Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Labor & Workforce Development Committee

HB 2113

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

Raises the dollar amount for work to be exempt from the requirement to register as a contractor from $500 to $1,200 and modifies advertising limits for work to be exempt.

Background:

General and specialty contractors must register with the Department of Labor and Industries (Department). Registration requires payment of a fee and filing of a bond and proof of insurance. Certain work is exempt from registration requirements. For example, a person working on his or her residence (whether or not owned) is exempt as long as the work is not for the purpose of selling, demolishing, or leasing the property.

In addition, any work on a project by one or more contracts in which the aggregate contract price is less than $500 is exempt, as such work is "casual, minor, or inconsequential." This exemption does not apply where the work is part of a larger operation, or the work is divided to evade the contractor registration requirements. The exemption also does not apply to a person who advertises or puts out any sign or card or other device which might indicate to the public that he or she is a contractor or is qualified to engage in the business of a contractor.

Summary of Bill:

The dollar amount for work to be considered casual, minor, or inconsequential and exempt from contactor registration requirements is raised to $1,200.

The limit on advertising for the exemption to apply is modified. The person must not "state" that he or she is a contractor.