Implements recommendations of the joint legislative task force on the underground economy.

Authorizes the director of the department of labor and industries to reduce fines for a contractor who fails to register under certain circumstances.

Directs the department of labor and industries to: (1) Conduct contractor training classes; and

(2) Deposit fees for issuance, renewal, and reinstatement of certificates of registration in the contractor registration account.

Increases the contract price under which taxes due and owing from a contractor are a lien prior to all other liens.

Creates the contractor registration account.

Prescribes penalties.