S-2242               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5702

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senate Committee on Economic Development & Labor (originally sponsored by Senators Lee, McMullen and Smitherman)

Read first time 2/28/89.

AN ACT Relating to state licensing policies and procedures; and creating new sections.

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

NEW SECTION. Sec. 1.     The department of licensing shall conduct a study of current state licensing policies and procedures.  The department shall specifically address: (1) Policies and procedures for issuance of licenses, including but not limited to numbers and types of, and fees for licenses, and criteria for approval; (2) current surety bond requirements; (3) adequacy of surety bond amounts for consumer protection; (4) cost to businesses of obtaining surety bonds; (5) procedures used by surety and insurance companies to approve surety bond applications, including but not limited to possible areas of discrimination; and (6) the feasibility of instituting a recovery fund mechanism for some or all of the state's license categories.  Except to the extent necessary for clarity, the study shall not include motor vehicle licensing, driver licensing, or licensing of persons in the medical or legal profession.

NEW SECTION. Sec. 2.     The department shall involve the following in conducting the study:  (1) The surety bond industry; (2) representatives of licensees; (3) state officials with experience in recovery funds; and (4) other state agencies with licensing and surety bond requirements, including the business assistance center and department of labor and industries.

NEW SECTION. Sec. 3.     The department shall report its findings and any implementing legislation to the legislature by the beginning of the 1990 regular legislative session.