FINAL BILL REPORT

SSB 6357

                                  C 139 L 88

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Lee and Smitherman; by request of Department of Labor and Industries)

Clarifying provisions relating to contractors' bonds and securities.

Senate Committee on Economic Development & Labor

House Committe on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Contractor bond requirements for obtaining and maintaining certificates of registration and the procedures through which a person, firm or corporation may file a claim against the contractor's bond are established by law.

SUMMARY:

A party with a claim against a contractor for wages, costs of materials, taxes and contributions due, or judgments against the contractor for negligent or improper work or breach of contract, may bring suit against a cash deposit as well as any bond.  A summons must be filed with any complaint filed against a contractor's bond or deposit.  The issue of cumulation of bonds is addressed in an added sentence which clarifies that the liability of surety shall not cumulate where a bond is extended in any manner.

VOTES ON FINAL PASSAGE:

      Senate    49     0

      House 97   0 (House amended)

      Senate    47     0 (Senate concurred)

EFFECTIVE:June 9, 1988