WSR 08-13-078

PROPOSED RULES

DEPARTMENT OF

LABOR AND INDUSTRIES

[ Filed June 17, 2008, 7:54 a.m. ]

Supplemental Notice to WSR 08-03-117.

Preproposal statement of inquiry was filed as WSR 07-11-146.

Title of Rule and Other Identifying Information: Chapter 296-200A WAC, Contractor certification of registration.

Hearing Location(s): Department of Labor and Industries, Tukwila Service Location, 12806 Gateway Drive, Tukwila, WA, on July 22, 2008, at 9:00 a.m.

Date of Intended Adoption: August 1, 2008.

Submit Written Comments to: Sally Elliott, Department of Labor and Industries, P.O. Box 44400, Olympia, WA 98504-4400, e-mail yous235@lni.wa.gov, fax (360) 902-5292, by July 22, 2008.

Assistance for Persons with Disabilities: Contact Sally Elliott by July 1, 2008, (360) 902-6411 or yous235@lni.wa.gov.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The department is holding one additional public hearing to allow interested parties to comment on the small business economic impact study and cost-benefit analysis.

Reasons Supporting Proposal: See Purpose above.

Statutory Authority for Adoption: Chapter 18.27 RCW and chapter 436, Laws of 2007 (SHB 1843).

Statute Being Implemented: Chapter 18.27 RCW and chapter 436, Laws of 2007 (SHB 1843).

Name of Proponent: , governmental.

No small business economic impact statement has been prepared under chapter 19.85 RCW. We did not prepare a small business economic impact statement for this rule making because the rule will not impose costs on any business. Per subsection (1)(a) of RCW 19.85.030, an agency must "prepare a small businesses economic impact statement... if the proposed rule will impose more than minor costs on businesses in an industry."

Chapter 436, Laws of 2007 (SHB 1843), passed during the 2007 session of the Washington state legislature and made several changes to chapter 18.27 RCW. Some of these changes are listed below:

Added/included the term "develop" to the definition of a contractor.
Altered the definition of a general contractor to include a person whose business operations require the use of more than one building trade or craft upon a single job or project or under a single building permit.
The effective date of these changes was July 22, 2007. Previous to this date the law defined a general contractor as a contractor whose business operations required the use of more than two unrelated building trades or crafts.

The proposed new section WAC 296-200A-015 provides definitions, including a definition of a developer. This definition serves only to clarify the application of the statutory inclusion of developers as contractors pursuant to the statute. Additionally, it serves to limit the application of the term to include only residential development. As such, these rules impose no additional costs on any business.

The proposed new section WAC 296-200A-016 provides definitions for "specialty contractor" for the purpose of contractor registration. The department uses these definitions to classify businesses into the "building trades or crafts" governed by the statute described above. The definitions also outline the scope of work each specialty may perform. The department is publishing the proposed definitions only to help contractors identify their proper classification and scope of work, but will not alter agency interpretation of the classifications. They will not alter the type of business a firm does or how they do that business, nor will they alter the agency's compliance activities. As such, they impose no additional costs on any business.

The remaining proposed sections simply clarify the rule without altering its intent, and provide mechanisms for citations, suspensions, and appeals, etc. As such, acting in compliance with the law imposes no new costs on any business.

A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Sally Elliott, P.O. Box 44400, Olympia, WA 98504-4400, phone (360) 902-6411, fax (360) 902-5292, e-mail yous235@lni.wa.gov.

June 17, 2008

Judy Schurke

Director

Washington State Code Reviser's Office