HOUSE BILL REPORT

HB 1342

BYRepresentatives Sanders, Patrick, Wang and May

Adding requirements for contractor's notice to customers.

House Committe on Commerce & Labor

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (10)

      Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisher, Jones, R. King, O'Brien, Patrick, Sanders, Sayan and Walker.

House Staff:Chris Cordes (786-7117)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 1, 1988

BACKGROUND:

Since 1987, construction contractors have been required to provide their customers with information about their contractor registration bond.  The notice requirement does not include information about the bond's expiration date.

SUMMARY:

SUBSTITUTE BILL:  The notice provided to customers of construction contractors must include the expiration date of the contractor registration bond.  If the bond is cancelled or registration suspended before completion of the contract with the customer, the contractor must also notify the customer.  A contractor is not prohibited from voluntarily complying with these provisions prior to the act's effective date.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  An effective date of July 1, 1989, is added.  A provision is also added to clarify that a contractor is not prohibited from voluntarily complying with the act's requirements.

Fiscal Note:      Not Requested.

Effective Date:The bill takes effect July 1, 1989.

House Committee ‑ Testified For:    Representative Paul Sanders, prime sponsor;  William Hunter; and Doug Bohlke, Contractors Bonding Company (with concerns).

(Neutral):  Artie Robersen, Department of Labor and Industries.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Customers of contractors should be informed about the expiration date of the contractor's bond before they enter into agreements with the contractor.

(Neutral):  There should be a phase-in period to allow the 1987 customer disclosure requirements to be implemented before new requirements are imposed on contractors.

House Committee - Testimony Against:      None Presented.