PROPOSED RULES
LABOR AND INDUSTRIES
Original Notice.
Preproposal statement of inquiry was filed as WSR 01-13-097.
Title of Rule: Contractor certificate of registration renewals -- Security -- Insurance, chapter 296-200A WAC.
Purpose: The purpose of this rule making is to:
• Make changes to these rules in response to the passage of chapter 159, Laws of 2001 (SSB 5101) from the 2001 legislative session.
• Increase fees by 3.20% (rounded down to the nearest tenth of a dollar) based on the fiscal growth factor (maximum allowable rate established by the Office of Financial Management).
• Add a new fee for refund processing services provided by the department.
• Add penalties associated with violations of RCW 18.27.110.
• Increase penalties for violations of the contractor registration laws.
• Make necessary changes to reflect current department practice.
• Incorporate policy into rule.
• Make housekeeping changes.
• Make substantive and clarifying changes based on the requests of stakeholders.
A summary of the proposed changes is as follows:
NEW SECTIONS:
WAC 296-200A-030 How much are the surety bond or savings account amounts?
This section was created in order to establish bonding requirements based on 2001 legislative changes.
WAC 296-200A-065 What procedures must be followed when surety
bonds and/or other securities approved by the department
become impaired?
This section was created in order to:
• Establish the requirements in rule associated with when surety bonds or other securities become impaired.
• Make changes based on the 2001 legislative changes.
• Make changes based on current department practice.
AMENDATORY SECTIONS:
WAC 296-200A-015 What terms do I need to know to understand
this chapter?
This section was amended in order to modify and add new definitions necessary for use with this chapter.
WAC 296-200A-025 How does a contractor register ((or)), renew,
reregister, or reinstate its registration?
This section was amended in order to:
• Change the title to clearly reflect what this section pertains to.
• Make clarification changes associated with the requirements for registration, renewal, reregistration, and reinstatement requirements.
• Require that a policy number be included with the insurance information required to be provided to the department.
• Make changes based on the 2001 legislative changes.
• Require that a copy of the certificate or document (when required) by the Secretary of State for the contractor to do business in the state of Washington be provided to ensure compliance with chapter 18.27 RCW and this chapter.
WAC 296-200A-035 How long is a contractor's registration
period?
This section was amended in order to change the registration period based on 2001 legislative changes.
WAC 296-200A-040 ((How does a contractor's registration become
suspended)) What can cause the suspension of a contractor's
registration?
This section was amended in order to:
• Change the title to clearly reflect what this section pertains to.
• Clarify the actions associated with the suspension of a contractor's registration.
• Make changes based on the 2001 legislative changes.
WAC 296-200A-060 What procedures ((should)) must be followed
when surety bonds and/or insurance policies are canceled?
This section was amended in order to:
• Change the title to clearly reflect what this section pertains to.
• Make clarification changes.
• Make changes based on the 2001 legislative changes.
WAC 296-200A-070 When will the department ((refund)) release a
security deposit?
This section was amended in order to:
• Change the title to clearly reflect what this section pertains to.
• Make clarification changes.
• Make changes based on the 2001 legislative changes.
WAC 296-200A-080 How is a suit filed against a contractor?
This section was amended in order to:
• Make clarification changes.
• Establish provisions relating to assignment of accounts.
• Make changes based on the 2001 legislative changes.
• Add the specific location where the notice that a suit has been filed (summons and/or complaint) must be delivered.
WAC 296-200A-090 How are judgments against contractors paid?
This section was amended in order to:
• Make clarification changes.
• Establish provisions relating to assignment of accounts.
• Make changes based on the 2001 legislative changes.
• Reduce the number of copies that the claimant supplies the department from three to one for the unpaid final court judgment.
WAC 296-200A-111 How does a city, town, or county verify a
contractor's registration?
This section was amended in order to:
• Make clarification changes.
• Identify other means by which a city, town, or county may verify registration.
• Add a note to inform cities, towns, and counties that although the contractor registration card states that the contractor has an active status the contractor may have since been suspended.
WAC 296-200A-112 Who is liable when a city, town, or county
fails to verify a contractor's registration?
This section was amended in order to:
• Increase penalties for violations of this section.
• Correct a reference to RCW 18.27.110(1).
WAC 296-200A-300 What violations of chapter 18.27 RCW can
result in the issuance of a notice of infraction?
This section was amended in order to:
• Make clarification changes.
• Make changes based on the 2001 legislative changes.
WAC 296-200A-305 How does the department notify registered
contractors regarding any unregistered subcontractors they may
employ?
This section was amended in order to:
• Make clarification changes.
• Specify that if, after receiving the "notice of unregistered subcontractor," the general contractor continues to employ the subcontractor in question, it will be liable for an infraction under RCW 18.27.200.
WAC 296-200A-310 What information must be included in a notice
of infraction?
This section was amended in order to:
• Make clarification changes.
• Make changes based on the 2001 legislative changes.
WAC 296-200A-320 ((Who can be issued a notice of infraction))
How can a notice of infraction be served?
This section was amended in order to:
• Change the title to clearly reflect what this section pertains to.
• Make clarification changes.
WAC 296-200A-330 ((If a notice of infraction is served on an
employee, how is the contractor notified)) How are notices of
infraction issued?
This section was amended in order to:
• Change the title to clearly reflect what this section pertains to.
• Make clarification changes.
• Specify that a notice of infraction may be issued personally to the contractor named in the notice by the compliance inspector issuing it or the notice may be sent to the contractor by certified mail.
WAC 296-200A-340 How does a contractor appeal a notice of
infraction?
This section was amended in order to:
• Remove the requirement that two copies of the appeal notice need to be filed.
• Make clarification changes.
• Make changes based on the 2001 legislative changes.
WAC 296-200A-360 Who ((will)) may represent the contractor and
the department at the appeal hearing?
This section was amended in order to:
• Change the title for purposes of clarity.
• Make clarification changes to identify who is allowed to represent the contractor and the department at the appeal hearing.
WAC 296-200A-370 How is the appeal hearing conducted?
This section was amended in order to clarify that all appeals of the administrative law judge's decision shall be to the superior court according to chapter 34.05 RCW.
WAC 296-200A-380 What evidence is admissible in an appeal
hearing?
This section was amended in order to clarify that the admission of evidence is subject to chapter 34.05 RCW, Administrative Procedure Act.
WAC 296-200A-390 What does the department do with the appeal
notices that they receive?
This section was amended in order to specify the process that shall be used for appeal notices.
WAC 296-200A-400 What monetary penalties will be assessed for
an infraction issued for violations of RCW 18.27.100,
18.27.110, 18.27.114 or 18.27.200?
This section was amended in order to:
• Change the title to clearly reflect what this section pertains to.
• Add penalties for violations of RCW 18.27.110.
• Clarify the provisions associated with second or additional violations.
• Make clarification changes.
• Increase the penalties associated with violations of chapter 18.27 RCW and this chapter.
• Specify the process and requirements associated with situations when the director may waive a penalty collection from a contractor in exchange for a payment of restitution to a damaged consumer.
• Make changes based on the 2001 legislative changes.
WAC 296-200A-405 When must a contractor pay assessed monetary
penalties?
This section was amended in order to make clarification changes and to remove the requirement that infractions must be paid by only check or money order.
WAC 296-200A-900 What fees does the department charge
contractors for issuance, renewal, reregistration, and
reinstatement of certificates of registration?
This section was amended in order to:
• Change the title to clearly reflect what this section pertains to.
• Increase fees by 3.20% (rounded down to the nearest tenth of a dollar) based on the fiscal growth factor (maximum allowable rate established by the Office of Financial Management).
• Add a new fee for refund processing services provided by the department.
REPEALED SECTIONS:
WAC 296-200A-500 Is the department required to monitor
unregistered contractors who become registered?
This section was repealed as the requirements associated with this section have expired.
WAC 296-200A-510 Is the department required to report
contractor compliance activities to the legislature?
This section was repealed as the requirements associated
with this section are located in chapter 18.27 RCW.
Statutory Authority for Adoption: RCW 18.27.040, 18.27.070, 18.27.075, 18.27.125 and chapter 159, Laws of 2001 (SSB 5101).
Statute Being Implemented: Chapter 18.27 RCW.
Summary: See Purpose above.
Reasons Supporting Proposal: See Purpose above.
Name of Agency Personnel Responsible for Drafting: Josh Swanson, Tumwater, (360) 902-6411; Implementation and Enforcement: Patrick Woods, Tumwater, (360) 902-6348.
Name of Proponent: Department of Labor and Industries, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose above.
Proposal Changes the Following Existing Rules: See Purpose above.
No small business economic impact statement has been prepared under chapter 19.85 RCW. No small business economic impact statement has been prepared under chapter 19.85 RCW. The department has considered whether these proposed rules are subject to the Regulatory Fairness Act and has determined that they do not require a small business economic impact statement because the costs associated with the proposed rules will not place a more than minor impact on any business or contractor and/or they are exempted by law (see RCW 19.85.025 referencing RCW 34.05.310(4)) from the small business economic impact requirements.
RCW 34.05.328 applies to this rule adoption. Significant rule-making criteria does apply to these rule changes because the exempt criteria outlined in RCW 34.05.328(5) was not met.
Hearing Location: Department of Labor and Industries Building, S 118 and S 119, 7273 Linderson Way S.W., Tumwater, WA, on August 26, 2003, at 1:00 p.m.
Assistance for Persons with Disabilities: Contact Josh Swanson by August 22, 2003, at (360) 902-6411 or swaj235@LNI.wa.gov.
Submit Written Comments to: Josh Swanson, Specialty Compliance Services Division, P.O. Box 44400, Olympia, WA 98504-4400, e-mail swaj235@lni.wa.gov, fax (360) 902-5292, by August 27, 2003. Comments submitted by fax must be ten pages or less.
Date of Intended Adoption: August 28, 2003.
July 22, 2003
Paul Trause
Director
OTS-6463.4
AMENDATORY SECTION(Amending WSR 97-24-071, filed 12/2/97,
effective 1/5/98)
WAC 296-200A-015
What terms do I need to know to
understand this chapter?
For the purposes of this chapter,
the following terms and definitions are important:
"Administrative law judge" is any person appointed by the
chief administrative law judge (as defined in RCW 34.12.020(2)) to preside at a notice of infraction appeal
hearing convened under ((RCW 18.27.100, 18.27.114 or
18.27.200)) chapter 18.27 RCW and this chapter.
"Appeal hearing" is any proceeding in which an administrative law judge is empowered to determine legal rights, duties or privileges of specific parties on behalf of the director.
"Applicant" is any person, firm, corporation or other entity applying to become a registered contractor according to chapter 18.27 RCW and this chapter. Applicant includes all principal officer(s), members, partners of a partnership, firm, corporation, or other entity named on the application.
"Citation" means the same as "infraction."
"Compliance inspector" refers to the departmental staff responsible for investigating potential violations of chapter 18.27 RCW and this chapter.
"Contractor compliance chief" refers to the person
designated by the director to address all policy and technical
issues related to chapter 18.27 RCW and ((chapter 296-200A WAC)) this chapter.
"Department" refers to the department of labor and industries.
"Director" refers to the director of the department of labor and industries or the director's designee acting in the place of the director.
"Final judgment" means any money that is owed to a claimant as a result of court action against a contractor's bond or assigned savings account with the department or any money that is owed the department as a result of a contractor's unsuccessful appeal of an infraction. Final judgment also includes any penalties assessed against the contractor and owed the department as a result of an unappealed infraction or any outstanding fees due under this chapter.
"Infraction" means a violation of ((RCW 18.27.100,
18.27.114 or 18.27.200)) chapter 18.27 RCW and this chapter as
cited by the chief contractor compliance inspector or the
department's construction compliance inspectors.
"Renewal" or "renewed" means the renewal of a contractor's registration before it expires.
"Reinstatement" or "reinstated" means the reinstatement of a contractor's registration after the registration has expired, been suspended, or been revoked.
"Reregistration" or "reregister" means an update to a contractor's registration because of business structure change.
"Secured contractor" is a contractor who has complied
with RCW 18.27.040 by assigning((,)) to the department((,)) a
savings account held in a Washington state bank, ((depositing
cash with the department)) or ((obtaining)) by filing with the
department a surety bond.
"Security" is a savings account held in a Washington
state bank and assigned to the department((, cash deposited
with the department or)) in lieu of a surety bond.
"Unregistered contractor" means a person, firm, ((or))
corporation or other entity working as a contractor without
being registered in compliance with chapter 18.27 RCW and
((chapter 296-200A WAC)) this chapter.
"Unsatisfied final judgment" means a judgment that has not been satisfied either through payment, court approved settlement, discharge in bankruptcy, or assignment under RCW 19.72.070.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-015, filed 12/2/97, effective 1/5/98.]
(a) Completes an application for contractor registration and submits it to the department as required by RCW 18.27.030;
(b) Satisfies one of the following:
(i) Obtains a continuous surety bond in the total amount specified in WAC 296-200A-030 and submits the original bond with bond number to the department (see RCW 18.27.040); or
(ii) Assigns, to the department, a security deposit in
the form of a savings account held in a Washington state((; or
(iii) Deposits cash with the department)) bank as specified in WAC 296-200A-030;
(c) Obtains public liability and property damage insurance and submits the original insurance certificate with policy number to the department (see RCW 18.27.050); and
(d) Pays the issuance/renewal/reregistration/reinstatement fee shown in WAC 296-200A-900.
(2) A contractor may renew its registration if it
submits, to the department, a completed contractor
registration renewal notice and the material required in
subsection (1)(b) and (c) of this section and pays the renewal
fee shown in WAC 296-200A-900. ((At least)) No more than
forty-five days before the contractor's registration expires,
the department must send a renewal notice to the contractor's
last recorded address. It is the responsibility of the
contractor to notify the department in writing of a change in
address.
(3) The contractor must:
(a) Submit all required ((materials)) documents to the
department in ((one package.)) a manner approved by the
department as set forth in subsections (3)(b), (c), (d), and
(4) of this section;
(b) Include, on each ((material, its)) document, the name
exactly as it appears on the contractor registration
application or renewal notice((.));
(c) Include, if renewing a registration, the contractor's
registration number on each of the ((materials)) documents;
and
(d) Include a copy of the certificate or document (when required) by the secretary of state for the contractor to do business in the state of Washington.
(4) The department will not register ((or)), renew, or
reinstate the registration of a contractor if:
(a) Any of the required ((materials)) documents are
missing;
(b) The ((materials)) documents do not ((properly)) have
the proper name of the contractor;
(c) ((The materials,)) In the case of a renewal, the
documents do not include the registration number; or
(d) The applicant ((has been previously registered as a
contractor and)) or person pursuant to RCW 18.27.030 has an
unsatisfied final judgment based on work which is subject to
chapter 18.27 RCW and this chapter.
(5) The contractor may request, in a letter filed with
the application or renewal materials, that the registration
period end on a particular day. However, the registration
period cannot exceed ((one)) two years.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-025, filed 12/2/97, effective 1/5/98.]
(a) Twelve thousand dollars per calendar year for general contractors.
(b) Six thousand dollars per calendar year for specialty contractors.
(2) The surety bond or savings account amounts for applicants of contractors with six or more final judgments involving a residential single-family dwelling on two or more different structures in the previous five years will be based upon (a) and (b) of this subsection. (a) and (b) of this subsection do not apply to final judgments rendered before July 22, 2001.
(a) General contractors.
| Number of Final Judgments |
Bond or Savings Account Amount per Calendar Year | |
| 6 | $18,000.00 | |
| 7 | $24,000.00 | |
| 8 | $30,000.00 | |
| 9 or more | $36,000.00 | |
| Number of Final Judgments |
Bond or Savings Account Amount per Calendar Year | |
| 6 | $ 8,000.00 | |
| 7 | $12,000.00 | |
| 8 | $16,000.00 | |
| 9 or more | $18,000.00 | |
(4) For purposes of this section, final judgment does not include infractions.
[]
(((2) If a contractor's insurance policy will expire in
less than one year after the day the registration begins, the
registration period ends on the day the insurance expires.))
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-035, filed 12/2/97, effective 1/5/98.]
(a) A surety bond or other security ((is)) has an
unsatisfied final judgment against it or becomes otherwise
impaired.
(b) A surety bond is canceled.
(c) An insurance policy is expired, canceled, revoked or the insurer is withdrawn from the insurance policy.
(d) The contractor has an unsatisfied final judgment against it under chapter 18.27 RCW and this chapter.
(e) The department has notice that the contractor is a sole proprietor or a principal or officer of a registered contractor that has an unsatisfied final judgment against it for work within the scope of chapter 18.27 RCW and this chapter.
(f) The department is notified that the contractor has been certified by the department of social and health services as a person who is not in compliance with a support order as provided in RCW 74.20A.320.
(g) The department finds that the contractor has provided false information or has otherwise been registered in error.
(h) The contractor fails to comply with a penalty payment plan agreement.
(i) The contractor has been certified by a leading agency and reported to the department for nonpayment or default on a federally or state-guaranteed educational loan or service conditional scholarship.
(j) The contractor does not maintain a valid unified business identifier number, if required by the department of revenue.
(2) The contractor's registration will be automatically
suspended on the effective date of the impairment or
cancellation. The department must mail a notice of the
suspension to the contractor's address on the certificate of
registration by certified mail and first class mail within
((forty-eight hours)) two days after suspension.
(3) A contractor must not advertise, offer to do work, submit a bid, or perform any work as a contractor while its registration is suspended. To continue to operate as a contractor while its registration is suspended is a violation of chapter 18.27 RCW and subject to infractions.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-040, filed 12/2/97, effective 1/5/98.]
(2) Cancellation notices must contain the following
information ((in the order shown)):
(a) The name of the contractor exactly as it appears in the contractor's registration file;
(b) The contractor's registration number;
(c) The contractor's business address;
(d) The names of the owners, partners, or officers of the contractor;
(e) The bond or insurance policy number; and
(f) The effective date of the bond or insurance policy.
(3) The cancellation of a surety bond or insurance policy
shall be considered effective ((thirty days)) immediately
after the department receives a cancellation notice unless a
later specific date is provided.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-060, filed 12/2/97, effective 1/5/98.]
(2) Once the unsatisfied final judgment has been satisfied, the contractor may reapply according to the requirements of this chapter.
[]
(2) The department will release a security deposit in
less than ((one)) two years after the contractor's last
registration has expired if the contractor provides a surety
bond covering both the previous and current registration
periods.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-070, filed 12/2/97, effective 1/5/98.]
(2) Notice that a suit has been filed (a summons and
complaint) against a contractor, the contractor's bond, and/or
the contractor's deposit must be exclusively delivered to the
department by ((any delivery requiring notice of receipt))
registered or certified mail to: P.O. Box 44450, Olympia,
Washington 98504-4450 or by any delivery requiring notice of
receipt to: 7273 Linderson Way S.W., Tumwater, WA 98501. The
notice must be addressed to the department and must include
three copies of the summons and complaint filed against the
contractor, the contractor's bond and/or the contractor's
deposit. The person filing the suit must pay a twenty-dollar
service fee to the department. ((See RCW 18.27.040(3).))
(3) The summons and complaint against a contractor
((should)) must include the following information:
(a) The name of the contractor exactly as it appears in the contractor's registration file;
(b) The contractor's business address;
(c) The names of the owners, partners or officers of the contractor if known; and
(d) The contractor's registration number.
(4) If the suit joins a bonding company, the summons and complaint should also include:
(a) The name of the bonding company that issued the contractor's bond;
(b) The bond number; and
(c) The effective date of the bond.
(5) If the suit is against a contractor using an assigned account in lieu of a bond, the complaint must also include:
(a) The name of the institution where the assigned account is held;
(b) The account number; and
(c) The date the assigned account was opened.
(6) Service is not considered complete until the department receives the documents in Tumwater with the twenty-dollar fee and three copies of the summons and complaint.
(((6))) (7) Within two days of receiving a summons and
complaint, the department must transmit a copy of the summons
and complaint to the registrant at the address listed on the
registrant's application or at their last known address
provided to the department and to the registrant's surety.
(((7))) (8) The department will return a summons and
complaint without it being served, if the department cannot
readily identify either the contractor or bonding company
being sued, if the action did not arise under chapter 18.27 RCW, or if the fee and three copies of the summons and
complaint are not received.
[Statutory Authority: RCW 43.22.350, 43.22.434, 43.22.480, 43.22.500, 18.27.040, 18.27.070, 18.27.075, 70.87.030, 19.28.041, 19.28.051, 19.28.101, 19.28.121, 19.28.161, 19.28.201, 19.28.211, 19.28.341, 2001 c 7, 2002 c 249, and chapters 19.28, 43.22, 18.27, and 70.87 RCW. 02-12-022, § 296-200A-080, filed 5/28/02, effective 6/28/02. Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-080, filed 12/2/97, effective 1/5/98.]
(2) Payment of a final judgment by bond. If a contractor is bonded, the department can neither pay a final court judgment against a contractor nor force the contractor or its bonding company to pay. Only the claimant can pursue payment from the contractor or its bonding company.
(3) Payment of a final judgment by assignment of account.
(a) If a contractor's security is held by the department
((can)) it must be used to pay a superior court final judgment
against a secured contractor.
(((3))) The department must pay a superior court final
judgment against a secured contractor if the claimant supplies
the department with ((three)) one certified ((copies)) copy of
the unpaid final court judgment. The ((three)) certified
((copies)) copy must be delivered by registered or certified
mail within one year of the date the final judgment was
officially entered into the court record.
(((4))) (b) Assignment of account payments under
subsection (2) of this section will be paid out in the order
the final judgment is received by the department.
(c) For the department to pay a superior court final
judgment, the claimant must include the following information
with the ((copies)) copy of the judgment:
(((a))) (i) The name of the contractor exactly as it
appears on the contractor's registration file;
(((b))) (ii) The contractor's business address;
(((c))) (iii) The names of the owners, partners, or
officers of the contractor;
(((d))) (iv) The contractor's registration number; and
(((e))) (v) The exact amount of the judgment, including
court costs, attorneys' fees and interest.
If the department does not receive enough information to
pay the judgment, it ((must)) will inform the claimant.
(((5) If a contractor is bonded, the department can
neither pay a final court judgment against a contractor nor
force the contractor or its bonding company to pay. Only the
claimant can pursue payment from the contractor or its bonding
company.)) The department shall have no liability for payment
in excess of the amount of the secured account.
(4) Payment of a final judgment by the contractor. The contractor may pay a superior court final judgment in lieu of the department releasing or ordering the release of a bond or the assignment of account funds to satisfy the final judgment. The contractor must provide the department with a "full satisfaction of judgment" from the superior court that the final judgment has been satisfied.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-090, filed 12/2/97, effective 1/5/98.]
(1))) an original contractor registration by receiving
and duplicating a current contractor registration card, by
checking the department's contractor registration ((data
base)) Internet website, checking the computer disk (CD)
circulated by the department, or by calling the department to
confirm that the contractor is registered.
(2) ((A nonoriginal contractor registration by either
accepting a)) The contractor's registration is valid if the
contractor provides a notarized copy of the original
contractor registration card ((if that copy has been attested
to by the person who applied for that original card)) or ((by
accepting)) a facsimile verification from the department.
| Note: | Although the contractor registration card states that the contractor has an active status, the contractor may have since been suspended. |
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-111, filed 12/2/97, effective 1/5/98.]
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-112, filed 12/2/97, effective 1/5/98.]
(a) Using an unregistered name while ((acting))
advertising as a contractor;
(b) Using an unregistered name and address in advertising, correspondence, signs, documents, etc.;
(c) Using a false or expired registration number in advertisements where a contractor's registration number is required;
(d) Using the bond and insurance requirements of chapter 18.27 RCW to advertise as a bonded and insured contractor;
(e) Using a false registration number to either solicit business or pose as a contractor;
(f) Failing to include the contractor's current registration number in all advertising that shows the contractor's name or address. This registration number may be omitted in an alphabetized listing of registered contractors stating only the name, address, and telephone number. See RCW 18.27.100(3).
(2) ((Under RCW 18.27.114,)) For violations of chapter 18.27 RCW, the department may issue penalties for violations
and notices of infractions containing an order of correction
to a person holding a registration, an applicant for
registration, or a person acting in the capacity of a
contractor, who is not otherwise exempted from chapter 18.27 RCW, that has violated chapter 18.27 RCW or this chapter.
Such order shall require the violator to cease the unlawful
advertising.
(3) The department ((can)) may issue a notice of
infraction to a contractor for failing to provide a
residential or commercial customer with a proper disclosure
statement before beginning a repair, alterations or
construction project. See RCW 18.27.114(1) for both the
project dollar cost limits affecting this requirement and a
sample disclosure statement.
This requirement does not apply to either contracts authorized under chapter 39.04 RCW or to contractors contracting with other contractors.
(((3))) (4) Under RCW 18.27.200, the department must
issue a notice of infraction to a contractor for:
(a) Advertising, offering to work, submitting a bid, or
performing any ((contractor)) contracting work without being
registered or when ((it's)) the contractor's registration is
suspended or revoked; or
(b) Transferring a valid contractor registration to an unregistered contractor; or
(c) Allowing an unregistered contractor to work under a registration issued to another contractor.
Each day that a contractor works without being registered, works while the registration is suspended or revoked, or works under a registration issued to another contractor is a separate infraction. A cited contractor who continues to work while unregistered, or while their registration is suspended or revoked, or under a registration issued to another contractor is guilty of a separate misdemeanor for each day worked.
Each worksite at which a contractor works without being registered, works while the registration is suspended or revoked, or works under a registration issued to another contractor is a separate infraction. A cited contractor who continues to work while unregistered, or while their registration is suspended or revoked, or under a registration issued to another contractor is guilty of a separate misdemeanor for each worksite on which a violation occurs.
(((4))) (5) See WAC 296-200A-400 for the specific
monetary penalties associated with each of the violations
discussed in this section.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-300, filed 12/2/97, effective 1/5/98.]
(2) To comply with RCW 18.27.020(3), the department, when
((appropriate)) feasible, will issue a written "notice of
unregistered subcontractors" to a general contractor or its
representative.
(3) A "notice of unregistered subcontractor" issued under this section must be personally served on the general contractor named in the notice by the department's compliance inspectors or must be served by certified mail directed to the general contractor named in the notice.
(4) If the general contractor named in the notice is a firm or corporation, the notice may be personally served on any employee of the firm or corporation. If the notice is personally served upon an employee and the department is able to obtain the general contractor's address, the department must send a copy of the notice by certified mail to the general contractor within four days of service.
(5) A "notice of unregistered subcontractor" is not a notice of infraction.
(6) If, after receiving the "notice of unregistered subcontractor," the general contractor continues to employ the subcontractor in question, it will be liable for an infraction under RCW 18.27.200.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-305, filed 12/2/97, effective 1/5/98.]
(1) Notification that an infraction has been committed and shall be final unless contested;
(2) Notification that an infraction is a noncriminal offense and is not punishable by imprisonment;
(3) The specific violation(s) leading to the issuance of the infraction;
(4) The amount of penalty owed if the infraction is established;
(5) Notification of a right to a hearing (chapter 34.05 RCW) if requested within twenty days of ((receipt)) service of
the infraction;
(6) A reminder that the burden of proof in a hearing rests upon the state;
(7) Notification of a right to subpoena witnesses,
including the inspector ((that)) who issued the infraction;
(8) A reminder that a contractor is legally required to sign a notice of infraction and, by doing so, promises to respond to it;
(9) A reminder that a refusal to sign a notice of infraction is a misdemeanor and may be punishable by fine or imprisonment; and
(10) A reminder that a failure to respond to a notice of infraction is a misdemeanor and may be punishable by a fine or imprisonment.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-310, filed 12/2/97, effective 1/5/98.]
(2) Any employee of a contractor can be ((issued)) served
a notice of infraction at a job site. When the notice is
signed by the employee, it is binding upon the contractor. To
avoid confusion, the department must have the employee sign
the "name of the contractor, by name of the employee." The
signature will appear as:
Jane Doe Construction Co.
(by) Richard Roe, Employee.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-320, filed 12/2/97, effective 1/5/98.]
(2) When the ((department issues)) department's
compliance inspector serves a notice of infraction ((to)) upon
a contractor's employee ((and it knows the contractor's name
and address)), the department ((has)) shall within four days
((to deliver)) send a copy of the notice to the contractor by
certified mail if the department is able to obtain the
contractor's address. To ensure that the contractor receives
this notice, the department ((must)) will mail a second copy
of the infraction by first class mail.
(((2))) (3) If the department does not know the
contractor's name and address, it does not need to mail a copy
of the infraction to the contractor, however, the notice
remains in force.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-330, filed 12/2/97, effective 1/5/98.]
(1) File two copies of an appeal notice, specifying the reasons for the appeal, at the office designated on the notice of infraction; and
(2))) file the notice of appeal ((notice)) with the
department within twenty days ((of)) after the earlier of
service of the infraction on-site or service of the infraction
mailed to the contractor. These time frames apply to the
issuance of the infraction for all violations of chapter 18.27 RCW.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-340, filed 12/2/97, effective 1/5/98.]
(a) An attorney at law qualified to practice in the state of Washington; or
(b) An authorized representative(s) of the contractor.
(2) The department shall be represented by the office of attorney general.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-360, filed 12/2/97, effective 1/5/98.]
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-370, filed 12/2/97, effective 1/5/98.]
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-380, filed 12/2/97, effective 1/5/98.]
(2) Appeal notices that are not received timely will be returned to the appellant with appeal rights stated.
(3) Appeal notices that are received timely and are not reconsidered according to subsection (1) of this section are recorded and forwarded to the office of the attorney general then to the office of administrative hearings.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-390, filed 12/2/97, effective 1/5/98.]
(2) Once a violation of chapter 18.27 RCW or this chapter becomes a final judgment, any additional violation within three years becomes a "second" or "additional" offense subject to an increased penalty as set forth in the tables that follow.
(3) Second or additional offenses subject to increased penalties also include individuals or entities.
(4) A person, firm, corporation, or other entity who violates a provision of chapter 18.27 RCW and this chapter is liable for a civil penalty based upon the following schedule.
(a)(i) Monetary penalties that may be assessed for a violation of RCW 18.27.100 (1), (2), (3), and (4) are:
| (( |
Dollar Amount |
|||
| First Final Violation | $ (( |
* | ||
| Second Final Violation | $ (( |
|||
| Third Final Violation | $ (( |
|||
| Fourth Final Violation | $ (( |
|||
| Fifth Final Violation | $
(( |
|||
| Sixth Final Violation | $
(( |
|||
| Each Additional Final Violation | $
(( |
|||
| * | Minimum penalty per violation. Once a violation of RCW 18.27.100 (1), (2), (3), and (4) becomes a final
judgment, any additional violation is subject to an increased penalty as set forth in the table above (( |
| Monetary Penalties | Dollar Amount | ||
| First Final Violation | $ 1,000.00 | * | |
| Second Final Violation | $ 2,000.00 | ||
| Third Final Violation | $ 4,000.00 | ||
| Fourth Final Violation | $ 8,000.00 | ||
| Each Additional Final Violation | $10,000.00 | ||
| * | Minimum penalty per violation. Once a violation of RCW 18.27.100(5) becomes a final judgment, any additional violation is subject to an increased penalty as set forth in the table above. |
| Monetary Penalties | Dollar Amount | ||
| First Final Violation | $ 1,000.00 | * | |
| Second Final Violation | $ 2,000.00 | ||
| Third Final Violation | $ 4,000.00 | ||
| Each Additional Final Violation | $ 5,000.00 | ||
| * | Minimum penalty per violation. Once a violation of RCW 18.27.100(6) becomes a final judgment, any additional violation is subject to an increased penalty as set forth in the table above. |
| Monetary Penalties | Dollar Amount | ||
| First Final Violation | $ 250.00 | * | |
| Second Final Violation | $ 500.00 | ||
| Third Final Violation | $ 1,000.00 | ||
| Fourth Final Violation | $ 2,000.00 | ||
| Fifth Final Violation | $ 4,000.00 | ||
| Sixth Final Violation | $ 8,000.00 | ||
| Each Additional Final Violation | $10,000.00 | ||
| * | Minimum penalty per violation. Once a violation of RCW 18.27.110 becomes a final judgment, any additional violation is subject to an increased penalty as set forth in the table above. |
| (( |
Dollar Amount |
|||
| First Final Violation | $ (( |
* | ||
| Second Final Violation | $ (( |
|||
| Third Final Violation | $ (( |
|||
| Fourth Final Violation | $ (( |
|||
| (( |
||||
| Each Additional Final Violation | $5,000.00 | |||
| * | Minimum penalty per violation. Once a violation of RCW 18.27.114 becomes a final judgment, any additional
violation is subject to an increased penalty as set forth in the table above (( |
(((a))) (i)
| (( |
Dollar Amount |
|||
| First Final Violation | $ (( |
* | ||
| Second Final Violation | $ (( |
|||
| Third Final Violation | $ (( |
|||
| Fourth Final Violation | $ (( |
|||
| (( |
||||
| Each Additional Final Violation | $ 5,000.00 | |||
| * | Minimum penalty per violation. Once a violation of RCW 18.27.340(1) becomes a final judgment, any
additional violation is subject to an increased penalty as set forth in the table above (( |
| RCW 18.27.340(3) Monetary Penalties | Dollar Amount |
|||
| First Final Violation | $1,000.00 | * | ||
| Second Final Violation | $2,000.00 | |||
| Third Final Violation | $4,000.00 | |||
| Each Additional Final Violation | $5,000.00 | |||
| * | Minimum penalty per violation. Once a violation of RCW 18.27.340(3) becomes a final judgment, any additional violation is subject to an increased penalty as set forth in the above table. However, if the unregistered contractor becomes registered within ten days of receiving the notice of infraction and the notice is the contractor's first offense, the director may reduce the penalty. In no case can the director reduce the penalty below five hundred dollars. |
(5)(a) The department shall deny an application for registration if:
(i) The applicant has been previously performing work subject to this chapter as a sole proprietor, partnership, corporation, or other entity and the department has notice that the applicant has an unsatisfied final judgment against him or her in an action based on this chapter or the applicant owes the department money for penalties assessed or fees due under this chapter as a result of a final judgment;
(ii) The applicant was a principal or officer of a partnership, corporation, or other entity that either has an unsatisfied final judgment against it in an action that was incurred for work performed subject to this chapter or owes the department money for penalties assessed or fees due under this chapter as a result of a final judgment; or
(iii) The applicant does not have a valid unified business identifier number, if required by the department of revenue.
(b) The department shall suspend an active registration if the department has notice that the registrant is a sole proprietor or a principal or officer of a registered contractor that has an unsatisfied final judgment against it for work within the scope of this chapter.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-400, filed 12/2/97, effective 1/5/98.]
(2) After an administrative law judge decides that an
infraction has been committed, a contractor who does not
appeal the decision to a superior court, has thirty days to
pay any outstanding monetary penalties. Failure to do so is a
misdemeanor and ((shall)) may be prosecuted in the county
where the infraction occurred.
(3) A contractor who has exhausted all appeal opportunities and fails to pay an assessed monetary penalty within thirty days after exhausting those opportunities shall be guilty of a misdemeanor and may be prosecuted in the county where the infraction occurred.
[Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-405, filed 12/2/97, effective 1/5/98.]
(a) A contractor's registration is renewed before or after it expires.
(b) A contractor's registration is reinstated after the registration:
(i) Has been suspended because the contractor's insurance has expired or been canceled; or
(ii) Has been suspended because the contractor's bond or assignment of account has been canceled or impaired.
(c) A contractor reregisters when his or her business structure changes.
(2))) The department charges the following fees:
(((a) $100.00)) (1) $103.20 for each issuance, renewal or
reregistration of a certificate of registration for
contractors. This registration is valid for two years from
date of issuance, renewal or reregistration or until it is
suspended or revoked.
(((b) $47.40)) (2) $48.90 for the reinstatement of a
certificate of registration.
(((c) $11.30)) (3) $11.60 for providing a duplicate
certificate of registration.
(((d) $22.70)) (4) $23.40 for each requested certified
letter prepared by the department.
(((e))) (5) $2.00 per copy for documents copied from a
contractor's file. The maximum copy charge for copies from
one contractor's file will be (($26.40)) $27.20.
(((f))) (6) $20.00 is required to cover the costs for the
service of process in an action against ((the)) a contractor,
the contractor's bond, or the deposit under RCW 18.27.040.
(7) $25.00 is required to cover the costs for the service of processing refunds.
[Statutory Authority: RCW 43.22.350, 43.22.434, 43.22.480, 43.22.500, 18.27.040, 18.27.070, 18.27.075, 70.87.030, 19.28.041, 19.28.051, 19.28.101, 19.28.121, 19.28.161, 19.28.201, 19.28.211, 19.28.341, 2001 c 7, 2002 c 249, and chapters 19.28, 43.22, 18.27, and 70.87 RCW. 02-12-022, § 296-200A-900, filed 5/28/02, effective 6/28/02. Statutory Authority: RCW 43.22.350, 43.22.434, 43.22.480, 43.22.500, 18.27.070, 18.27.075, 70.87.030, 19.28.041, 19.28.051, 19.28.101, 19.28.121, 19.28.161, 19.28.201, 19.28.211, 19.28.341, 2001 c 159, and chapters 43.22, 19.28, 18.27, and 70.87 RCW. 01-12-035, § 296-200A-900, filed 5/29/01, effective 6/29/01. Statutory Authority: Chapters 43.22, 18.27, 70.87 and 19.28 RCW. 99-12-080, § 296-200A-900, filed 5/28/99, effective 6/28/99. Statutory Authority: Chapters 18.106, 18.27 and 43.22 RCW. 98-12-041, § 296-200A-900, filed 5/29/98, effective 6/30/98. Statutory Authority: Chapter 18.27 RCW. 97-24-071, § 296-200A-900, filed 12/2/97, effective 1/5/98.]
The following sections of the Washington Administrative Code are repealed:
| WAC 296-200A-500 | Is the department required to monitor unregistered contractors who become registered? |
| WAC 296-200A-510 | Is the department required to report contractor compliance activities to the legislature? |