SENATE BILL REPORT

ESHB 1342

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Sanders, Patrick, Wang and May)

Adding requirements for contractor's notice to customers.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 18, 1988; February 23, 1988

Majority Report:  Do pass as amended.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, Deccio, McMullen, Saling, Smitherman, Warnke.

Minority Report:  Do not pass as amended.

      Signed by Senator West

Senate Staff:David Cheal (786-7576)

                  February 24, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 23, 1988

BACKGROUND:

Since 1987, construction contractors have been required to provide their customers with information about their contractor registration bond.  The notice requirement does not include information about the expiration date of the contractor's registration.

SUMMARY:

The notice provided to customers of construction contractors must include the expiration date of the contractor's registration.  If the registration expires, or is revoked or suspended before completion of the contract with the customer, the contractor must also notify the customer.  A contractor is not prohibited from voluntarily complying with these provisions prior to the act's effective date.

EFFECT OF PROPOSED SENATE AMENDMENT:

The threshold of affected contracts is raised from one to five thousand dollars.  Contractors may maintain ordinary collection lawsuits but not lien claims if they fail to make disclosure.  Erroneous RCW citations are corrected.  Application is more clearly limited to residential construction.  Homeowners are given a defense against any lien claim if they have paid the general contractor, and a limited defense if they have made partial payment.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:The bill takes effect July 1, 1989.

Senate Committee - Testified: Representative Sanders (for); Duke Schaub, Associated General contractors; Bob Dilger, Washington State Building Trades Council (for); Enid Layes, Home Builders (against)