SENATE BILL REPORT

ESSB 5024

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

Senate Hearing Date(s):February 5, 1987; February 20, 1987

Majority Report:  That Substitute Senate Bill No. 5024 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Anderson, Vognild, Williams, Wojahn.

Senate Staff:Jean Meyn (786-7472)

                  April 9, 1987

House Committe on Commerce & Labor

AS PASSED SENATE, MARCH 5, 1987

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 their registration number in the telephone directory, on advertisements and all materials prepared by the contractor 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 of displaying the contractor registration number in advertising is similar to the requirement of displaying an auctioneer's license number in advertising.

SUMMARY:

The contractor registration number shall be displayed in all advertising of the contractor business.  In addition to the alphabetized listing in the telephone book, other directories must also include the registration number.

Applicants with unsatisfied final judgments or complaints shall be denied registration.  The registration number shall also be displayed on on-premise signs and signs on motor vehicles.  A contractor may not falsify a registration number and use it in an advertisement.

The maximum fine for a violation of the advertising provisions is increased from $1,000 to $5,000.

Fiscal Note:      none requested

Senate Committee - Testified: Senator Talmadge, Dick Bever, Washington State Building and Construction Trades Council; Mark Triplett, Homebuilders Association of Washington; Artie Roberson, Department of Labor and Industries

HOUSE AMENDMENTS:

Penalties for violating the requirement of displaying the registration number in all advertising shall not be assessed for inadvertent errors.

The surety bond company shall be named as party to a suit involving a bond it issued.