AN ACT Relating to bonding requirements; and amending RCW 14.20.070, 15.80.480, 18.16.140, 19.91.140, 31.08.030, 42.44.020, 46.55.030, 46.70.070, 46.70.075, 46.80.070, 48.15.070, 48.17.250, and 76.40.030.

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

Sec. 1. Section 7, chapter 150, Laws of 1955 as last amended by section 15, chapter 7, Laws of 1984 and RCW 14.20.070 are each amended to read as follows:

(1) Before issuing an aircraft dealer license, the secretary shall require the applicant to file with the secretary a surety bond in the amount of twenty-five thousand dollars running to the state, and executed by a surety company authorized to do business in the state. The bond shall be approved by the attorney general as to form and conditioned that the dealer shall conduct his or her business in conformity with the provisions of this chapter, RCW 47.68.250, and 82.48.100. Any person who has suffered any loss or damage by reason of any act by a dealer which constitutes ground for refusal, suspension, or revocation of license under RCW 14.20.090 has a right of action against the aircraft dealer and the surety upon the bond or the account established for security under this section.

(2) In lieu of the surety bond, an aircraft dealer may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the dealer and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

(3) The cash deposit shall be returned to the licensee one year after the license has expired or one year after a surety bond has been filed for the same license if no legal action has been initiated against the licensee or the cash deposit at the expiration of the year.

(4) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the aircraft dealer and the cash account shall notify the dealer and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

(5) Successive recoveries against the bond shall be permitted, but the aggregate liability of the surety to all persons shall in no event exceed the amount of the bond. If the dealer fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

Sec. 2. Section 19, chapter 100, Laws of 1969 ex. sess. and RCW 15.80.480 are each amended to read as follows:

(1) Any applicant for a weighmaster's license shall execute and deliver to the director either evidence of an account established for security under this section or a surety bond executed by the applicant as principal and by a surety company qualified and authorized to do business in this state as surety. Such bond shall be in the sum of one thousand dollars. The bond shall be of standard form and approved by the director as to terms and conditions. Said bond shall be conditioned that the principal will not commit any fraudulent act and will comply with the provisions of this chapter and the rules adopted hereunder. Said bond shall be to the state for the benefit of every person availing himself or herself of the services and certifications issued by a weighmaster, or weigher subject to his or her control. The total and aggregate liability of the surety for all claims upon the bond shall be limited to the face value of such bond. Every bond filed with and approved by the director shall, without the necessity of periodic renewal, remain in force and effect until such time as the license of the licensee is revoked for cause or otherwise canceled. All such sureties on a bond, as provided herein, shall only be released and discharged from all liability to the state accruing on such bond upon compliance with the provisions of RCW 19.72.110, as enacted or hereafter amended, concerning notice and proof of service, but this shall not operate to relieve, release, or discharge the surety from any liability already accrued or which shall accrue (due and to become due hereunder) before the expiration period provided for in RCW 19.72.110, as enacted or hereafter amended, concerning notice and proof of service, and unless the principal shall before the expiration of such period, file a new bond, the director shall forthwith cancel the principal's license.

(2) In lieu of the surety bond, a weighmaster may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the weighmaster and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

(4) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the weighmaster and the cash account shall notify the weighmaster and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

(5) If the weighmaster fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

Sec. 3. Section 6, chapter 208, Laws of 1984 as amended by section 1, chapter 445, Laws of 1987 and RCW 18.16.140 are each amended to read as follows:

Any person wishing to operate a school shall, before opening such a school, file with the director a license application containing the following information:

(1) The names and addresses of all owners and instructors;

(2) Proof that the school's curriculum satisfies the training guidelines established by the director;

(3) The catalogs, brochures, and contract forms the school proposes to use;

(4) A sample of the school's enrollment contract, and cancellation and refund policies;

(5) A description of the school's physical equipment and facilities;

(6) (a) A surety bond in an amount not less than one thousand dollars, or five percent of the annual gross tuition collected by the school, whichever is greater. The bond shall not exceed twenty-five thousand dollars and shall run to the state of Washington for the protection of unearned prepaid student tuition. The school shall attest to its gross tuition at least annually on forms provided by the department. When a new school license is being applied for, the applicant will estimate its annual gross tuition to establish a bond amount. This subsection shall not apply to community colleges and vocational technical schools.

(b) In lieu of the surety bond, a person wishing to operate a school may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the school operator and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

The cash deposit shall be returned to the licensee one year after the license has expired or one year after a surety bond has been filed for the same license if no legal action has been initiated against the licensee or the cash deposit at the expiration of the year.

(7) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the school operator and the cash account shall notify the school operator and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment. If the person wishing to operate a school fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

Upon proper application and payment of fees, the director shall issue a license to operate a school.

Sec. 4. Section 4, chapter 2, Laws of 1983 and RCW 19.91.140 are each amended to read as follows:

(1) A fee of six hundred fifty dollars shall accompany each wholesaler's license application or license renewal application. If a wholesaler sells or intends to sell cigarettes at two or more places of business, whether established or temporary, a separate license with a license fee of one hundred fifteen dollars shall be required for each additional place of business. Each license, or certificate thereof, and such other evidence of license as the department of revenue shall require, shall be exhibited in the place of business for which it is issued and in such manner as is prescribed for the display of a master license.

(2) The department of revenue shall require each licensed wholesaler to file with him or her a bond in an amount not less than one thousand dollars to guarantee the proper performance of his or her duties and the discharge of his or her liabilities under this chapter. The bond shall be executed by such licensed wholesaler as principal, and by a corporation approved by the department of revenue and authorized to engage in business as a surety company in this state, as surety. The bond shall run concurrently with the wholesaler's license.

(3) In lieu of the surety bond, a wholesaler may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the wholesaler and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

(4) The cash deposit shall be returned to the licensee one year after the license has expired or one year after a surety bond has been filed for the same license if no legal action has been initiated against the licensee or the cash deposit at the expiration of the year.

(5) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the wholesaler and the cash account shall notify the wholesaler and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

(6) If the wholesaler fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

Sec. 5. Section 3, chapter 208, Laws of 1941 as last amended by section 5, chapter 18, Laws of 1979 and RCW 31.08.030 are each amended to read as follows:

Application for such license shall be in writing, under oath, and in the form, if any, prescribed by the supervisor, and shall contain the name and the address (both of the residence and place of business) of the applicant, and if the applicant is a copartnership or association, of every member thereof, and if a corporation, of each officer and director thereof; also the county and municipality with street and number, if any, where the business is to be conducted and such further relevant information as the supervisor may require. Such applicant at the time of making such application shall pay to the supervisor the sum of two hundred and fifty dollars as a fee for investigating the application and the additional sum of one hundred dollars as an annual license fee for a period terminating on the last day of the current calendar year.

Every applicant shall also prove, in form satisfactory to the supervisor, that he or she or it has available for the operation of such business at the location specified in the application, liquid assets of at least fifty thousand dollars.

At the time of filing of the application, the applicant shall also file with the supervisor a bond to be approved by the supervisor in the penal sum of two thousand five hundred dollars, executed by the applicant as obligor and by a surety company authorized to do a surety business in this state as surety, whose liability as such surety shall not exceed the said sum in the aggregate. Such bond shall run to the state of Washington as obligee for the use and benefit of the state and of any person or persons who may have cause of action against the obligor of said bond under the provisions of this chapter. Such bond shall be conditioned that said obligor as licensee hereunder will faithfully conform to and abide by the provisions of this chapter and of all general rules and regulations lawfully made by the supervisor hereunder and will pay to the state and any such person or persons any and all moneys that may become due and owing to the state from such obligor under and by virtue of the provisions of this chapter.

In lieu of the surety bond, an applicant may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the applicant and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the applicant and the cash account shall notify the applicant and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

If the applicant fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

Sec. 6. Section 2, chapter 156, Laws of 1985 and RCW 42.44.020 are each amended to read as follows:

(1) The director may, upon application, appoint to be a notary public in this state, any person who:

(a) Is at least eighteen years of age;

(b) Resides in Washington state, or resides in an adjoining state and is regularly employed in Washington state or carries on business in Washington state; and

(2) Each application shall be accompanied by endorsements by at least three residents of this state of the age of eighteen or more, who are not relatives of the applicant, in the following form:

I, !sc ,1@be!sc ,3(name of endorser)!sc ,3@ee,!sc ,1 being a person eligible to vote in the state of Washington, believe the applicant for a notary public appointment,!sc ,1 @be!sc ,3(applicant's name)!sc ,3@ee,!sc ,1 who is not related to me, to be a person of integrity and good moral character and capable of performing notarial acts.

@lb!ix!sc_,56

!ix(Endorser's signature and address, with date of signing)

@la (3) Every application for appointment as a notary public shall be accompanied by a fee established by the director by rule.

(4) Every applicant for appointment as a notary public shall submit an application in a form prescribed by the director, and shall sign the following declaration in the presence of a notary public of this state:

!tp1,1 !trDeclaration of Applicant

I, !sc ,1@be!sc ,3 (name of applicant)!sc ,3@ee,!sc ,1solemnly swear or affirm under penalty of perjury that the personal information I have provided in this application is true, complete, and correct; that I carefully have read the materials provided with the application describing the duties of a notary public in and for the state of Washington; and, that I will perform, to the best of my ability, all notarial acts in accordance with the law.

@lb!ix!sc_,24

!ix(Signature of applicant)

@la !ixState of Washington

!ixCounty of !sc_,10

On this day !sc_,20 appeared before me, signed this Declaration of Application, and swore (or affirmed) that (he/she) understood its contents and that its contents are truthful.

Dated: !sc_,10

!tp1,1 @lb!tl!w_

!tlSignature of notary public

@la !ix(Seal or stamp)

!tlResiding at !w_

(5) (a) Every applicant shall submit to the director proof from a surety company that a ten thousand dollar surety bond, insuring the proper performance of notarial acts by the applicant, will be effective for a term commencing on the date the person is appointed, and expiring on the date the applicant's notary appointment expires. The surety for the bond shall be a company qualified to write surety bonds in this state.

(b) In lieu of the surety bond, a notary public may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the notary public and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

The cash deposit shall be returned to the notary public one year after the appointment has expired or one year after a surety bond has been filed for the same appointment if no legal action has been initiated against the notary public or the cash deposit at the expiration of the year.

(6) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the notary public and the cash account shall notify the notary public and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment. If the notary public fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the appointment shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

Sec. 7. Section 3, chapter 377, Laws of 1985 as amended by section 2, chapter 311, Laws of 1987 and RCW 46.55.030 are each amended to read as follows:

(1) Application for licensing as a registered tow truck operator shall be made on forms furnished by the department, shall be accompanied by an inspection certification from the Washington state patrol, shall be signed by the applicant or his or her agent, and shall include the following information:

(a) The name and address of the person, firm, partnership, association, or corporation under whose name the business is to be conducted;

(b) The names and addresses of all persons having an interest in the business, or if the owner is a corporation, the names and addresses of the officers of the corporation;

(d) Proof of minimum insurance required by subsection (3) of this section;

(e) Any other information the department may require; and

(f) A certificate of approval from the chief of police if the applicant's principal place of business is located in a city or town having a population over five thousand persons or, in all other instances, from a member of the Washington state patrol, certifying that:

(i) The applicant has an established place of business at the address shown on the application;

(ii) The place of business has an office area that is accessible to the public without entering the storage area; and

(iii) The place of business has adequate and secure storage facilities, as defined in this chapter and the rules of the department, where vehicles and their contents can be properly stored and protected.

(2) (a) Before issuing a registration certificate to an applicant the department shall require the applicant to file with the department a surety bond in the amount of five thousand dollars running to the state and executed by a surety company authorized to do business in this state. The bond shall be approved as to form by the attorney general and conditioned that the operator shall conduct his or her business in conformity with the provisions of this chapter pertaining to abandoned or unauthorized vehicles, and to compensate any person, company, or the state for failure to comply with this chapter or the rules adopted hereunder, or for fraud, negligence, or misrepresentation in the handling of these vehicles. Any person injured by the tow truck operator's failure to fully perform duties imposed by this chapter and the rules adopted hereunder, or an ordinance or resolution adopted by a city, town, or county is entitled to recover actual damages, including reasonable attorney's fees against the surety and the tow truck operator.

(b) In lieu of the surety bond, a tow truck operator may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the operator and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the operator and the cash account shall notify the operator and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

(c) Successive recoveries against the bond shall be permitted, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond.

(d) As a condition of authority to do business, the operator shall keep the bond or account established for security under this section in full force and effect. Failure to maintain the penalty value of the bond or the account established for security under this section, or cancellation of the bond by the surety automatically cancels the operator's registration. If the operator fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

(3) Before the department may issue a registration certificate to an applicant, the applicant shall provide proof of minimum insurance requirements of:

(a) One hundred thousand dollars for liability for bodily injury or property damage per occurrence; and

(b) Fifty thousand dollars of legal liability per occurrence, to protect against vehicle damage, including but not limited to fire and theft, from the time a vehicle comes into the custody of an operator until it is redeemed or sold.

(4) The fee for each original registration and annual renewal is one hundred dollars per company, plus fifty dollars per truck. The department shall forward the registration fee to the state treasurer for deposit in the motor vehicle fund.

(5) Upon approval of the application, the department shall issue a registration certificate to the registered operator to be displayed prominently at the operator's place of business.

Sec. 8. Section 46.70.070, chapter 12, Laws of 1961 as last amended by section 11, chapter 241, Laws of 1986 and RCW 46.70.070 are each amended to read as follows:

(1) Before issuing a vehicle dealer's license, the department shall require the applicant to file with the department a surety bond in the amount of:

(a) Fifteen thousand dollars for motor vehicle dealers;

(b) Thirty thousand dollars for mobile home and travel trailer dealers: PROVIDED, That if such dealer does not deal in mobile homes such bond shall be fifteen thousand dollars;

running to the state, and executed by a surety company authorized to do business in the state. Such bond shall be approved by the attorney general as to form and conditioned that the dealer shall conduct his business in conformity with the provisions of this chapter;

(d) Wholesale dealers shall not be required to file a surety bond with the department;

(e) In lieu of the surety bond, a vehicle dealer may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the dealer and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes;

(f) The cash deposit shall be returned to the licensee one year after the license has expired or one year after a surety bond has been filed for the same license if no legal action has been initiated against the licensee or the cash deposit at the expiration of the year;

(g) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the vehicle dealer and the cash account shall notify the dealer and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

Any retail purchaser who shall have suffered any loss or damage by reason of breach of warranty or by any act by a dealer which constitutes a violation of this chapter shall have the right to institute an action for recovery against such dealer and the surety upon such bond. Successive recoveries against said bond shall be permitted, but the aggregate liability of the surety to all persons shall in no event exceed the amount of the bond. Upon exhaustion of the penalty of said bond or cancellation of the bond by the surety the vehicle dealer license shall automatically be deemed canceled. If the dealer fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

(2) The cash deposit provided for under this section or bond for any vehicle dealer licensed or to be licensed under more than one classification shall be the highest cash deposit or bond required for any such classification.

(3) Vehicle dealers shall maintain a cash deposit or bond for each business location in this state and bond coverage for all temporary subagencies.

Sec. 9. Section 9, chapter 132, Laws of 1973 1st ex. sess. as amended by section 3, chapter 152, Laws of 1981 and RCW 46.70.075 are each amended to read as follows:

(1) Before issuing a manufacturer license to a manufacturer of mobile homes or travel trailers, the department shall require the applicant to file with the department a surety bond in the amount of forty thousand dollars in the case of a mobile home manufacturer and twenty thousand dollars in the case of a travel trailer manufacturer, running to the state and executed by a surety company authorized to do business in the state. Such bond shall be approved by the attorney general as to form and conditioned that the manufacturer shall conduct his or her business in conformity with the provisions of this chapter and with all standards set by the state of Washington or the federal government pertaining to the construction or safety of such vehicles. Any retail purchaser or vehicle dealer who has suffered any loss or damage by reason of breach of warranty or by any act by a manufacturer which constitutes a violation of this chapter or a violation of any standards set by the state of Washington or the federal government pertaining to construction or safety of such vehicles has the right to institute an action for recovery against such manufacturer and the surety upon such bond.

(2) In lieu of the surety bond, a manufacturer may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the manufacturer and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

(4) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the manufacturer and the cash account shall notify the manufacturer and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

(5) Successive recoveries against the bond shall be permitted, but the aggregate liability of the surety to all persons shall in no event exceed the amount of the bond. Upon exhaustion of the penalty of the bond or cancellation of the bond by the surety the manufacturer license is automatically deemed canceled. If the manufacturer fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

Sec. 10. Section 46.80.070, chapter 12, Laws of 1961 as last amended by section 5, chapter 253, Laws of 1977 ex. sess. and RCW 46.80.070 are each amended to read as follows:

(1) Before issuing a motor vehicle wrecker's license, the department shall require the applicant to file with said department a surety bond in the amount of one thousand dollars, running to the state of Washington and executed by a surety company authorized to do business in the state of Washington. Such bond shall be approved as to form by the attorney general and conditioned that such wrecker shall conduct his or her business in conformity with the provisions of this chapter. Any person who shall have suffered any loss or damage by reason of fraud, carelessness, neglect, violation of the terms of this chapter, or misrepresentation on the part of the wrecking company, shall have the right to institute an action for recovery against such motor vehicle wrecker and surety upon such bond: PROVIDED, That the aggregate liability of the surety to all persons shall in no event exceed the amount of the bond.

(2) In lieu of the surety bond, a motor vehicle wrecker may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the wrecker and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

(4) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the motor vehicle wrecker and the cash account shall notify the wrecker and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

(5) If the motor vehicle wrecker fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

Sec. 11. Section .15.07, chapter 79, Laws of 1947 as last amended by section 24, chapter 32, Laws of 1983 1st ex. sess. and RCW 48.15.070 are each amended to read as follows:

Any individual while a resident of this state, or any firm or any corporation that has in its employ a qualified individual who is a resident of this state and who is authorized to exercise the powers of the firm or corporation, deemed by the commissioner to be competent and trustworthy, and while maintaining an office at a designated location in this state, may be licensed as a surplus line broker in accordance with this section.

(1) Application to the commissioner for the license shall be made on forms furnished by the commissioner.

(2) The license fee shall be one hundred dollars for each license year during any part of which the license is in force. The annual renewal date shall be determined by the commissioner. The commissioner shall adopt a rule providing for the proration, on a quarterly basis, of the license fee. The proration shall be applicable only: (a) To applicants who apply for a license after the expiration of the first quarter of any license year, or (b) to licensees whose licenses would exist for less than nine months as a result of the adoption of the annual renewal date.

(3) Prior to issuance of license the applicant shall file with the commissioner a bond in favor of the state of Washington in the penal sum of twenty thousand dollars, with authorized corporate sureties approved by the commissioner, conditioned that he or she will conduct business under the license in accordance with the provisions of this chapter and that he or she will promptly remit the taxes provided by RCW 48.15.120. The licensee shall maintain such bond in force for as long as the license remains in effect.

(4) (a) Every applicant for a surplus line broker's license or for the renewal of a surplus line broker's license shall file with the application or request for renewal a bond in favor of the people of the state of Washington, executed by an authorized corporate surety approved by the commissioner, in the amount of one hundred thousand dollars and shall be the bonding requirement for new licensees. The licensee shall maintain such bond in force while so licensed. The bond may be continuous in form, and total aggregate liability on the bond may be limited to the amount stated in the bond. The bond shall be contingent on the accounting by the surplus line broker to any person requesting such broker to obtain insurance, for moneys or premiums collected in connection therewith. A bond issued in accordance with RCW 48.17.250 or with this subsection will satisfy the requirements of both RCW 48.17.250 and this subsection if the limit of liability is not less than the greater of the requirement of RCW 48.17.250 or the requirement of this subsection.

((~~(5)~~)) (b) In lieu of the surety bond, a surplus line broker may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the broker and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

(5) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the surplus line broker and the cash account shall notify the broker and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

(6) Any bond issued pursuant to subsection (3) or (4) of this section or account established pursuant to subsection (4)(b) of this section shall remain in force until the surety is released from liability by the commissioner, or until the bond or account is canceled by the surety. If the broker fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section. Without prejudice to any liability accrued prior to such cancellation, the surety may cancel the bond upon thirty days' advance notice in writing filed with the commissioner.

((~~(6)~~)) (7) For the purposes of this section, a "qualified individual" is a natural person who has met all the requirements that must be met by an individual surplus line broker.

Sec. 12. Section .17.25, chapter 79, Laws of 1947 as last amended by section 8, chapter 269, Laws of 1979 ex. sess. and RCW 48.17.250 are each amended to read as follows:

(1) Every applicant for a broker's license or for the renewal of a broker's license existing on the effective date of this code shall file with the application or request for renewal and shall thereafter maintain in force while so licensed a bond in favor of the people of the state of Washington, executed by an authorized corporate surety approved by the commissioner, in the amount of twenty thousand dollars. If the applicant is a firm or corporation, the bond shall be in the amount of twenty thousand dollars plus five thousand dollars for the second and five thousand dollars for each additional individual empowered and designated in the license to exercise the powers conferred thereby. The bond may be continuous in form, and total aggregate liability on the bond may be limited to the required amount of the bond. The bond shall be contingent on the accounting by the broker to any person requesting the broker to obtain insurance, for moneys or premiums collected in connection therewith.

(2) Any such bond shall remain in force until the surety is released from liability by the commissioner, or until the bond is canceled by the surety. Without prejudice to any liability accrued prior to such cancellation, the surety may cancel the bond upon thirty days advance notice in writing filed with the commissioner.

(3) In lieu of the surety bond, a broker may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the broker and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

(5) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the broker and the cash account shall notify the broker and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

(6) If the broker fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

Sec. 13. Section 3, chapter 116, Laws of 1947 as last amended by section 13, chapter 60, Laws of 1984 and RCW 76.40.030 are each amended to read as follows:

(1) Before any person may engage in log patrol activities that person must be licensed by the department. Before any license is issued, the applicant must apply to the department on a form to be prescribed by the department. The application must contain all information required by the department. Before any license may be issued, the applicant must execute and file with the department, to be approved by it, a surety bond running to the state in the sum of ten thousand dollars, conditioned that the applicant will comply with all the requirements of the laws of the state governing such activities, and will account for all stray logs taken into possession. Each application shall be accompanied by a remittance of five hundred dollars for each boat or other equipment to be used or operated in such activities by the licensee or agent. All licenses shall expire on June 30th of each even-numbered year following the date of issuance. The department shall issue each applicant a license and shall also issue distinctive stickers or other suitable devices for the piece of equipment listed in the application identifying it as engaged in log patrol activities.

(2) In lieu of the surety bond, an applicant may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the applicant and such account will be rendered as required under this section. Any interest accruing to the account is payable to the applicant. The department may require an applicant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

(4) If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the licensee and the cash account shall notify the licensee and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

(5) If the licensee fails to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the security bond required by this section, the license shall be automatically cancelled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

(6) All moneys received by the department under this chapter shall be deposited in the general fund. License fees shall be used exclusively for administration of this chapter by the department.