HOUSE BILL REPORT

SSB 6357

As Amended by the House

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Lee and Smitherman; by request of Department of Labor and Industries)

Clarifying provisions relating to contractors' bonds and securities.

House Committe on Commerce & Labor

Majority Report:  Do pass with amendments.  (11)

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

House Staff:Karen Haynes (786-7779)

AS PASSED HOUSE MARCH 3, 1988

BACKGROUND:

A contractor applying for a certificate of registration is required to file either a surety bond or a deposit of cash or other security with the Department of Labor and Industries.

Any person, firm, or corporation having a claim against a contractor for wages due, taxes and contributions due, labor and material costs, or judgments for negligent or improper work or breach of contract may bring suit upon the surety bond.  Any person having an unsatisfied final judgment against a contractor for these reasons may execute upon the security deposit.

Action upon a bond or deposit is commenced by filing a complaint.  Further procedures are outlined for filing a claim against the surety issuing a bond, but procedures are not specified for filing a claim against a security deposit.

SUMMARY:

Any person, firm, or corporation having a claim against a contractor for wages due, taxes and contributions due, labor and material costs, or judgments for negligent or improper work or breach of contract may bring suit upon the surety bond or security deposit.

Action upon a bond or deposit is commenced by filing a summons and complaint.  The procedure for bringing suit upon the deposit is the same as the procedure for bring suit upon the bond.

It is clarified that the liability of the surety does not cumulate if the bond is renewed or otherwise extended.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Betty Buckley, Department of Labor and Industries; Duke Schaub, Associated General Contractors; Doug Bohlke, Contractors Bonding and Insurance Company and Sheet Metal and Air Conditioning Contractors Association; Bobette Jones, Contractors Bonding and Insurance Company; Gary Smith, Independent Business Association; and Larry Sundquist, Building Industry Association of Washington.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This bill is just a clarification of current law and practices. It clarifies the procedure for claiming on bonds and deposits and makes the procedure the same for bonds and deposits.

House Committee - Testimony Against:      None Presented.