Implements recommendations of the joint legislative task force on the underground economy.

Authorizes the director of the department of labor and industries to reduce fines for a contractor who fails to register under certain circumstances.

Authorizes the department of labor and industries to approve or conduct contractor training classes and charge a fee for the classes which must be deposited in the contractor registration account.

Increases the contract price under which taxes due and owing from a contractor are a lien prior to all other liens.

Creates the contractor registration account.

Prescribes penalties for contractors who engage in certain unregistered contract activity.