S-3531               _______________________________________________

                                                   SENATE BILL NO. 4669

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senator Moore

Read first time 1/20/86 and referred to Committee on Financial Institutions.

AN ACT Relating to public construction surety bonds or insurance; and amending RCW 48.30.270.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 3, chapter 12, Laws of 1967 ex. sess. as amended by section 6, chapter 1, Laws of 1983 2nd ex. sess. and RCW 48.30.270 are each amended to read as follows:

          (1) No officer or employee of this state, or of any public agency, public authority or public corporation except a public corporation or public authority created pursuant to agreement or compact with another state, and no person acting or purporting to act on behalf of such officer or employee, or public agency or public authority or public corporation, shall, with respect to any public building or construction contract which is about to be, or which has been competitively bid, require the bidder to make application to, or to furnish financial data to, or to obtain or procure, any of the surety bonds or contracts of insurance specified in connection with such contract, or specified by any law, general, special or local, from a particular insurer or agent or broker.

          (2) No such officer or employee or any person, acting or purporting to act on behalf of such officer or employee shall negotiate, make application for, obtain or procure any of such surety bonds or contracts of insurance, except contracts of insurance for builder's risk or owner's protective liability, which can be obtained or procured by the bidder, contractor or subcontractor.

          (3) This section shall not be construed to prevent the exercise by such officer or employee on behalf of the state or such public agency, public authority, or public corporation of its right to approve the form, sufficiency or manner or execution of the surety bonds or contracts of insurance furnished by the insurer selected by the bidder to underwrite such bonds, or contracts of insurance.

          (4) Any provisions in any invitation for bids, or in any of the contract documents, in conflict with this section are declared to be contrary to the public policy of this state.

          (5) A violation of this section shall be subject to the penalties provided by RCW 48.01.080.

          (6) This section shall not apply to the public nonprofit corporation authorized under RCW 67.40.020 nor shall it apply to metropolitan municipal corporations authorized under RCW 35.58.030.