SENATE BILL REPORT

SB 6357

BYSenators 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)

                  February 5, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 4, 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:

This bill clarifies that a party with a claim against a contractor in reference to wages due, costs of materials provided, 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.  The bill further adds that a summons must be filed with any complaint filed against a contractor's bond or deposit.

EFFECT OF PROPOSED SUBSTITUTE:

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.  Other technical amendments are made.

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