Z-511                 _______________________________________________

                                                   HOUSE BILL NO. 1503

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

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 1/27/89 and referred to Committee on Transportation.

AN ACT Relating to bonding requirements for construction, alteration, repair, or improvement of state ferries; and amending RCW 39.08.010.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 1, chapter 207, Laws of 1909 as last amended by section 5, chapter 98, Laws of 1982 and RCW 39.08.010 are each amended to read as follows:

          Whenever any board, council, commission, trustees, or body acting for the state or any county or municipality or any public body ((shall)) contracts with any person or corporation to do any work for the state, county, or municipality, or other public body, city, town, or district, such board, council, commission, trustees, or body shall require the person or persons with whom such contract is made to make, execute, and deliver to such board, council, commission, trustees, or body a good and sufficient bond, with two or more sureties, or with a surety company as surety, conditioned that such person or persons shall faithfully perform all the provisions of such contract and pay all laborers, mechanics, and subcontractors and materialmen((, and)).  All persons who supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work, which bond in cases of cities and towns shall be filed with the clerk or comptroller thereof, and any person or persons performing such services or furnishing material to any subcontractor ((shall)) have the same right under the provisions of such bond as if such work, services, or material was furnished to the original contractor((:  PROVIDED, HOWEVER, That the provisions of)). RCW 39.08.010 through 39.08.030 shall not apply to any money loaned or advanced to any such contractor, subcontractor, or other person in the performance of any such work((:  PROVIDED FURTHER, That)).  On contracts of twenty-five thousand dollars or less, at the option of the contractor the respective public entity may, in lieu of the bond, retain fifty percent of the contract amount for a period of thirty days after the date of final acceptance, or until receipt of all necessary releases from the  department of revenue and the department of labor and industries and settlement of any liens filed under chapter 60.28 RCW, whichever is later.  On contracts for construction, maintenance, or repair of any marine vessel, the respective public entity may  permit, subject to specified format and conditions, the substitution of one or more of the following alternate forms of security in lieu 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 on a case-by-case basis, in an amount adequate to protect one hundred percent of the state's exposure to loss.