SENATE BILL REPORT

SSB 6357

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

Senate Hearing Date(s):February 2, 1988; February 4, 1988

Majority Report:  That Substitute Senate Bill No. 6357 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Charles A. Woods (786-7911)

                  March 4, 1988

AS PASSED SENATE, FEBRUARY 15, 1988

BACKGROUND:

RCW 18.27.040 deals with 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.

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.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Artie Roberson, Department of L&I (for); Bob Dilger, Washington State Building Trades Council (for); Duke Schaub, AGC

HOUSE AMENDMENTS:

There are no substantive changes.  The amendments clarify and correct language.