FINAL BILL REPORT

SHB 364

                                  C 419 L 87

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Wang and Doty)

Changing provisions relating to contractor registration and disclosure.

House Committe on Commerce & Labor

Senate Committee on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

General and specialty construction contractors are required to register with the Department of Labor and Industries and post a bond or other security.  Any person having a claim against the contractor for breach of contract, wages or materials supplied in the project may bring suit against the bond to recover.  In many cases, the amount of the bond is not enough to cover the potential liability of the contractor.  A default by the contractor in payment of wages or the cost of materials furnished for a project on an owner's property may result in the owner's property being subject to lien to enforce payment.

SUMMARY:

A contractor bidding on or performing construction work that has a contract price of $1,000 or more is required to provide the customer with a disclosure statement that includes the contractor's registration number.  The disclosure statement must also reveal the amount of the contractor's bond and an explanation of steps that the customer might take to procure additional protection if a claim arises from the work done under the contract.  The disclosure statement is not required for public works contracts, contracts for construction of more than four residential units or contracts between contractors.

A contractor who fails to provide a customer with the disclosure statement may not bring or maintain any action in court to collect compensation for work done under any contract subject to the disclosure provisions. Failure to comply is also an infraction under the contractor registration law.

The Department of Labor and Industries is directed to produce model disclosure statements and other educational materials to assist contractors and customers under the disclosure provisions.

The director of the department or authorized compliance inspectors may inspect and investigate job sites to determine whether the contractor is complying with the registration law.  If the department reasonably believes that a contractor has failed to register as required, the director must issue an order immediately restraining further construction at the site.  Procedures are provided for hearings and for enforcement of the department's order in superior court.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    30    17(Senate amended)

      House       (House refused to concur)

Free Conference Committee

      Senate    34    13

      House 96   0

EFFECTIVE:July 26, 1987