BILL REQ. #:  S-1353.2 

Read first time 02/06/2007.   Referred to Committee on Labor, Commerce, Research & Development.

     AN ACT Relating to studying residential construction; creating new sections; and providing an expiration date.

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

NEW SECTION.  Sec. 1   The legislature finds that homeowners have experienced problems in residential construction, resulting in great economic loss, only to discover that there are limited remedies available at law, if any. However, it is unclear if construction defects are an industry-wide problem or limited to a small segment of builders and other construction professionals. The scope and nature of the problem must be determined in order for the legislature to develop a comprehensive solution that may necessitate several pieces of legislation covering a wide range of issues from contractor licensing, permit processes and sign offs, requirements of the state building code and of building officials, as well as homeowner warranties.

NEW SECTION.  Sec. 2   (1) A committee on residential construction is created. The committee consists of the following members who have experience and expertise in residential construction law or residential construction:
     (a) One member from each caucus of the senate, appointed by the president of the senate;
     (b) One member from each caucus of the house of representatives, appointed by the speaker of the house of representatives;
     (c) The director of the department of labor and industries or the director's designee;
     (d) The president of the state building code council or the president's designee;
     (e) The following four members, jointly appointed by the speaker of the house of representatives and the president of the senate:
     (i) Two builders;
     (ii) A residential construction defect plaintiff's attorney; and
     (iii) A residential construction defect defense attorney.
     (2) The committee shall choose two cochairs from among its membership.
     (3) The committee shall:
     (a) Examine the issue of contractor licensing including, but not limited to, whether contractors should be licensed and what education and training requirements should exist;
     (b) Evaluate whether current surety bond requirements are sufficient or if increased or additional bonding requirements are necessary to protect both construction professionals and homebuyers;
     (c) Examine the state building code and determine whether the code should be strengthened to protect homeowners;
     (d) Determine whether there should be increased standards for city and county building inspectors;
     (e) Study current remedies at law for residential construction defects; and
     (f) Evaluate what impact a statutory warranty for new home construction would have on the industry and homebuyers including, but not limited to, any concerns regarding increased insurance costs for construction professionals. Within this evaluation, the committee shall examine other states that have implemented statutory home warranties including, at a minimum, Maryland and California.
     (4) By December 31, 2007, the committee shall deliver to the consumer protection and housing committee of the senate and the judiciary committee of the house of representatives a report of the findings and conclusions of the committee and any proposed legislation.

NEW SECTION.  Sec. 3   This act expires January 31, 2008.