S-1334               _______________________________________________

                                                   SENATE BILL NO. 5655

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Lee, Smitherman, McMullen and Matson

Read first time 2/1/89 and referred to Committee on   Economic Development & Labor.

AN ACT Relating to cash deposits in lieu of bonds; and adding a new section to chapter 19.72 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 19.72 RCW to read as follows:

          Unless otherwise specifically provided by statute, whenever a governmental agency or instrumentality allows a cash deposit in lieu of a bond, such cash deposit shall be in an amount equal to the penal sum of the bond in lieu of which the deposit is allowed and shall not be increased because of the length of time of licensing or registration, or because of renewal, continuation, or extension of the period of licensing or registration.  Nothing in this section shall prohibit either:  (1) Cancellation or suspension of a license dependent upon the cash deposit if all or a portion of the cash deposit is exhausted and not replenished; or (2) a requirement that the exhausted portion of a cash deposit be replenished before a license or registration to do business is reissued or reinstated.