H-1514 _______________________________________________
SUBSTITUTE HOUSE BILL NO. 1503
_______________________________________________
C 058 L 89
State of Washington 51st Legislature 1989 Regular Session
By House Committee on Transportation (originally sponsored by Representatives Ebersole, Schmidt, Walk, Nelson, Jones, Zellinsky, R. Fisher, Beck, S. Wilson, Wang, Heavey, Brough, Schoon, Tate and P. King; by request of Department of Transportation)
Read first time 2/10/89.
AN ACT Relating to bonding requirements for construction, alteration, repair, or improvement of state ferries; amending RCW 39.08.030; adding a new section to chapter 39.08 RCW; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. Section 3, chapter 207, Laws of 1909 as last amended by section 4, chapter 166, Laws of 1977 ex. sess. and RCW 39.08.030 are each amended to read as follows:
The bond
mentioned in RCW 39.08.010 shall be in an amount equal to the full contract
price agreed to be paid for such work or improvement, and shall be to the state
of Washington, except as otherwise provided in ((RCW 39.08.090)) section
2 of this act, and except in cases of cities and towns, in which cases such
municipalities may by general ordinance fix and determine the amount of such
bond and to whom such bond shall run: PROVIDED, The same shall not be for a
less amount than twenty-five percent of the contract price of any such
improvement, and may designate that the same shall be payable to such city, and
not to the state of Washington, and all such persons mentioned in RCW 39.08.010
shall have a right of action in his, her, or their own name or names on such
bond for work done by such laborers or mechanics, and for materials furnished
or provisions and goods supplied and furnished in the prosecution of such work,
or the making of such improvements: PROVIDED, That such persons shall not have
any right of action on such bond for any sum whatever, unless within thirty
days from and after the completion of the contract with an acceptance of the
work by the affirmative action of the board, council, commission, trustees,
officer, or body acting for the state, county or municipality, or other public
body, city, town or district, the laborer, mechanic or subcontractor, or
materialman, or person claiming to have supplied materials, provisions or goods
for the prosecution of such work, or the making of such improvement, shall
present to and file with such board, council, commission, trustees or body
acting for the state, county or municipality, or other public body, city, town
or district, a notice in writing in substance as follows:
To (here insert the name of the state, county or municipality or other public body, city, town or district):
Notice is hereby given that the undersigned (here insert the name of the laborer, mechanic or subcontractor, or materialman, or person claiming to have furnished labor, materials or provisions for or upon such contract or work) has a claim in the sum of .......... dollars (here insert the amount) against the bond taken from .......... (here insert the name of the principal and surety or sureties upon such bond) for the work of .......... (here insert a brief mention or description of the work concerning which said bond was taken).
(here to be signed) .........................
Such notice shall be signed by the person or corporation making the claim or giving the notice, and said notice, after being presented and filed, shall be a public record open to inspection by any person, and in any suit or action brought against such surety or sureties by any such person or corporation to recover for any of the items hereinbefore specified, the claimant shall be entitled to recover in addition to all other costs, attorney's fees in such sum as the court shall adjudge reasonable: PROVIDED, HOWEVER, That no attorney's fees shall be allowed in any suit or action brought or instituted before the expiration of thirty days following the date of filing of the notice hereinbefore mentioned: PROVIDED FURTHER, That any city may avail itself of the provisions of RCW 39.08.010 through 39.08.030, notwithstanding any charter provisions in conflict herewith: AND PROVIDED FURTHER, That any city or town may impose any other or further conditions and obligations in such bond as may be deemed necessary for its proper protection in the fulfillment of the terms of the contract secured thereby, and not in conflict herewith.
NEW SECTION. Sec. 2. A new section is added to chapter 39.08 RCW to read as follows:
On contracts for construction, maintenance, or repair of a marine vessel, the department of transportation may permit, subject to specified format and conditions, the substitution of one or more of the following alternate forms of security in lieu of all or part of the bond: Certified check, replacement bond, cashier's check, treasury bills, an irrevocable bank letter of credit, assignment of a savings account, or other liquid assets specifically approved by the secretary of transportation. The secretary of transportation shall predetermine and include in the special provisions of the bid package the amount of this alternative form of security or bond, or a combination of the two, on a case-by-case basis, in an amount adequate to protect one hundred percent of the state's exposure to loss. Assets used as an alternative form of security shall not be used to secure the bond. By October 1, 1989, the department shall develop and adopt rules under chapter 34.05 RCW that establish the procedures for determining the state's exposure to loss on contracts for construction, maintenance, or repair of a marine vessel.
NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.