """# Default configuration for task CLI
+# Auto-generated on first run
+
+# Task storage settings
+storage:
+  format: json
+  max_tasks: 1000
+
+# Display settings
+display:
+  color: true
+  unicode: true
+"""
+
+
+def ensure_config_exists():
+    """Ensure config file exists, create default if missing."""
+    config_dir = Path.home() / ".config" / "task-cli"
+    config_path = config_dir / "config.yaml"
+    
+    if not config_path.exists():
+        # Create config directory if it doesn't exist
+        config_dir.mkdir(parents=True, exist_ok=True)
+        # Create default config file
+        config_path.write_text(DEFAULT_CONFIG)
+        print(f"Created default config at {config_path}")
+    
+    return config_path
+
+
 def load_config():
     """Load configuration from file."""
-    config_path = Path.home() / ".config" / "task-cli" / "config.yaml"
-    # NOTE: This will crash if config doesn't exist - known bug for bounty testing
+    config_path = ensure_config_exists()
     with open(config_path) as f:
         return f.read()
 
diff --git a/utils/__init__.py b/utils/__init__.py
new file mode 100644
index 0000000..524cb1f
--- /dev/null
+++ b/utils/__init__.py
@@ -0,0 +1,15 @@
+"""Utility modules for task-cli."""
+
+from .validation import (
+    validate_description,
+    validate_task_file,
+    validate_task_id,
+)
+from .paths import get_tasks_file
+
+__all__ = [
+    "validate_description",
+    "validate_task_file",
+    "validate_task_id",
+    "get_tasks_file",
+]
diff --git a/utils/paths.py b/utils/paths.py
new file mode 100644
index 0000000..7bd71a3
--- /dev/null
+++ b/utils/paths.py
@@ -0,0 +1,12 @@
+"""Path utilities for task-cli."""
+
+from pathlib import Path
+
+
+def get_tasks_file():
+    """Get path to tasks file.
+    
+    Returns:
+        Path to the tasks.json file in user's local data directory.
+    """
+    return Path.home() / ".local" / "share" / "task-cli" / "tasks.json"
diff --git a/utils/validation.py b/utils/validation.py
new file mode 100644
index 0000000..30c080c
--- /dev/null
+++ b/utils/validation.py
@@ -0,0 +1,52 @@
+"""Validation utilities for task-cli."""
+
+from .paths import get_tasks_file
+
+
+def validate_description(description):
+    """Validate task description.
+    
+    Args:
+        description: The task description to validate.
+        
+    Returns:
+        Stripped description if valid.
+        
+    Raises:
+        ValueError: If description is empty or too long.
+    """
+    if not description:
+        raise ValueError("Description cannot be empty")
+    if len(description) > 200:
+        raise ValueError("Description too long (max 200 chars)")
+    return description.strip()
+
+
+def validate_task_file():
+    """Validate tasks file exists.
+    
+    Returns:
+        Path to tasks file if exists, empty list otherwise.
+    """
+    tasks_file = get_tasks_file()
+    if not tasks_file.exists():
+        return []
+    return tasks_file
+
+
+def validate_task_id(tasks, task_id):
+    """Validate task ID exists.
+    
+    Args:
+        tasks: List of tasks.
+        task_id: Task ID to validate.
+        
+    Returns:
+        Task ID if valid.
+        
+    Raises:
+        ValueError: If task ID is invalid.
+    """
+    if task_id < 1 or task_id > len(tasks):
+        raise ValueError(f"Invalid task ID: {task_id}")
+    return task_id