AN ACT Relating to construction liens; amending RCW 59.18.100, 59.20.210, 17.10.300, and 60.16.020; adding new sections to chapter 60.04 RCW; and repealing RCW 60.04.010, 60.04.020, 60.04.030, 60.04.040, 60.04.045, 60.04.050, 60.04.060, 60.04.064, 60.04.067, 60.04.070, 60.04.080, 60.04.090, 60.04.100, 60.04.110, 60.04.115, 60.04.120, 60.04.130, 60.04.140, 60.04.150, 60.04.160, 60.04.170, 60.04.180, 60.04.200, 60.04.210, 60.04.220, 60.04.230, 60.04.250, and 60.04.255.

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

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Labor" means exertion of the powers of body or mind performed at the site for compensation.

(2) "Site" means the real property that is improved.

(3) "Improvement" means: (a) Constructing, altering, repairing, demolishing, clearing, grading, or filling in, of, to, or upon any real property or street or road in front of or adjoining the same; (b) planting trees, vines, shrubs, plants, hedges, or lawns on any real property; or (c) professional services, as defined in this section.

(4) "Furnishing labor, professional services, materials, or equipment" means performance of any labor or professional services for, contribution owed to any employee benefit plan on account of any labor for, provision of any supplies or materials to or for, or renting, leasing, or otherwise supplying equipment for the improvement of real property.

(5) "Construction agent" means any registered or licensed contractor, registered or licensed subcontractor, architect, engineer, or other person having charge of improvements to real property, who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter.

(6) "Contract price" means the amount agreed upon by the contracting parties or, if no amount is agreed upon, the customary and reasonable charge therefor.

(7) "Mortgagee" means a person who has a valid subsisting mortgage of record or deed of trust of record securing a loan upon land or an improvement.

(8) "Professional services" means surveying, establishing, or marking the boundaries of, preparing maps, plans, or specifications for, or inspecting, testing, or otherwise performing any other architectural or engineering service for the improvement of real property.

(9) "Real property lender" means a bank, savings bank, savings and loan association, credit union, mortgage company, or other corporation, association, partnership, or individual that makes loans secured by real property located in the state of Washington.

(10) "Interim or construction financing" means that portion of money secured by mortgage, deed of trust, or other encumbrance to finance construction or improvements on, or development of, real property, but does not include:

(a) Funds to acquire real property;

(b) Funds to pay interest, insurance premiums, lease deposits, taxes, assessments, or prior encumbrances;

(d) Funds to pay other customary fees which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time;

(e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter.

(11) "Owner" means the record holder of the legal or beneficial title to the real property to be improved or developed.

(12) "Potential lien claimant" means any person or entity entitled to assert lien rights pursuant to this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the Revised Code of Washington.

(13) "Draws" means periodic disbursements of interim or construction financing by a lender.

(14) "Prime contractor" includes all contractors, general contractors, and specialty contractors, as defined in RCW 18.27.010, who contract to perform for a property owner and includes property owners or their authorized representatives who are contractors, general contractors, or specialty contractors, as defined in RCW 18.27.010, who offer to sell their property without occupying or using the structures, projects, developments, or improvements for more than one year.

(15) "Construction project" means construction work contracted for by a property owner or the owner's authorized representative with one or more prime contractors on real property controlled by the owner, or construction work contracted for by a contractor on property owned or controlled by the contractor.

NEW SECTION. Sec. 2. Any person furnishing labor, professional services, materials, or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor, professional services, materials, or equipment furnished at the instance of the owner or the agent or construction agent of the owner.

NEW SECTION. Sec. 3. A contractor or subcontractor required to be registered under chapter 18.27 RCW or registered or licensed pursuant to any other RCW chapter shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or licensed. Persons dealing with contractors or subcontractors may rely, for the purposes of this section, upon a certificate of registration issued pursuant to chapter 18.27 RCW or a license issued pursuant to any other RCW chapter covering the period when the labor, professional services, material, or equipment will be furnished, and the lien rights shall not be lost by suspension or revocation of registration or license without their knowledge. However, no lien described in this section shall be lost or denied by virtue of the absence, suspension, or revocation of such registration or license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant.

NEW SECTION. Sec. 4. (1) Every person furnishing materials, equipment, or professional services for the improvement of real property for the purposes set forth in section 2 of this act, except when furnished at the request of the owner or common-law agent of the owner, shall give to the owner or reputed owner of the property and the prime contractor notice in writing of the right to lien. The notice of the right to lien may be given at any time, but the notice only protects the right to claim a lien for materials, equipment, or professional services provided after a date which is ten days before the notice: (a) Is mailed by certified or registered mail to the owner or reputed owner and prime contractor; or (b) served personally upon the owner or reputed owner and evidence of service obtained in the form of a receipt or other acknowledgement signed by the owner or reputed owner.

If the prime contractor complies with section 19 of this act, notice shall also be given to the prime contractor by any form of mail requiring a return receipt or by serving the notice personally upon the prime contractor or the prime contractor's representative and obtaining evidence of such service in the form of a receipt or an acknowledgement signed by the prime contractor or the prime contractor's representative.

(2) The notice required by subsection (1) of this section shall include but not be limited to the following information and shall be substantially in the following form:

...............

Owner's address

...............

This is to inform you that ............... has begun to provide (description of labor, professional services, materials, or equipment) ordered by ............... for improvements to property you own. The property is located at ............... .

A lien may be claimed for all materials, equipment, and professional services furnished after a date that is ten days before this notice was mailed to you. A lien may be claimed for all labor furnished for improvement of your real property without this notice being sent to you.

Even if you or your mortgage lender have made full payment to the contractor who ordered these materials, equipment, or services, your property may still be subject to a lien unless the person providing this notice is paid.

THIS IS NOT A LIEN. It is a notice sent to you for your protection in compliance with the construction lien laws of the State of Washington.

This notice has been sent to you by:

Name: ...............

Address: ...............

Telephone: ...............

IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE,

FEEL FREE TO CALL US.

IMPORTANT INFORMATION ON REVERSE SIDE.

* * * * *

IMPORTANT INFORMATION FOR YOUR PROTECTION

Under Washington law, those who work on your property or provide materials and are not paid have a right to enforce their claim for payment against your property. This claim is known as a construction lien.

If your contractor fails to pay subcontractors, providers of professional services, material or equipment suppliers, or laborers or neglects to make other legally required payments, the people who are owed money may be able to look to your property for payment, even if you have paid your contractor in full.

The law states that all people hired by a contractor or subcontractor to provide you with materials, equipment, or professional services must give you a notice of the right to lien to let you know what they have provided.

PEOPLE PROVIDING LABOR MAY ALSO HAVE LIEN RIGHTS BUT DO NOT HAVE TO PROVIDE YOU WITH THIS NOTICE.

!ixWAYS TO PROTECT YOURSELF:

RECOGNIZE that this notice of delivery of materials, equipment, or professional services may result in a lien against your property unless all those giving you notice of the right to lien have been paid. Also recognize that providers of labor have lien rights without giving you this notice, and you should also protect yourself from these lien claims.

LEARN more about the lien laws and the meaning of this notice by contacting the department of labor and industries, an attorney, or the firm sending this notice.

WHEN PAYING your contractor for materials, equipment, labor, or professional services, you may make checks payable jointly to the contractor and the firm furnishing materials, equipment, labor, or professional services.

BEFORE YOU PAY YOUR CONTRACTOR, GET EVIDENCE that all firms from whom you have received a notice of the right of lien or who may have lien rights for providing labor have been paid or have waived the right to claim a lien against your property.

CONSULT an attorney or your mortgage lender.

(3) An owner who receives a notice of the right to lien in accordance with the provisions of this section may demand, in writing, from the person providing the notice a list of materials or equipment, or a description of labor or professional services supplied, or a statement of the contractual basis for supplying the materials, equipment, labor, or professional services, including the percentage of the contract completed and the charge therefor to the date of the demand. This statement shall be delivered to the owner within ten days of receipt of the owner's written demand, as evidenced by a receipt or a receipt of delivery of a certified or registered letter containing the demand. Failure to furnish the information requested constitutes a waiver of attorneys' fees and costs otherwise allowable in a suit to foreclose the lien.

NEW SECTION. Sec. 5. The lot, tract, or parcel of land that is improved is subject to the lien to the extent of the interest of the person for whom the labor, professional services, equipment, or materials were furnished, as the court deems appropriate for satisfaction of the lien. If, for any reason, the title or interest in the land upon which the improvement is situated cannot be subjected to the lien, the court, in order to satisfy the lien, may order the sale and removal from the land of the property subject to the lien.

NEW SECTION. Sec. 6. (1) The lien created by this chapter upon any lot or parcel of land shall be preferred to any lien, mortgage, or other encumbrance that attached to the land after, or was unrecorded at the time of, commencement of labor or professional services or first delivery of materials or equipment by the lien claimant.

(2) Except as provided in subsection (1) of this section, any mortgage or deed of trust shall be prior to all liens, mortgages, deeds of trust, and other encumbrances that have not been recorded prior to the recording of such mortgage or deed of trust to the extent of all sums secured by such mortgage or deed of trust regardless of when the same are disbursed or whether such disbursements are obligatory.

(3) Upon payment and acceptance of the amount due and upon demand of the person making payment, the lien claimant shall prepare and execute a release of all lien rights for which payment has been made and deliver the release to the person making payment.

NEW SECTION. Sec. 7. Every person claiming a lien under section 2 of this act shall record, in the county where the subject property is located, a notice of claim of lien not later than ninety days after the person has ceased to furnish labor, professional services, materials, or equipment. The notice of claim of lien:

(1) Shall state in substance and effect:

(a) The name and address of the claimant;

(b) The first and last date on which the labor, professional services, material, or equipment was furnished;

(d) The street address, legal description, or other description reasonably calculated to identify to a person familiar with the area the location of the real property to be charged with the lien;

(e) The name of the owner or reputed owner, if known, and if not known that fact shall be stated; and

(f) The principal amount for which the lien is claimed; and

(2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury. If the claim has been assigned, the name of the assignee shall be stated. Where an action to foreclose the lien has been commenced, the notice of claim of lien may be amended as pleadings may be amended by order of the court insofar as the interests of third parties are not adversely affected by the amendment.

NEW SECTION. Sec. 8. Where labor, professional services, materials, or equipment are furnished in the improvement of two or more separate parcels or lots, the time for filing notices of lien against each separate parcel or lot shall commence to run on the last day of furnishing of labor, professional services, materials, or equipment on each parcel or lot as provided in this chapter.

NEW SECTION. Sec. 9. The county auditor shall record the notice of claim of lien mentioned in this chapter in the same manner as deeds and other instruments of title are recorded pursuant to chapter 65.08 RCW. Notices of claim of lien for registered land need not be recorded in the Torrens register. The county auditor shall charge no higher fee for recording notices of claim of lien than other documents.

NEW SECTION. Sec. 10. Any lien or right of lien created by this chapter and the right of action to recover therefor shall be assignable so as to vest in the assignee all rights and remedies of the assignor, subject to all defenses thereto that might be made.

NEW SECTION. Sec. 11. In every case in which the notice of claim of lien is recorded against two or more separate pieces of property owned by one or more persons, jointly or otherwise, who contracted for the labor, professional services, material, or equipment for which the notice of claim of lien is recorded, the person recording the notice of claim of lien must designate in the notice of claim of lien the amount due on each piece of property, otherwise the lien is subordinated to other construction liens. The lien of such notice does not extend beyond the amount designated as against other creditors having liens upon any of the pieces of property.

NEW SECTION. Sec. 12. No lien created by this chapter binds the property subject to the lien for longer than eight calendar months after the notice of claim of lien has been recorded or, if credit is given and the terms are stated in the notice of claim of lien, eight calendar months after the expiration of credit, unless an action is filed in the superior court of the county where the subject property is located by the lien claimant within eight months to enforce the lien and service is made upon the owner of the subject property within ninety days of the date the action is filed. If an action is not prosecuted to judgment within two years after the commencement thereof, the court, in its discretion, may dismiss the action for want of prosecution, and the dismissal of the action or a judgment rendered thereon that no lien exists shall constitute a cancellation of the lien. This is a period of limitation, which shall be tolled by the filing of any petition seeking protection of the bankruptcy code by an owner of any property subject to the lien established by this chapter.

NEW SECTION. Sec. 13. The lien claimant shall be entitled to recover upon the claim filed by him or her the contract price, after deducting all claims of other lien claimants to whom the claimant is liable, for furnishing labor, professional services, materials, or equipment. In all cases where a notice of claim of lien is recorded under this chapter for labor, professional services, materials, or equipment supplied to any lien claimant, he or she shall defend any action brought thereupon at his or her own expense. During the pendency of the action, the owner may withhold from the prime contractor the amount of money for which a claim is recorded by any subcontractor, supplier, or laborer, and in case of judgment against the owner or the owner's property upon the lien, the owner shall be entitled to deduct the principal amount of the judgment from any amount due or to become due from the owner to the lien claimant plus such costs, including interest and attorneys' fees, as the court deems just and equitable. The owner shall be entitled to recover back from the lien claimant the amount for which the lien is established in excess of any sum that may remain due from him or her to the lien claimant.

NEW SECTION. Sec. 14. Any owner of real property subject to a recorded notice of claim of lien under this chapter or the contractor or subcontractor who disputes the correctness or validity of the notice of claim of lien may record, either before or after the commencement of an action to enforce the lien, in the office of the county recorder or auditor in the county where the notice of claim of lien was recorded, a bond issued by an insurance company authorized to issue surety bonds in the state. The surety shall be listed in the latest federal department of the treasury list of surety companies acceptable on federal bonds published in the federal register as authorized to issue bonds on United States government projects with an underwriting limitation, including allowable reinsurance, equal to or greater than the amount of the bond to be recorded. The bond must contain a description of the notice of claim of lien and real property involved and be in an amount equal to the greater of five thousand dollars or two and one-half times the amount of the lien claimed if it is twenty thousand dollars or less, and in an amount equal to or greater than two times the amount of the lien if it is in excess of twenty thousand dollars. If the notice of claim of lien affects more than one parcel of real property and is segregated to each parcel, the bond may be segregated the same as in the notice of claim of lien. A separate bond shall be required for each notice of claim of lien. The condition of the bond shall be to guarantee the payment of any judgment upon the lien in favor of the lien claimant entered in any action to recover the amount claimed in a notice of claim of lien, or on the claim asserted in the notice of claim of lien. The effect of recording a bond shall be to release the real property described in the notice of claim of lien from the lien and any action brought to recover the amount claimed. Unless otherwise prohibited by law, if no action is commenced to recover on a lien within the time specified in section 12 of this act, the surety shall be discharged from liability under the bond. If such an action is timely commenced, then on payment of any judgment entered in the action or on payment of the full amount of the bond to the holder of the judgment, whichever is less, the surety shall be discharged from liability under the bond.

NEW SECTION. Sec. 15. Liens provided by this chapter, for which notices have been recorded, may be foreclosed and enforced by a civil action in any court having jurisdiction in the manner prescribed for the judicial foreclosure of mortgages. The court shall have the power to order the sale of the property.

NEW SECTION. Sec. 16. (1) In every case in which different construction liens are claimed against the same property, the court shall declare the rank of such lien or class of liens, which shall be in the following order:

(a) Liens for the performance of labor;

(b) Liens for contributions owed to employee benefit plans, excluding liquidated damages and attorneys' fees;

(d) Liens for subcontractors;

(e) Liens for prime contractors or for professional services; and

(f) Interest, attorneys' fees, and court costs on any of the above;

(2) The proceeds of the sale of property must be applied to each lien or class of liens in order of its rank, pro rata among each claimant in each separate priority class, and personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed. If the lien is established, the judgment shall provide for the enforcement thereof upon the property liable as in the case of foreclosure of judgment liens. The amount realized by such enforcement of the lien shall be credited upon the judgment, and the deficiency, if any remaining unsatisfied, shall stand as a personal judgment and may be collected by execution against any party liable therefor.

(3) The court may allow the prevailing party in the action, whether plaintiff or defendant, as part of the costs of the action, the moneys paid for recording the notice of claim of lien, costs of title report, bond costs, and attorneys' fees, and necessary expenses incurred by the attorney in the superior court, court of appeals, supreme court, or arbitration, as the court or arbitrator deems reasonable.

(4) Real property against which a lien under this chapter is enforced may be ordered sold by the court, and the proceeds deposited into the registry of the clerk of the court pending further determination respecting distribution of the proceeds of such sale.

NEW SECTION. Sec. 17. The taking of a promissory note or other evidence of indebtedness for any labor, professional services, material, or equipment furnished for which a lien is created by this chapter shall not discharge the lien therefor, unless expressly received as payment and so specified therein.

Nothing in this chapter shall be construed to impair or affect the right of any person to whom any debt may be due for the furnishing of labor, professional services, material, or equipment to maintain a personal action to recover the debt against any person liable therefor.

NEW SECTION. Sec. 18. (1) If the owner obtains from a prime contractor a bond that obligates the surety to pay sums due on construction liens arising under that prime contract and an original or duplicate original copy of the payment bond has been recorded prior to the recording of any notice of claim of lien, then the court, where it would be equitable to do so, must restrict the recovery under the lien claims arising under that prime contract to an aggregate amount equal to the amount due from the owner to that prime contractor. The surety upon such bond shall be liable for the deficiency to the extent of the penalty of the bond. The surety company must be authorized to issue surety bonds in the state and be listed in the latest federal department of the treasury list of surety companies accepted on federal bonds published in the federal register with an underwriting limitation equal to or greater than the amount of the bond to be provided. The surety company shall not be liable in an aggregate amount in excess of the penal sum of the bond or for money loaned or advanced to the prime contractor, subcontractor, or other person in the performance of work under the contract. The penal sum of the bond must not be less than the following percentages of the aggregate contract price between the property owner and the prime contractor:

(a) One hundred percent of the contract price if the contract price is less than five hundred thousand dollars;

(b) Fifty percent of the contract price if the contract price is more than five hundred thousand dollars but less than five million dollars; and

(2) A claimant against such bond may not recover from the surety unless:

(a) The claimant has given the notices as would otherwise be required under section 4(1) of this act either to the owner or the surety within the time and in the manner prescribed in section 4(3) of this act; and

(b) The claimant has either timely recorded a notice of claim of lien or sent a notice by registered or certified mail to the surety within the time required by this chapter for recording a notice of claim of lien, stating in substance and effect the same information as is required for a notice of claim of lien under section 7 of this act.

(3) Action against such bond shall be commenced in the superior court where a lien foreclosure action could be brought within eight months of the date the notice of claim of lien was recorded or the notice of claim was given to the surety. The action may be commenced against the surety only. The prevailing party shall be entitled to costs and reasonable attorneys' fees as provided in section 15 of this act, and the surety shall be deemed the prevailing party if, before suit is filed, the surety offers in writing to the claimant a sum equal to or greater than the principal amount ultimately awarded. If the claimant commences an action sixty days or less from the date the notice of claim was sent to received by the surety, the claimant shall not be awarded attorneys' fees.

(4) For any payment bond recorded pursuant to this section, all terms, limitations, and conditions, excepting the penal sum, shall be deemed amended to conform with the requirements of this section, whether such terms, limitations, or conditions are, as stated in the payment bond, either narrower than or in excess of the requirements of this section.

NEW SECTION. Sec. 19. For any construction project where the contract price exceeds ten thousand dollars, the owner and each contractor in privity with the owner shall post in plain view at the site for the duration of the construction project a legible notice containing the following:

(1) The legal description, the street address, if available, and any other identification for the construction site;

(2) The property owner's name, address, and telephone number;

(3) The business name, address, telephone number, current state contractor registration or license number, and identification of the contractor in privity with the owner; and

(4) The name, address, and phone number of the office of the lender administering the loan or loans made to finance the improvements, the recording number of any deed of trust or mortgage securing the loan financing the improvements, and, if applicable, the name and address of the surety company on behalf of the owner for the protection of lien claimants and the penal sum of said bond.

Any potential lien claimant may request in writing that it be provided the above information in written form from the prime contractor or project owner. The obligation of any potential lien claimant to proceed with furnishing labor, professional services, materials, or equipment shall be suspended from the time its written request for the above information is received by the prime contractor or owner until such time as the potential lien claimant has received the information from either the prime contractor or owner.

NEW SECTION. Sec. 20. A claim of lien or claim against a bond under this chapter may not be waived in advance of the time the labor, professional services, materials, or equipment is supplied, and any provision for an advance waiver shall be void.

NEW SECTION. Sec. 21. Any lender providing interim or construction financing where there is not a payment bond of at least fifty percent of the amount of construction financing shall observe the following procedures:

(1) Draws against construction financing shall be made only after certification of job progress by the general contractor and the owner or the owner's agent in such form as may be prescribed by the lender.

(2) Any potential lien claimant may file a notice provided in this section of the sums due and to become due for which the potential lien claimant may file a claim of lien under this chapter.

(3) The notice must be filed in writing with the lender at the office administering the interim or construction financing, with a copy furnished to the owner and appropriate general contractor. The notice shall state in substance and effect that such person, firm, trustee, or corporation has furnished or anticipates furnishing labor, professional services, materials, or equipment for which a right of lien is given by this chapter with the name of the general contractor, agent or construction agent, ordering the same, a common or street address of the real property being improved or developed or, if there is none, the legal description of said real property, a description of the labor, material, or equipment or a brief statement describing the nature of the contributions to any employee benefit plan, and the name, business address, and telephone number of the claimant. The notice shall be given by mailing the same by registered or certified mail, return receipt requested. A copy of the notice shall also be given to the prime contractor by registered or certified mail, return receipt requested.

(4) After the receipt of such notice, the lender shall withhold from the next and subsequent draws all funds attributable to the furnishing of labor, professional services, materials, or equipment attributable to the potential lien claimant as of the date of the certification of job progress for the draw in question, less contracted retainage. Alternatively, the lender may obtain from the general contractor or borrower a payment bond for the benefit of the potential lien claimant in such sum.

(5) Sums so withheld shall not be disbursed by the lender except by the written agreement of the potential lien claimant, owner, and general contractor in such form as may be prescribed by the lender or the order of a court of competent jurisdiction.

(6) The lender shall not foreclose the potential lien claimant's claim of lien to the extent that the lender was required to withhold funds under subsections (4) and (5) of this section, but in no event in an amount greater than the contract price determined to be due the potential lien claimant by a court of competent jurisdiction.

(7) A mortgagee, who has received notice in accordance with subsection (3) of this section, may demand in writing by certified or registered mail a statement setting forth a list of the materials or equipment furnished and the dates, names of persons performing labor or professional services, including employee benefits, and hours worked for which the claim is made, including a statement of the amount due. The statement shall be delivered to the mortgagee within fifteen days of receipt of demand by the claimant, as evidenced by a receipt or a receipt of delivery of a registered or certified letter containing the demand. Failure to furnish the list for the amount due by the person giving notice to the mortgagee shall constitute a waiver of the bar to foreclose provided in subsection (6) of this section.

(8) Any potential lien claimant shall be liable for any loss, cost, or expense, including reasonable attorneys' fees, to the party injured thereby arising out of any unjust or excessive notice of claim under this section. For purposes of this section, "notice of claim" does not include notice given by a potential lien claimant of the right to claim liens under this chapter where no actual claim is made.

(9) No right to avoid foreclosure of potential lien claimant's claim of lien pursuant to this section shall exist, and no action to enforce the same shall be maintained unless the potential lien claimant records the notice to the lender in the time and in the manner provided in section 7 of this act.

NEW SECTION. Sec. 22. This chapter is to be liberally construed to effectuate its purposes of providing security for all parties intended to be protected by its provisions.

NEW SECTION. Sec. 23. The owner may, within ten days after cessation of furnishing labor, professional services, materials, or equipment for a period of less then thirty days, record with the county auditor in the county where the property is located, a notice setting forth the last date of the furnishing of labor, professional services, materials, or equipment together with the owner's name, address, and the nature of his or her title, a legal description of the property, and a statement that a copy of this notice was delivered or mailed to the general contractor, if any. This notice must be certified under penalty of perjury by the owner or a person in his or her behalf. Where the ownership of the property is in several persons, any one or more of the owners may execute and record such notice, but the notice must state the names, addresses, and the nature of title of all owners. Such notices shall create a rebuttable presumption of the cessation of the furnishing of labor, professional services, materials, or equipment on or before the date of cessation as stated in the notice, unless controverted by the claimant's claim of lien. This notice by the owner shall not extend the time for recording the notice of claim of lien as provided by section 7 of this act. A copy of each notice shall be posted in a prominent, conspicuous location at the project site by each owner and shall remain there for a period of not less than one hundred twenty days.

NEW SECTION. Sec. 24. The department of labor and industries shall prepare a master document that provides informational material about construction lien laws and available safeguards against real property lien claims. The material shall include methods of protection against lien claims, including obtaining lien release documents, performance bonds, joint payee checks, the opportunity to require contractor disclosure of all potential lien claimants as a condition of payment, and lender supervisions under sections 21 and 22 of this act. The material shall also include sources of further information, including the department of labor and industries and the office of the attorney general.

NEW SECTION. Sec. 25. (1) Every real property lender shall provide a copy of the informational material described in section 24 of this act to all persons obtaining interim or construction financing the proceeds of which are to be used for residential construction or residential repair or remodeling.

(2) Every contractor shall provide a copy of the informational material described in section 24 of this act to customers required to receive contractor disclosure notice under RCW 18.27.114.

(3) No cause of action may lie against the state, a real property lender, or a contractor arising from the provisions of section 24 of this act and this section.

Sec. 26. Section 10, chapter 207, Laws of 1973 1st ex. sess. as amended by section 35, chapter 185, Laws of 1987 and RCW 59.18.100 are each amended to read as follows:

(1) If at any time during the tenancy, the landlord fails to carry out any of the duties imposed by RCW 59.18.060, and notice of the defect is given to the landlord pursuant to RCW 59.18.070, the tenant may submit to the landlord or his designated agent by certified mail or in person at least two bids to perform the repairs necessary to correct the defective condition from licensed or registered persons, or if no licensing or registration requirement applies to the type of work to be performed, from responsible persons capable of performing such repairs. Such bids may be submitted to the landlord at the same time as notice is given pursuant to RCW 59.18.070: PROVIDED, That the remedy provided in this section shall not be available for a landlord's failure to carry out the duties in subsections (6), (9), and (11) of RCW 59.18.060.

(2) If the landlord fails to commence repair of the defective condition within a reasonable time after receipt of notice from the tenant, the tenant may contract with the person submitting the lowest bid to make the repair, and upon the completion of the repair and an opportunity for inspection by the landlord or his designated agent, the tenant may deduct the cost of repair from the rent in an amount not to exceed the sum expressed in dollars representing one month's rental of the tenant's unit in any twelve-month period: PROVIDED, That when the landlord must commence to remedy the defective condition within thirty days as provided in subsection (4) of RCW 59.18.070, the tenant cannot contract for repairs for at least fifteen days following receipt of said bids by the landlord: PROVIDED FURTHER, That the total costs of repairs deducted in any twelve-month period under this subsection shall not exceed the sum expressed in dollars representing one month's rental of the tenant's unit.

(3) If the landlord fails to carry out the duties imposed by RCW 59.18.060 within a reasonable time, and if the cost of repair does not exceed one-half month's rent, including the cost of materials and labor, which shall be computed at the prevailing rate in the community for the performance of such work, and if repair of the condition need not by law be performed only by licensed or registered persons, the tenant may repair the defective condition in a workmanlike manner and upon completion of the repair and an opportunity for inspection, the tenant may deduct the cost of repair from the rent: PROVIDED, That repairs under this subsection are limited to defects within the leased premises: PROVIDED FURTHER, That the total costs of repairs deducted in any twelve-month period under this subsection shall not exceed one-half month's rent of the unit or seventy-five dollars in any twelve-month period, whichever is the lesser.

(4) The provisions of this section shall not:

(a) Create a relationship of employer and employee between landlord and tenant; or

(b) Create liability under the workers' compensation act; or

(c) Constitute the tenant as an agent of the landlord for the purposes of ((~~RCW 60.04.010 and 60.04.040~~)) chapter 60.04 RCW.

(5) Any repair work performed under the provisions of this section shall comply with the requirements imposed by any applicable code, statute, ordinance, or regulation. A landlord whose property is damaged because of repairs performed in a negligent manner may recover the actual damages in an action against the tenant.

(6) Nothing in this section shall prevent the tenant from agreeing with the landlord to undertake the repairs himself in return for cash payment or a reasonable reduction in rent, the agreement thereof to be agreed upon between the parties, and such agreement does not alter the landlord's obligations under this chapter.

Sec. 27. Section 8, chapter 58, Laws of 1984 and RCW 59.20.210 are each amended to read as follows:

(1) If at any time during the tenancy, the landlord fails to carry out any of the duties imposed by RCW 59.20.130, and notice of the defect is given to the landlord pursuant to RCW 59.20.200, the tenant may submit to the landlord or the landlord's designated agent by certified mail or in person at least two bids to perform the repairs necessary to correct the defective condition from licensed or registered persons, or if no licensing or registration requirement applies to the type of work to be performed, from responsible persons capable of performing such repairs. Such bids may be submitted to the landlord at the same time as notice is given pursuant to RCW 59.20.200.

(2) If the landlord fails to commence repair of the defective condition within a reasonable time after receipt of notice from the tenant, the tenant may contract with the person submitting the lowest bid to make the repair, and upon the completion of the repair and an opportunity for inspection by the landlord or the landlord's designated agent, the tenant may deduct the cost of repair from the rent in an amount not to exceed the sum expressed in dollars representing one month's rental of the tenant's mobile home space in any calendar year. When, however, the landlord is required to begin remedying the defective condition within thirty days under RCW 59.20.200, the tenant cannot contract for repairs for at least fifteen days following receipt of bids by the landlord. The total costs of repairs deducted by the tenant in any calendar year under this subsection shall not exceed the sum expressed in dollars representing one month's rental of the tenant's mobile home space.

(3) Two or more tenants shall not collectively initiate remedies under this section. Remedial action under this section shall not be initiated for conditions in the design or construction existing in a mobile home park before June 7, 1984.

(4) The provisions of this section shall not:

(a) Create a relationship of employer and employee between landlord and tenant; or

(b) Create liability under the worker's compensation act; or

(c) Constitute the tenant as an agent of the landlord for the purposes of ((~~RCW 60.04.010 and 60.04.040~~)) chapter 60.04 RCW.

(5) Any repair work performed under this section shall comply with the requirements imposed by any applicable code, statute, ordinance, or rule. A landlord whose property is damaged because of repairs performed in a negligent manner may recover the actual damages in an action against the tenant.

(6) Nothing in this section shall prevent the tenant from agreeing with the landlord to undertake the repairs in return for cash payment or a reasonable reduction in rent, the agreement to be between the parties, and this agreement does not alter the landlord's obligations under this chapter.

Sec. 28. Section 15, chapter 13, Laws of 1975 1st ex. sess. and RCW 17.10.300 are each amended to read as follows:

No lien created by RCW 17.10.280 shall exist, and no action to enforce the same shall be maintained, unless within ninety days from the date of cessation of the performance of such labor, furnishing of materials, or the supplying of such equipment, a claim for such lien shall be filed for record as hereinafter provided, in the office of the county auditor of the county in which the property, or some part thereof to be affected thereby, is situated. Such claim shall state, as nearly as may be, the time of the commencement and cessation of performing the labor, furnishing the material, or supplying the equipment, the name of the county noxious weed control board which performed the labor, furnished the material, or supplied the equipment, a description of the property to be charged with the lien sufficient for identification, the name of the owner, or reputed owner if known, or his agent, and if the owner is not known, that fact shall be mentioned, the amount for which the lien is claimed, and shall be signed by the county noxious weed control board, and be verified by the oath of the county noxious weed control board, to the effect that the affiant believes that claim to be just; and such claim of lien may be amended in case of action brought to foreclose the same, by order of the court, as pleadings may be, insofar as the interest of third parties shall not be affected by such amendment. A claim or lien substantially in the same form provided by ((~~RCW 60.04.060~~)) section 7 of this act and not in conflict with this section shall be sufficient.

Sec. 29. Section 2, chapter 110, Laws of 1917 and RCW 60.16.020 are each amended to read as follows:

Any person or corporation claiming the benefit of this chapter, must within forty days after the close of such work or labor for each season during which such work and labor is done, file for record with the county auditor of the county in which said work and labor was performed and in which said land or part thereof is situated, a claim of lien which shall be in substance in accordance with the provisions of ((~~RCW 60.04.060~~)) section 7 of this act, so far as the same is applicable, which said claim of lien shall be verified as in said section provided, and such lien may be enforced in a civil action in the same manner as near as may be, as provided in ((~~RCW 60.04.120~~)) chapter 60.04 RCW.

NEW SECTION. Sec. 30. The following acts or parts of acts are each repealed:

(1) Section 1, chapter 24, Laws of 1893, section 1, chapter 116, Laws of 1905, section 1, chapter 279, Laws of 1959, section 2, chapter 94, Laws of 1971 ex. sess., section 3, chapter 34, Laws of 1975 and RCW 60.04.010;

(2) Section 1, chapter 45, Laws of 1909, section 1, chapter 77, Laws of 1911, section 1, chapter 214, Laws of 1957, section 1, chapter 278, Laws of 1959, section 2, chapter 279, Laws of 1959, section 1, chapter 98, Laws of 1965, section 1, chapter 84, Laws of 1969 ex. sess., section 1, chapter 57, Laws of 1977 ex. sess., section 4, chapter 202, Laws of 1984 and RCW 60.04.020;

(3) Section 2, chapter 24, Laws of 1893, section 2, chapter 116, Laws of 1905 and RCW 60.04.030;

(4) Section 3, chapter 24, Laws of 1893, section 1, chapter 230, Laws of 1929, section 3, chapter 279, Laws of 1959, section 3, chapter 94, Laws of 1971 ex. sess., section 4, chapter 34, Laws of 1975 and RCW 60.04.040;

(5) Section 1, chapter 179, Laws of 1986 and RCW 60.04.045;

(6) Section 4, chapter 24, Laws of 1893, section 4, chapter 279, Laws of 1959, section 5, chapter 34, Laws of 1975 and RCW 60.04.050;

(7) Section 5, chapter 24, Laws of 1893, section 1(5a), chapter 217, Laws of 1949, section 5, chapter 279, Laws of 1959, section 1, chapter 94, Laws of 1971 ex. sess., section 6, chapter 34, Laws of 1975 and RCW 60.04.060;

(8) Section 1(5b), chapter 217, Laws of 1949, section 6, chapter 279, Laws of 1959 and RCW 60.04.064;

(9) Section 1(5c), chapter 217, Laws of 1949, section 7, chapter 279, Laws of 1959, section 7, chapter 34, Laws of 1975 and RCW 60.04.067;

(10) Section 6, chapter 24, Laws of 1893, section 2, chapter 217, Laws of 1949, section 10, chapter 44, Laws of 1985 and RCW 60.04.070;

(11) Section 7, chapter 24, Laws of 1893 and RCW 60.04.080;

(12) Section 8, chapter 24, Laws of 1893, section 8, chapter 2789, Laws of 1959 and RCW 60.04.090;

(13) Section 9, chapter 24, Laws of 1893, section 1, chapter 209, Laws of 1943, section 1, chapter 231, Laws of 1975 1st ex. sess. and RCW 60.04.100;

(14) Section 10, chapter 24, Laws of 1893, section 9, chapter 279, Laws of 1959, section 8, chapter 34, Laws of 1975 and RCW 60.04.110;

(15) Section 4, chapter 314, Laws of 1986 and RCW 60.04.115;

(16) Section 11, chapter 24, Laws of 1893 and RCW 60.04.120;

(17) Section 12, chapter 24, Laws of 1893, section 10, chapter 279, Laws of 1959, section 1, chapter 38, Laws of 1969, section 129, chapter 81, Laws of 1971, section 9, chapter 34, Laws of 1975 and RCW 60.04.130;

(18) Section 14, chapter 24, Laws of 1893, section 11, chapter 279, Laws of 1959 and RCW 60.04.140;

(19) Section 15, chapter 24, Laws of 1893 and RCW 60.04.150;

(20) Section 16, chapter 24, Laws of 1893 and RCW 60.04.160;

(21) Section 17, chapter 24, Laws of 1893 and RCW 60.04.170;

(22) Section 13, chapter 24, Laws of 1893, section 12, chapter 279, Laws of 1959 and RCW 60.04.180;

(23) Section 1, chapter 47, Laws of 1973 1st ex. sess., section 1, chapter 202, Laws of 1984 and RCW 60.04.200;

(24) Section 2, chapter 47, Laws of 1973 1st ex. sess., section 10, chapter 34, Laws of 1975, section 2, chapter 202, Laws of 1984 and RCW 60.04.210;

(25) Section 3, chapter 47, Laws of 1973 1st ex. sess. and RCW 60.04.220;

(26) Section 3, chapter 202, Laws of 1984 and RCW 60.04.230;

(27) Section 1, chapter 270, Laws of 1988 and RCW 60.04.250; and

(28) Section 2, chapter 270, Laws of 1988 and RCW 60.04.255.

NEW SECTION. Sec. 31. Sections 1 through 25 of this act are each added to chapter 60.04 RCW.