5550-S AMS HONE DAVI 087

SSB 5550 - S AMD to S AMD (S2522.2/07) 116

   By    Senator Honeyford

NOT ADOPTED 3/8/2007

   On page 1, beginning on line 3 of the amendment, after "1." strike all material through "earlier." on line 33, page 3 of the amendment and insert "The legislature finds that homeowners have experienced problems in residential construction, resulting in great economic loss, only to discover that there are limited remedies available at law, if any. However, it is unclear if construction defects are an industry-wide problem or limited to a small segment of builders and other construction professionals. The scope and nature of the problem must be determined in order for the legislature to develop a comprehensive solution that may necessitate several pieces of legislation covering a wide range of issues from contractor licensing, permit processes and sign offs, requirements of the state building code and of building officials, as well as homeowner warranties."

   Beginning on page 3, line 34 of the amendment, strike all of sections 2 and 3

   On page 6, beginning on line 26 of the amendment, after "(1)" strike all material through "2008." on line 18, page 8 of the amendment and insert "A committee on residential construction is created. The committee consists of the following members who have experience and expertise in residential construction law or residential construction:

   (a) One member from each caucus of the senate, appointed by the president of the senate;

   (b) One member from each caucus of the house of representatives, appointed by the speaker of the house of representatives;

   (c) The director of the department of labor and industries or the director's designee;

   (d) The president of the state building code council or the president's designee;

   (e) One third-party private building inspector;

   (f) One expert in water penetration issues affecting residential construction;

   (g) The following four members, jointly appointed by the speaker of the house of representatives and the president of the senate:

   (i) Two builders;

   (ii) A residential construction defect plaintiff's attorney; and

   (iii) A residential construction defect defense attorney.

   (2) The committee shall choose two cochairs from among its membership.

   (3) The committee shall:

   (a) Examine the issue of contractor licensing including, but not limited to, whether contractors should be licensed and what education and training requirements should exist;

   (b) Evaluate whether current surety bond requirements are sufficient or if increased or additional bonding requirements are necessary to protect both construction professionals and homebuyers;

   (c) Examine the state building code and determine whether the code should be strengthened to protect homeowners;

   (d) Determine whether there should be increased standards for city and county building inspectors;

   (e) Study current remedies at law for residential construction defects;

   (f) Examine homeowner insurance warranty products; and

   (g) Using the statutory home warranty proposed in chapter . . . (Substitute Senate Bill No. 5550), Laws of 2007 as a model, evaluate what impact a statutory warranty for new home construction would have on the industry and homebuyers including, but not limited to, any concerns regarding increased insurance costs for construction professionals. Within this evaluation, the committee shall examine other states that have implemented statutory home warranties including, at a minimum, Maryland and California.

   (4) By December 31, 2008, the committee shall deliver to the consumer protection and housing committee of the senate and the judiciary committee of the house of representatives a report of the findings and conclusions of the committee and any proposed legislation."

   On page 8, after line 18 of the amendment, insert the following:

   "NEW SECTION. This act expires January 31, 2009."

   On page 8, beginning on line 19 of the amendment, strike all of sections 5 and 6

   Renumber the sections consecutively and correct any internal references accordingly.

SSB 5550 - S AMD to S AMD (S-2522.2/07)

   By Senator Honeyford

   On page 8, beginning on line 24 of the title amendment, after "insert" strike the remainder of the title amendment and insert "creating a new section and providing an expiration date."

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EFFECT: Removes the provisions of the bill creating statutory residential home warranties. Amends the membership of the committee created to study issues facing the residential construction industry and the issues the committee is directed to study and evaluate. Provides that the committee shall report its findings and conclusions by December 31, 2008.