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                                         SUBSTITUTE SENATE BILL NO. 6435

                        _______________________________________________

                                                            AS AMENDED BY THE HOUSE

                                                                            C 182 L 88

State of Washington                              50th Legislature                              1988 Regular Session

By Senate Committee on Economic Development & Labor (originally sponsored by Senators Lee and Owen)

Read first time 2/5/88.

AN ACT Relating to disclosure by contractors; amending RCW 18.27.114; and creating a new section.

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

        Sec. 1.  Section 1, chapter 419, Laws of 1987 and RCW 18.27.114 are each amended to read as follows:

          (1) Until July 1, 1989, any contractor agreeing to perform any contracting project ((subject to this chapter on real property)):  (a) For the repair, alteration, or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more; or (b) for the repair, alteration, or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars, must provide the customer with the following disclosure statement prior to starting work on the project:

                                                                 @bc"notice to customer@ec

This contractor is registered with the state of Washington, registration no. ......, as a general/specialty contractor and has posted with the state a bond or cash deposit of $6,000/$4,000 for the purpose of satisfying claims against the contractor for negligent or improper work or breach of contract in the conduct of the contractor's business.    This bond or cash deposit may not be sufficient to cover a claim which might arise from the work done under your contract.  If any supplier of materials used in your construction project or any employee of the    contractor or subcontractor is not paid by the contractor or subcontractor on your job, your property may be liened to force payment. If you wish additional protection, you may request the contractor to provide you with original "lien release" documents from each supplier or subcontractor on your project.  The contractor is required to provide you with further information about lien release documents if you request it.  General information is also available from the department of labor and industries."

          (2) On and after July 1, 1989, any contractor agreeing to perform any contracting project:  (a) For the repair, alteration, or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more; or (b) for the repair, alteration, or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars, must provide the customer with the following disclosure statement prior to starting work on the project:

@bc"notice to customer@ec

This contractor is registered with the state of Washington, registration no. ......, as a general/specialty contractor and has posted with the state a bond or cash deposit of $6,000/$4,000 for the purpose of satisfying claims against the contractor for negligent or improper work or breach of contract in the conduct of the contractor's business.  The expiration date of this contractor's registration is .......... .  This bond or cash deposit may not be sufficient to cover a claim which might arise from the work done under your contract.  If any supplier of materials used in your construction project or any employee of the    contractor or subcontractor is not paid by the contractor or subcontractor on your job, your property may be liened to force payment. If you wish additional protection, you may request the contractor to provide you with original "lien release" documents from each supplier or subcontractor on your project.  The contractor is required to provide you with further information about lien release documents if you request it.  General information is also available from the department of labor and industries."

(3) On and after July 1, 1989, a contractor subject to this section shall notify any consumer to whom notice is required under subsection (2) of this section if the contractor's registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer.

(4) No contractor subject to this section may bring or maintain any ((action in any court of this state for the collection of compensation for the performance of any work or for breach of)) lien claim under chapter 60.04 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) or (2) of this section.

          (((3))) (5) This section does not apply to contracts authorized under chapter ((39.08)) 39.04 RCW((, contracts for construction of more than four residential units,)) or to contractors contracting with other contractors.

          (((4))) (6) Failure to comply with this section shall constitute an infraction under the provisions of this chapter.

          (((5))) (7) The department shall produce model disclosure statements, and public service announcements detailing the information needed to assist contractors and contractors' customers to comply under this section.  As necessary, the department shall periodically update these education materials.

NEW SECTION. Sec. 2.     Nothing in RCW 18.27.114 shall be construed to prohibit a contractor from voluntarily complying with the notification requirements of that section which take effect July 1, 1989, prior to that date.