AN ACT Relating to certification of mechanics performing heating, ventilating, air conditioning, refrigeration, and gas piping work; amending RCW 18.27.060; reenacting and amending RCW 43.84.092; adding new chapters to Title 18 RCW; creating a new section; prescribing penalties; and providing an effective date.

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 22 of this act.
     (2) "Contractor" means any person, corporate or otherwise, who is registered as a contractor by the department under section 2 of this act.
     (3) "Department" means the department of labor and industries.
     (4) "Director" means the director of the department or the director's designee.
     (5) "Fund" means the HVAC/R fund established in section 19 of this act.
     (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 install, alter, repair, renovate, remove, or replace 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, and portable heaters.
     (9) "HVAC/R" means heating, ventilating, air conditioning, and refrigeration.
     (10)(a) "HVAC/R equipment" means equipment necessary for any system that heats, cools, conditions, ventilates, filters, humidifies, or dehumidifies environmental air for industrial, commercial, or residential use. HVAC/R equipment includes oil furnaces, propane furnaces, decorative gas fireplaces, and heating ducts.
     (b) "HVAC/R equipment" 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.
     (11) "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.
     (12) "HVAC/R work" means to design, fabricate, construct, install, modify, or repair HVAC/R equipment.
     (13) "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.
     (14) "Mechanic" means a person who has been issued a certificate of competency by the department under section 9 of this act or a temporary permit under section 14 of this act to perform work under this chapter.
     (15) "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.
     (16) "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.
     (17) "Trainee" means a person who has been issued a training certificate by the department under section 10 of this act to perform work under this chapter.
     (18) "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 or gas piping 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 or gas piping 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 or gas piping 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 or gas piping work.

NEW SECTION.  Sec. 3   SCOPE OF WORK. The scope of work that may be performed by a person certified in accordance with this chapter is as follows:
     (1) A residential HVAC/R mechanic may perform HVAC/R work, but only in a residential structure.
     (2) A commercial HVAC/R mechanic may perform any HVAC/R work.
     (3) A gas piping mechanic I may perform gas piping work on gas piping utilizing less than five hundred thousand British thermal units input per hour. Under the direct supervision and in the presence of a gas piping mechanic II, a gas piping mechanic I also may perform gas piping work on gas piping using five hundred thousand British thermal units input or more per hour.
     (4) A gas piping mechanic II may perform any gas piping work.

NEW SECTION. Sec. 4 APPLICATION. (1) A person desiring to be issued a certificate of competency 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 5 of this act.
(2) An HVAC/R mechanic from another state applying for a certificate of competency must provide evidence in a form prescribed by the department affirming that the person has the equivalent qualifications to those required under section 5 of this act.

NEW SECTION.  Sec. 5   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 as follows:
     (a) To be eligible to take the examination for a residential HVAC/R mechanic certificate of competency the applicant must have:
     (i) Performed HVAC/R work for a minimum of four thousand hours under the supervision of an HVAC/R mechanic as specified in section 12 of this act; or
     (ii) Successfully completed an apprenticeship program under chapter 49.04 RCW for residential HVAC/R work;
     (b) To be eligible to take the examination for a commercial HVAC/R mechanic certificate of competency the applicant must have:
     (i) Performed HVAC/R work for a minimum of eight thousand hours under the supervision of an HVAC/R mechanic as specified in section 12 of this act; or
     (ii) Successfully completed an apprenticeship program approved under chapter 49.04 RCW for commercial HVAC/R work;
     (c) To be eligible to take the examination for a gas piping mechanic I certificate of competency, the applicant must:
     (i) Be eligible to take the examination for an HVAC/R mechanic certificate of competency under (a) or (b) of this subsection;
     (ii) Perform gas piping work for a minimum of one thousand hours and successfully complete a sixty-hour training program approved by the department with the advice of the board; or
     (iii) Successfully complete an apprenticeship program under chapter 49.04 RCW for gas piping I work;
     (d) To be eligible to take the examination for a gas piping mechanic II certificate of competency, the applicant must:
     (i) Be eligible to take the examination for a commercial HVAC/R mechanic certificate of competency under (b) of this subsection;
     (ii) Hold a gas piping I mechanic certificate of competency, and perform gas piping work for a minimum of five thousand hours in addition to the minimum of one thousand hours required to be eligible to take the examination for the gas piping I mechanic certificate of competency; or
     (iii) Hold a gas piping I mechanic certificate of competency, and successfully complete an apprenticeship program under chapter 49.04 RCW for the gas piping trade.
     (2) 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.
     (3) 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. 6 ALTERNATIVES TO WORK EXPERIENCE. (1) An applicant for a certificate of competency who has successfully completed a four thousand-hour program in HVAC/R work at a technical college may substitute hours of the program for hours of work experience as follows:

	Type of Certificate	Substitution for Work Experience
(a)	Residential HVAC/R mechanic	2,000 hours of technical college program may be substituted for 2,000 hours of work experience.
(b)	Commercial HVAC/R mechanic	4,000 hours of technical college program may be substituted for 4,000 hours of work experience, so long as the applicant obtains the additional 4,000 hours of work experience prior to beginning, or after completing, the technical school program.

NEW SECTION.  Sec. 7   EXAMINATION. (1) The department, with the advice of the board, shall adopt rules for examinations to be given applicants for mechanic certificates of competency under this chapter.
     (2) The department, with advice from the board, shall prepare an examination to be administered to applicants for mechanic certificates of competency.
     (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 5 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. 8   CERTIFICATION WITHOUT EXAMINATION. (1) Before July 1, 2008, an applicant may apply for a residential HVAC/R mechanic certificate of competency without examination, so long as the applicant provides the department with evidence of at least four 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 four thousand hours of verifiable HVAC/R work experience as described in (a) through (c) of this subsection.
     (2) Before July 1, 2008, a person may apply for a commercial HVAC/R mechanic 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) Commercial HVAC/R work with a general or specialty HVAC/R contractor registered under chapter 18.27, 18.106, or 19.28 RCW;
     (b) Commercial HVAC/R work with a general or specialty HVAC/R contractor, or the equivalent, which was accrued in another state, country, or province;
     (c) Commercial 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) Before July 1, 2008, a person may apply for certification as a gas piping mechanic without examination, so long as he or she provides the department with evidence that he or she:
     (a) Performed at least one thousand hours of verifiable gas piping work on or after January 1, 1996; or
     (b) Was licensed as a gas piping fitter, installer, or mechanic by Kennewick, Seattle, Spokane, Tacoma, Vancouver, or Yakima on July 1, 2007.
     (4) The department may not accept applications for certification without examination submitted on or after July 1, 2008. The department may not extend this deadline.

NEW SECTION.  Sec. 9   CERTIFICATES OF COMPETENCY. (1) The department shall issue a certificate of competency to an applicant who passes the examination as provided in section 7 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 11 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 endorsements under chapters 18.106 and 19.28 RCW and this chapter. The document shall list all of the mechanic's certificates of competency and endorsements.

NEW SECTION.  Sec. 10   TRAINING CERTIFICATES. (1) The department shall issue a training certificate to an applicant who is indentured in an apprenticeship program approved under chapter 49.04 RCW for HVAC/R work or gas piping work or is otherwise learning to perform HVAC/R work or gas piping 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 or the gas piping 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 11 of this act.
     (3) A trainee shall have his or her training certificate in his or her possession when performing HVAC/R work or gas piping 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. 11 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. 12 TRAINEE SUPERVISION. (1) Except as provided in subsection (2) of this section, a trainee may perform HVAC/R work or gas piping work, but only when the trainee is on the same job site and under the control of a 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.

	Trainee is working as a --	Mechanic must be certified as a --	Supervision requirement	Ratio requirement for trainees not in a technical college program	Ratio requirement for trainees in a technical college program
(a)	Residential HVAC/R mechanic	Residential or commercial HVAC/R mechanic	75 percent	2 trainees to 1 mechanic	4 trainees to 1 mechanic
(b)	Commercial HVAC/R mechanic	Commercial HVAC/R mechanic	75 percent	1 trainee to 1 mechanic	4 trainees to 1 mechanic
(c)	Gas piping mechanic I	Gas piping I or gas piping II mechanic	75 percent	2 trainees to 1 mechanic	4 trainees to 1 mechanic
(d)	Gas piping mechanic II	Gas piping II mechanic	75 percent	1 trainee to 1 mechanic	4 trainees to 1 mechanic

NEW SECTION.  Sec. 13   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 12 of this act.
     (b) 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 that 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. 14   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.
     (4) 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. 15 SUSPENSION AND REVOCATION. (1) The department may revoke a certificate of competency if the department determines that the mechanic: (a) Obtained his or her certificate through error or fraud; (b) is incompetent to perform HVAC/R work or gas piping 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. 16   EXEMPTIONS. (1) This chapter does not apply to:
     (a) A person performing HVAC/R work or gas piping work at his or her residence, farm, place of business, or on other property owned by him or her unless the HVAC/R work or gas piping work is on the construction of a new building intended for rent, sale, or lease;
     (b) A person performing HVAC/R work or gas piping work on his or her own property or to regularly employed employees working on the premises of their employer, unless the HVAC/R work or gas piping work is on the construction of a new building intended for rent, sale, or lease;
     (c) 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;
     (d) An architect licensed under chapter 18.08 RCW or an engineer licensed under chapter 18.43 RCW who is designing HVAC/R systems or gas piping systems, but who is not otherwise performing HVAC/R work or gas piping work; or
     (e) 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. 17 CIVIL PENALTIES. Any person, firm, partnership, corporation, or other entity found in violation of this chapter shall be assessed a penalty of not less than fifty dollars or more than five hundred 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. 18 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. 19 HVAC/R FUND. The HVAC/R fund is created in the custody of the state treasurer. All receipts from certificates of competency and other sources must be deposited into the fund. Expenditures from the fund may be used only for the administration and enforcement of this chapter. Only the director, with the approval of the board, may authorize expenditures from the fund. The fund is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 20   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:
     HVAC/R FUND--INTEREST EARNINGS. (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 HVAC/R 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. 21 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. 22   HVAC/R BOARD. (1) An HVAC/R board is established.
     (2) The board shall consist of seven members to be appointed by the governor with the advice of the director.
     (a) Three members shall be mechanics, of which:
     (i) At least one, but not more than two, shall be a mechanic performing work east of the crest of the Cascade mountains;
     (ii) At least one, but not more than two, shall be a residential HVAC/R mechanic; and
     (iii) At least one, but not more than two, shall be either an HVAC/R mechanic with a gas piping endorsement or a gas piping mechanic.
     (b) Three members shall be 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) 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.
     (e) The board shall, at its first meeting, elect one of its members to serve as chair.
     (3) The board shall meet at least quarterly in accordance with a schedule established by the board.
     (4) 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 fund; and
     (d) Advise the department on all other matters relative to this chapter.
     (5) 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. 23   ADMINISTRATION. (1) The director may adopt rules necessary for the administration of this chapter.
     (2) The department shall assess fees for the issuance or renewal of certificates, endorsements, and permits. Fees shall be set in rules. Fees 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. The costs of administering these chapters shall be paid proportionately from the HVAC/R fund established in section 19 of this act and the plumbing certificate fund established in RCW 18.106.130.
     (4) 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. 24 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.

Sec. 25   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 19 and 21 through 24 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. 26   TRADE COORDINATION PANEL. (1) A trade coordination panel is hereby established.
     (2) The panel shall consist of the following: (a) The director of the department of labor and industries or the director's designee; (b) the chair of the plumbing advisory board established in RCW 18.106.110 or the chair's designee; (c) the chair of the electrical board established in RCW 19.28.311 or the chair's designee; and (d) the chair of the HVAC/R board established in section 22 of this act or the chair's designee. The panel shall choose its chair from among its membership.
     (3) The panel shall meet as needed, but only if the plumbing advisory board, the electrical board, or the HVAC/R board determines that there is a conflict regarding the scope of work of one or more of the following: (a) Plumbing contractors and plumbers subject to chapter 18.106 RCW; (b) electrical contractors and electricians subject to chapter 19.28 RCW; and (c) HVAC/R contractors and mechanics subject to chapter 18.-- RCW (sections 1 through 19 and 21 through 24 of this act).
     (4) The panel shall review the conflict, consider alternatives for resolving the conflict, and make findings and recommendations related to a preferred alternative. The panel shall submit written findings and recommendations to the director, the electrical board, the plumbing advisory board, and the HVAC/R board within thirty days of any meeting. If the panel makes a unanimous recommendation, the panel shall forward the recommendation to the plumbing advisory board, the electrical board, and the HVAC/R board for their consideration and adoption. If the plumbing advisory board, the electrical board, or the HVAC/R board does not adopt the panel's recommendation, the director shall be responsible for resolving the conflict.
     (5) The members of the panel are entitled to be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 27 CODIFICATION. (1) Sections 1 through 19 and 21 through 24 of this act constitute a new chapter in Title 18 RCW.
(2) Section 26 of this act constitutes a new chapter in Title 18 RCW.

NEW SECTION. Sec. 28 CAPTIONS. Captions used in this act are not any part of the law.

NEW SECTION. Sec. 29 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.