Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Labor Committee

HB 1749

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Provides that a property owner who improves and offers to sell property under certain circumstances is not required to register as a contractor if the owner contracts with a general contractor or undertakes only floor coverings or painting, or both.

Background:

The Contractor Registration Act requires general and specialty contractors to register with the Department of Labor and Industries (Department). Applicants must obtain a bond and insurance to register.

"Contractor" is defined as including any entity who, in the pursuit of an independent business, undertakes to or submits a bid to construct, improve, develop or take specified other actions with respect to a building, development, or other structure listed in statute. Installation of carpeting or other floor covering is specifically included. A contractor also includes a person who, to do similar work on the person's own property, employs members of more than one trade upon a single job or under a single building permit. Also included in the definition is an owner who offers to sell property without occupying or using the structure, project, development, or improvement for more than one year after it was substantially completed or abandoned.

The exemptions from registration include an owner who contracts with a registered contractor. However, this exemption does not apply to a person who performs the activities of a contractor for the purpose of leasing or selling improved property he or she has owned for less than 12 months.

Summary of Bill:

The provision making an owner a "contractor" if he or she offers to sell improved property without occupying or using it for more than one year is modified. A person is not a contractor under this provision if the person contracts with a registered general contractor and does not superintend the work or undertakes only the installation of carpeting or other floor covering, or painting, or both.

Language requiring persons to register who do contracting work on their own property by employing members of more than one trade to register is deleted.