AN
ACT Relating to registration of contractors; amending RCW 18.27.010, 18.27.020,
18.27.030, 18.27.040, 18.27.060, 18.27.070, 18.27.090, 18.27.100, 18.27.104,
18.27.110, 18.27.114, 18.27.117, 18.27.200, 18.27.230, 18.27.270, and
18.27.340; reenacting and amending RCW 51.12.020; adding new sections to
chapter 18.27 RCW; and prescribing penalties.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 18.27 RCW to read as follows:
This
chapter shall be strictly enforced. Therefore, the doctrine of substantial
compliance shall not be used by the department in the application and
construction of this chapter. Anyone engaged in the activities of a contractor
is presumed to know the requirements of this chapter.
Sec.
2. RCW
18.27.010 and 1993 c 454 s 2 are each amended to read as follows:
Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter.
(1)
"Contractor" means any person, firm, or corporation who or
which, in the pursuit of an independent business undertakes to, or offers to
undertake, or submits a bid to, construct, alter, repair, add to, subtract
from, improve, move, wreck or demolish, for another, any building, highway,
road, railroad, excavation or other structure, project, development, or
improvement attached to real estate or to do any part thereof including the
installation of carpeting or other floor covering, the erection of scaffolding
or other structures or works in connection therewith or who installs or repairs
roofing or siding; or, who, to do similar work upon his or her own
property, employs members of more than one trade upon a single job or project
or under a single building permit except as otherwise provided herein. "Contractor"
includes any person, firm, or corporation covered by this subsection, whether
or not registered as required under this chapter.
(2)
"General contractor" means a contractor whose business operations
require the use of more than two unrelated building trades or crafts whose work
the contractor shall superintend or do in whole or in part. "General
contractor" shall not include an individual who does all work personally
without employees or other "specialty contractors" as defined ((herein))
in this section. The terms "general contractor" and
"builder" are synonymous.
(3)
"Specialty contractor" means a contractor whose operations ((as
such)) do not fall within the foregoing definition of "general
contractor".
(4)
"Unregistered contractor" means a person, firm, or corporation
doing work as a contractor without being registered in compliance with this
chapter. "Unregistered contractor" includes contractors whose
registration is expired for more than thirty days beyond the renewal date or
has been suspended.
(5)
"Department" means the department of labor and industries.
(((5)))
(6) "Director" means the director of the department of labor
and industries.
(((6)))
(7) "Verification" means the receipt and duplication by the
city, town, or county of a contractor registration card that is current on its
face, checking the department's contractor registration data base, or
calling the department to confirm that the contractor is registered.
Sec.
3. RCW
18.27.020 and 1993 c 454 s 6 are each amended to read as follows:
(1)
Every contractor shall register with the department.
(2)
It is a misdemeanor for any contractor to:
(a)
Advertise, offer to do work, submit a bid, or perform any work as a contractor
without being registered as required by this chapter;
(b)
Advertise, offer to do work, submit a bid, or perform any work as a contractor
when the contractor's registration is suspended or revoked;
(c)
Use a false or expired registration number in purchasing or offering to
purchase an advertisement for which a contractor registration number is
required; or
(d)
Transfer a valid registration to an unregistered contractor or allow an
unregistered contractor to work under a registration issued to another
contractor.
(3)
It is not unlawful for a general contractor to employ an unregistered
contractor who was registered at the time he or she entered into a contract
with the general contractor, unless the general contractor or his or her
representative has been notified in writing by the department of labor and
industries that the contractor has become unregistered.
(4)
All misdemeanor actions under this chapter shall be prosecuted in the county
where the infraction occurs.
(5)
A person is guilty of a separate misdemeanor for each day worked if, after the
person receives a citation from the department, the person works while
unregistered, or while his or her registration is suspended or revoked, or
works under a registration issued to another contractor. A person is guilty of
a separate misdemeanor for each worksite on which he or she violates subsection
(2) of this section. Nothing in this subsection applies to a registered
contractor.
(6)
The director by rule shall establish a two-year audit and monitoring program
for a contractor not registered under this chapter who becomes registered after
receiving an infraction or conviction under this chapter as an unregistered
contractor. The director shall notify the departments of revenue and
employment security of the infractions or convictions and shall cooperate with
these departments to determine whether any taxes or registration, license, or
other fees or penalties are owed the state.
Sec.
4. RCW
18.27.030 and 1996 c 147 s 1 are each amended to read as follows:
(1)
An applicant for registration as a contractor shall submit an application under
oath upon a form to be prescribed by the director and which shall include the
following information pertaining to the applicant:
(a)
Employer social security number.
(b)
As applicable: (i) The industrial insurance account number covering employees
domiciled in Washington; and (ii) evidence of workers' compensation coverage in
the applicant's state of domicile for the applicant's employees working in
Washington who are not domiciled in Washington.
(c)
Employment security department number.
(d)
State excise tax registration number.
(e)
Unified business identifier (UBI) account number may be substituted for the
information required by (b), (c), and (d) of this subsection.
(f)
Type of contracting activity, whether a general or a specialty contractor and
if the latter, the type of specialty.
(g)
The name and address of each partner if the applicant be a firm or partnership,
or the name and address of the owner if the applicant be an individual
proprietorship, or the name and address of the corporate officers and statutory
agent, if any, if the applicant be a corporation. The information contained in
such application shall be a matter of public record and open to public
inspection.
(2)
The department may verify the workers' compensation coverage information
provided by the applicant under subsection (1)(b) of this section, including
but not limited to information regarding the coverage of an individual employee
of the applicant. If coverage is provided under the laws of another state, the
department may notify the other state that the applicant is employing employees
in Washington.
(3)
The department shall deny an application for registration ((shall be
denied)) if the applicant has been previously registered as a sole
proprietor, partnership, or corporation((, and was a principal or officer of
the corporation,)) and ((if)) the applicant has an unsatisfied final
judgment against him or her in an action based on this chapter that was
incurred during a previous registration under this chapter.
Sec.
5. RCW
18.27.040 and 1988 c 139 s 1 are each amended to read as follows:
(1)
Each applicant shall((, at the time of applying for or renewing a
certificate of registration,)) file with the department a surety bond
issued by a surety insurer who meets the requirements of chapter 48.28 RCW in
((a form acceptable to the department running to the state of Washington if
a general contractor, in the sum of six thousand dollars; if a specialty
contractor, in the sum of four thousand dollars,)) the sum of six
thousand dollars if the applicant is a general contractor and four thousand
dollars if the applicant is a specialty contractor. If no valid bond is
already on file with the department at the time the application is filed, a
bond must accompany the registration application. The bond shall have the
state of Washington named as obligee with good and sufficient surety in a form
to be approved by the department. The bond shall be continuous and may be
canceled by the surety upon the surety giving written notice to the director of
its intent to cancel the bond. A cancellation or revocation of the bond or
withdrawal of the surety from the bond suspends the registration issued to the
registrant until a new bond or reinstatement notice has been filed and approved
as provided in this section. The bond shall be conditioned that the
applicant will pay all persons performing labor, including employee benefits,
for the contractor, will pay all taxes and contributions due to the state of
Washington, and will pay all persons furnishing labor or material or renting or
supplying equipment to the contractor and will pay all amounts that may be
adjudged against the contractor by reason of ((negligent or improper work or))
breach of contract including negligent or improper work in the conduct
of the contracting business. A change in the name of a business or a change in
the type of business entity shall not impair a bond for the purposes of this
section so long as one of the original applicants for such bond maintains
partial ownership in the business covered by the bond.
(2)
Any contractor registered as of ((the effective date of this 1983 act)) July
1, 1997, who maintains such registration in accordance with this chapter
shall be in compliance with this chapter until the next annual renewal of the
contractor's certificate of registration. At that time, the contractor shall
provide a bond, cash deposit, or other security deposit as required by this
chapter and comply with all of the other provisions of this chapter before the
department shall renew the contractor's certificate of registration.
(3)
Any person, firm, or corporation having a claim against the contractor for any
of the items referred to in this section may bring suit upon ((such)) the
bond or deposit in the superior court of the county in which the work was done
or of any county in which jurisdiction of the contractor may be had. The
surety issuing the bond shall be named as a party to any suit upon the bond.
Action upon ((such)) the bond or deposit shall be commenced by
filing the summons and complaint with the clerk of the appropriate superior
court within one year from the date of expiration of the certificate of
registration in force at the time the claimed labor was performed and benefits
accrued, taxes and contributions owing the state of Washington became due,
materials and equipment were furnished, or the claimed contract work was
completed or abandoned. Service of process in an action against the
contractor, the contractor's bond, or the deposit shall be exclusively by service
upon the department. Three copies of the summons and complaint and a fee of
ten dollars to cover the handling costs shall be served by registered or
certified mail upon the department at the time suit is started and the
department shall maintain a record, available for public inspection, of all
suits so commenced. Service is not complete until the department receives the
ten-dollar fee and three copies of the summons and complaint. ((Such)) The
service shall constitute service on the registrant and the surety for suit upon
the bond or deposit and the department shall transmit the summons and complaint
or a copy thereof to the registrant at the address listed in ((his)) the
registrant's application and to the surety within forty-eight hours after
it shall have been received.
(4)
The surety upon the bond shall not be liable in an aggregate amount in excess
of the amount named in the bond nor for any monetary penalty assessed pursuant
to this chapter for an infraction. The liability of the surety shall not
cumulate where the bond has been renewed, continued, reinstated, reissued or
otherwise extended. The surety upon the bond may, upon notice to the
department and the parties, tender to the clerk of the court having
jurisdiction of the action an amount equal to the claims thereunder or the
amount of the bond less the amount of judgments, if any, previously satisfied
therefrom and to the extent of such tender the surety upon the bond shall be
exonerated but if the actions commenced and pending at any one time exceed the
amount of the bond then unimpaired, claims shall be satisfied from the bond in
the following order:
(a)
Employee labor and claims of laborers, including employee
benefits;
(b)
Claims for breach of contract by a party to the construction contract;
(c)
Subcontractors, material, and equipment;
(d)
Taxes and contributions due the state of Washington;
(e)
Any court costs, interest, and attorney's fees plaintiff may be entitled to
recover. The surety is not liable for any amount in excess of the penal
limit of its bond.
A
payment made by the surety in good faith exonerates the bond to the extent of
any payment made by the surety.
(5)
((In the event that any)) If a final judgment ((shall))
impairs the liability of the surety upon the bond so furnished that
there shall not be in effect a bond undertaking in the full amount prescribed
in this section, the department shall suspend the registration of ((such))
the contractor until the bond liability in the required amount
unimpaired by unsatisfied judgment claims ((shall have been)) is
furnished. If ((such)) the bond becomes fully impaired, a new
bond must be furnished at the ((increased)) rates prescribed by this
section ((as now or hereafter amended)).
(6)
In lieu of the surety bond required by this section the contractor may file
with the department a deposit consisting of cash or other security acceptable
to the department.
(7)
Any person having filed and served a summons and complaint as required by this
section having an unsatisfied final judgment against the registrant for any
items referred to in this section may execute upon the security held by the
department by serving a certified copy of the unsatisfied final judgment by
registered or certified mail upon the department within one year of the date of
entry of such judgment. Upon the receipt of service of such certified copy the
department shall pay or order paid from the deposit, through the registry of
the superior court which rendered judgment, towards the amount of the
unsatisfied judgment. The priority of payment by the department shall be the
order of receipt by the department, but the department shall have no liability
for payment in excess of the amount of the deposit.
(8)
The director may ((promulgate)) adopt rules necessary for the
proper administration of the security.
Sec.
6. RCW
18.27.060 and 1983 1st ex.s. c 2 s 19 are each amended to read as follows:
(1)
A certificate of registration shall be valid for one year and shall be renewed
on or before the expiration date. The department shall issue to the applicant
a certificate of registration upon compliance with the registration
requirements of this chapter.
(2)
If the department approves an application, it shall issue a certificate of
registration to the applicant. The certificate shall be valid for:
(a)
One year;
(b)
Until the bond expires; or
(c)
Until the insurance expires, whichever comes first. The department shall place
the expiration date on the certificate.
(3)
A contractor may supply a short-term bond or insurance policy to bring its
registration period to the full one year.
(4)
If a contractor's surety bond or other security has an unsatisfied judgment
against it or is canceled, or if the contractor's insurance policy is canceled,
the contractor's registration shall be automatically suspended on the effective
date of the impairment or cancellation. The department shall ((give)) mail
notice of the suspension to the ((contractor)) contractor's address
on the certificate of registration by certified and by first class mail within
forty-eight hours after suspension.
(5)
Renewal of registration is valid on the date the department receives the
required fee and proof of bond and liability insurance, if sent by certified
mail or other means requiring proof of delivery. The receipt or proof of
delivery shall serve as the contractor's proof of renewed registration until he
or she receives verification from the department.
Sec.
7. RCW
18.27.070 and 1983 c 74 s 1 are each amended to read as follows:
The
department shall charge fees for issuance, renewal, and reinstatement of
certificates of registration; and changes of name, address, or business
structure. The department shall set the fees by rule.
The
((fees shall)) entire amount of the fees are to be used solely to
cover the full cost of issuing certificates, filing papers and notices, and
administering and enforcing this chapter. The costs shall include
reproduction, travel, per diem, and administrative and legal support costs.
Sec.
8. RCW
18.27.090 and 1987 c 313 s 1 are each amended to read as follows:
This
chapter ((shall)) does not apply to:
(1)
An authorized representative of the United States government, the state of
Washington, or any incorporated city, town, county, township, irrigation
district, reclamation district, or other municipal or political corporation or
subdivision of this state;
(2)
Officers of a court when they are acting within the scope of their office;
(3)
Public utilities operating under the regulations of the utilities and
transportation commission in construction, maintenance, or development work
incidental to their own business;
(4)
Any construction, repair, or operation incidental to the discovering or
producing of petroleum or gas, or the drilling, testing, abandoning, or other
operation of any petroleum or gas well or any surface or underground mine or
mineral deposit when performed by an owner or lessee;
(5)
The sale or installation of any finished products, materials, or articles of
merchandise which are not actually fabricated into and do not become a
permanent fixed part of a structure;
(6)
Any construction, alteration, improvement, or repair of personal property,
except this chapter shall apply to all mobile/manufactured housing. A
mobile/manufactured home may be installed, set up, or repaired by the
registered or legal owner, by a contractor ((licensed)) registered
under this chapter, or by a mobile/manufactured home retail dealer or
manufacturer licensed under chapter 46.70 RCW who shall warranty service and
repairs under chapter 46.70 RCW;
(7)
Any construction, alteration, improvement, or repair carried on within the limits
and boundaries of any site or reservation under the legal jurisdiction of the
federal government;
(8)
Any person who only furnished materials, supplies, or equipment without
fabricating them into, or consuming them in the performance of, the work of the
contractor;
(9)
Any work or operation on one undertaking or project by one or more contracts,
the aggregate contract price of which for labor and materials and all other
items is less than five hundred dollars, such work or operations being
considered as of a casual, minor, or inconsequential nature. The exemption
prescribed in this subsection does not apply in any instance wherein the work
or construction is only a part of a larger or major operation, whether
undertaken by the same or a different contractor, or in which a division of the
operation is made into contracts of amounts less than five hundred dollars for
the purpose of evasion of this chapter or otherwise. The exemption prescribed
in this subsection does not apply to a person who advertises or puts out any
sign or card or other device which might indicate to the public that he or
she is a contractor, or that he or she is qualified to engage in the
business of contractor;
(10)
Any construction or operation incidental to the construction and repair of
irrigation and drainage ditches of regularly constituted irrigation districts
or reclamation districts; or to farming, dairying, agriculture, viticulture,
horticulture, or stock or poultry raising; or to clearing or other work upon
land in rural districts for fire prevention purposes; except when any of the
above work is performed by a registered contractor;
(11)
An owner who contracts for a project with a registered contractor;
(12)
Any person working on his or her own property, whether occupied by him or
her or not, and any person working on his or her personal residence,
whether owned by him or her or not but this exemption shall not apply to
any person otherwise covered by this chapter who constructs an improvement on
his or her own property with the intention and for the purpose of
selling the improved property;
(13)
Owners of commercial properties who use their own employees to do maintenance,
repair, and alteration work in or upon their own properties;
(14)
A licensed architect or civil or professional engineer acting solely in his or
her professional capacity, an electrician licensed under the laws of the
state of Washington, or a plumber licensed under the laws of the state of
Washington or licensed by a political subdivision of the state of Washington
while operating within the boundaries of such political subdivision. The
exemption provided in this subsection is applicable only when the licensee is
operating within the scope of his or her license;
(15)
Any person who engages in the activities herein regulated as an employee of a
registered contractor with wages as his or her sole compensation or as
an employee with wages as his or her sole compensation;
(16)
Contractors on highway projects who have been prequalified as required by ((chapter
13 of the Laws of 1961,)) RCW 47.28.070, with the department of
transportation to perform highway construction, reconstruction, or maintenance
work.
Sec.
9. RCW
18.27.100 and 1996 c 147 s 2 are each amended to read as follows:
(1)
Except as provided in RCW 18.27.065 for partnerships and joint ventures, no
person who has registered under one name as provided in this chapter shall
engage in the business, or act in the capacity, of a contractor under any other
name unless such name also is registered under this chapter.
(2)
All advertising and all contracts, correspondence, cards, signs, posters,
papers, and documents which show a contractor's name or address shall show the
contractor's name or address as registered under this chapter.
(3)(a)
All advertising that shows the contractor's name or address shall show the
contractor's current registration number. The registration number may be
omitted in an alphabetized listing of registered contractors stating only the
name, address, and telephone number: PROVIDED, That signs on motor vehicles
subject to RCW 46.16.010 and on-premise signs shall not constitute advertising
as provided in this section. All materials used to directly solicit business
from retail customers who are not businesses shall show the contractor's
current registration number. A contractor shall not use a false or expired
registration number in purchasing or offering to purchase an advertisement for
which a contractor registration number is required. Advertising by airwave
transmission shall not be subject to this subsection ((if the person selling
the advertisement obtains the contractor's current registration number from the
contractor)) (3)(a).
(b)
The director may issue a subpoena to any person or entity selling any
advertising subject to this section for the name, address, and telephone number
provided to the seller of the advertising by the purchaser of the advertising.
The subpoena must have enclosed a stamped, self-addressed envelope and blank
form to be filled out by the seller of the advertising. If the seller of the
advertising has the information on file, the seller shall, within a reasonable
time, return the completed form to the department. The subpoena must be issued
before forty-eight hours after the expiration of the issue or publication
containing the advertising or after the broadcast of the advertising. The
good-faith compliance by a seller of advertising with a written request of the
department for information concerning the purchaser of advertising shall
constitute a complete defense to any civil or criminal action brought against
the seller of advertising arising from such compliance. Advertising by airwave
or electronic transmission is subject to this subsection (3)(b).
(4)
No contractor shall advertise that he or she is bonded and insured because of
the bond required to be filed and sufficiency of insurance as provided in this
chapter.
(5)
A contractor shall not falsify a registration number and use it, or use an expired
registration number, in connection with any solicitation or identification
as a contractor. All individual contractors and all partners, associates,
agents, salesmen, solicitors, officers, and employees of contractors shall use
their true names and addresses at all times while engaged in the business or
capacity of a contractor or activities related thereto.
(6)
Any advertising by a person, firm, or corporation soliciting work as a
contractor when that person, firm, or corporation is not registered pursuant to
this chapter is a violation of this chapter.
(7)(a)
The finding of a violation of this section by the director at a hearing held in
accordance with the Administrative Procedure Act, chapter 34.05 RCW, shall
subject the person committing the violation to a penalty of not more than five
thousand dollars as determined by the director.
(b)
Penalties under this section shall not apply to a violation determined to be an
inadvertent error.
Sec.
10. RCW
18.27.104 and 1989 c 175 s 61 are each amended to read as follows:
(1)
If, upon investigation, the director or the director's designee has probable
cause to believe that a person holding a registration, an applicant for
registration, or ((an unregistered)) a person acting in the
capacity of a contractor who is not otherwise exempted from this chapter, has
violated RCW 18.27.100 by unlawfully advertising for work covered by this
chapter ((in an alphabetical or classified directory)), the department
may issue a citation containing an order of correction. Such order shall
require the violator to cease the unlawful advertising.
(2)
If the person to whom a citation is issued under subsection (1) of this section
notifies the department in writing that he or she contests the citation, the
department shall afford an opportunity for an adjudicative proceeding under
chapter 34.05 RCW((, the Administrative Procedure Act,)) within thirty
days after receiving the notification.
Sec.
11. RCW
18.27.110 and 1993 c 454 s 5 are each amended to read as follows:
(1)
No city, town or county shall issue a construction building permit for work
which is to be done by any contractor required to be registered under this
chapter without verification that such contractor is currently registered as
required by law. When such verification is made, nothing contained in this
section is intended to be, nor shall be construed to create, or form the basis
for any liability under this chapter on the part of any city, town or county,
or its officers, employees or agents. However, failure to verify the
contractor registration number results in liability to the city, town, or
county to a penalty to be imposed according to RCW 18.27.100(((6))) (7)(a).
(2)
At the time of issuing the building permit, all cities, towns, or counties are
responsible for:
(a)
Printing the contractor registration number on the building permit; and
(b)
Providing a written notice to the building permit applicant informing them of
contractor registration laws and the potential risk and monetary liability to
the homeowner for using an unregistered contractor.
(3)
If a building permit is obtained by an applicant or contractor who falsifies
information to obtain an exemption provided under RCW 18.27.090, the building
permit shall be forfeited.
Sec.
12. RCW
18.27.114 and 1988 c 182 s 1 are each amended to read as follows:
(1)
((Until July 1, 1989, any contractor agreeing to perform any contracting
project: (a) For the repair, alteration, or construction of four or fewer
residential units or accessory structures on such residential property when the
bid or contract price totals one thousand dollars or more; or (b) for the
repair, alteration, or construction of a commercial building when the bid or
contract price totals one thousand dollars or more but less than sixty thousand
dollars, must provide the customer with the following disclosure statement
prior to starting work on the project:
"NOTICE TO CUSTOMER
This contractor is registered with the state of
Washington, registration no. . . . ., as a general/specialty
contractor and has posted with the state a bond or cash deposit of
$6,000/$4,000 for the purpose of satisfying claims against the contractor for
negligent or improper work or breach of contract in the conduct of the
contractor's business. This bond or cash deposit may not be sufficient to
cover a claim which might arise from the work done under your contract. If any
supplier of materials used in your construction project or any employee of
the contractor or subcontractor is not paid by the contractor or
subcontractor on your job, your property may be liened to force payment. If you
wish additional protection, you may request the contractor to provide you with
original "lien release" documents from each supplier or subcontractor
on your project. The contractor is required to provide you with further
information about lien release documents if you request it. General
information is also available from the department of labor and
industries."
(2)
On and after July 1, 1989,)) Any contractor
agreeing to perform any contracting project: (a) For the repair, alteration,
or construction of four or fewer residential units or accessory structures on
such residential property when the bid or contract price totals one thousand
dollars or more; or (b) for the repair, alteration, or construction of a
commercial building when the bid or contract price totals one thousand dollars
or more but less than sixty thousand dollars, must provide the customer with
the following disclosure statement prior to starting work on the project:
"NOTICE TO CUSTOMER
This contractor is registered with the state of
Washington, registration no. . . . ., as a general/specialty
contractor and has posted with the state a bond or cash deposit of
$6,000/$4,000 for the purpose of satisfying claims against the contractor for
negligent or improper work or breach of contract in the conduct of the
contractor's business. The expiration date of this contractor's registration
is . . . . . . This bond or cash deposit may not be
sufficient to cover a claim which might arise from the work done under your
contract. If any supplier of materials used in your construction project or
any employee of the contractor or subcontractor is not paid by the contractor
or subcontractor on your job, your property may be liened to force payment. If
you wish additional protection, you may request the contractor to provide you
with original "lien release" documents from each supplier or
subcontractor on your project. The contractor is required to provide you with
further information about lien release documents if you request it. General
information is also available from the department of labor and industries."
(((3)
On and after July 1, 1989,)) (2) A contractor subject to this
section shall notify any consumer to whom notice is required under subsection
(((2))) (1) of this section if the contractor's registration has
expired or is revoked or suspended by the department prior to completion or
other termination of the contract with the consumer.
(((4)))
(3) No contractor subject to this section may bring or maintain any lien
claim under chapter 60.04 RCW based on any contract to which this section
applies without alleging and proving that the contractor has provided the
customer with a copy of the disclosure statement as required in subsection (1)
((or (2))) of this section.
(((5)))
(4) This section does not apply to contracts authorized under chapter
39.04 RCW or to contractors contracting with other contractors.
(((6)))
(5) Failure to comply with this section shall constitute an infraction
under the provisions of this chapter.
(((7)))
(6) The department shall produce model disclosure statements, and public
service announcements detailing the information needed to assist contractors
and contractors' customers to comply under this section. As necessary, the
department shall periodically update these education materials.
Sec.
13. RCW
18.27.117 and 1987 c 313 s 2 are each amended to read as follows:
The
legislature finds that setting up and siting mobile/manufactured homes must be
done properly for the health, safety, and enjoyment of the occupants.
Therefore, when any of the following cause a health and safety risk to the
occupants of a mobile/manufactured home, or severely hinder the use and
enjoyment of the mobile/manufactured home, a violation of RCW 19.86.020 shall
have occurred:
(1)
The mobile/manufactured home has been improperly installed by a contractor ((licensed))
registered under chapter 18.27 RCW, or a mobile/manufactured dealer or
manufacturer licensed under chapter 46.70 RCW;
(2)
A warranty given under chapter 18.27 RCW or chapter 46.70 RCW has not been
fulfilled by the person or business giving the warranty; and
(3)
A bonding company that issues a bond under chapter 18.27 RCW or chapter 46.70
RCW does not reasonably and professionally investigate and resolve claims made
by injured parties.
Sec.
14. RCW
18.27.200 and 1993 c 454 s 7 are each amended to read as follows:
(1)
It is a violation of this chapter and an infraction for any contractor to:
(a)
Advertise, offer to do work, submit a bid, or perform any work as a contractor
without being registered as required by this chapter;
(b)
Advertise, offer to do work, submit a bid, or perform any work as a contractor
when the contractor's registration is suspended or revoked; or
(c)
Transfer a valid registration to an unregistered contractor or allow an
unregistered contractor to work under a registration issued to another
contractor.
(2)
Each day that a contractor works without being registered as required by this
chapter, works while the contractor's registration is suspended or revoked,
or works under a registration issued to another contractor is a separate
infraction. Each worksite at which a contractor works without being registered
as required by this chapter, works while the contractor's registration is
suspended or revoked, or works under a registration issued to another
contractor is a separate infraction.
Sec.
15. RCW
18.27.230 and 1993 c 454 s 9 are each amended to read as follows:
The
department may issue a notice of infraction if the department reasonably
believes that the contractor ((required to be registered by this chapter has
failed to do so or)) has ((otherwise)) committed ((a violation
under RCW 18.27.200)) an infraction under this chapter. A notice of
infraction issued under this section shall be personally served on the
contractor named in the notice by the department's compliance inspectors or
service can be made by certified mail directed to the contractor named in the
notice of infraction. If the contractor named in the notice of infraction is a
firm or corporation, the notice may be personally served on any employee of the
firm or corporation. If a notice of infraction is personally served upon an
employee of a firm or corporation, the department shall within four days of
service send a copy of the notice by certified mail to the contractor if the
department is able to obtain the contractor's address.
Sec.
16. RCW
18.27.270 and 1986 c 197 s 6 are each amended to read as follows:
(1)
A contractor who is issued a notice of infraction shall respond within twenty
days of the date of issuance of the notice of infraction.
(2)
If the contractor named in the notice of infraction does not elect to contest
the notice of infraction, then the contractor shall pay to the department, by
check or money order, the amount of the penalty prescribed for the infraction.
When a response which does not contest the notice of infraction is received by
the department with the appropriate penalty, the department shall make the
appropriate entry in its records.
(3)
If the contractor named in the notice of infraction elects to contest the
notice of infraction, the contractor shall respond by filing an answer of
protest with the department specifying the grounds of protest.
(4)
If any contractor issued a notice of infraction fails to respond within the
prescribed response period, the contractor shall be guilty of a misdemeanor and
prosecuted in the county where the infraction occurred.
(5)
After final determination by an administrative law judge that an infraction has
been committed, a contractor who fails to pay a monetary penalty within thirty
days, that is not waived, reduced, or suspended pursuant to RCW 18.27.340(2),
and who fails to file an appeal pursuant to RCW 18.27.310(4), shall be guilty
of a misdemeanor and be prosecuted in the county where the infraction occurred.
(6)
A contractor who fails to pay a monetary penalty within thirty days after
exhausting appellate remedies pursuant to RCW 18.27.310(4), shall be guilty of
a misdemeanor and be prosecuted in the county where the infraction occurred.
(7)
If a contractor who is issued a notice of infraction is a contractor who has
failed to register as a contractor under this chapter, the contractor is subject
to a monetary penalty per infraction as provided in the schedule of penalties
established by the department, and each day the person works without becoming
registered is a separate infraction.
Sec.
17. RCW
18.27.340 and 1986 c 197 s 10 are each amended to read as follows:
(1)
Except as otherwise provided in subsection (3) of this section, a
contractor found to have committed an infraction under RCW 18.27.200 shall be
assessed a monetary penalty of not less than two hundred dollars and not more
than ((three)) five thousand dollars.
(2)
((The administrative law judge may waive, reduce, or suspend the monetary
penalty imposed for the infraction only upon a showing of good cause that the
penalty would be unduly burdensome to the contractor.)) The director
may waive collection in favor of payment of restitution to a consumer
complainant.
(3)
A contractor found to have committed an infraction under RCW 18.27.200 for
failure to register shall be assessed a fine of not less than one thousand
dollars, nor more than five thousand dollars. The director may reduce the
penalty for failure to register, but in no case below five hundred dollars, if
the person becomes registered within ten days of receiving a notice of
infraction and the notice of infraction is for a first offense.
(4)
Monetary penalties collected under this chapter shall be deposited in the
general fund.
Sec.
18. RCW
51.12.020 and 1991 c 324 s 18 and 1991 c 246 s 4 are each reenacted and amended
to read as follows:
The
following are the only employments which shall not be included within the
mandatory coverage of this title:
(1)
Any person employed as a domestic servant in a private home by an employer who
has less than two employees regularly employed forty or more hours a week in
such employment.
(2)
Any person employed to do gardening, maintenance, or repair, ((remodeling,
or similar work)) in or about the private home of the employer. For the
purposes of this subsection, "maintenance" means the work of keeping
in proper condition, "repair" means to restore to sound condition
after damage, and "private home" means a person's place of residence.
(3)
A person whose employment is not in the course of the trade, business, or
profession of his or her employer and is not in or about the private home of
the employer.
(4)
Any person performing services in return for aid or sustenance only, received
from any religious or charitable organization.
(5)
Sole proprietors or partners.
(6)
Any child under eighteen years of age employed by his or her parent or parents
in agricultural activities on the family farm.
(7)
Jockeys while participating in or preparing horses for race meets licensed by
the Washington horse racing commission pursuant to chapter 67.16 RCW.
(8)(a)
Except as otherwise provided in (b) of this subsection, any bona fide officer
of a corporation voluntarily elected or voluntarily appointed in accordance with
the articles of incorporation or bylaws of the corporation, who at all times
during the period involved is also a bona fide director, and who is also a
shareholder of the corporation. Only such officers who exercise substantial
control in the daily management of the corporation and whose primary
responsibilities do not include the performance of manual labor are included
within this subsection.
(b)
Alternatively, a corporation that is not a "public company" as
defined in RCW 23B.01.400(((19))) (20) may exempt eight or fewer
bona fide officers, who are voluntarily elected or voluntarily appointed in
accordance with the articles of incorporation or bylaws of the corporation and
who exercise substantial control in the daily management of the corporation,
from coverage under this title without regard to the officers' performance of
manual labor if the exempted officer is a shareholder of the corporation, or
may exempt any number of officers if all the exempted officers are related by
blood within the third degree or marriage. If a corporation that is not a
"public company" elects to be covered under subsection (8)(a) of this
section, the corporation's election must be made on a form prescribed by the
department and under such reasonable rules as the department may adopt.
(c)
Determinations respecting the status of persons performing services for a
corporation shall be made, in part, by reference to Title 23B RCW and to
compliance by the corporation with its own articles of incorporation and
bylaws. For the purpose of determining coverage under this title, substance
shall control over form, and mandatory coverage under this title shall extend
to all workers of this state, regardless of honorary titles conferred upon
those actually serving as workers.
(d)
A corporation may elect to cover officers who are exempted by this subsection
in the manner provided by RCW 51.12.110.
(9)
Services rendered by a musician or entertainer under a contract with a
purchaser of the services, for a specific engagement or engagements when such
musician or entertainer performs no other duties for the purchaser and is not
regularly and continuously employed by the purchaser. A purchaser does not
include the leader of a group or recognized entity who employs other than on a
casual basis musicians or entertainers.
(10)
Services performed by a newspaper carrier selling or distributing newspapers on
the street or from house to house.
(11)
Services performed by an insurance agent, insurance broker, or insurance
solicitor, as defined in RCW 48.17.010, 48.17.020, and 48.17.030, respectively.
(12)
Services performed by a booth renter as defined in RCW 18.16.020. However, a
person exempted under this subsection may elect coverage under RCW 51.32.030.
NEW
SECTION. Sec. 19. A
new section is added to chapter 18.27 RCW to read as follows:
Beginning
December 1, 1997, the department shall report by December 1st each year to the
commerce and labor committees of the senate and house of representatives and
the ways and means committee of the senate and the appropriations committee of
the house of representatives, or successor committees, the following
information for the previous three fiscal years:
(1)
The number of contractors found to have committed an infraction for failure to
register;
(2)
The number of contractors identified in subsection (1) of this section who were
assessed a monetary penalty and the amount of the penalties assessed;
(3)
The amount of the penalties reported in subsection (2) of this section that was
collected; and
(4) The amount of the penalties reported in subsection (2) of this
section that was waived.
