HOUSE BILL ANALYSIS
HB 1904
Brief Description: Creating new funds under the control of the Department of Labor and Industries.
Sponsors: Representatives Cairnes, Linville, Conway, Clements, Hatfield and Honeyford
Hearing: February 24, 1997
BACKGROUND:
Construction contractors, whether general contractors or specialty contractors, must register with the Department of Labor and Industries. To apply for registration, an applicant must pay a fee and file an application with an appropriate surety bond and other financial requirements. A contractor who fails to register or who violates other provisions of the statute is subject to penalties. Fees and penalties are paid to the state general fund.
The department also regulates certain aspects of manufacturing mobile homes, commercial coaches, recreational vehicles, park trailers, and factory assembled housing and commercial structures. Fees are collected to cover inspection costs and administration and enforcement of the statutory requirements. The fees are paid to the state treasury.
SUMMARY OF BILL:
Contractor enforcement account
The contractor enforcement account is created. All receipts from penalties, contractor registration fees, and inspection fees imposed under the contractor registration statute will be deposited in the account.
Expenditures from the account must be authorized by the director of the Department of Labor and Industries and may be used only for registration, enforcement of contractor registration, and consumer education activities of the department concerning contractors. The account is subject to allotment procedures under rules of the Office of Financial Management, but no appropriation is required for expenditures.
No less than 20 percent of annual expenditures must be used for consumer education, including disclosure by public service announcements of persons performing contracting work without being registered as contractors.