"NEW SECTION.  Sec. 1   DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Board" means the HVAC/R board established in section 27 of this act.
     (2) "BTUs" means British thermal units.
     (3) "Contractor" means any person, corporate or otherwise, who is registered as a contractor by the department under section 2 of this act.
     (4) "Department" means the department of labor and industries.
     (5) "Director" means the director of the department or the director's designee.
     (6) "Gas piping" means pipes, valves, or fittings used to convey fuel gas installed on a premise or in a building. "Gas piping" does not include service piping.
     (7) "Gas piping work" means to design, fabricate, construct, install, modify or repair gas piping.
     (8) "Household appliance" means utilization equipment installed in a dwelling unit that is built in standardized sizes or types and is installed or connected as a unit to perform one or more functions including, but not limited to, cooking and other equipment installed in a kitchen, clothes drying, clothes washing, portable room air conditioning units, portable heaters, and as further defined by the department in rule.
     (9) "HVAC" means heating, ventilating, and air conditioning.
     (10) "HVAC/R" means heating, ventilating, air conditioning, and refrigeration.
     (11)(a) "HVAC/R equipment" means equipment necessary for any system that heats, cools, conditions, ventilates, filters, humidifies, or dehumidifies environmental air for industrial or commercial use. HVAC/R equipment includes oil furnaces, propane furnaces, and heating ducts.
     (b) "HVAC/R equipment and systems" does not include: (i) Single, stand-alone line voltage equipment or components, such as radiant panel heaters or baseboard heaters, unless the equipment or component is exclusively controlled by the HVAC/R system and requires an additional external connection to a mechanical system, or contains an HVAC/R mechanical system within the equipment; (ii) solid fuel burning devices, such as wood stoves and coal stoves; or (iii) mechanical piping other than that necessary to deliver fuel.
     (12) "HVAC/R service" means to repair, modify, service, and perform other work required for the normal continued performance of an HVAC/R system. "HVAC/R service" does not mean to install or replace a system.
     (13) "HVAC/R work" means to design, fabricate, construct, install, modify, or repair HVAC/R equipment.
     (14) "Indirect system" means a system in which a secondary coolant, cooled or heated by the refrigeration system, is circulated to the air or other substance to be cooled or heated.
     (15) "Mechanic" means a person who has been issued a certificate of competency by the department under section 13 of this act or a temporary permit under section 18 of this act to perform work under this chapter.
     (16) "Refrigeration system" means a combination of interconnected refrigerant-containing parts constituting one closed refrigerant circuit in which a refrigerant is circulated for the purpose of extracting heat. "Refrigeration system" includes not only the direct system but also the indirect system.
     (17) "Refrigeration work" means to design, fabricate, construct, install, modify, service, replace, or repair refrigeration systems.
     (18) "Sheet metal work" means to design, fabricate, construct, install, modify, service, replace, or repair HVAC/R equipment and systems.
     (19) "Technical college" means a public community or technical college, or a not-for-profit nationally accredited technical or trade school licensed by the workforce training and education coordinating board under chapter 28C.10 RCW.
     (20) "Trainee" means a person who has been issued a training certificate by the department under section 14 of this act or chapter 19.28 RCW to perform work under this chapter or chapter 19.28 RCW.
     (21) "Valid" means not expired, revoked, or suspended.

NEW SECTION.  Sec. 2   CONTRACTOR REGISTRATION AND MECHANIC CERTIFICATION--REQUIREMENTS. (1) Except as provided in this chapter, it is unlawful for:
     (a) Any person, firm, partnership, corporation, or other entity to advertise, offer to do work, submit a bid, engage in, conduct, or carry on the business of performing HVAC/R work without being registered as a contractor under chapter 18.27 RCW;
     (b) Any person, firm, partnership, corporation, or other entity to employ a person to perform or offer to perform HVAC/R work who has not been issued a certificate or permit by the department under this chapter; and
     (c) Any person to perform HVAC/R work without having in his or her possession a certificate or permit issued by the department under this chapter.
     (2) No political subdivision shall require a person possessing a certificate or permit issued by the department under this chapter to demonstrate any additional proof of competency, obtain any license, or pay any fee to perform HVAC/R work.
     (3) An HVAC/R sheet metal manufacturer or fabricator, and its employees, may opt out of the HVAC/R certification requirement of this section. For purposes of this section, a "sheet metal manufacturer or fabricator" means an entity that produces duct work for installation on site. Manufacturing does not include bidding the product or installing or subcontracting the installation.
     (4) Any person holding a current journey refrigeration mechanic license issued by the city of Seattle shall be issued a master mechanic certificate without meeting any additional requirements.
     (5) The department shall include the hours a building or stationary engineer that does not currently hold a journey refrigeration mechanic license issued by the city of Seattle or another local jurisdiction has logged up to the maximum required for an HVAC/R mechanic III certification provided the engineer submits an affidavit of experience. If the engineer has the requisite number of hours for an HVAC/R mechanic III certification, the department shall grant that certification without prior examination. If the engineer does not have the requisite number of hours for an HVAC/R mechanic II license, he or she must obtain a trainee card and accrue the remaining hours under the supervision of an HVAC/R mechanic III. Once the engineer has accrued the requisite number of hours, he or she may take the examination.

NEW SECTION.  Sec. 3   HVAC/R CONTRACTOR. No contractor may employ a person to engage in or offer to engage in HVAC/R work unless the contractor is an HVAC/R contractor as defined in this chapter and the person performing the HVAC/R work has a journeyman certificate, a specialty certificate, temporary permit, or trainee certificate under this chapter.

NEW SECTION.  Sec. 4   PROPERTY MANAGEMENT COMPANIES. A property management company which employs, in the regular course of business, an HVAC/R operator licensed under section 11 of this act, need not register as an HVAC/R contractor under this chapter. For purposes of this section, "property management company" means a company that is operating in compliance with state real estate licensing regulations and is under contract with the property owner to manage the buildings where the HVAC/R operator conducts maintenance on the established air conditioning and refrigeration systems.

NEW SECTION.  Sec. 5   The department, with approval of the HVAC/R board, may recognize national certification in exchange for any required certification under this chapter for propane gas.

NEW SECTION.  Sec. 6   SCOPE OF WORK. The scope of work that may be performed by a person certified in accordance with this chapter is as follows:
     (1) HVAC/R mechanic I. A holder of this certificate has acquired the necessary experience and passed the appropriate examination(s) for the following:
     (a) Gas piping. This specialty may perform gas piping work on heating appliances with a maximum capacity of 500,000 BTUs per hour, if they have passed the appropriate gas piping examination.
     (b) Sheet metal. This specialty may perform HVAC work on HVAC equipment of 7.5 tons or less for air conditioning and 500,000 BTUs or less per hour for heating if they have passed the appropriate sheet metal examination.
     (c) Refrigeration. This specialty may perform refrigeration and other mechanical work on equipment with a maximum capacity of 7.5 tons of refrigerant and continued performance on a refrigeration system not exceeding 90,000 BTUs using class A1 refrigerants if they have passed the appropriate refrigeration examination.
     (d) HVAC. This specialty may perform HVAC work on HVAC equipment of 7.5 tons or less for air conditioning and 500,000 BTUs or less per hour for heating if they have passed the appropriate HVAC examination.
     (2) HVAC/R mechanic II. A holder of this specialty certificate has acquired the necessary experience and passed the appropriate examination(s) for the following:
     (a) Gas piping. This specialty may perform gas piping work on heating appliances with a maximum capacity of 500,000 BTUs per hour and on air conditioning equipment with a maximum capacity of 20 tons of refrigerant if they have passed the appropriate examination.
     (b) Sheet metal. This specialty may perform HVAC/R work on HVAC/R equipment of 20 tons or less for air conditioning and 500,000 BTUs or less per hour for heating if they have passed the appropriate sheet metal examination.
     (c) Refrigeration. This specialty may perform refrigeration and other mechanical work, except for installation, required for normal continued performance on a refrigeration system with one or multicompressors not exceeding 300,000 BTUs per compressor using class A1 refrigerants if they have passed the appropriate refrigeration examination. A refrigeration mechanic II may install or replace a self-contained refrigeration system up to 300,000 BTUs.
     (d) HVAC. This specialty may perform HVAC work on HVAC equipment of 20 tons or less for air conditioning and 500,000 BTUs or less per hour for heating if they have passed the appropriate HVAC examination.
     (3) HVAC/R mechanic III. A holder of this specialty certificate has acquired the necessary experience and passed the appropriate examination(s) for the following:
     (a) Gas piping. This specialty may perform all gas piping work on HVAC/R equipment and systems if they have passed the appropriated gas piping examination.
     (b) Sheet metal. This specialty may perform all sheet metal work on HVAC/R equipment and systems if they have passed the appropriate sheet metal examination.
     (c) Refrigeration. This specialty may perform refrigeration work on any refrigeration system using any refrigerants if they have passed the appropriate refrigeration examination.
     (d) HVAC. This specialty may perform HVAC work on all HVAC equipment if they have passed the appropriate HVAC examination.
     (4) A holder of all the specialties in subsection (3) of this section is designated as a master HVAC/R mechanic.

NEW SECTION.  Sec. 7   APPLICATION. (1) A person desiring to be issued a certificate of competency or any specialty under this chapter shall deliver evidence in a form prescribed by the department affirming that he or she has met the qualifications required under section 8 of this act.
     (2) An HVAC/R mechanic from another state applying for a certificate of competency or any specialty(s) must provide evidence in a form prescribed by the department affirming that the person has the equivalent qualifications to those required under section 11 of this act.

NEW SECTION.  Sec. 8   ELIGIBILITY FOR EXAMINATION. (1) Upon receipt of the application, the department shall review the application and determine whether the applicant is eligible to take an examination for a certificate of competency or specialty as follows:
     (a) HVAC/R mechanic I. To be eligible to take the examination for an HVAC/R mechanic I certificate of competency, or any associated specialty, the applicant must have:
     (i) Performed HVAC/R work for a minimum of one thousand hours under the supervision of an HVAC/R mechanic for one hundred percent of the one thousand hours; or
     (ii) Successfully completed an apprenticeship program approved under chapter 49.04 RCW that meets the requirements of this certification or any associated specialties.
     (b) Once the applicant has passed the mechanic I exam under (a) of this subsection he or she may work unsupervised for the remaining one thousand hours of required work experience, but may not supervise other trainees until the applicant has received his or her certification after completion of the full two thousand hours of on-the-job training.
     (c) HVAC/R mechanic II. To be eligible to take the examination for an HVAC/R mechanic II certificate of competency, or any associated specialty, the applicant must have:
     (i) Performed HVAC/R work for a minimum of four thousand hours under the supervision of an HVAC/R mechanic for seventy-five percent of the four thousand hours; or
     (ii) Successfully completed an apprenticeship program approved under chapter 49.04 RCW that meets the requirements of this certification or any associated specialties.
     (d) The applicant for the mechanic II exam under (c) of this subsection must complete the four thousand hours of work experience before he or she is eligible to take the appropriate exams.
     (e) HVAC/R mechanic III. To be eligible to take the examination for an HVAC/R mechanic III certificate of competency, or any associated specialties, the applicant must have:
     (i) Performed HVAC/R work for a minimum of six thousand hours under supervision for seventy-five percent of the six thousand hours; or
     (ii) Successfully completed an apprenticeship program under chapter 49.04 RCW that meets the requirements of this certification or any associated specialties.
     Once the applicant has passed the mechanic III exam under this subsection he or she may work unsupervised for the remaining two thousand hours of required work experience, but may not supervise other trainees until the applicant receives his or her certification after completion of the full eight thousand hours of on-the-job training.
     (2) Any on-the-job training under the proper supervision as required by this chapter, and by an individual holding all proper approved trainee cards, will count toward all required on-the-job training hours for both the HVAC/R mechanic, all associated specialties, and the electrical certifications required under chapter 19.28 RCW.
     (3) Upon making a determination that the applicant is eligible to take the examination, the department shall so notify the applicant, indicating the time and place for taking the examination.
     (4) No noncertified individual may work unsupervised more than one year beyond the date when the trainee would be eligible to test for a certificate of competency if working on a full-time basis after original application for the training certificate. For the purposes of this section, "full-time basis" means two thousand hours per year.

NEW SECTION.  Sec. 9   ALTERNATIVES TO WORK EXPERIENCE. (1) An applicant for a certificate of competency who has successfully completed a board approved program in HVAC/R work at a public community or technical college, or a not-for-profit nationally accredited technical or trade school licensed by the workforce training and education coordinating board under chapter 28C.10 RCW, may substitute hours of the program for hours of work experience as follows:

NEW SECTION.  Sec. 10   EXAMINATION. (1) The department, with the advice of the board, shall adopt rules for examinations to be given applicants for mechanic certificates of competency or associated specialties under this chapter.
     (2) The department, with advice from the board, shall prepare an examination to be administered to applicants for certificates of competency or associated specialties under this chapter. There will be separate exams for the HVAC mechanic specialty, the gas piping specialty, the refrigeration specialty, and the sheet metal specialty. An individual may take all exams in one testing session including those administered under chapter 19.28 RCW.
     (3) The department, with advice from the board, may enter into a contract with a professional testing agency to develop, administer, and score mechanic certification examinations. The department may set the examination fee by contract with the professional testing agency.
     (4) The department must, at least four times annually, administer the examination to persons eligible to take it under section 8 of this act. The fee must cover, but not exceed, the costs of preparing and administering the examination.
     (5) The department must certify the results of the examination upon the terms and after such a period of time as the department, with the advice of the board, deems necessary and proper.
     (6) The examinations shall be constructed to determine:
     (a) Whether the applicant possesses general knowledge of the technical information and practical procedures that are identified with the relevant scope of work; and
     (b) Whether the applicant is familiar with the applicable mechanical codes and administrative rules of the department pertaining to the relevant scope of work.
     (7) A person may take the examination as many times as necessary without limit. All applicants must, before taking the examination, pay the required examination fee to the agency administering the examination.

NEW SECTION.  Sec. 11   CERTIFICATION WITHOUT EXAMINATION. (1) Effective July 1, 2008, an applicant may apply for an HVAC/R mechanic I certificate of competency, or any associated specialty, without examination so long as the applicant provides the department with evidence of at least two thousand hours of verifiable HVAC/R work experience performed after January 1, 1996. At least two thousand hours of this work experience must be:
     (a) HVAC/R work performed with a general or specialty HVAC/R contractor registered under chapter 18.27, 18.106, or 19.28 RCW;
     (b) HVAC/R work with a registered general or specialty HVAC/R contractor, or the equivalent, which was accrued in another state or country;
     (c) HVAC/R work experience in the United States armed forces; or
     (d) Any combination of at least two thousand hours of verifiable HVAC/R work experience as described in (a) through (c) of this subsection.
     (2) Effective July 1, 2008, a person may apply for an HVAC/R mechanic II certificate of competency without examination, so long as the applicant provides the department with evidence of at least four thousand hours of verifiable work experience performed after January 1, 1996. At least four thousand hours of this work experience must be:
     (a) HVAC/R work with a general or specialty HVAC/R contractor registered under chapter 18.27, 18.106, 19.28 RCW, or an employee regularly employed by a public entity or an exempt entity under chapter 19.28 or 18.27 RCW;
     (b) HVAC/R work with a general or specialty HVAC/R contractor, or the equivalent, which was accrued in another state, country, or province;
     (c) HVAC/R work experience in the United States armed forces; or
     (d) Any combination of at least eight thousand hours of verifiable HVAC/R work experience as described in (a) through (c) of this subsection.
     (3) Effective July 1, 2008, a person may apply for an HVAC/R mechanic III certificate of competency without examination, so long as the applicant provides the department with evidence of at least eight thousand hours of verifiable HVAC/R work experience performed after January 1, 1996. At least four thousand hours of this work experience must be:
     (a) HVAC/R work with a general or specialty HVAC/R contractor registered under chapter 18.27, 18.106, or 19.28 RCW;
     (b) HVAC/R work with a general or specialty HVAC/R contractor, or the equivalent, which was accrued in another state, country, or province;
     (c) HVAC/R work experience in the United States armed forces; or
     (d) Any combination of at least eight thousand hours of verifiable HVAC/R work experience as described in (a) through (c) of this subsection.
     (4) The department may not accept applications for certification without examination submitted on or after December 31, 2008. The department may not extend this deadline.
     (5) Effective July 1, 2008, a person may apply for an HVAC/R mechanic III certificate of competency without examination, so long as the applicant provides the department with evidence that he or she has completed an apprenticeship program under chapter 49.04 RCW or an equivalent apprenticeship program from another state or country.

NEW SECTION.  Sec. 12   HVAC/R OPERATOR ONLY CERTIFICATION. (1) An HVAC/R operator only certification is created with no limits on tonnage.
     (2) The scope of work for this certification includes preventive maintenance such as filter changing, belt replacement, bearing lubrication, and equipment logging. A person holding this certification may not perform major repairs, sealed system work, or equipment replacement.
     (3) A person who installs, alters, or repairs an HVAC/R system containing six pounds or less of any refrigerant and actuated by a motor or engine having a standard rating of 1/4 horsepower or less, or an absorption system having a rating of 1/4 ton of refrigeration effect is exempt from having to obtain a certificate under this section.
     (4) Any person holding a valid refrigeration operating engineer license issued by the city of Seattle shall be issued an HVAC/R operator only certificate without meeting any additional requirements. For purposes of this section, "refrigeration operating engineer" means a full-time employee who spends a substantial portion of time in the maintenance and operation of a refrigeration system in a building, or portion thereof, used for occupant comfort, manufacturing, processing, or storage of materials or products including, among others, chemicals, food, candy, and ice cream factories, ice-making plants, meat packing plants, refineries, perishable food warehouses, hotels, hospitals, restaurants, and similar occupancies and equipped with a refrigeration system and whose duty it is to operate, maintain and keep safe and in serviceable condition all of the employer's refrigeration systems and equipment.
     (5) The department shall develop an examination that the applicant must pass before a person can be issued a license under this section. The exam shall be comparable to the current refrigeration operating engineer license test used by the city of Seattle.
     (6) The hours logged as an HVAC/R operator only certificate count towards the hours required to obtain an HVAC/R mechanic I certificate as long as the operator is supervised during those hours by an HVAC/R mechanic I, II, or III, and holds a current trainee card.

NEW SECTION.  Sec. 13   CERTIFICATES OF COMPETENCY. (1) The department shall issue a certificate of competency to an applicant who passes the examination as provided in section 10 of this act, and has complied with this chapter and rules adopted under this chapter. The department may deny an application for a certificate for up to two years if the applicant's previous certificate has been revoked.
     (2) The department shall renew a certificate of competency issued to a mechanic who applies for renewal not more than ninety days after the certificate expires, and has complied with the continuing education requirement in section 15 of this act. The department may not renew a certificate that has been revoked or suspended. The department may deny renewal of a certificate if the applicant for renewal owes outstanding penalties for a final judgment under this chapter.
     (3) A certificate of competency is valid for three years, unless revoked or suspended, and expires on the mechanic's birth date. The certificate shall include the expiration date.
     (4) The department shall create a single document and establish a single expiration date for a mechanic who holds two or more certificates or specialties under chapters 18.106 and 19.28 RCW and this chapter. The document shall list all of the mechanic's certificates of competency and specialties.

NEW SECTION.  Sec. 14   TRAINING CERTIFICATES. (1) The department shall issue a training certificate to an applicant who is registered in an apprenticeship program approved under chapter 49.04 RCW for HVAC/R work or is otherwise learning to perform HVAC/R work.
     (2) The department shall renew a training certificate issued to a trainee who provides the department with an accurate list of the trainee's employers in the HVAC/R industry for the previous two-year period and the number of hours worked for each employer, and has complied with the continuing education requirement in section 15 of this act.
     (3) A trainee shall have his or her training certificate in his or her possession when performing HVAC/R mechanic or operator work. The trainee shall show the certificate to an authorized representative of the department at the representative's request.
     (4) A training certificate is valid for two years, and expires on the trainee's birth date. The certificate shall include the expiration date.

NEW SECTION.  Sec. 15   CONTINUING EDUCATION. (1) A mechanic must demonstrate satisfactory completion of twenty-four hours of continuing education in the three-year period prior to renewing his or her certificate. A trainee must demonstrate satisfactory completion of sixty hours of related supplemental instruction or equivalent training courses taken as part of an apprenticeship program approved under chapter 49.04 RCW in the two-year period prior to renewing his or her certificate.
     (2) The department, with the advice of the board, shall determine the contents of continuing education courses and establish the requirements for satisfactory completion of such courses. If the department determines that a continuing education course offered in another state is comparable to courses offered in Washington, the department shall accept proof of satisfactory completion of the course as meeting the continuing education requirement in this section.

NEW SECTION.  Sec. 16   TRAINEE SUPERVISION. (1) Except as provided in subsection (2) of this section, an HVAC and an HVAC/R specialty trainee may perform HVAC/R work, but only when the trainee is on the same job site and under the control of a certified mechanic. The percentage of the working day that the mechanic is on the same job site as the trainee must not be less than the supervision requirement in this subsection. The ratio of trainees to mechanics on the same job site must not be greater than the ratio requirement in this subsection.

NEW SECTION.  Sec. 17   TRAINEE HOURS. (1)(a) Each contractor shall report to the department the names and certificate numbers of trainees who worked on behalf of the contractor and the hours worked by each of the trainees, and shall attest that all of the reported hours worked by trainees were in compliance with the supervision and ratio requirements in section 16 of this act.
     (b) In order for hours to count toward all electrical and HVAC/R certifications or specialties, the contractor must be registered as an electrical contractor under chapter 19.28 RCW and as an HVAC/R contractor under this act.
     (c) Each contractor shall also report to the department the names and certificate numbers of supervising mechanics. The contractor is not required to identify what hours worked by trainees were supervised by a specific mechanic.
     (2) The department may audit the records of a contractor who reported hours worked by a trainee under subsection (1) of this section in the following circumstances: (a) Excessive hours were reported; (b) hours were reported outside the normal course of the contractor's business; (c) the type of hours reported do not reasonably match the type of permits purchased; or (d) for other similar circumstances in which the department demonstrates a likelihood of excessive hours being reported. The department shall limit the audit to records necessary to verify hours.
     (3) Information obtained from a contractor under this section is confidential and is not open to public inspection under chapter 42.56 RCW.

NEW SECTION.  Sec. 18   TEMPORARY PERMITS. (1) The department may issue a temporary permit in lieu of a certificate of competency to a mechanic from another state. A mechanic with a temporary permit may perform HVAC/R work during the period of time beginning when the mechanic submits an application to the department for a certificate of competency and the department furnishes to the applicant the results of the examination for the certificate.
     (2) The department may not issue a temporary permit to any applicant who is not eligible to take the examination for a certificate of competency or failed the examination for the certificate.
     (3) A mechanic with a temporary permit who fails the examination for a certificate of competency is entitled to continue to perform HVAC/R work under the temporary permit for ninety days if the mechanic is enrolled in a mechanic refresher course. After completing the mechanic refresher course, the mechanic may retake the examination.

NEW SECTION.  Sec. 19   RECIPROCITY. The department may enter into a reciprocity agreement with another state whose certification requirements are equal to the standards set under this chapter. The reciprocity agreement shall provide for the acceptance of Washington and the other state's mechanic certificate of competency or its equivalent by Washington and the other state.

NEW SECTION.  Sec. 20   SUSPENSION AND REVOCATION. (1) The department may revoke a certificate of competency if the department determines that the mechanic or operator: (a) Obtained his or her certificate through error or fraud; (b) is incompetent to perform HVAC/R work; or (c) committed a violation of this chapter or rules adopted under this chapter that presents imminent danger to the public.
     (2) The department shall immediately suspend the certificate of a person who has been certified pursuant to RCW 74.20A.320 by the department of social and health services as a person who is not in compliance with a support order. If the person has continued to meet all other requirements for reinstatement during the suspension, reissuance of the certificate shall be automatic upon the department's receipt of a release issued by the department of social and health services stating that the person is in compliance with the order.

NEW SECTION.  Sec. 21   EXEMPTIONS. (1) This chapter does not apply to:
     (a) A person who cleans or replaces air filters, lubricates bearings, replaces fan belts, cleans evaporators or condensers, or cleans cooling towers;
     (b) A person who installs, alters or repairs an HVAC/R system containing six pounds or less of any refrigerant and actuated by a motor or engine having a standard rating of 1/4 horsepower or less, or absorption system having a rating of 1/4 ton or less refrigeration effect;
     (c) A person installing a wood, pellet, or gas-fueled hearth appliance which has a visual presence in the living space of a home, including connecting the appliance with an approved flexible gas supply line not to exceed forty-eight inches in length and not to include installation of ventilation duct work or other duct work;
     (d) A person setting oil tanks and piping to the furnace;
     (e) A person setting propane tanks and piping outside a building;
     (f) A person performing HVAC/R work at his or her residence, farm, place of business, or on other property owned by him or her unless the HVAC/R work is on the construction of a new building intended for rent, sale, or lease;
     (g) A person performing HVAC/R work on his or her own property or to regularly employed employees working on the premises of their employer, unless the HVAC/R work is on the construction of a new building intended for rent, sale, or lease;
     (h) A person performing work for or on behalf of a natural gas utility, including the installation, repair, and maintenance of gas piping when such work is incidental to the business of delivering natural gas to the premises. For the purposes of this chapter, "natural gas utility" means a gas company, as defined under RCW 80.04.010;
     (i) An architect licensed under chapter 18.08 RCW or an engineer licensed under chapter 18.43 RCW who is designing HVAC/R systems, but who is not otherwise performing HVAC/R work; or
     (j) A person making a like-in-kind replacement of a household appliance.
     (2) Nothing precludes any person who is exempt from the certification requirements of this chapter under this section from obtaining a mechanic certificate of competency if they otherwise meet the requirements of this chapter.

NEW SECTION.  Sec. 22   CIVIL PENALTIES. Any person, firm, partnership, corporation, or other entity found in violation of this chapter shall be assessed a penalty not to exceed five thousand dollars. The department shall set by rule a schedule of penalties for violating this chapter. Each day that a person, firm, partnership, corporation, or other entity violates this chapter is a separate violation.

NEW SECTION.  Sec. 23   APPLICATION OF ADMINISTRATIVE PROCEDURE ACT. The proceedings for denying applications, suspending or revoking certificates, and imposing civil penalties or other remedies issued pursuant to this chapter and any appeal therefrom or review thereof shall be governed by the provisions of the administrative procedure act, chapter 34.05 RCW.

NEW SECTION.  Sec. 24   (1) The department shall charge fees for the issuance, renewal, and reinstatement of all certificates and permits and for examinations required by this chapter. The department shall set the fee amounts by rule.
     (2) The fees collected under this chapter shall cover the costs of issuing the certificates and permits, devising and administering the exams, and administering and enforcing this chapter and chapter 18.106 RCW.

Sec. 25   RCW 43.84.092 and 2006 c 337 s 11, 2006 c 311 s 23, 2006 c 171 s 10, 2006 c 56 s 10, and 2006 c 6 s 8 are each reenacted and amended to read as follows:
     (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.
     (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.
     (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:
     (a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the Columbia river basin water supply development account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the developmental disabilities community trust account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the education legacy trust account, the election account, the emergency reserve fund, the energy freedom account, The Evergreen State College capital projects account, the federal forest revolving account, the freight mobility investment account, the freight mobility multimodal account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the high-occupancy toll lanes operations account, the plumbing certificate fund, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the pension funding stabilization account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public works assistance account, the Puyallup tribal settlement account, the real estate appraiser commission account, the regional mobility grant program account, the resource management cost account, the rural Washington loan fund, the site closure account, the small city pavement and sidewalk account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the transportation partnership account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington fruit express account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington public safety employees' plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.
     (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION.  Sec. 26   LIABILITY. (1) This chapter may not be construed to relieve from or lessen the responsibility or liability of any person for injury or damage to person or property caused by or resulting from any HVAC/R work performed by the person.
     (2) The state of Washington, and its officers, agents, and employees may not be held liable for any acts performed pursuant to this chapter.

NEW SECTION.  Sec. 27   HVAC/R BOARD. (1) An HVAC/R board is established.
     (2) The board shall consist of nine members to be appointed by the governor with the advice of the director.
     (a) Three members shall be HVAC/R mechanics, of which at least one, but not more than two, shall be an HVAC/R mechanic performing work east of the crest of the Cascade mountains.
     (b) Three members shall be HVAC/R contractors, of which at least one, but not more than two, shall be a contractor doing business east of the crest of the Cascade mountains.
     (c) One member shall be from the general public and be familiar with HVAC/R work.
     (d) One member shall be from the building owners and managers association or the stationary operating engineers.
     (e) One member shall be from a technical college.
     (3) Except as provided in this subsection, the term of each member shall be three years. The term of each initial member shall expire as follows: (i) The terms of the first HVAC/R mechanic and the first HVAC/R contractor shall expire July 1, 2008; (ii) the terms of the second HVAC/R mechanic, the second HVAC/R contractor, and the public member shall expire July 1, 2009; and (iii) the terms of the third HVAC/R mechanic and the third HVAC/R contractor shall expire July 1, 2010. To ensure that the board may continue to act, a member whose term expires shall continue to serve until his or her replacement is appointed. In the case of any vacancy on the board for any reason, the governor shall appoint a new member to serve out the term of the person whose position has become vacant.
     (4) The board shall, at its first meeting, elect one of its members to serve as chair.
     (5) The board shall meet at least quarterly in accordance with a schedule established by the board.
     (6) The board shall:
     (a) Conduct proceedings for denying applications, suspending or revoking certificates, and imposing civil penalties or other remedies. Such proceedings shall be conducted in accordance with chapter 34.05 RCW;
     (b) Review and make recommendations to adopt, amend, or repeal any rules under this chapter. The director may not adopt, amend, or repeal any rules until the board has conducted its review and made its recommendations;
     (c) Approve expenditures from the plumbing certificate fund; and
     (d) Advise the department on all other matters relative to this chapter.
     (7) The members of the board are entitled to be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION.  Sec. 28   ADVISORY COMMITTEE. The department, with advice from the electrical board, may convene an advisory committee that may include representatives of stakeholders affected by this chapter, to review the electrical licenses and certifications required under chapter 19.28 RCW in relation to the certificates required under this chapter. The advisory committee may review the scope of work for the HVAC/R work, the process for certification of hours, supervision requirements, and testing requirements to determine if modifications are needed to provide for the safety of the public and of the worker, protection of the consumer, and to provide a reasonable career path for workers in the HVAC/R industry.

NEW SECTION.  Sec. 29   ADMINISTRATION. (1) The director may adopt rules necessary for the administration of this chapter.
     (2) The department shall assess fees for the issuance, renewal, and reinstatement of certificates, specialties, permits, and examinations required by this chapter. Fees shall be set in rule and shall cover but not exceed the costs of administering this chapter.
     (3) The department shall administer this chapter in conjunction with its administration of chapter 18.106 RCW.
     (4) All of the fees generated under this chapter shall be deposited into the plumbing certificate fund established in RCW 18.106.130.
     (5) In the administration of this chapter, the department shall not enter any controversy arising over work assignments with respect to the trades involved in the construction industry.

NEW SECTION.  Sec. 30   EFFECT ON OTHER LAWS. (1) Nothing in this chapter shall be construed to modify chapter 18.106 or 19.28 RCW.
     (2) Nothing in this chapter prohibits or restricts an individual who is certified under chapter 18.106 or 19.28 RCW from engaging in the trade in which he or she is certified.
     (3) Nothing in this chapter shall be construed to include plumbing work defined in chapter 18.106 RCW or electrical work defined in chapter 19.28 RCW in the scope of work defined in this chapter.

Sec. 31   RCW 18.27.060 and 2006 c 185 s 14 are each amended to read as follows:
     GENERAL AND SPECIALITY CONTRACTOR REGISTRATION. (1) A certificate of registration shall be valid for two years 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.
     (3) 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 mail notice of the suspension to the contractor's address on the certificate of registration by certified and by first class mail within two days after suspension.
     (4) 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.
     (5) The department shall immediately suspend the certificate of registration of a contractor who has been certified by the department of social and health services as a person who is not in compliance with a support order or a visitation order as provided in RCW 74.20A.320. The certificate of registration shall not be reissued or renewed unless the person provides to the department a release from the department of social and health services stating that he or she is in compliance with the order and the person has continued to meet all other requirements for certification during the suspension.
     (6) For a contractor who employs plumbers, as described in RCW 18.106.010(10)(c), and is also required to be licensed as an electrical contractor as required in RCW 19.28.041, while doing pump and irrigation or domestic pump work described in rule as authorized by RCW 19.28.251, the department shall establish a single registration/licensing document for those who qualify for both general contractor registration as defined by this chapter and an electrical contractor license as defined by chapter 19.28 RCW.
     (7) For a contractor who qualifies for two or more registrations or licenses under this chapter, chapter 18.-- (sections 1 through 24, 26 through 30, and 32 through 36 of this act), and 19.28 RCW, the department shall establish a single registration/licensing document. The document shall list all of the contractor's registrations and licenses.

NEW SECTION.  Sec. 32   COMPLIANCE INSPECTORS. (1) The director shall appoint compliance inspectors to investigate alleged or apparent violations of this chapter. The director, or authorized compliance inspector, upon presentation of appropriate credentials, may inspect and investigate job sites at which an HVAC/R contractor had bid or presently is working to determine whether the HVAC/R contractor is registered and their employees are certified and working in accordance with this chapter or the rules adopted under this chapter or whether there is a violation of this act. Upon request of the compliance inspector, an HVAC/R contractor or an employee of the contractor shall provide information identifying the HVAC/R contractor and those employees working on-site.
     (2) If the employee of an unregistered contractor is cited by a compliance inspector, that employee is cited as the agent of the employer, and issuance of the infraction to the employee is notice to the unregistered employer contractor that the contractor is in violation of this chapter. An employee who is cited by a compliance inspector shall not be liable for any of the alleged violations contained in the citation unless the employee is also the unregistered contractor or the employee is performing work that requires a certification under this chapter without proper proof of the certification.

NEW SECTION.  Sec. 33   NOTICE OF INFRACTION. The department may issue a notice of infraction if the department reasonably believes that the HVAC/R contractor or the employees have committed an infraction under this chapter. A notice of infraction issued under this section shall be personally served on the contractor or their employee named in the notice by the department's compliance inspectors or service can be made by certified mail directed to the contractor or their employee named in the notice of infraction at the last known address as provided to the department.

NEW SECTION.  Sec. 34   NOTICE OF INFRACTION FORM. The form of the notice of infraction issued under this chapter shall include the following:
     (1) A statement that the notice represents a determination that the infraction has been committed by the contractor or the individual named in the notice and that the determination shall be final unless contested as provided in this chapter;
     (2) A statement that the infraction is a noncriminal offense for which imprisonment shall not be imposed as a sanction;
     (3) A statement of the violation that necessitated issuance of the infraction;
     (4) A statement of penalty involved if the infraction is established;
     (5) A statement of the options provided in this chapter for responding to the notice and the procedures necessary to exercise these options;
     (6) A statement that at any hearing to contest the notice of infraction the state has the burden of proving, by a preponderance of the evidence, that the infraction was committed; and that the contractor or individual may subpoena witnesses, including the compliance inspector of the department who issued and served the notice of infraction;
     (7) A statement that at any hearing to contest the notice of infraction against an unregistered contractor, the uncertified individual has the burden of proving that the infraction did not occur;
     (8) A statement that the contractor or individual must respond to the notice of infraction in one of the ways provided in this chapter; and
     (9) A statement that a contractor or individual failure to timely select one of the options for responding to the notice of infraction after receiving a statement of the options provided in this chapter for responding to the notice of infraction and the procedures necessary to exercise these options is guilty of a gross misdemeanor and may be punished by a fine or imprisonment in jail.

NEW SECTION.  Sec. 35   VIOLATIONS. 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 specifying the grounds of the appeal within twenty days of service of the infraction in a manner provided by this chapter. The appeal must be accompanied by a certified check for two hundred dollars, which shall be returned to the assessed party if the decision of the department is not sustained following the final decision in the appeal. If the final decision sustains the decision of the department, the department must apply the two hundred dollars to the payment of the expenses of the appeal, including costs charged by the office of administrative hearings. The administrative law judge shall conduct hearings in these cases at locations in the county where the infraction occurred.

NEW SECTION.  Sec. 36   (1) A contractor or individual 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 or individual named in the notice of infraction does not elect to contest the notice of infraction, then the contractor or individual 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 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 or individual named in the notice of infraction elects to contest the notice of infraction, the contractor or individual shall respond by filing with the department specifying the appeal to the department in the manner specified in this chapter.
     (4) If any contractor or individual issued a notice of infraction fails to respond within the prescribed response period, the contractor or individual 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 or individual who fails to pay a monetary penalty within thirty days, that is not waived pursuant to this chapter, and who fails to file an appeal, shall be guilty of a misdemeanor and be prosecuted in the county where the infraction occurred.
     (6) A contractor or individual who fails to pay a monetary penalty within thirty days after exhausting appellate remedies shall be guilty of a misdemeanor and be prosecuted in the county where the infraction occurred.
     (7) If a contractor or individual who is issued a notice of infraction is a contractor or individual who has failed to register or be certified as a contractor or individual under this chapter, the contractor or individual 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 or certified is a separate infraction.

NEW SECTION.  Sec. 37   CODIFICATION. Sections 1 through 24, 26 through 30, and 32 through 36 of this act constitute a new chapter in Title 18 RCW.

NEW SECTION.  Sec. 38   CAPTIONS. Captions used in this act are not any part of the law.

NEW SECTION.  Sec. 39   SEVERABILITY. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 40   EFFECTIVE DATE. This act takes effect January 1, 2008."