Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Labor & Workforce Development Committee

HB 1055

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Changes the appeal periods for certain contractor violations from separate appeal periods for the infraction and assessment of penalty following default to one 20 day appeal time period.

Background:

The Contractor Registration Act (Act) requires general and specialty contractors to register with the Department of Labor and Industries (Department). In addition to registering, contractors must follow requirements relating to advertising, bonds and insurance, and other matters.

The Department may issue a notice of infraction to an entity for failure to register and to registered contractors for specified violations. Monetary penalties are set forth. A party has 20 days to contest a notice of infraction by filing a notice of appeal with the Department. Appeals are heard by an administrative law judge (ALJ) with the Office of Administrative Hearings. Penalties must be generally be paid within 30 days of a final determination by the ALJ.

If an unregistered contractor defaults in a payment of a penalty, the Director of the Department may issue a notice of assessment. An unregistered contractor has 30 days to contest the penalty by requesting reconsideration or filing an appeal in court. Procedures are set forth for filing a warrant in the amount of the assessment in Superior Court and for enforcing the warrant in the same manner as a judgment.

Summary of Bill:

The 30 day time period for an unregistered contractor to appeal a notice of assessment by requesting reconsideration or filing an appeal in court is eliminated. Instead, the notice of infraction serves as the notice of assessment for both unregistered and registered contractor violations. If a contractor, individual, or business does not appeal a notice of infraction within the 20 day appeal time period, the notice becomes final.

The procedures for filing and enforcing a warrant in court are made applicable to all penalties, not limited to penalties for unregistered contractors.