BILL REQ. #:  S-4551.1 

Read first time 02/10/2004.   Referred to Committee on Commerce & Trade.

     AN ACT Relating to establishing commercial and domestic pump installer licenses; adding a new section to chapter 42.17 RCW; adding a new chapter to Title 19 RCW; and prescribing penalties.

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

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Approved course" is any classroom or field study or activity that meets the intent of this chapter and has been evaluated and approved by the department and assigned a credit value.
     (2) "Board" means the advisory board established in section 6 of this act.
     (3) "Compliance period" means the time between the issuance of a license and the renewal of the license or the time between renewals of the license.
     (4) "Continuing education provider" is an organization or an individual that is approved by the department to provide continuing education classes and/or opportunities to licensed pump installers and trainees.
     (5) "Department" means the department of labor and industries.
     (6) "Director" means the director of the department of labor and industries.
     (7) "License" means a domestic pump installer or commercial pump installer license.
     (8) "Verification of completion statement" is any written document or certificate signed by the provider and identifying the licensee as the one who has completed the approved course.

NEW SECTION.  Sec. 2   (1) All conductors and equipment, and installations thereof, that convey electric current, installations of equipment to be operated by electric current, and pumps, pipes, and pipe fittings that convey water or wastewater, as applied to the scope of work covered within this chapter shall be in strict conformity with this chapter, and the rules issued by the department, and shall be in conformity with approved methods of construction for safety to life and property. Compliance with the regulations and articles in the national electrical code, the national electrical safety code, uniform plumbing code, and plumbing code standards published by the international association of plumbing and mechanical officials, and other installation and safety regulations approved by the national fire protection association, as modified or supplemented by rules issued by the department in furtherance of safety to life and property demonstrates prima facie evidence of the approved methods of construction. All materials, devices, appliances, and equipment used in such installations shall be of a type that conforms to applicable standards or be indicated as acceptable by the established standards of any product testing laboratory that is accredited by the department. Industrial control panels, utilization equipment, and their components do not need to be listed, labeled, or otherwise indicated as acceptable by an accredited electrical product testing laboratory unless specifically required by the national electrical code.
     (2) Nothing in this chapter may be construed as permitting the connection of any conductor of any electric circuit with a pipe that is connected with or designed to be connected with a waterworks piping system, without the consent of the person or persons legally responsible for the operation and maintenance of the waterworks piping system.

NEW SECTION.  Sec. 3   (1) Before January 1st of each year, the director shall obtain an authentic copy of the national electrical code and the uniform plumbing code, latest editions. The department, after consulting with the board and receiving the board's recommendations, shall adopt reasonable rules in furtherance of safety to life and property. All rules shall be kept on file by the department. Compliance with the rules shall be prima facie evidence of compliance with this chapter. The department upon request shall deliver a copy of the rules to all persons, firms, partnerships, corporations, or other entities licensed under this chapter.
     (2) The department shall also obtain and keep on file an authentic copy of any applicable regulations and standards of any electrical product testing laboratory that is accredited by the department prescribing rules, regulations, and standards for electrical materials, devices, appliances, and equipment, including any modifications and changes that have been made during the previous year.

NEW SECTION.  Sec. 4   (1) It is unlawful for any person, firm, partnership, corporation, or other entity to engage in, offer to engage in, conduct, or carry on the business of installing, repairing, or replacing pumps, pitless adapters, pressure and storage tanks, filtration equipment, electric controls, conductors, service disconnect, telemetry, auxiliary components, and plumbing or pipe fitting of water or wastewater systems without having an unrevoked, unsuspended, and unexpired domestic pump installer or commercial pump installer license, issued by the department in accordance with this chapter. No contractor may employ a person to engage in, or offer to engage in, the trade of pump installation unless the person employed has a domestic or commercial pump installer license or trainee license. This section does not apply to a contractor who is contracting for work on his or her own residence. This license is required regardless of whether the work is performed on a temporary or permanent system, but does not apply to pumps used solely for well testing and powered by a portable generating plant.
     (2) No contractor may advertise, offer to do work, submit a bid, or perform any work under this chapter without being registered as a contractor under chapter 18.27 RCW.
     (3) A license will be issued for one of the two following categories:
     (a) Domestic pump installer.
     (i) A domestic pump installer license is limited to the installation, repair, or replacement of pumps, pitless adapters, water filtration or treatment equipment, electrical controls, conductors and telemetry, auxiliary components, and plumbing or pipefitting of water and wastewater systems. A domestic pump installation is limited to the installation that serves one domestic residence, a group domestic system that serves fourteen residences or less, or a business that has twenty-five or fewer full-time employees. The scope of work includes all work required for complete and operational installation or repair of pumps or pump stations, effluent or lift pumps, conveyance systems, ground source heat pump loops, and irrigation pumps. The electrical work is limited to the extension of a branch circuit that is supplied and installed by others and is not to exceed ten horsepower.
     (ii) Except as provided in section 5 of this act, a domestic pump installer license will be issued to an applicant who has worked as a trainee, under the direction and supervision of a licensed domestic or commercial pump installer, for two thousand hours and has passed a competency examination. After working seven hundred twenty hours, and passing the competency examination, the trainee may be issued a trainee card that will allow him or her to work fifty percent of his or her hours without the direct supervision of a licensed domestic or commercial pump installer. After the trainee has worked two thousand hours he or she will be issued a license. Proof of hours may be, but is not limited to, time cards, paystubs, or a signed affidavit from a current or past employer or employers.
     (b) Commercial pump installer.
     (i) A commercial pump installer license is limited to the installation, repair, or replacement of pumps, pitless adapters, water filtration or treatment equipment, electrical controls, conductors and telemetry, auxiliary components, and plumbing or pipefitting of water and wastewater systems. A commercial pump installation is not limited as to the size or type of the installation or the size of the equipment, components, voltage, or horsepower, but is defined by the scope of the work being performed. The scope of work includes all work required for the complete and operational installation or repair of pumps or pump stations, effluent or lift pumps, conveyance systems, ground source heat pump loops, and irrigation pumps.
     (ii) Except as provided in section 5 of this act, a commercial pump installation license will be issued to an applicant who has worked as a trainee, under the direction and supervision of a licensed commercial pump installer, for four thousand hours and has passed a competency examination. After working two thousand hours, the trainee will be issued a trainee card that will allow him or her to work fifty percent of his or her hours without the direct supervision of a licensed commercial pump installer. After the trainee has worked four thousand hours, he or she will be issued a license. Proof of hours may be, but is not limited to, time cards, paystubs, or a signed affidavit from a current or past employer or employers.
     (4) Licenses expire on the second anniversary of the licensee's birthdate following the issuance of the license. A licensee may renew his or her license on or before the expiration date by submitting a complete application, paying the fee, and submitting proof of obtaining the required continuing education.

NEW SECTION.  Sec. 5   (1) On the effective date of this act, licenses will be issued to all applicants who can provide convincing evidence that they have at least two years' experience as a pump installer. Evidence will include, but is not limited to, invoicing for jobs performed, completed contracts for work performed, and employee records.
     (2) Applicants have twelve months after the effective date of this act to apply for a license under this section.

NEW SECTION.  Sec. 6   (1) An advisory board is established. The board consists of the following and their alternates: The director or the director's designee, who will serve as chair of the board; one licensed domestic pump installer; one licensed commercial pump installer; two licensed pump contractors; and one licensed water well operator. The director will appoint the pump installer members and their alternates. The Washington state ground water association will appoint the pump contractors and water well operator members and their alternates. Terms for the appointees are for four years unless the appointee voluntarily gives up his or her position or the director removes the appointee for due cause. Due cause includes, but is not limited to, absence from three consecutive regular scheduled meetings, disregard for the orderly proceedings of the board, or dishonest activities within the attendance of the board. At the first meeting of the board lots will be drawn to determine the terms of the first members and alternates. Two members and alternates will have four-year terms; two members and alternates will have three-year terms; and one member and alternate will have a two-year term.
     (2) The board must meet quarterly, but may meet more often to accomplish board business. Alternates do not have a vote unless they are filling in for a board member. The chair is a nonvoting member, however, the chair may vote to break a tie in the board.
     (3) The board must carry out all the functions and duties specified in this chapter. The board must also assist the department in the development and revision of rules, the preparation and revision of competency examinations, and the administration of the continuing education program.

NEW SECTION.  Sec. 7   (1) The department may revoke or suspend a license for any of the following:
     (a) The license was obtained through error or fraud;
     (b) The licensee is judged to be incompetent to carry on the trade of pump installation; or
     (c) The licensee has violated any provision of this chapter or any rule adopted under this chapter.
     (2) The department may deny an application for a license for up to two years if the applicant's previous license has been revoked.
     (3) Before a license is revoked or suspended, the department shall send written notice of infraction by registered mail with return receipt requested to the licensee's last known address. The notice must list the allegations against the licensee and give him or her the opportunity to refute the allegations and request a hearing before the board. At the hearing, the department and the licensee may produce witnesses and give testimony. The hearing must be conducted in accordance with chapter 34.05 RCW. The board shall render its decision based upon the testimony and evidence presented and will notify the parties within ten days of the hearing. At least five board members or their alternates and the chair must be in attendance for the board to hear testimony on license actions. Decisions will be based on a vote of the board.
     (4) The department may deny renewal of a license issued under this chapter if the applicant owes outstanding penalties for a final judgment under this chapter. The department shall notify the applicant of the denial by registered mail, return receipt requested, to the address on the application. The applicant may appeal the denial within twenty days by filing a notice of appeal with the department accompanied by two hundred dollars, which shall be returned to the applicant if the decision of the department is not upheld by the hearings officer. The office of administrative hearings shall conduct the hearing under chapter 34.05 RCW. If the hearings officer sustains the decision of the department, the fee must be applied to the cost of the hearing.

NEW SECTION.  Sec. 8   The department, in consultation with the board, may adopt rules to carry out this chapter.

NEW SECTION.  Sec. 9   (1) The department, in consultation with the board, shall prepare a written competency examination to be administered to applicants for domestic pump installer licenses, commercial pump installer licenses, and trainee licenses. The examination shall be constructed to determine:
     (a) Whether the applicant possesses varied general knowledge of the technical information and practical procedures that are identified with the trade of domestic pump installer and commercial pump installer; and
     (b) Whether the applicant is familiar with the applicable plumbing, electrical, and well construction codes and the administrative rules of the department and the department of ecology pertaining to pump installation.
     (2) The department shall administer the examination to eligible persons. All applicants shall, before taking the examination, pay a fee to the department.
     (3) The department shall certify the results of the examination, and shall notify the applicant in writing whether he or she has passed or failed. Any applicant who has failed the examination may retake the examination, upon the terms and after a period of time that the director sets in rule. The director may not limit the number of times that a person may take the examination.

NEW SECTION.  Sec. 10   (1) Licensees shall complete, during their compliance period, the continuing education requirement as determined by the department, in consultation with the board. Continuing education units will be on the subjects of pump installation, testing, theory, operation, maintenance, pump equipment, tools, safety, installation methods, administrative rules, and electrical and plumbing codes as applied to pump installation. Continuing education units may include other subjects that apply to the pump installation industry as established in rule. Every licensed pump installer shall obtain the required continuing education units during his or her compliance period and submit to the department verification of completion statements from approved providers.
     (2) Any organization or individual may apply to the department to become an approved continuing education provider. Continuing education providers will be organizations or individuals with a history of providing continuing education courses that have complied with the requirements for course approval under this section and the rules adopted by the department. Any individual or organization that desires to become an approved provider but does not have a history of providing continuing education courses, must submit a comprehensive plan to the department for approval. The department will, in consultation with the board, develop rules identifying elements of the comprehensive plan and approval criteria. An approved continuing education provider must, at a minimum, develop and implement methods to evaluate its course offerings to determine their effectiveness and the extent to which they meet the needs of licensed pump installers. The continuing education provider must provide, upon request from the department, course evaluations from attendees. The continuing education provider will obtain course approval and credit value before offering the course to licensees for approval. The continuing education provider will present courses consistent with the standards set forth in this section and rules adopted by the department and make the course available to all licensed pump installers and trainees at locations logistically chosen to facilitate the attendance of licensees throughout the state. The department, in consultation with the board, will establish in rule the procedure for approval of providers and for sanctions including revocation of approval.
     (3) The department, in consultation with the board, will adopt in rule methods to approve courses and establish course credit for continuing education units and the amount of continuing education units required by licensees. To be approved for credit, a continuing education course must be of intellectual or practical content, contribute directly to the pump installation industry, promote professional competence or skills, or contribute to licensees' education with respect to their professional or ethical obligations. If a course does not bear entirely on the general requirements for continuing education or the ground water or well construction industry, or if the method of presenting the course is below minimum standards, the department may assign partial credit. Courses must be presented in a suitable setting devoted to the educational activity of the program. The department may approve alternate course curriculum to accommodate the needs of the handicapped, incapacitated, or a licensee who may be out of state for the majority of his or her compliance period. Video, motion picture, or audiotape presentations may be used if a presenter is in attendance at all presentations to comment and answer questions. The course must be opened to all licensed operators and trainees. The department will make available to all interested parties, upon request, a list of all approved continuing education providers and courses. The department will, in consultation with the board, adopt in rule procedures that will allow providers to obtain prior approval of continuing education courses or which may allow providers to obtain postpresentation approval of continuing education courses. The department may, in consultation with the board, establish in rule other requirements for course approval.

NEW SECTION.  Sec. 11   (1) Nothing in this chapter requires that a person obtain a license or be a licensed pump installer in order to do pump installation work at his or her residence, farm, place of business, or on other property owned by him or her.
     (2) A current pump installer license or trainee license is not required for:
     (a) Electrical work by certified journeyman electricians, or electrical trainees working for an electrical contractor and performing work covered within the scope of their license; or
     (b) Plumbing work by certified journeyman plumbers, or plumbing trainees performing work covered within the scope of their license.
     (3) Nothing in this chapter eliminates the requirements of a valid pump installing code, plumbing code, or electrical code enacted by a political subdivision of the state. However, no code may require the licensee to demonstrate additional proof of competency or obtain any other license or pay a fee to engage in the trade of pump installing.

NEW SECTION.  Sec. 12   (1) The department must charge fees for issuance, renewal, and reinstatement of all licenses, permits, and examinations required by this chapter. The department must set the fees in rule.
     (2) The fees must cover the full cost of issuing the certificates and permits, devising and administering the examinations, and administering and enforcing this chapter. The costs shall include travel, per diem, and administrative support costs.

NEW SECTION.  Sec. 13   An authorized representative of the department may investigate alleged or apparent violations of this chapter. An authorized representative of the department upon presentation of credentials may inspect sites at which a person is doing pump installation work to determine if that person has a license issued by the department in accordance with this chapter or is supervised by a person who has such a license. Upon request of the authorized representative of the department, a person doing pump installation work must produce evidence that the person has a license issued by the department in accordance with this chapter or is supervised by a person who has such a license.

NEW SECTION.  Sec. 14   (1) An authorized representative of the department may issue a notice of infraction as specified in section 7 of this act if:
     (a) A person who is doing pump installation work or who is offering to do pump installation work fails to produce evidence of:
     (i) Having a license issued by the department in accordance with this chapter, or being supervised by a person who has such a license; and
     (ii) Being registered as a contractor as required under chapter 18.27 RCW or this chapter, or being employed by a person who is registered as a contractor; or
     (b) A person who employs anyone, or offers or advertises to employ anyone, to do pump installation work fails to produce evidence of being registered as a contractor as required under chapter 18.27 RCW or this chapter.
     (2) A notice of infraction issued under this section must be personally served on the person named in the notice by an authorized representative of the department or sent by certified mail to the last known address provided to the department of the person named in the notice.

NEW SECTION.  Sec. 15   The form of the notice of infraction issued under this chapter must include the following statements:
     (1) The notice represents a determination that the infraction has been committed by the person named in the notice and the determination is final unless contested as provided in this chapter;
     (2) The infraction is a noncriminal offense for which imprisonment will not be imposed as a sanction;
     (3) The specific infraction for which the notice was issued;
     (4) The monetary penalty that has been established for the infraction;
     (5) The options provided in this chapter for responding to the notice and the procedures necessary to exercise these options;
     (6) At any hearing to contest the determination the state has the burden of proving, by a preponderance of the evidence, that the infraction was committed. The person may subpoena witnesses, including the authorized representative of the department who issued and served the notice of infraction;
     (7) An acknowledgment form, to be signed by the person, in which the person promises to respond to the notice of infraction in one of the ways provided in this chapter; and
     (8) Refusal to sign the infraction as directed in subsection (7) of this section is punishable as a misdemeanor under RCW 9.92.030.

NEW SECTION.  Sec. 16   A violation designated as an infraction under this chapter shall be heard and determined by an administrative law judge of the office of administrative hearings. If a party desires to contest the notice of infraction, the party shall file a notice of appeal with the department within twenty days of issuance of the infraction. The administrative law judge shall conduct hearings in these cases at locations in the county where the infraction is alleged to have occurred.

NEW SECTION.  Sec. 17   Unless contested in accordance with this chapter, the notice of infraction represents a determination that the person to whom the notice was issued committed the infraction.

NEW SECTION.  Sec. 18   (1) A person who receives a notice of infraction shall respond to the notice as provided in this section within fourteen days of the date the notice was served.
     (2) If the person named in the notice of infraction does not wish to contest the notice of infraction, the person shall pay to the department, by check or money order, the amount of the penalty prescribed for the infraction. When a response that does not contest the determination is received by the department with the appropriate payment, the department shall make the appropriate entry in its records.
     (3) If the person named in the notice of infraction wishes to appeal the notice of infraction, the person shall respond by filing an answer of protest, requesting a hearing, with the department specifying the grounds of protest.
     (4) The administrative law judge shall enter an appropriate order assessing the monetary penalty prescribed for the infraction and shall notify the department of the failure to respond to the notice of infraction or to appear at a requested hearing, if any person issued a notice of infraction:
     (a) Fails to respond to the notice of infraction as provided in subsection (2) of this section; or
     (b) Fails to appear at a hearing requested pursuant to subsection (3) of this section.

NEW SECTION.  Sec. 19   It is a misdemeanor for any person who has been personally served with a notice of infraction:
     (1) To refuse to sign a written promise to respond to the notice; or
     (2) To willfully violate the written promise to respond to a notice of infraction as provided in this chapter, regardless of the ultimate disposition of the infraction.

NEW SECTION.  Sec. 20   A person subject to proceedings under this chapter may appear or be represented by counsel. The department shall be represented by the attorney general in any proceeding under this chapter.

NEW SECTION.  Sec. 21    (1) The administrative law judge shall conduct notice of infraction cases under this chapter pursuant to chapter 34.05 RCW.
     (2) The burden of proof is on the department to establish the commission of the infraction by a preponderance of the evidence. The notice of infraction shall be dismissed if the appellant establishes that, at the time the notice was issued:
     (a) The appellant had a certificate or permit issued by the department in accordance with this chapter, was supervised by a person who has such a certificate or permit, or was exempt from this chapter under section 11 of this act; or
     (b) The person employed or supervised by the appellant has a certificate or permit issued by the department in accordance with this chapter, was supervised by a person who had such a certificate or permit, was exempt from this chapter under section 11 of this act, or was registered as a contractor under chapter 18.27 RCW.
     (3) After consideration of the evidence and argument, the administrative law judge shall determine whether the infraction was committed. If it has not been established that the infraction was committed, an order dismissing the notice shall be entered in the record of the proceeding. If it has been established that the infraction was committed, the administrative law judge shall issue findings of fact and conclusions of law in its decision and order determining whether the infraction was committed.
     (4) An appeal from the administrative law judge's determination or order shall be to the superior court. The decision of the superior court is subject only to discretionary review pursuant to rule 2.3 of the rules of appellate procedure.

NEW SECTION.  Sec. 22   (1) A person found to have committed an infraction under this chapter shall be assessed a monetary penalty. The department shall set by rule a schedule of penalties for infractions imposed under this chapter.
     (2) The administrative law judge may waive, reduce, or suspend the monetary penalty imposed for the infraction for good cause shown.

NEW SECTION.  Sec. 23   (1) Contractors shall accurately verify and attest to the trainee hours worked by pump installer trainees on behalf of the contractor and that all training hours were under the supervision of a licensed pump installer and within the proper ratio, and shall provide the supervising pump installers' names and license numbers. However, contractors are not required to identify which hours a trainee works with a specific licensed pump installer.
     (2) The department may audit the records of a contractor that has verified the hours of experience submitted by a pump installer trainee to the department under this chapter in the following circumstances: Excessive hours were reported; hours were reported outside the normal course of the contractor's business; or for other similar circumstances in which the department demonstrates a likelihood of excessive or improper hours being reported. The department shall limit the audit to records necessary to verify hours for the trainee in question. The department shall adopt rules implementing audit procedures. Information obtained from a contractor under this section is confidential pursuant to section 24 of this act.
     (3) Violation of this section by a contractor is an infraction under this chapter.

NEW SECTION.  Sec. 24   A new section is added to chapter 42.17 RCW to read as follows:
     Information obtained from a contractor under section 23 of this act is exempt from disclosure under this chapter.

NEW SECTION.  Sec. 25   Sections 1 through 23 of this act constitute a new chapter in Title 19 RCW.