| SB 6575-S2 - DIGEST |
| (DIGEST AS PASSED LEGISLATURE) |
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. |
Directs the department of labor and industries to approve or conduct contractor training classes. |
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. |
| VETO MESSAGE ON 2SSB 6575 |
| April 1, 2010 |
| To the Honorable President and Members, |
| The Senate of the State of Washington |
| Ladies and Gentlemen: |
| I am returning herewith, without my approval, Second Substitute Senate Bill 6575 entitled: |
"AN ACT Relating to recommendations of the joint legislative task force on the underground economy." |
| Second Substitute Senate Bill 6575 is designed to limit the underground construction economy by requiring contractors who fail to register with the Department of Labor and Industries to enroll in a training class in addition to registering with the department. First-time offenders who do so would be eligible for reduced fines. Narrowing the underground economy is a laudable goal, and one that should be pursued with stronger legislation. |
| Despite its benefits, this bill has one significant negative outcome that cannot be ignored. By creating a dedicated account for revenues from contractor registrations, renewals course fees, and penalties, this bill would reduce net revenues to the state's general fund by more than $2 million annually beginning in Fiscal Year 2012. In these difficult economic times, that reduction would have negative impacts greater than the benefits this legislation would provide. I would welcome similar legislation without the creation of a dedicated account. In addition, I am directing the Departments of Revenue, Labor and Industries, and Employment Security to continue interagency coordination of efforts with stakeholders to identify and sanction unregistered contractors. |
| For these reasons I have vetoed Second Substitute Senate Bill 6575 in its entirety. |
| Respectfully submitted, |
| Christine Gregoire |
| Governor |