2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 2, beginning on line 33, after "principals," strike all material through "have" on line 34 and insert "and the employee with the greatest executive,"
On page 2, line 28, after "section" strike "6" and insert "4"
2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 3, line 1, after "the" strike "six" and insert "three"
On page 3, beginning on line 11, after "principals," strike all material through "have" on line 12 and insert "and the employee with the greatest executive,"
On page 3, at the beginning of line 16, after "the" strike "six" and insert "three"
2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 4, line 5, after "homeowner." insert "Nothing in this section requires a contractor to create or maintain a separate account for each homeowner."
2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 5, line 27, after "against" insert "the prime residential contractor or"
2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 6, line 7, after "against" insert "the residential subcontractor or"
2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 7, line 4, after "the" strike "six" and insert "three"
2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 8, line 8, after "Within" strike "fourteen" and insert "thirty"
On page 8, line 10, after "within" strike "forty-two" and insert "sixty"
2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 10, line 6, after "perjury," insert "(a) a notarized statement stating that the homeowner paid the contractor for all amounts the contractor informed the homeowner were owed to the lien claimant, and that the homeowner did not receive written notice from the contractor, as provided under section 2(3)(b)(ii) of this act, indicating the contractor did not intend to fully pay the lien claimant; and (b)"
On page 10, line 17, after "filed." insert "The effective date of the suspension shall be the date that the contractor completes work on all construction projects in progress on the date of the notice from the department as provided for under subsection (5) of this section."
2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 21, line 16, after "other" strike "acknowledgement" and
insert "((acknowledgement)) acknowledgment"
2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 27, line 4, after "of the" strike "six" and insert "three"
On page 27, beginning on line 9, after "principal," strike all material through "physical" on line 10 and insert "and the employee with the greatest executive, physical,"
2SSB 5773 -
By Senator Fraser
ADOPTED 03/15/2005
On page 32, beginning on line 8, after "principals," strike all material through "physical" on line 9 and insert "and the employee with the greatest executive, physical,"
EFFECT: (1) Clarifies that the employee with the greatest control
over the contractor's accounting or disbursement of funds, and not
certain other employees involved in the purchase and accounting
activities of the contractor, are among those personally liable for a
contractor's failure to comply with its fiduciary duty, and must be
identified to L&I;
(2) Reduces from six to three the number of the most highly
compensated members of the contractor's business who are among those
personally liable for a contractor's failure to comply with its
fiduciary duty, and that must be identified to L&I;
(3) Clarifies that a residential contractor or subcontractor is not
required to maintain a separate account for each homeowner;
(4) Clarifies that a contractor becomes personally liable when a
lien is recorded against either the nonpaying contractor or the
homeowner;
(5) Allows contractors to complete construction projects that are
in progress at the time that the contractor violates its fiduciary
duty;
(6) Provides more time for suppliers to work with nonpaying
contractors before notifying homeowners, which begins a process that
can result in a contractor being required to post additional security
with L&I; and
(7) Clarifies the content of the notice the homeowner may file with
L&I in order to require a contractor to post additional security.