BP BHEAD INT S

AN ACT Relating to registration of contractors; amending RCW 18.27.010, 18.27.100, 18.27.102, and 18.27.110; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds that unregistered contractors are a serious threat to the general public and are costing the state millions of dollars each year in lost revenue. To assist in solving this problem, the department of labor and industries and the department of revenue should coordinate and communicate with each other to identify unregistered contractors.

Sec. 2. RCW 18.27.010 and 1973 1st ex.s. c 153 s 1 are each amended to read as follows:

((A)) Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Contractor" ((~~as used in this chapter is~~)) means any person, firm or corporation who or which, in the pursuit of an independent business undertakes to, or offers to undertake, or submits a bid to, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish, for another, any building, highway, road, railroad, excavation or other structure, project, development, or improvement attached to real estate or to do any part thereof including the installation of carpeting or other floor covering, the erection of scaffolding or other structures or works in connection therewith or who installs or repairs roofing or siding; or, who, to do similar work upon his own property, employs members of more than one trade upon a single job or project or under a single building permit except as otherwise provided herein.

((A)) (2) "General contractor" ((is)) means a contractor whose business operations require the use of more than two unrelated building trades or crafts whose work the contractor shall superintend or do in whole or in part((~~; the term~~)). "General contractor" shall not include an individual who does all work personally without employees or other "specialty contractors" as defined herein. The terms "general contractor" and "builder" are synonymous.

((A)) (3) "Specialty contractor" ((is)) means a contractor whose operations as such do not fall within the foregoing definition of "general contractor".

(4) "Department" ((~~as used in this chapter~~)) means the department of labor and industries.

(5) "Director" ((~~as used in this chapter~~)) means the director of the department of labor and industries.

(6) "Verification" means the receipt and duplication by the city, town, county, or advertiser of a contractor registration card that is current on its face.

Sec. 3. RCW 18.27.100 and 1990 c 46 s 1 are each amended to read as follows:

(1) Except as provided in RCW 18.27.065 for partnerships and joint ventures, no person who has registered under one name as provided in this chapter shall engage in the business, or act in the capacity, of a contractor under any other name unless such name also is registered under this chapter.

(2) All advertising and all contracts, correspondence, cards, signs, posters, papers, and documents which show a contractor's name or address shall show the contractor's name or address as registered under this chapter.

(3)(a) The alphabetized listing of contractors appearing in the advertising section of telephone books or other directories and all advertising that shows the contractor's name or address shall show the contractor's current registration number: PROVIDED, That signs on motor vehicles subject to RCW 46.16.010 and on-premise signs shall not constitute advertising as provided in this section. All materials used to directly solicit business from retail customers who are not businesses shall show the contractor's current registration number. Advertising by airwave transmission shall not be subject to this subsection if the person selling the advertisement obtains the contractor's current registration number from the contractor.

((~~(3)~~)) (b) An advertiser shall not accept advertisements for which the contractor registration number is required under (a) of this subsection without verification of the contractor registration number. Failure to verify the contractor registration number results in liability to the advertiser in the same amount as is imposed on a surety under RCW 18.27.040.

(4) No contractor shall advertise that he or she is bonded and insured because of the bond required to be filed and sufficiency of insurance as provided in this chapter.

((~~(4)~~)) (5) A contractor shall not falsify a registration number and use it in connection with any solicitation or identification as a contractor. All individual contractors and all partners, associates, agents, salesmen, solicitors, officers, and employees of contractors shall use their true names and addresses at all times while engaged in the business or capacity of a contractor or activities related thereto.

((~~(5)~~)) (6) Any person who is found to be in violation of this section by the director at a hearing held in accordance with the administrative procedure act, chapter 34.05 RCW, shall be required to pay a penalty of not more than five thousand dollars as determined by the director. However, the penalty under this section shall not apply to a violation determined to be an inadvertent error.

Sec. 4. RCW 18.27.102 and 1987 c 362 s 4 are each amended to read as follows:

When determining a violation of RCW 18.27.100, the director and administrative law judge shall hold responsible the person who purchased the advertising and the advertiser who failed to verify the contractor registration number.

Sec. 5. RCW 18.27.110 and 1986 c 197 s 14 are each amended to read as follows:

(1) No city, town or county shall issue a construction building permit for work which is to be done by any contractor required to be registered under this chapter ((~~77, Laws of 1963 and chapter 18.27 RCW~~)) without verification that such contractor is currently registered as required by law. When such verification is made, nothing contained in this section is intended to be, nor shall be construed to create, or form the basis for any liability under this chapter on the part of any city, town or county, or its officers, employees or agents. However, failure to verify the contractor registration number results in liability to the city, town, or county in the same amount as is imposed on a surety under RCW 18.27.040.

(2) At the time of issuing the building permit, all cities, towns, or counties are responsible for:

(a) Printing the contractor registration number on the building permit; and

(b) Providing a written notice to the building permit applicant informing them of contractor registration laws and the potential risk and monetary liability to the homeowner for using an unregistered contractor.

(3) If a building permit is obtained by an applicant or contractor who falsifies information to obtain an exemption provided under RCW 18.27.090, the building permit shall be forfeited.