FINAL BILL REPORT

SSB 5024

                                  C 362 L 87

BYSenate Committee on Commerce & Labor (originally sponsored by Senators Talmadge, Warnke, Smitherman and Moore)

Requiring advertising by contractors to carry the contractor's registration number.

Senate Committee on Commerce & Labor

House Committe on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Current law requires building contractors to register with the Department of Labor and Industries.  A surety bond and liability insurance are prerequisites to registration.  Contractors must display registration numbers in telephone directories, on advertisements and all materials prepared to solicit business.  Any person having a claim against the contractor for damages arising out of the contracting project may bring a lawsuit against the contractor's surety bond.

The requirement for displaying the contractor registration number in advertising is similar to the requirement for auctioneers.

SUMMARY:

The contractor registration number shall be included in all advertising, as follows:  (1) Alphabetized listings in the telephone book; (2) other directories; (3) on-premise signs; (4) signs on motor vehicles; and (5) radio and TV.

Penalties for violating the requirements shall not be assessed for inadvertent errors.  A contractor may not falsify a registration number and use it in an advertisement.  Applicants with unsatisfied final judgments or complaints shall be denied registration.  The maximum fine for a violation is increased from $1,000 to $5,000.  The surety bond company shall be named as party to a suit involving a bond it issued.

VOTES ON FINAL PASSAGE:

      Senate    34     2

      House 98   0 (House amended)

      Senate    38     5(Senate concurred)

      Senate            (Senate refused to concur on reconsideration)

      House             (House refused to recede)

Free Conference Committee

      House 96   0

      Senate    40     8

EFFECTIVE:July 26, 1987