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                                         SUBSTITUTE SENATE BILL NO. 6569

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                                                            AS AMENDED BY THE HOUSE

                                                                            C 270 L 88

State of Washington                              50th Legislature                              1988 Regular Session

By Senate Committee on Economic Development & Labor (originally sponsored by Senators West, Warnke and Anderson)

Read first time 2/5/88.

AN ACT Relating to construction lien information; adding new sections to chapter 60.04 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1.     The department of labor and industries shall prepare a master document that provides informational material about construction lien laws and available safeguards against real property lien claims.  The material shall include methods of protection against lien claims, including obtaining lien release documents, performance bonds, joint payee checks, the opportunity to require contractor disclosure of all potential lien claimants as a condition of payment, and lender supervision under RCW 60.04.200 and 60.04.210.  The material shall also include sources of further information, including the department of labor and industries and the office of the attorney general.

NEW SECTION. Sec. 2.     (1) Every real property lender shall provide a copy of the informational material described in section 1 of this act to all persons obtaining loans, the proceeds of which are to be used for residential construction or residential repair or remodeling.

          (2) Every contractor shall provide a copy of the informational material described in section 1 of this act to customers required to receive contractor disclosure notice under RCW 18.27.114.

          (3) No cause of action may lie against the state, a real property lender, or a contractor arising from the provisions of sections 1 and 2 of this act.

          (4) For the purpose of this section, "real property lender" means a bank, savings bank, savings and loan association, credit union, mortgage company, or other corporation, association, partnership, or individual that makes loans secured by real property in this state.

NEW SECTION. Sec. 3.     Sections 1 and 2 of this act are each added to chapter 60.04 RCW.

NEW SECTION. Sec. 4.     This act shall take effect July 1, 1989.

                                                                                                                           Passed the Senate March 7, 1988.

                                                                                                                                       President of the Senate.

                                                                                                                            Passed the House March 5 1988.

                                                                                                                                         Speaker of the House.