SENATE BILL REPORT

SB 5024

BYSenators Talmadge, Warnke, Smitherman and Moore

Requiring advertising by contractors to show 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)

                  February 23, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, FEBRUARY 20, 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 on all printed matter, such as letterhead and advertisements.  The advertising requirement is limited to that prepared by the contractor.

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.

EFFECT OF PROPOSED SUBSTITUTE:

Applicants with unsatisfied final judgments or complaints shall be denied registration.  Registration number shall also be displayed on on-premise signs and signs on motor vehicles.  Advertisers have a responsibility to refuse publication of an advertisement without a registration number.  A contractor may not falsify a registration and use it in an advertisement.

When determination of a violation is made, the responsibility for omission of the registration number may be other parties' instead of the contractor's.  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