BILL REQ. #:  H-1453.1 

Read first time 02/01/2007.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to contractor licensing; amending RCW 18.27.010, 18.27.020, 18.27.030, 18.27.040, 18.27.065, 18.27.070, 18.27.075, 18.27.080, 18.27.090, 18.27.100, 18.27.104, 18.27.110, 18.27.114, 18.27.117, 18.27.120, 18.27.130, 18.27.200, 18.27.210, 18.27.225, 18.27.270, 18.27.310, 18.27.320, 18.27.340, 18.27.342, 18.27.360, 18.27.370, 18.100.140, 18.106.020, 18.106.180, 18.106.250, 18.160.030, 19.28.051, 19.28.191, 19.28.420, 19.158.020, 39.04.155, 39.06.010, 49.26.100, 50.04.145, 50.24.130, 51.08.070, 51.08.180, 51.12.070, 51.12.120, 60.04.011, 60.04.041, 70.87.220, and 70.87.240; reenacting and amending RCW 19.28.161; adding new sections to chapter 18.27 RCW; creating a new section; and providing an effective date.

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

Sec. 1   RCW 18.27.010 and 2001 c 159 s 1 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Board" means the state construction contractors advisory board.
     (2) "Contractor" means any person, firm, or corporation who or which, in the pursuit of an independent business undertakes to, or offers to undertake, or submits a bid to, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish, for another, any building, highway, road, railroad, excavation or other structure, project, development, or improvement attached to real estate or to do any part thereof including the installation of carpeting or other floor covering, the erection of scaffolding or other structures or works in connection therewith or who installs or repairs roofing or siding; or, who, to do similar work upon his or her own property, employs members of more than one trade upon a single job or project or under a single building permit except as otherwise provided herein. "Contractor" includes any person, firm, corporation, or other entity covered by this subsection, whether or not ((registered)) licensed as required under this chapter.
     (((2))) (3) "Department" means the department of labor and industries.
     (((3))) (4) "Director" means the director of the department of labor and industries or a designated representative employed by the department.
     (((4))) (5) "General contractor" means a contractor whose business operations require the use of more than two unrelated building trades or crafts whose work the contractor shall superintend or do in whole or in part. "General contractor" shall not include an individual who does all work personally without employees or other "specialty contractors" as defined in this section. The terms "general contractor" and "builder" are synonymous.
     (((5))) (6) "License cancellation" means a written notice from the department that a contractor's action is in violation of this chapter and that the contractor's license has been revoked.
     (7) "License suspension" means a written notice from the department that a contractor's action is a violation of this chapter and that the contractor's license has been suspended for a specified time, or until the contractor shows evidence of compliance with this chapter.
     (8) "Partnership" means a business formed under Title 25 RCW.
     (((6) "Registration cancellation" means a written notice from the department that a contractor's action is in violation of this chapter and that the contractor's registration has been revoked.
     (7) "Registration suspension" means a written notice from the department that a contractor's action is a violation of this chapter and that the contractor's registration has been suspended for a specified time, or until the contractor shows evidence of compliance with this chapter.
     (8))) (9) "Residential homeowner" means an individual person or persons owning or leasing real property:
     (a) Upon which one single-family residence is to be built and in which the owner or lessee intends to reside upon completion of any construction; or
     (b) Upon which there is a single-family residence to which improvements are to be made and in which the owner or lessee intends to reside upon completion of any construction.
     (((9))) (10) "Specialty contractor" means a contractor whose operations do not fall within the definition of "general contractor".
     (((10) "Unregistered)) (11) "Unlicensed contractor" means a person, firm, corporation, or other entity doing work as a contractor without being ((registered)) licensed in compliance with this chapter. "((Unregistered)) Unlicensed contractor" includes contractors whose ((registration)) license is expired, revoked, or suspended. "((Unregistered)) Unlicensed contractor" does not include a contractor who has maintained a valid bond and the insurance or assigned account required by RCW 18.27.050, and whose ((registration)) license has lapsed for thirty or fewer days.
     (((11))) (12) "Unsatisfied final judgment" means a judgment that has not been satisfied either through payment, court approved settlement, discharge in bankruptcy, or assignment under RCW 19.72.070.
     (((12))) (13) "Verification" means the receipt and duplication by the city, town, or county of a contractor ((registration)) license card that is current on its face, checking the department's contractor ((registration)) license data base, or calling the department to confirm that the contractor is ((registered)) licensed.

Sec. 2   RCW 18.27.020 and 1997 c 314 s 3 are each amended to read as follows:
     (1) Every contractor shall ((register with)) be licensed by the department.
     (2) It is a misdemeanor for any contractor to:
     (a) Advertise, offer to do work, submit a bid, or perform any work as a contractor without being ((registered)) licensed as required by this chapter;
     (b) Advertise, offer to do work, submit a bid, or perform any work as a contractor when the contractor's ((registration)) license is suspended or revoked;
     (c) Use a false or expired ((registration)) license number in purchasing or offering to purchase an advertisement for which a contractor's ((registration)) license number is required; or
     (d) Transfer a valid ((registration)) license to an ((unregistered)) unlicensed contractor or allow an ((unregistered)) unlicensed contractor to work under a ((registration)) license issued to another contractor.
     (3) It is not unlawful for a general contractor to employ an ((unregistered)) unlicensed contractor who was ((registered)) licensed at the time he or she entered into a contract with the general contractor, unless the general contractor or his or her representative has been notified in writing by the department of labor and industries that the contractor has become ((unregistered)) unlicensed.
     (4) All misdemeanor actions under this chapter shall be prosecuted in the county where the infraction occurs.
     (5) A person is guilty of a separate misdemeanor for each day worked if, after the person receives a citation from the department, the person works while ((unregistered)) unlicensed, or while his or her ((registration)) license is suspended or revoked, or works under a ((registration)) license issued to another contractor. A person is guilty of a separate misdemeanor for each worksite on which he or she violates subsection (2) of this section. Nothing in this subsection applies to a ((registered)) licensed contractor.
     (6) The director by rule shall establish a two-year audit and monitoring program for a contractor not ((registered)) licensed under this chapter who becomes ((registered)) licensed after receiving an infraction or conviction under this chapter as an ((unregistered)) unlicensed contractor. The director shall notify the departments of revenue and employment security of the infractions or convictions and shall cooperate with these departments to determine whether any taxes or ((registration,)) license((,)) or other fees or penalties are owed the state.

Sec. 3   RCW 18.27.030 and 2001 c 159 s 2 are each amended to read as follows:
     (1) An applicant for ((registration)) licensure as a contractor shall submit an application under oath upon a form to be prescribed by the director and which shall include the following information pertaining to the applicant:
     (a) Employer social security number.
     (b) Unified business identifier number, if required by the department of revenue.
     (c) Evidence of workers' compensation coverage for the applicant's employees working in Washington, as follows:
     (i) The applicant's industrial insurance account number issued by the department;
     (ii) The applicant's self-insurer number issued by the department; or
     (iii) For applicants domiciled in a state or province of Canada subject to an agreement entered into under RCW 51.12.120(7), as permitted by the agreement, filing a certificate of coverage issued by the agency that administers the workers' compensation law in the applicant's state or province of domicile certifying that the applicant has secured the payment of compensation under the other state's or province's workers' compensation law.
     (d) Employment security department number.
     (e) State excise tax registration number.
     (f) Unified business identifier (UBI) account number may be substituted for the information required by (c) of this subsection if the applicant will not employ employees in Washington, and by (d) and (e) of this subsection.
     (g) Type of contracting activity, whether a general or a specialty contractor and if the latter, the type of specialty.
     (h) The name and address of each partner if the applicant is a firm or partnership, or the name and address of the owner if the applicant is an individual proprietorship, or the name and address of the corporate officers and statutory agent, if any, if the applicant is a corporation or the name and address of all members of other business entities. The information contained in such application is a matter of public record and open to public inspection.
     (2) The department may verify the workers' compensation coverage information provided by the applicant under subsection (1)(c) of this section, including but not limited to information regarding the coverage of an individual employee of the applicant. If coverage is provided under the laws of another state, the department may notify the other state that the applicant is employing employees in Washington.
     (3)(a) The department shall deny an application for ((registration)) licensure if: (i) The applicant has been previously performing work subject to this chapter as a sole proprietor, partnership, corporation, or other entity and the department has notice that the applicant has an unsatisfied final judgment against him or her in an action based on this chapter or the applicant owes the department money for penalties assessed or fees due under this chapter as a result of a final judgment; (ii) the applicant was a principal or officer of a partnership, corporation, or other entity that either has an unsatisfied final judgment against it in an action that was incurred for work performed subject to this chapter or owes the department money for penalties assessed or fees due under this chapter as a result of a final judgment; or (iii) the applicant does not have a valid unified business identifier number, if required by the department of revenue.
     (b) The department shall suspend an active ((registration)) license if (i) the department has notice that the ((registrant)) licensee is a sole proprietor or a principal or officer of a ((registered)) licensed contractor that has an unsatisfied final judgment against it for work within the scope of this chapter; or (ii) the applicant does not maintain a valid unified business identifier number, if required by the department of revenue.
     (4) The department shall not deny an application or suspend a ((registration)) license because of an unsatisfied final judgment if the applicant's or ((registrant's)) licensee's unsatisfied final judgment was determined by the director to be the result of the fraud or negligence of another party.

NEW SECTION.  Sec. 4   A new section is added to chapter 18.27 RCW to read as follows:
     (1) The state construction contractors advisory board is established, consisting of nine members appointed by the governor. The members of the board shall be selected and appointed as follows: Two members shall be contractors who primarily work on residential structures; one member shall be a contractor engaged primarily in the business of residential remodeling; two members shall represent the public; two members shall be elected representatives of governing bodies of local government, one shall represent the governing body of a county; and two members shall be general contractors who primarily work on nonresidential structures.
     (2) The members shall serve four-year terms. Of the initial members, two must be appointed for a one-year term, three must be appointed for a two-year term, three must be appointed for a three-year term, and the remainder must be appointed for a four-year term. Thereafter, members must be appointed for four-year terms. A member is eligible for reappointment. If there is a vacancy for any cause, the governor shall make an appointment immediately effective for the unexpired term.
     (3) To be eligible for board membership, the contractor members of the board shall be licensed under this chapter and shall maintain their licenses in good standing during their terms on the board.
     (4) The board at its first meeting shall select from its membership a chair and a vice-chair with such duties and powers necessary for the performance of their duties as the board determines.
     (5) Meetings of the board shall be held at least quarterly in accordance with a schedule established by the board. A majority of the members of the board constitutes a quorum for the transaction of business. Each member of the board shall receive compensation in accordance with RCW 43.03.240 and shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060 which shall be paid out of the construction contractor's license account, upon forms approved by the director.
     (6) The department shall provide administrative and clerical assistance to the board.
     (7) The board shall carry out all functions and duties enumerated in this chapter, as well as generally advise the department on all matters relative to this chapter.

NEW SECTION.  Sec. 5   A new section is added to chapter 18.27 RCW to read as follows:
     (1) The department, with the assistance of the board, shall prepare a written examination to be administered to applicants for a license under this chapter. The examination shall be constructed to determine whether the applicant:
     (a) Possesses the varied general knowledge of the technical information and practical procedures that are identified with the construction contractor's trade; and
     (b) Is familiar with the applicable state and local building codes and the administrative rules of the department pertaining to construction contractors.
     (2) The department shall administer the examination to all eligible persons. All applicants shall, before taking the examination, pay a fee to the department.
     (3) The department shall certify the results of the examination, and shall notify the applicant in writing whether he or she has passed or failed. Any applicant who has failed the examination may retake the examination, upon the terms and after a period of time that the director shall set by rule. The director may not limit the number of times a person may take the examination.
     (4) The department, with the assistance of the board, shall, by rule, impose training requirements for individuals and businesses seeking to be licensed under this chapter. The training required by the department must relate to business practices and laws affecting construction contractors. The board shall adopt standards for programs that provide training that meet the requirements of this section.
     (5) To renew a license under this chapter, the department shall, by rule, require that contractors provide evidence of completion of up to twelve hours of continuing education in subjects addressing the varied general knowledge of the technical information and practical procedures that are identified with the construction contractor's trade.
     (6) The department, with assistance of the board, may enter into a contract with a professional testing agency to develop, administer, and score the examinations. The fee for the examination may be set by the department in its contract with the professional testing agency. The department may direct that the applicant pay the fee to the professional testing agency. The fee shall cover but not exceed the costs of preparing and administering the examination.

Sec. 6   RCW 18.27.040 and 2001 c 159 s 3 are each amended to read as follows:
     (1) Each applicant shall file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 48.28 RCW in the sum of twelve thousand dollars if the applicant is a general contractor and six thousand dollars if the applicant is a specialty contractor. If no valid bond is already on file with the department at the time the application is filed, a bond must accompany the ((registration)) license application. The bond shall have the state of Washington named as obligee with good and sufficient surety in a form to be approved by the department. The bond shall be continuous and may be canceled by the surety upon the surety giving written notice to the director. A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends the ((registration)) license issued to the ((registrant)) licensee until a new bond or reinstatement notice has been filed and approved as provided in this section. The bond shall be conditioned that the applicant will pay all persons performing labor, including employee benefits, for the contractor, will pay all taxes and contributions due to the state of Washington, and will pay all persons furnishing labor or material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of breach of contract including negligent or improper work in the conduct of the contracting business. A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond.
     (2) At the time of initial ((registration)) licensure or renewal, the contractor shall provide a bond or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall issue or renew the contractor's ((certificate of registration)) license. Any contractor registered as of July 1, 2001, who maintains that registration in accordance with this chapter, until June 30, 2008, is in compliance with this chapter until the next renewal of the contractor's ((certificate of registration)) license.
     (3) Any person, firm, or corporation having a claim against the contractor for any of the items referred to in this section may bring suit upon the bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had. The surety issuing the bond shall be named as a party to any suit upon the bond. Action upon the bond or deposit brought by a residential homeowner for breach of contract by a party to the construction contract shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within two years from the date the claimed contract work was substantially completed or abandoned. Action upon the bond or deposit brought by any other authorized party shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date the claimed labor was performed and benefits accrued, taxes and contributions owing the state of Washington became due, materials and equipment were furnished, or the claimed contract work was substantially completed or abandoned. Service of process in an action against the contractor, the contractor's bond, or the deposit shall be exclusively by service upon the department. Three copies of the summons and complaint and a fee adopted by rule of not less than twenty dollars to cover the costs shall be served by registered or certified mail, or other delivery service requiring notice of receipt, upon the department at the time suit is started and the department shall maintain a record, available for public inspection, of all suits so commenced. Service is not complete until the department receives the fee and three copies of the summons and complaint. The service shall constitute service on the ((registrant)) licensee and the surety for suit upon the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the ((registrant)) licensee at the address listed in the ((registrant's)) licensee's application and to the surety within two days after it shall have been received.
     (4) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction. The liability of the surety shall not cumulate where the bond has been renewed, continued, reinstated, reissued, or otherwise extended. The surety upon the bond may, upon notice to the department and the parties, tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments, if any, previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending at any one time exceed the amount of the bond then unimpaired, claims shall be satisfied from the bond in the following order:
     (a) Employee labor and claims of laborers, including employee benefits;
     (b) Claims for breach of contract by a party to the construction contract;
     (c) Registered or licensed subcontractors, material, and equipment;
     (d) Taxes and contributions due the state of Washington;
     (e) Any court costs, interest, and ((attorney's [attorneys'])) attorneys' fees plaintiff may be entitled to recover. The surety is not liable for any amount in excess of the penal limit of its bond.
     A payment made by the surety in good faith exonerates the bond to the extent of any payment made by the surety.
     (5) The total amount paid from a bond or deposit required of a general contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount. The total amount paid from a bond or deposit required of a specialty contractor by this section to claimants other than residential homeowners must not exceed one-half of the bond amount or four thousand dollars, whichever is greater.
     (6) The prevailing party in an action filed under this section against the contractor and contractor's bond or deposit, for breach of contract by a party to a construction contract, is entitled to costs, interest, and reasonable attorneys' fees. The surety upon the bond is not liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction.
     (7) If a final judgment impairs the liability of the surety upon the bond so furnished that there is not in effect a bond in the full amount prescribed in this section, the ((registration)) license of the contractor is automatically suspended until the bond liability in the required amount unimpaired by unsatisfied judgment claims is furnished.
     (8) In lieu of the surety bond required by this section the contractor may file with the department a deposit consisting of cash or other security acceptable to the department.
     (9) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the ((registrant)) licensee for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment. Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit, through the registry of the superior court which rendered judgment, towards the amount of the unsatisfied judgment. The priority of payment by the department shall be the order of receipt by the department, but the department shall have no liability for payment in excess of the amount of the deposit.
     (10) The director may require an applicant applying to renew or reinstate a ((registration)) license or applying for a new ((registration)) license to file a bond of up to three times the normally required amount, if the director determines that an applicant, or a previous ((registration)) license of a corporate officer, owner, or partner of a current applicant, has had in the past five years a total of six final judgments in actions under this chapter involving a residential single-family dwelling on two or more different structures.
     (11) The director may adopt rules necessary for the proper administration of the security.

Sec. 7   RCW 18.27.065 and 1983 1st ex.s. c 2 s 16 are each amended to read as follows:
     A partnership or joint venture shall be deemed ((registered)) licensed under this chapter if any one of the general partners or venturers whose name appears in the name under which the partnership or venture does business is ((registered)) licensed.

Sec. 8   RCW 18.27.070 and 1997 c 314 s 7 are each amended to read as follows:
     The department shall charge fees for issuance, renewal, and reinstatement of ((certificates of registration)) a license; and changes of name, address, or business structure. The department shall set the fees by rule.
     The entire amount of the fees are to be used solely to cover the full cost of issuing ((certificates)) licenses, filing papers and notices, and administering and enforcing this chapter. The costs shall include reproduction, travel, per diem, and administrative and legal support costs.

Sec. 9   RCW 18.27.075 and 2001 c 159 s 14 are each amended to read as follows:
     The department shall charge a fee of one hundred nine dollars and seventy cents for issuing or renewing a ((certificate of registration during the 2001-2003 biennium)) license. The department shall revise this amount at least once every two years for the purpose of recognizing economic changes as reflected by the fiscal growth factor under chapter 43.135 RCW.

Sec. 10   RCW 18.27.080 and 1988 c 285 s 2 are each amended to read as follows:
     No person engaged in the business or acting in the capacity of a contractor may bring or maintain any action in any court of this state for the collection of compensation for the performance of any work or for breach of any contract for which ((registration)) licensure is required under this chapter without alleging and proving that he or she was a duly ((registered)) licensed contractor and held a current and valid ((certificate of registration)) license at the time he or she contracted for the performance of such work or entered into such contract. For the purposes of this section, the court shall not find a contractor in substantial compliance with the ((registration)) licensing requirements of this chapter unless: (1) The department has on file the information required by RCW 18.27.030; (2) the contractor has a current bond or other security as required by RCW 18.27.040; and (3) the contractor has current insurance as required by RCW 18.27.050. In determining under this section whether a contractor is in substantial compliance with the ((registration)) licensing requirements of this chapter, the court shall take into consideration the length of time during which the contractor did not hold a valid ((certificate of registration)) license.

Sec. 11   RCW 18.27.090 and 2003 c 399 s 401 are each amended to read as follows:
     The ((registration)) licensing provisions of this chapter do not apply to:
     (1) An authorized representative of the United States government, the state of Washington, or any incorporated city, town, county, township, irrigation district, reclamation district, or other municipal or political corporation or subdivision of this state;
     (2) Officers of a court when they are acting within the scope of their office;
     (3) Public utilities operating under the ((regulations)) rules of the utilities and transportation commission in construction, maintenance, or development work incidental to their own business;
     (4) Any construction, repair, or operation incidental to the discovering or producing of petroleum or gas, or the drilling, testing, abandoning, or other operation of any petroleum or gas well or any surface or underground mine or mineral deposit when performed by an owner or lessee;
     (5) The sale or installation of any finished products, materials, or articles of merchandise that are not actually fabricated into and do not become a permanent fixed part of a structure;
     (6) Any construction, alteration, improvement, or repair of personal property performed by the registered or legal owner, or by a mobile/manufactured home retail dealer or manufacturer licensed under chapter 46.70 RCW who shall warranty service and repairs under chapter 46.70 RCW;
     (7) Any construction, alteration, improvement, or repair carried on within the limits and boundaries of any site or reservation under the legal jurisdiction of the federal government;
     (8) Any person who only furnished materials, supplies, or equipment without fabricating them into, or consuming them in the performance of, the work of the contractor;
     (9) Any work or operation on one undertaking or project by one or more contracts, the aggregate contract price of which for labor and materials and all other items is less than five hundred dollars, such work or operations being considered as of a casual, minor, or inconsequential nature. The exemption prescribed in this subsection does not apply in any instance where((in)) the work or construction is only a part of a larger or major operation, whether undertaken by the same or a different contractor, or in which a division of the operation is made into contracts of amounts less than five hundred dollars for the purpose of evasion of this chapter or otherwise. The exemption prescribed in this subsection does not apply to a person who advertises or puts out any sign or card or other device which might indicate to the public that he or she is a contractor, or that he or she is qualified to engage in the business of contractor;
     (10) Any construction or operation incidental to the construction and repair of irrigation and drainage ditches of regularly constituted irrigation districts or reclamation districts; or to farming, dairying, agriculture, viticulture, horticulture, or stock or poultry raising; or to clearing or other work upon land in rural districts for fire prevention purposes; except when any of the above work is performed by a ((registered)) licensed contractor;
     (11) An owner who contracts for a project with a ((registered)) licensed contractor, except that this exemption shall not deprive the owner of the protections of this chapter against ((registered and unregistered)) licensed and unlicensed contractors;
     (12) Any person working on his or her own property, whether occupied by him or her or not, and any person working on his or her personal residence, whether owned by him or her or not but this exemption shall not apply to any person otherwise covered by this chapter who constructs an improvement on his or her own property with the intention and for the purpose of selling the improved property;
     (13) Owners of commercial properties who use their own employees to do maintenance, repair, and alteration work in or upon their own properties;
     (14) A licensed architect or civil or professional engineer acting solely in his or her professional capacity, an electrician licensed under the laws of the state of Washington, or a plumber licensed under the laws of the state of Washington or licensed by a political subdivision of the state of Washington while operating within the boundaries of such political subdivision. The exemption provided in this subsection is applicable only when the licensee is operating within the scope of his or her license;
     (15) Any person who engages in the activities herein regulated as an employee of a ((registered)) licensed contractor with wages as his or her sole compensation or as an employee with wages as his or her sole compensation;
     (16) Contractors on highway projects who have been prequalified as required by RCW 47.28.070, with the department of transportation to perform highway construction, reconstruction, or maintenance work;
     (17) A mobile/manufactured home dealer or manufacturer who subcontracts the installation, set-up, or repair work to actively ((registered)) licensed contractors. This exemption only applies to the installation, set-up, or repair of the mobile/manufactured homes that were manufactured or sold by the mobile/manufactured home dealer or manufacturer;
     (18) An entity who holds a valid electrical contractor's license under chapter 19.28 RCW that employs a certified journeyman electrician, a certified residential specialty electrician, or an electrical trainee meeting the requirements of chapter 19.28 RCW to perform plumbing work that is incidentally, directly, and immediately appropriate to the like-in-kind replacement of a household appliance or other small household utilization equipment that requires limited electric power and limited waste and/or water connections. An electrical trainee must be supervised by a certified electrician while performing plumbing work.

Sec. 12   RCW 18.27.100 and 2001 c 159 s 8 are each amended to read as follows:
     (1) Except as provided in RCW 18.27.065 for partnerships and joint ventures, no person who ((has registered)) is licensed under one name as provided in this chapter shall engage in the business, or act in the capacity, of a contractor under any other name unless such name also is ((registered)) licensed under this chapter.
     (2) All advertising and all contracts, correspondence, cards, signs, posters, papers, and documents which show a contractor's name or address shall show the contractor's name or address as ((registered)) licensed under this chapter.
     (3)(a) All advertising that shows the contractor's name or address shall show the contractor's current ((registration)) license number. The ((registration)) license number may be omitted in an alphabetized listing of ((registered)) licensed contractors stating only the name, address, and telephone number((: PROVIDED, That)). Signs on motor vehicles subject to RCW 46.16.010 and on-premise signs shall not constitute advertising as provided in this section. All materials used to directly solicit business from retail customers who are not businesses shall show the contractor's current ((registration)) license number. A contractor shall not use a false or expired ((registration)) license number in purchasing or offering to purchase an advertisement for which a contractor ((registration)) license number is required. Advertising by airwave transmission shall not be subject to this subsection (3)(a).
     (b) The director may issue a subpoena to any person or entity selling any advertising subject to this section for the name, address, and telephone number provided to the seller of the advertising by the purchaser of the advertising. The subpoena must have enclosed a stamped, self-addressed envelope and blank form to be filled out by the seller of the advertising. If the seller of the advertising has the information on file, the seller shall, within a reasonable time, return the completed form to the department. The subpoena must be issued no more than two days after the expiration of the issue or publication containing the advertising or after the broadcast of the advertising. The good-faith compliance by a seller of advertising with a written request of the department for information concerning the purchaser of advertising shall constitute a complete defense to any civil or criminal action brought against the seller of advertising arising from such compliance. Advertising by airwave or electronic transmission is subject to this subsection (3)(b).
     (4) No contractor shall advertise that he or she is bonded and insured because of the bond required to be filed and sufficiency of insurance as provided in this chapter.
     (5) A contractor shall not falsify a ((registration)) license number and use it, or use an expired ((registration)) license number, in connection with any solicitation or identification as a contractor. All individual contractors and all partners, associates, agents, salesmen, solicitors, officers, and employees of contractors shall use their true names and addresses at all times while engaged in the business or capacity of a contractor or related activities ((related thereto)).
     (6) Any advertising by a person, firm, or corporation soliciting work as a contractor when that person, firm, or corporation is not ((registered pursuant to)) licensed under this chapter is a violation of this chapter.
     (7)(a) The finding of a violation of this section by the director at a hearing held in accordance with the administrative procedure act, chapter 34.05 RCW, shall subject the person committing the violation to a penalty of not more than ten thousand dollars as determined by the director.
     (b) Penalties under this section shall not apply to a violation determined to be an inadvertent error.

Sec. 13   RCW 18.27.104 and 1997 c 314 s 10 are each amended to read as follows:
     (1) If, upon investigation, the director or the director's designee has probable cause to believe that a person holding a ((registration)) license, an applicant for ((registration)) a license, or a person acting in the capacity of a contractor who is not otherwise exempted from this chapter, has violated RCW 18.27.100 by unlawfully advertising for work covered by this chapter, the department may issue a citation containing an order of correction. Such order shall require the violator to cease the unlawful advertising.
     (2) If the person to whom a citation is issued under subsection (1) of this section notifies the department in writing that he or she contests the citation, the department shall afford an opportunity for an adjudicative proceeding under chapter 34.05 RCW within thirty days after receiving the notification.

Sec. 14   RCW 18.27.110 and 1997 c 314 s 11 are each amended to read as follows:
     (1) No city, town or county shall issue a construction building permit for work which is to be done by any contractor required to be ((registered)) licensed under this chapter without verification that such contractor is currently ((registered)) licensed as required by law. When such verification is made, nothing contained in this section is intended to be, nor shall be construed to create, or form the basis for any liability under this chapter on the part of any city, town, or county, or its officers, employees, or agents. However, failure to verify the contractor ((registration)) license number results in liability to the city, town, or county to a penalty to be imposed according to RCW 18.27.100(7)(a).
     (2) At the time of issuing the building permit, all cities, towns, or counties are responsible for:
     (a) Printing the contractor ((registration)) license number on the building permit; and
     (b) Providing a written notice to the building permit applicant informing them of contractor ((registration)) license laws and the potential risk and monetary liability to the homeowner for using an ((unregistered)) unlicensed contractor.
     (3) If a building permit is obtained by an applicant or contractor who falsifies information to obtain an exemption provided under RCW 18.27.090, the building permit shall be forfeited.

Sec. 15   RCW 18.27.114 and 2001 c 159 s 9 are each amended to read as follows:
     (1) Any contractor agreeing to perform any contracting project: (a) For the repair, alteration, or construction of four or fewer residential units or accessory structures on such residential property when the bid or contract price totals one thousand dollars or more; or (b) for the repair, alteration, or construction of a commercial building when the bid or contract price totals one thousand dollars or more but less than sixty thousand dollars, must provide the customer with the following disclosure statement in substantially the following form using lower case and upper case twelve-point and bold type where appropriate, prior to starting work on the project:

This contractor is ((registered)) licensed with the state of Washington, ((registration)) license no. . . ., and has posted with the state a bond or deposit of . . . . . for the purpose of satisfying claims against the contractor for breach of contract including negligent or improper work in the conduct of the contractor's business. The expiration date of this contractor's ((registration)) license is . . . . ..

THIS BOND OR DEPOSIT MIGHT NOT BE SUFFICIENT TO COVER A CLAIM THAT MIGHT ARISE FROM THE WORK DONE UNDER YOUR CONTRACT.

This bond or deposit is not for your exclusive use because it covers all work performed by this contractor. The bond or deposit is intended to pay valid claims up to . . . . . that you and other customers, suppliers, subcontractors, or taxing authorities may have.

FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT.

You may withhold a contractually defined percentage of your construction contract as retainage for a stated period of time to provide protection to you and help insure that your project will be completed as required by your contract.

YOUR PROPERTY MAY BE LIENED.

If a supplier of materials used in your construction project or an employee or subcontractor of your contractor or subcontractors is not paid, your property may be liened to force payment and you could pay twice for the same work.

FOR ADDITIONAL PROTECTION, YOU MAY REQUEST THE CONTRACTOR TO PROVIDE YOU WITH ORIGINAL "LIEN RELEASE" DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT.

The contractor is required to provide you with further information about lien release documents if you request it. General information is also available from the state Department of Labor and Industries."

Sec. 16   RCW 18.27.117 and 1997 c 314 s 13 are each amended to read as follows:
     The legislature finds that setting up and siting mobile/manufactured homes must be done properly for the health, safety, and enjoyment of the occupants. Therefore, when any of the following cause a health and safety risk to the occupants of a mobile/manufactured home, or severely hinder the use and enjoyment of the mobile/manufactured home, a violation of RCW 19.86.020 shall have occurred:
     (1) The mobile/manufactured home has been improperly installed by a contractor ((registered)) licensed under this chapter ((18.27 RCW)), or a mobile/manufactured dealer or manufacturer licensed under chapter 46.70 RCW;
     (2) A warranty given under this chapter ((18.27 RCW)) or chapter 46.70 RCW has not been fulfilled by the person or business giving the warranty; and
     (3) A bonding company that issues a bond under this chapter ((18.27 RCW)) or chapter 46.70 RCW does not reasonably and professionally investigate and resolve claims made by injured parties.

Sec. 17   RCW 18.27.120 and 2005 c 274 s 221 are each amended to read as follows:
     (1) The department shall compile a list of all contractors ((registered)) licensed under this chapter and update the list at least bimonthly. The list shall be considered as public record information and shall be available to the public upon request((: PROVIDED, That)). The department may charge a reasonable fee under RCW 42.56.120.
     (2) The department shall inform any person, firm, or corporation, if a contractor is ((registered)) licensed, and if a contractor is bonded or insured, without charge except for a reasonable fee under RCW 42.56.120 for copies made.

Sec. 18   RCW 18.27.130 and 1972 ex.s. c 118 s 4 are each amended to read as follows:
     The provisions of this chapter relating to the ((registration or)) licensing of any person, firm, or corporation, including the requirement of a bond with the state of Washington named as obligee ((therein)) and the collection of a fee ((therefor)) for the bond, shall be exclusive and no political subdivision of the state of Washington shall require or issue any ((registrations,)) licenses((,)) or bonds nor charge any fee for the same or a similar purpose((: PROVIDED, That)). Nothing ((herein shall)) in this section limits or abridges the authority of any city or town to levy and collect a general and nondiscriminatory license fee levied upon all businesses, or to levy a tax based upon gross business conducted by any firm within ((said)) the city((: PROVIDED, FURTHER, That nothing herein shall)). This section does not limit the authority of any city or town with respect to contractors not required to be ((registered)) licensed under this chapter.

Sec. 19   RCW 18.27.200 and 2002 c 82 s 6 are each amended to read as follows:
     (1) It is a violation of this chapter and an infraction for any contractor to:
     (a) Advertise, offer to do work, submit a bid, or perform any work as a contractor without being ((registered)) licensed as required by this chapter;
     (b) Advertise, offer to do work, submit a bid, or perform any work as a contractor when the contractor's ((registration)) license is suspended or revoked;
     (c) Transfer a valid ((registration)) license to an ((unregistered)) unlicensed contractor or allow an ((unregistered)) unlicensed contractor to work under a ((registration)) license issued to another contractor; or
     (d) If the contractor is a contractor as defined in RCW 18.106.010, violate RCW 18.106.320.
     (2) Each day that a contractor works without being ((registered)) licensed as required by this chapter, works while the contractor's ((registration)) license is suspended or revoked, or works under a ((registration)) license issued to another contractor is a separate infraction. Each worksite at which a contractor works without being ((registered)) licensed as required by this chapter, works while the contractor's ((registration)) license is suspended or revoked, or works under a ((registration)) license issued to another contractor is a separate infraction.

Sec. 20   RCW 18.27.210 and 1993 c 454 s 8 are each amended to read as follows:
     (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 a contractor had bid or presently is working to determine whether the contractor is ((registered)) licensed in accordance with this chapter or the rules adopted under this chapter or whether there is a violation of RCW 18.27.200. Upon request of the compliance inspector of the department, a contractor or an employee of the contractor shall provide information identifying the contractor.
     (2) If the employee of an ((unregistered)) unlicensed contractor is cited by a compliance inspector, that employee is cited as the agent of the employer-contractor, and issuance of the infraction to the employee is notice to the 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 contractor.

Sec. 21   RCW 18.27.225 and 1987 c 419 s 3 are each amended to read as follows:
     (1) If, upon inspection or investigation, the director or authorized compliance inspector reasonably believes that a contractor has failed to ((register)) obtain a license in accordance with this chapter or the rules adopted under this chapter, the director shall issue an order immediately restraining further construction work at the job site by the contractor. The order shall describe the specific violation that necessitated issuance of the restraining order. The contractor or representative to whom the restraining order is directed may request a hearing before an administrative law judge, such hearing to be conducted pursuant to chapter 34.05 RCW. A request for hearing shall not stay the effect of the restraining order.
     (2) In addition to and after having invoked the powers of restraint vested in the director as provided in subsection (1) of this section, the director, through the attorney general, may petition the superior court of the state of Washington to enjoin any activity in violation of this chapter. A prima facie case for issuance of an injunction shall be established by affidavits and supporting documentation demonstrating that a restraining order was served upon the contractor and that the contractor continued to work after service of the order. Upon the filing of the petition, the superior court shall have jurisdiction to grant injunctive or other appropriate relief, pending the outcome of enforcement proceedings under this chapter, or to enforce restraining orders issued by the director. If the contractor fails to comply with any court order, the director shall request the attorney general to petition the superior court for an order holding the contractor in contempt of court and for any other appropriate relief.

Sec. 22   RCW 18.27.270 and 2000 c 171 s 9 are each amended to read as follows:
     (1) A contractor who is issued a notice of infraction shall respond within twenty days of the date of issuance of the notice of infraction.
     (2) If the contractor named in the notice of infraction does not elect to contest the notice of infraction, then the contractor shall pay to the department, by check or money order, the amount of the penalty prescribed for the infraction. When a response which does not contest the notice of infraction is received by the department with the appropriate penalty, the department shall make the appropriate entry in its records.
     (3) If the contractor named in the notice of infraction elects to contest the notice of infraction, the contractor shall respond by filing an answer of protest with the department specifying the grounds of protest.
     (4) If any contractor issued a notice of infraction fails to respond within the prescribed response period, the contractor shall be guilty of a misdemeanor and prosecuted in the county where the infraction occurred.
     (5) After final determination by an administrative law judge that an infraction has been committed, a contractor who fails to pay a monetary penalty within thirty days, that is not waived pursuant to RCW 18.27.340(2), and who fails to file an appeal pursuant to RCW 18.27.310(4), shall be guilty of a misdemeanor and be prosecuted in the county where the infraction occurred.
     (6) A contractor who fails to pay a monetary penalty within thirty days after exhausting appellate remedies pursuant to RCW 18.27.310(4), shall be guilty of a misdemeanor and be prosecuted in the county where the infraction occurred.
     (7) If a contractor who is issued a notice of infraction is a contractor who has failed to ((register)) obtain a license as a contractor under this chapter, the contractor is subject to a monetary penalty per infraction as provided in the schedule of penalties established by the department, and each day the person works without becoming ((registered)) licensed is a separate infraction.

Sec. 23   RCW 18.27.310 and 2001 c 159 s 10 are each amended to read as follows:
     (1) The administrative law judge shall conduct contractors' notice of infraction cases pursuant to chapter 34.05 RCW.
     (2) The burden of proof is on the department to establish the commission of the infraction by a preponderance of the evidence. The notice of infraction shall be dismissed if the defendant establishes that, at the time the work was performed, the defendant was ((registered)) licensed by the department, without suspension, or was exempt from ((registration)) licensure.
     (3) After consideration of the evidence and argument, the administrative law judge shall determine whether the infraction was committed. If it has not been established that the infraction was committed, an order dismissing the notice shall be entered in the record of the proceedings. If it has been established that the infraction was committed, the administrative law judge shall issue findings of fact and conclusions of law in its decision and order determining whether the infraction was committed.
     (4) An appeal from the administrative law judge's determination or order shall be to the superior court. The decision of the superior court is subject only to discretionary review pursuant to Rule 2.3 of the Rules of Appellate Procedure.

Sec. 24   RCW 18.27.320 and 2001 c 159 s 11 are each amended to read as follows:
     The administrative law judge shall dismiss the notice of infraction at any time upon written notification from the department that the contractor named in the notice of infraction was ((registered)) licensed, without suspension, at the time the work was performed.

Sec. 25   RCW 18.27.340 and 1997 c 314 s 17 are each amended to read as follows:
     (1) Except as otherwise provided in subsection (3) of this section, a contractor found to have committed an infraction under RCW 18.27.200 shall be assessed a monetary penalty of not less than two hundred dollars and not more than five thousand dollars.
     (2) The director may waive collection in favor of payment of restitution to a consumer complainant.
     (3) A contractor found to have committed an infraction under RCW 18.27.200 for failure to ((register)) obtain a license shall be assessed a fine of not less than one thousand dollars, nor more than five thousand dollars. The director may reduce the penalty for failure to ((register)) obtain a license, but in no case below five hundred dollars, if the person becomes ((registered)) licensed within ten days of receiving a notice of infraction and the notice of infraction is for a first offense.
     (4) Monetary penalties collected under this chapter shall be deposited in the general fund.

Sec. 26   RCW 18.27.342 and 1997 c 314 s 19 are each amended to read as follows:
     ((Beginning December 1, 1997,)) The department shall report by December 1st each year to the commerce and labor committees of the senate and house of representatives and the ways and means committee of the senate and the appropriations committee of the house of representatives, or successor committees, the following information for the previous three fiscal years:
     (1) The number of contractors found to have committed an infraction for failure to ((register)) obtain a license;
     (2) The number of contractors identified in subsection (1) of this section who were assessed a monetary penalty and the amount of the penalties assessed;
     (3) The amount of the penalties reported in subsection (2) of this section that was collected; and
     (4) The amount of the penalties reported in subsection (2) of this section that was waived.

Sec. 27   RCW 18.27.360 and 1996 c 293 s 7 are each amended to read as follows:
     The director shall suspend the ((certificate of registration)) license of any person who has been certified by a lending agency and reported to the director for nonpayment or default on a federally or state-guaranteed educational loan or service-conditional scholarship. ((Prior to the)) Before suspension, the agency must provide the person an opportunity for a brief adjudicative proceeding under RCW 34.05.485 through 34.05.494 and issue a finding of nonpayment or default on a federally or state-guaranteed educational loan or service-conditional scholarship. The person's ((certificate of registration)) license shall not be reissued until the person provides the director a written release issued by the lending agency stating that the person is making payments on the loan in accordance with a repayment agreement approved by the lending agency. If the person has continued to meet all other requirements for ((certification of registration)) licensure during the suspension, reinstatement shall be automatic upon receipt of the notice and payment of any reinstatement fee the director may impose.

Sec. 28   RCW 18.27.370 and 2001 c 159 s 6 are each amended to read as follows:
     (1) If an ((unregistered)) unlicensed contractor defaults in a payment, penalty, or fine due to the department, the director or the director's designee may issue a notice of assessment certifying the amount due. The notice must be served upon the ((unregistered)) unlicensed contractor by mailing the notice to the ((unregistered)) unlicensed contractor by certified mail to the ((unregistered)) unlicensed contractor's last known address or served in the manner prescribed for the service of a summons in a civil action.
     (2) A notice of assessment becomes final thirty days from the date the notice was served upon the ((unregistered)) unlicensed contractor unless a written request for reconsideration is filed with the department or an appeal is filed in a court of competent jurisdiction in the manner specified in RCW 34.05.510 through 34.05.598. The request for reconsideration must set forth with particularity the reason for the ((unregistered)) unlicensed contractor's request. The department, within thirty days after receiving a written request for reconsideration, may modify or reverse a notice of assessment, or may hold a notice of assessment in abeyance pending further investigation. If a final decision of a court in favor of the department is not appealed within the time allowed by law, then the amount of the unappealed assessment, or such amount of the assessment as is found due by the final decision of the court, is final.
     (3) The director or the director's designee may file with the clerk of any county within the state, a warrant in the amount of the notice of assessment, plus interest, penalties, and a filing fee of twenty dollars. The clerk of the county in which the warrant is filed shall immediately designate a superior court cause number for the warrant, and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of the ((unregistered)) unlicensed contractor mentioned in the warrant, the amount of payment, penalty, fine due on it, or filing fee, and the date when the warrant was filed. The aggregate amount of the warrant as docketed shall become a lien upon the title to, and interest in, all real and personal property of the ((unregistered)) unlicensed contractor against whom the warrant is issued, the same as a judgment in a civil case docketed in the office of the clerk. The sheriff shall proceed upon the warrant in all respects and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgment in a court of competent jurisdiction. The warrant so docketed is sufficient to support the issuance of writs of garnishment in favor of the state in a manner provided by law in case of judgment, wholly or partially unsatisfied. The clerk of the court is entitled to a filing fee which will be added to the amount of the warrant. A copy of the warrant shall be mailed to the ((unregistered)) unlicensed contractor within three days of filing with the clerk.
     (4) The director or the director's designee may issue to any person, firm, corporation, other entity, municipal corporation, political subdivision of the state, a public corporation, or any agency of the state, a notice and order to withhold and deliver property of any kind whatsoever when he or she has reason to believe that there is in the possession of the person, firm, corporation, other entity, municipal corporation, political subdivision of the state, public corporation, or agency of the state, property that is or will become due, owing, or belonging to an ((unregistered)) unlicensed contractor upon whom a notice of assessment has been served by the department for payments, penalties, or fines due to the department. The effect of a notice and order is continuous from the date the notice and order is first made until the liability out of which the notice and order arose is satisfied or becomes unenforceable because of lapse of time. The department shall release the notice and order when the liability out of which the notice and order arose is satisfied or becomes unenforceable by reason of lapse of time and shall notify the person against whom the notice and order was made that the notice and order has been released.
     The notice and order to withhold and deliver must be served by the sheriff of the county or by the sheriff's deputy, by certified mail, return receipt requested, or by an authorized representative of the director. A person, firm, corporation, other entity, municipal corporation, political subdivision of the state, public corporation, or agency of the state upon whom service has been made shall answer the notice within twenty days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of in the notice and order. Upon service of the notice and order, if the party served possesses any property that may be subject to the claim of the department, the party shall promptly deliver the property to the director or the director's authorized representative. The director shall hold the property in trust for application on the ((unregistered)) unlicensed contractor's indebtedness to the department, or for return without interest, in accordance with a final determination of a petition for review. In the alternative, the party shall furnish a good and sufficient surety bond satisfactory to the director conditioned upon final determination of liability. If a party served and named in the notice fails to answer the notice within the time prescribed in this section, the court may render judgment by default against the party for the full amount claimed by the director in the notice, together with costs. If a notice is served upon an ((unregistered)) unlicensed contractor and the property subject to it is wages, the ((unregistered)) unlicensed contractor may assert in the answer all exemptions provided for by chapter 6.27 RCW to which the wage earner is entitled.
     (5) In addition to the procedure for collection of a payment, penalty, or fine due to the department as set forth in this section, the department may recover civil penalties imposed under this chapter in a civil action in the name of the department brought in a court of competent jurisdiction of the county where the violation is alleged to have occurred.

NEW SECTION.  Sec. 29   A new section is added to chapter 18.27 RCW to read as follows:
     The construction contractor's license account is created in the state treasury. All receipts from application fees, the issuance or renewal of contractor licenses, training, or other sources related to licensing of contractors must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes of this chapter.

NEW SECTION.  Sec. 30   A new section is added to chapter 18.27 RCW to read as follows:
     (1) The state building code council shall, by January 1, 2008, prepare a written training course and examination to be administered, at no cost to the local government, to all local government building inspectors that inspect single or multifamily residential buildings.
     (2) The state building code council may use an existing certification program designed to test local government building inspectors on their knowledge of the state building code.
     (3) After June 30, 2008, a local government building inspector shall not inspect a single or multifamily residential building unless certified by the state building code council as having passed the examination.
     (4) The state building code council shall adopt necessary rules to implement this section.

Sec. 31   RCW 18.100.140 and 1994 sp.s. c 9 s 717 are each amended to read as follows:
     Nothing in this chapter shall authorize a director, officer, shareholder, agent or employee of a corporation organized under this chapter, or a corporation itself organized under this chapter, to do or perform any act which would be illegal, unethical or unauthorized conduct under the provisions of the following acts: (1) Physicians and surgeons, chapter 18.71 RCW; (2) anti-rebating act, chapter 19.68 RCW; (3) state bar act, chapter 2.48 RCW; (4) professional accounting act, chapter 18.04 RCW; (5) professional architects act, chapter 18.08 RCW; (6) professional auctioneers act, chapter 18.11 RCW; (7) cosmetologists, barbers, and manicurists, chapter 18.16 RCW; (8) boarding homes act, chapter 18.20 RCW; (9) podiatric medicine and surgery, chapter 18.22 RCW; (10) chiropractic act, chapter 18.25 RCW; (11) ((registration)) licensing of contractors, chapter 18.27 RCW; (12) debt adjusting act, chapter 18.28 RCW; (13) dental hygienist act, chapter 18.29 RCW; (14) dentistry, chapter 18.32 RCW; (15) dispensing opticians, chapter 18.34 RCW; (16) naturopathic physicians, chapter 18.36A RCW; (17) embalmers and funeral directors, chapter 18.39 RCW; (18) engineers and land surveyors, chapter 18.43 RCW; (19) escrow agents registration act, chapter 18.44 RCW; (20) ((maternity homes)) birthing centers, chapter 18.46 RCW; (21) midwifery, chapter 18.50 RCW; (22) nursing homes, chapter 18.51 RCW; (23) optometry, chapter 18.53 RCW; (24) osteopathic physicians and surgeons, chapter 18.57 RCW; (25) pharmacists, chapter 18.64 RCW; (26) physical therapy, chapter 18.74 RCW; (27) registered nurses, advanced registered nurse practitioners, and practical nurses, chapter 18.79 RCW; (28) psychologists, chapter 18.83 RCW; (29) real estate brokers and salesmen, chapter 18.85 RCW; (30) veterinarians, chapter 18.92 RCW.

Sec. 32   RCW 18.106.020 and 2006 c 185 s 11 are each amended to read as follows:
     (1) No person may engage in or offer to engage in the trade of plumbing without having a journeyman certificate, specialty certificate, temporary permit, or trainee certificate. A trainee must be supervised by a person who has a journeyman certificate, specialty certificate, or temporary permit, as specified in RCW 18.106.070. No contractor may employ a person to engage in or offer to engage in the trade of plumbing unless the person employed has a journeyman certificate, specialty certificate, temporary permit, or trainee certificate. This section does not apply to a contractor who is contracting for work on his or her own residence. Until July 1, 2007, the department shall issue a written warning to any specialty plumber defined by RCW 18.106.010(10)(c) not having a valid plumber certification. The warning will state that the individual must apply for a plumber training certificate or be qualified for and apply for plumber certification under the requirements in RCW 18.106.040 within thirty calendar days of the warning. Only one warning will be issued to any individual. If the individual fails to comply with this section, the department shall issue a penalty or penalties as authorized by this chapter.
     (2) No person may engage in or offer to engage in medical gas piping installation without having a certificate of competency as a journeyman plumber and a medical gas piping installer endorsement. A trainee may engage in medical gas piping installation if he or she has a training certificate and is supervised by a person with a medical gas piping installer endorsement. No contractor may employ a person to engage in or offer to engage in medical gas piping installation unless the person employed has a certificate of competency as a journeyman plumber and a medical gas piping installer endorsement.
     (3) No contractor may advertise, offer to do work, submit a bid, or perform any work under this chapter without being ((registered)) licensed as a contractor under chapter 18.27 RCW.
     (4) Violation of this section is an infraction. Each day in which a person engages in the trade of plumbing in violation of this section or employs a person in violation of this section is a separate infraction. Each worksite at which a person engages in the trade of plumbing in violation of this section or at which a person is employed in violation of this section is a separate infraction.
     (5) Notices of infractions for violations of this section may be issued to:
     (a) The person engaging in or offering to engage in the trade of plumbing in violation of this section;
     (b) The contractor in violation of this section; and
     (c) The contractor's employee who authorized the work assignment of the person employed in violation of this section.

Sec. 33   RCW 18.106.180 and 2002 c 82 s 3 are each amended to read as follows:
     (1) An authorized representative of the department may issue a notice of infraction as specified in RCW 18.106.020 if:
     (a) A person who is doing plumbing work or who is offering to do plumbing work fails to produce evidence of:
     (i) Having a certificate or permit issued by the department in accordance with this chapter, or being supervised by a person who has such a certificate or permit; and
     (ii) Being ((registered)) licensed as a contractor as required under chapter 18.27 RCW or this chapter, or being employed by a person who is ((registered)) licensed as a contractor;
     (b) A person who employs anyone, or offers or advertises to employ anyone, to do plumbing work fails to produce evidence of being ((registered)) licensed as a contractor as required under chapter 18.27 RCW or this chapter; or
     (c) A contractor violates RCW 18.106.320.
     (2) A notice of infraction issued under this section shall be personally served on the person named in the notice by an authorized representative of the department or sent by certified mail to the last known address provided to the department of the person named in the notice.

Sec. 34   RCW 18.106.250 and 2002 c 82 s 4 are each amended to read as follows:
     (1) The administrative law judge shall conduct notice of infraction cases under this chapter pursuant to chapter 34.05 RCW.
     (2) The burden of proof is on the department to establish the commission of the infraction by a preponderance of the evidence. The notice of infraction shall be dismissed if the defendant establishes that, at the time the notice was issued:
     (a) The defendant who was issued a notice of infraction authorized by RCW 18.106.020(5)(a) had a certificate or permit issued by the department in accordance with this chapter, was supervised by a person who has such a certificate or permit, or was exempt from this chapter under RCW 18.106.150; or
     (b) For the defendant who was issued a notice of infraction authorized by RCW 18.106.020(5) (b) or (c), the person employed or supervised by the defendant has a certificate or permit issued by the department in accordance with this chapter, was supervised by a person who had such a certificate or permit, was exempt from this chapter under RCW 18.106.150, or was ((registered)) licensed as a contractor under chapter 18.27 RCW.
     (3) After consideration of the evidence and argument, the administrative law judge shall determine whether the infraction was committed. If it has not been established that the infraction was committed, an order dismissing the notice shall be entered in the record of the proceedings. If it has been established that the infraction was committed, the administrative law judge shall issue findings of fact and conclusions of law in its decision and order determining whether the infraction was committed.
     (4) An appeal from the administrative law judge's determination or order shall be to the superior court. The decision of the superior court is subject only to discretionary review pursuant to Rule 2.3 of the Rules of Appellate Procedure.

Sec. 35   RCW 18.160.030 and 2003 c 74 s 1 are each amended to read as follows:
     (1) This chapter shall be administered by the state director of fire protection.
     (2) The state director of fire protection shall have the authority, and it shall be his or her duty to:
     (a) ((Issue such administrative regulations as)) Adopt rules necessary for the administration of this chapter;
     (b)(i) Set reasonable fees for licenses, certificates, testing, and other aspects of the administration of this chapter. However, the license fee for fire protection sprinkler system contractors engaged solely in the installation, inspection, maintenance, or servicing of NFPA 13-D fire protection sprinkler systems shall not exceed one hundred dollars, and the license fee for fire protection sprinkler system contractors engaged solely in the installation, inspection, maintenance, or servicing of NFPA 13-R fire protection sprinkler systems shall not exceed three hundred dollars;
     (ii) Adopt rules establishing a special category restricted to contractors ((registered)) licensed under chapter 18.27 RCW who install underground systems that service fire protection sprinkler systems. The rules shall be adopted within ninety days of March 31, 1992;
     (iii) Subject to RCW 18.160.120, adopt rules defining infractions under this chapter and fines to be assessed for those infractions;
     (c) Enforce the provisions of this chapter;
     (d) Conduct investigations of complaints to determine if any infractions of this chapter or the ((regulations)) rules developed under this chapter have occurred;
     (e) Assign a certificate number to each certificate of competency holder; and
     (f) Adopt rules necessary to implement and administer a program which requires the affixation of a seal any time a fire protection sprinkler system is installed, which seal shall include the certificate number of any certificate of competency holder who installs, in whole or in part, the fire protection sprinkler system.

Sec. 36   RCW 19.28.051 and 2006 c 185 s 8 are each amended to read as follows:
     It shall be the purpose and function of the board to establish, in addition to a general electrical contractors' license, such classifications of specialty electrical contractors' licenses as it deems appropriate with regard to individual sections pertaining to state adopted codes in this chapter. In addition, it shall be the purpose and function of the board to establish and administer written examinations for general electrical administrators' certificates and the various specialty electrical administrators' certificates. Examinations shall be designed to reasonably ensure that general and specialty electrical administrators' certificate holders are competent to engage in and supervise the work covered by this statute and their respective licenses. The examinations shall include questions from the following categories to ensure proper safety and protection for the general public: (1) Safety, (2) state electrical code, and (3) electrical theory. The department with the consent of the board shall be permitted to enter into a contract with a professional testing agency to develop, administer, and score these examinations, or accept certifications or other appropriate demonstrations established by independent entities that otherwise fulfill the examination requirements of this section. Individuals who can provide evidence to the department, prior to January 1, 2007, that they have been employed as a pump installer in the pump and irrigation or domestic pump business by an appropriately licensed electrical contractor, ((registered)) licensed general contractor defined by chapter 18.27 RCW, or appropriate general specialty contractor defined by chapter 18.27 RCW for not less than eight thousand hours in the most recent six calendar years shall be issued the appropriate administrator's certificate by the department upon receiving such documentation and applicable fees. The fee for the examination may be set by the department in its contract with the professional testing agency. The department may direct that the applicant pay the fee to the professional testing agency. The fee shall cover but not exceed the costs of preparing and administering the examination. It shall be the further purpose and function of this board to advise the director as to the need of additional electrical inspectors and compliance officers to be utilized by the director on either a full-time or part-time employment basis and to carry out the duties enumerated in RCW 19.28.161 through 19.28.271 as well as generally advise the department on all matters relative to RCW 19.28.161 through 19.28.271.

Sec. 37   RCW 19.28.161 and 2006 c 224 s 2 and 2006 c 185 s 6 are each reenacted and amended to read as follows:
     (1) No person may engage in the electrical construction trade without having a valid master journeyman electrician certificate of competency, journeyman electrician certificate of competency, master specialty electrician certificate of competency, or specialty electrician certificate of competency issued by the department in accordance with this chapter. Electrician certificate of competency specialties include, but are not limited to: Residential, pump and irrigation, limited energy system, signs, nonresidential maintenance, restricted nonresidential maintenance, and appliance repair. Until July 1, 2007, the department of labor and industries shall issue a written warning to any specialty pump and irrigation or domestic pump electrician not having a valid electrician certification. The warning will state that the individual must apply for an electrical training certificate or be qualified for and apply for electrician certification under the requirements in RCW 19.28.191(1)(((g))) (d) within thirty calendar days of the warning. Only one warning will be issued to any individual. If the individual fails to comply with this section, the department shall issue a penalty as defined in RCW 19.28.271 to the individual.
     (2) A person who is indentured in an apprenticeship program approved under chapter 49.04 RCW for the electrical construction trade or who is learning the electrical construction trade may work in the electrical construction trade if supervised by a certified master journeyman electrician, journeyman electrician, master specialty electrician in that electrician's specialty, or specialty electrician in that electrician's specialty. All apprentices and individuals learning the electrical construction trade shall obtain an electrical training certificate from the department. The certificate shall authorize the holder to learn the electrical construction trade while under the direct supervision of a master journeyman electrician, journeyman electrician, master specialty electrician working in that electrician's specialty, or specialty electrician working in that electrician's specialty. The holder of the electrical training certificate shall renew the certificate biennially. At the time of renewal, the holder shall provide the department with an accurate list of the holder's employers in the electrical construction industry for the previous biennial period and the number of hours worked for each employer, and proof of sixteen hours of approved classroom electrical continuing education courses covering this chapter, the national electrical code, or electrical theory, or the equivalent electrical training courses taken as part of an approved apprenticeship program under chapter 49.04 RCW or an approved electrical training program under RCW 19.28.191(1)(((h))) (e). This education requirement is effective July 1, 2007. A biennial fee shall be charged for the issuance or renewal of the certificate. The department shall set the fee by rule. The fee shall cover but not exceed the cost of administering and enforcing the trainee certification and supervision requirements of this chapter. Apprentices and individuals learning the electrical construction trade shall have their electrical training certificates in their possession at all times that they are performing electrical work. They shall show their certificates to an authorized representative of the department at the representative's request.
     (3) Any person who has been issued an electrical training certificate under this chapter may work if that person is under supervision. Supervision shall consist of a person being on the same job site and under the control of either a certified master journeyman electrician, journeyman electrician, master specialty electrician working in that electrician's specialty, or specialty electrician working in that electrician's specialty. Either a certified master journeyman electrician, journeyman electrician, master specialty electrician working in that electrician's specialty, or specialty electrician working in that electrician's specialty shall be on the same job site as the noncertified individual for a minimum of seventy-five percent of each working day unless otherwise provided in this chapter.
     (4) The ratio of noncertified individuals to certified master journeymen electricians, journeymen electricians, master specialty electricians, or specialty electricians on any one job site is as follows:
     (a) When working as a specialty electrician, not more than two noncertified individuals for every certified master specialty electrician working in that electrician's specialty, specialty electrician working in that electrician's specialty, master journeyman electrician, or journeyman electrician, except that the ratio requirements are one certified master specialty electrician working in that electrician's specialty, specialty electrician working in that electrician's specialty, master journeyman electrician, or journeyman electrician working as a specialty electrician to no more than four students enrolled in and working as part of an electrical construction program at public community or technical colleges, or not-for-profit nationally accredited trade or technical schools licensed by the work force training and education coordinating board under chapter 28C.10 RCW. In meeting the ratio requirements for students enrolled in an electrical construction program at a trade school, a trade school may receive input and advice from the electrical board; and
     (b) When working as a journeyman electrician, not more than one noncertified individual for every certified master journeyman electrician or journeyman electrician, except that the ratio requirements shall be one certified master journeyman electrician or journeyman electrician to no more than four students enrolled in and working as part of an electrical construction program at public community or technical colleges, or not-for-profit nationally accredited trade or technical schools licensed by the work force training and education coordinating board under chapter 28C.10 RCW. In meeting the ratio requirements for students enrolled in an electrical construction program at a trade school, a trade school may receive input and advice from the electrical board.
     An individual who has a current training certificate and who has successfully completed or is currently enrolled in an approved apprenticeship program or in an electrical construction program at public community or technical colleges, or not-for-profit nationally accredited technical or trade schools licensed by the work force training and education coordinating board under chapter 28C.10 RCW, may work without direct on-site supervision during the last six months of meeting the practical experience requirements of this chapter.
     (5) For the residential (as specified in WAC 296-46B-920(2)(a)), pump and irrigation (as specified in WAC 296-46B-920(2)(b)), sign (as specified in WAC 296-46B-920(2)(d)), limited energy (as specified in WAC 296-46B-920(2)(e)), nonresidential maintenance (as specified in WAC 296-46B-920(2)(g)), restricted nonresidential maintenance as determined by the department in rule, or other new nonresidential specialties, not including appliance repair, as determined by the department in rule, either a master journeyman electrician, journeyman electrician, master specialty electrician working in that electrician's specialty, or specialty electrician working in that electrician's specialty must be on the same job site as the noncertified individual for a minimum of seventy-five percent of each working day. Other specialties must meet the requirements specified in RCW 19.28.191 (1)(((g))) (d)(ii). When the ratio of certified electricians to noncertified individuals on a job site is one certified electrician to three or four noncertified individuals, the certified electrician must:
     (a) Directly supervise and instruct the noncertified individuals and the certified electrician may not directly make or engage in an electrical installation; and
     (b) Be on the same job site as the noncertified individual for a minimum of one hundred percent of each working day.
     (6) The electrical contractor shall accurately verify and attest to the electrical trainee hours worked by electrical trainees on behalf of the electrical contractor.

Sec. 38   RCW 19.28.191 and 2006 c 185 s 7 are each amended to read as follows:
     (1) Upon receipt of the application, the department shall review the application and determine whether the applicant is eligible to take an examination for the master journeyman electrician, journeyman electrician, master specialty electrician, or specialty electrician certificate of competency.
     (a) ((Before July 1, 2005, an applicant who possesses a valid journeyman electrician certificate of competency in effect for the previous four years and a valid general administrator's certificate may apply for a master journeyman electrician certificate of competency without examination.
     (b) Before July 1, 2005, an applicant who possesses a valid specialty electrician certificate of competency, in the specialty applied for, for the previous two years and a valid specialty administrator's certificate, in the specialty applied for, may apply for a master specialty electrician certificate of competency without examination.
     (c) Before December 1, 2003, the following persons may obtain an equipment repair specialty electrician certificate of competency without examination:
     (i) A person who has successfully completed an apprenticeship program approved under chapter 49.04 RCW for the machinist trade; and
     (ii) A person who provides evidence in a form prescribed by the department affirming that: (A) He or she was employed as of April 1, 2003, by a factory-authorized equipment dealer or service company; and (B) he or she has worked in equipment repair for a minimum of four thousand hours.
     (d))) To be eligible to take the examination for a master journeyman electrician certificate of competency the applicant must have possessed a valid journeyman electrician certificate of competency for four years.
     (((e))) (b) To be eligible to take the examination for a master specialty electrician certificate of competency the applicant must have possessed a valid specialty electrician certificate of competency, in the specialty applied for, for two years.
     (((f))) (c) To be eligible to take the examination for a journeyman certificate of competency the applicant must have:
     (i) Worked in the electrical construction trade for a minimum of eight thousand hours, of which four thousand hours shall be in industrial or commercial electrical installation under the supervision of a master journeyman electrician or journeyman electrician and not more than a total of four thousand hours in all specialties under the supervision of a master journeyman electrician, journeyman electrician, master specialty electrician working in that electrician's specialty, or specialty electrician working in that electrician's specialty. Speciality electricians with less than a four thousand hour work experience requirement cannot credit the time required to obtain that specialty towards qualifying to become a journeyman electrician; or
     (ii) Successfully completed an apprenticeship program approved under chapter 49.04 RCW for the electrical construction trade.
     (((g))) (d) To be eligible to take the examination for a specialty electrician certificate of competency the applicant must have:
     (i) Worked in the residential (as specified in WAC 296-46B-920(2)(a)), pump and irrigation (as specified in WAC 296-46B-920(2)(b)), sign (as specified in WAC 296-46B-920(2)(d)), limited energy (as specified in WAC 296-46B-920(2)(e)), nonresidential maintenance (as specified in WAC 296-46B-920(2)(g)), or other new nonresidential specialties as determined by the department in rule under the supervision of a master journeyman electrician, journeyman electrician, master specialty electrician working in that electrician's specialty, or specialty electrician working in that electrician's specialty for a minimum of four thousand hours;
     (ii) Worked in the appliance repair specialty as determined by the department in rule, restricted nonresidential maintenance as determined by the department in rule, the equipment repair specialty as determined by the department in rule, the pump and irrigation specialty other than as defined by (((g))) (d)(i) of this subsection or domestic pump specialty as determined by the department in rule, or a specialty other than the designated specialties in (((g))) (d)(i) of this subsection for a minimum of the initial ninety days, or longer if set by rule by the department. The restricted nonresidential maintenance specialty is limited to a maximum of 277 volts and 20 amperes for lighting branch circuits and/or a maximum of 250 volts and 60 amperes for other circuits, but excludes the replacement or repair of circuit breakers. The initial period must be spent under one hundred percent supervision of a master journeyman electrician, journeyman electrician, master specialty electrician working in that electrician's specialty, or specialty electrician working in that electrician's specialty. After this initial period, a person may take the specialty examination. If the person passes the examination, the person may work unsupervised for the balance of the minimum hours required for certification. A person may not be certified as a specialty electrician in the appliance repair specialty or in a specialty other than the designated specialities in (((g))) (d)(i) of this subsection, however, until the person has worked a minimum of two thousand hours in that specialty, or longer if set by rule by the department;
     (iii) Successfully completed an approved apprenticeship program under chapter 49.04 RCW for the applicant's specialty in the electrical construction trade; or
     (iv) In meeting the training requirements for the pump and irrigation or domestic pump specialties, the individual shall be allowed to obtain the experience required by this section at the same time the individual is meeting the experience required by RCW 18.106.040(1)(c). After meeting the training requirements provided in this section, the individual may take the examination and upon passing the examination, meeting additional training requirements as may still be required for those seeking a pump and irrigation, or a domestic pump specialty certificate as defined by rule, and paying the applicable fees, the individual must be issued the appropriate certificate. The department may include an examination for specialty plumbing certificate defined in RCW 18.106.010(10)(c) with the examination required by this section. The department, by rule and in consultation with the electrical board, may establish additional equivalent ways to gain the experience requirements required by this subsection. Individuals who are able to provide evidence to the department, prior to January 1, 2007, that they have been employed as a pump installer in the pump and irrigation or domestic pump business by an appropriately licensed electrical contractor, ((registered)) licensed general contractor defined by chapter 18.27 RCW, or appropriate general specialty contractor defined by chapter 18.27 RCW for not less than eight thousand hours in the most recent six calendar years shall be issued the appropriate certificate by the department upon receiving such documentation and applicable fees. The department shall establish a single document for those who have received both an electrical specialty certification as defined by this subsection and have also met the certification requirements for the specialty plumber as defined by RCW 18.106.010(10)(c), showing that the individual has received both certifications. No other experience or training requirements may be imposed.
     (((h))) (e) Any applicant for a journeyman electrician certificate of competency who has successfully completed a two-year program in the electrical construction trade at public community or technical colleges, or not-for-profit nationally accredited technical or trade schools licensed by the work force training and education coordinating board under chapter 28C.10 RCW may substitute up to two years of the technical or trade school program for two years of work experience under a master journeyman electrician or journeyman electrician. The applicant shall obtain the additional two years of work experience required in industrial or commercial electrical installation prior to the beginning, or after the completion, of the technical school program. Any applicant who has received training in the electrical construction trade in the armed service of the United States may be eligible to apply armed service work experience towards qualification to take the examination for the journeyman electrician certificate of competency.
     (((i))) (f) An applicant for a specialty electrician certificate of competency who, after January 1, 2000, has successfully completed a two-year program in the electrical construction trade at a public community or technical college, or a not-for-profit nationally accredited technical or trade school licensed by the work force training and education coordinating board under chapter 28C.10 RCW, may substitute up to one year of the technical or trade school program for one year of work experience under a master journeyman electrician, journeyman electrician, master specialty electrician working in that electrician's specialty, or specialty electrician working in that electrician's specialty. Any applicant who has received training in the electrical construction trade in the armed services of the United States may be eligible to apply armed service work experience towards qualification to take the examination for an appropriate specialty electrician certificate of competency.
     (((j))) (g) The department must determine whether hours of training and experience in the armed services or school program are in the electrical construction trade and appropriate as a substitute for hours of work experience. The department must use the following criteria for evaluating the equivalence of classroom electrical training programs and work in the electrical construction trade:
     (i) A two-year electrical training program must consist of three thousand or more hours.
     (ii) In a two-year electrical training program, a minimum of two thousand four hundred hours of student/instructor contact time must be technical electrical instruction directly related to the scope of work of the electrical specialty. Student/instructor contact time includes lecture and in-school lab.
     (iii) The department may not allow credit for a program that accepts more than one thousand hours transferred from another school's program.
     (iv) Electrical specialty training school programs of less than two years will have all of the above student/instructor contact time hours proportionately reduced. Such programs may not apply to more than fifty percent of the work experience required to attain certification.
     (v) Electrical training programs of less than two years may not be credited towards qualification for journeyman electrician unless the training program is used to gain qualification for a four thousand hour electrical specialty.
     (((k))) (h) No other requirement for eligibility may be imposed.
     (2) The department shall establish reasonable rules for the examinations to be given applicants for certificates of competency. In establishing the rules, the department shall consult with the board. Upon 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 trainee certificate. For the purposes of this section, full-time basis means two thousand hours.

Sec. 39   RCW 19.28.420 and 2000 c 238 s 206 are each amended to read as follows:
     (1) It is unlawful for 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 installing or maintaining telecommunications systems without having a telecommunications contractor license. Electrical contractors licensed as general electrical (01) or specialty electrical (06) contractors under chapter 19.28 RCW and their designated administrators qualify to perform all telecommunications work defined in this chapter. Telecommunications contractors licensed under this chapter are not required to be ((registered)) licensed under chapter 18.27 RCW. All telecommunications licenses expire twenty-four calendar months following the day of their issue. A telecommunications contractor license is not required for a licensed specialty electrical contractor to perform telecommunications installations or maintenance integral to the equipment or occupancy limitations of their electrical specialty. A telecommunications contractor license is not required for persons making telecommunications installations or performing telecommunications maintenance on their own property or for regularly employed employees working on the premises of their employer, unless on a new building intended for rent, sale, or lease.
     (2) Application for a telecommunications contractor license shall be made in writing to the department accompanied by the required fee. The applications shall state:
     (a) The name and address of the applicant. In the case of firms or partnerships, the applications shall state the names of the individuals composing the firm or partnership. In the case of corporations, the applications shall state the names of the corporation's managing officials;
     (b) The location of the place of business of the applicant and the name under which the business is conducted;
     (c) The employer social security number or tax identification number;
     (d) Evidence of workers' compensation coverage for the applicant's employees working in Washington, as follows:
     (i) The applicant's industrial insurance account number issued by the department;
     (ii) The applicant's self-insurer number issued by the department; or
     (iii) For applicants domiciled in a state or province of Canada subject to an agreement entered into under RCW 51.12.120(7), as permitted by the agreement, filing a certificate of coverage issued by the agency that administers the workers' compensation law in the applicant's state or province of domicile certifying that the applicant has secured the payment of compensation under the other state's or province's workers' compensation law;
     (e) The employment security department number; and
     (f) The state excise tax registration number.
     (3) The unified business identifier account number may be substituted for the information required by subsection (2)(d), (e), and (f) of this section if the applicant will not employ employees in Washington.
     (4) The department may verify the workers' compensation coverage information provided by the applicant under subsection (2)(d) of this section including, but not limited to, information regarding the coverage of an individual employee of the applicant. If coverage is provided under the laws of another state, the department may notify the other state that the applicant is employing employees in Washington.
     (5) To obtain a telecommunications contractor license the applicant must designate an individual who currently possesses a telecommunications administrator certificate. To obtain an administrator's certificate an individual must pass an examination as set forth in this chapter. Examination criteria will be determined by the board.
     (6) No examination may be required of any applicant for an initial telecommunications administrator certificate qualifying under this section. Applicants qualifying under this section shall be issued an administrator certificate by the department upon making an application and paying the required fee. Individuals must apply before July 1, 2001, to qualify for an administrator certificate without examination under this section. The board shall certify to the department the names of all persons entitled to this administrator certificate.
     Prior to July 1, 2001, bona fide registered contractors under chapter 18.27 RCW engaged in the business of installing or maintaining telecommunications wiring in this state on or before June 8, 2000, may designate the following number of persons to receive a telecommunications administrator certificate without examination:
     (a) One owner or officer of a contractor, registered under chapter 18.27 RCW on or before June 8, 2000, currently engaged in the business of installing telecommunications wiring;
     (b) One employee, principal, or officer, with a minimum of two years experience performing telecommunications installations, per registered ((telecommunication[s])) telecommunications contractor; and
     (c) One employee for each one hundred employees, or fraction thereof, with a minimum of two years experience performing telecommunications installations.
     (7) The application for a contractor license shall be accompanied by a bond in the sum of four thousand dollars with the state of Washington named as obligee in the bond, with good and sufficient surety, to be approved by the department. The bond shall at all times be kept in full force and effect, and any cancellation or revocation thereof, or withdrawal of the surety therefrom, suspends the license issued to the principal until a new bond has been filed and approved as provided in this section. Upon approval of a bond, the department shall, on the next business day, deposit the fee accompanying the application in the electrical license fund and shall file the bond in the office. The department shall, upon request, furnish to any person, firm, partnership, corporation, or other entity a certified copy of the bond upon the payment of a fee that the department shall set by rule. The fee shall cover but not exceed the cost of furnishing the certified copy. The bond shall be conditioned that the principal will pay for all labor, including employee benefits, and material furnished or used upon the work, taxes, and contributions to the state of Washington, and all damages that may be sustained by any person, firm, partnership, corporation, or other entity due to a failure of the principal to make the installation or maintenance in accordance with this chapter. In lieu of the surety bond required by this section the applicant may file with the department a cash deposit or other negotiable security acceptable to the department. If the applicant has filed a cash deposit, the department shall deposit the funds in a special trust savings account in a commercial bank, mutual savings bank, or savings and loan association and shall pay annually to the depositor the interest derived from the account.
     (8) Any person, firm, or corporation sustaining any damage or injury by reason of the principal's breach of the conditions of the bond required under this section may bring an action against the surety named therein, joining in the action the principal named in the bond; the action shall be brought in the superior court of any county in which the principal on the bond resides or transacts business, or in the county in which the work was performed as a result of which the breach is alleged to have occurred; the action shall be maintained and prosecuted as other civil actions. Claims or actions against the surety on the bond shall be paid in full in the following order of priority: (a) Labor, including employee benefits, (b) materials and equipment used upon such work, (c) taxes and contributions due to the state, (d) damages sustained by any person, firm, or corporation due to the failure of the principal to make the installation in accordance with this chapter, or any ordinance, building code, or regulation applicable thereto. However, the total liability of the surety on any bond may not exceed the sum of four thousand dollars, and the surety on the bond may not be liable for monetary penalties. Any action shall be brought within one year from the completion of the work in the performance of which the breach is alleged to have occurred. The surety shall mail a conformed copy of the judgment against the bond to the department within seven days. In the event that a cash or securities deposit has been made in lieu of the surety bond, and in the event of a judgment being entered against the depositor and deposit, the director shall upon receipt of a certified copy of a final judgment, pay the judgment from the deposit.
     (9) The department shall issue a telecommunications contractor license to applicants meeting all of the requirements of this chapter applicable to electrical and telecommunications installations. The provisions of this chapter relating to the licensing of any person, firm, partnership, corporation, or other entity including the requirement of a bond with the state of Washington named as obligee and the collection of a fee for that bond, are exclusive, and no political subdivision of the state of Washington may require or issue any licenses or bonds or charge any fee for the same or a similar purpose.

Sec. 40   RCW 19.158.020 and 2003 c 39 s 12 are each amended to read as follows:
     Unless the context requires otherwise, the definitions in this section apply throughout this chapter.
     (1) A "commercial telephone solicitor" is any person who engages in commercial telephone solicitation, including service bureaus.
     (2) "Commercial telephone solicitation" means:
     (a) An unsolicited telephone call to a person initiated by a salesperson and conversation for the purpose of inducing the person to purchase or invest in property, goods, or services;
     (b) Other communication with a person where:
     (i) A free gift, award, or prize is offered to a purchaser who has not previously purchased from the person initiating the communication; and
     (ii) A telephone call response is invited; and
     (iii) The salesperson intends to complete a sale or enter into an agreement to purchase during the course of the telephone call;
     (c) Other communication with a person which misrepresents the price, quality, or availability of property, goods, or services and which invites a response by telephone or which is followed by a call to the person by a salesperson;
     (d) For purposes of this section, "other communication" means a written or oral notification or advertisement transmitted through any means.
     (3) A "commercial telephone solicitor" does not include any of the following:
     (a) A person engaging in commercial telephone solicitation where:
     (i) The solicitation is an isolated transaction and not done in the course of a pattern of repeated transactions of like nature; or
     (ii) Less than sixty percent of such person's prior year's sales were made as a result of a commercial telephone solicitation as defined in this chapter. Where more than sixty percent of a seller's prior year's sales were made as a result of commercial telephone solicitations, the service bureau contracting to provide commercial telephone solicitation services to the seller shall be deemed a commercial telephone solicitor;
     (b) A person making calls for religious, charitable, political, or other noncommercial purposes;
     (c) A person soliciting business solely from purchasers who have previously purchased from the business enterprise for which the person is calling;
     (d) A person soliciting:
     (i) Without the intent to complete or obtain provisional acceptance of a sale during the telephone solicitation; and
     (ii) Who does not make the major sales presentation during the telephone solicitation; and
     (iii) Who only makes the major sales presentation or arranges for the major sales presentation to be made at a later face-to-face meeting between the salesperson and the purchaser;
     (e) A person selling a security which is exempt from registration under RCW 21.20.310;
     (f) A person licensed under RCW 18.85.090 when the solicited transaction is governed by that law;
     (g) A person ((registered)) licensed under RCW 18.27.060 when the solicited transaction is governed by that law;
     (h) A person licensed under RCW 48.17.150 when the solicited transaction is governed by that law;
     (i) Any person soliciting the sale of a franchise who is registered under RCW 19.100.140;
     (j) A person primarily soliciting the sale of a newspaper of general circulation, a magazine or periodical, or contractual plans, including book or record clubs: (i) Under which the seller provides the consumer with a form which the consumer may use to instruct the seller not to ship the offered merchandise; and (ii) which is regulated by the federal trade commission trade regulation concerning "use of negative option plans by sellers in commerce";
     (k) Any supervised financial institution or parent, subsidiary, or affiliate thereof. As used in this section, "supervised financial institution" means any commercial bank, trust company, savings and loan association, mutual savings banks, credit union, industrial loan company, personal property broker, consumer finance lender, commercial finance lender, or insurer, provided that the institution is subject to supervision by an official or agency of this state or the United States;
     (l) A person soliciting the sale of a prearrangement funeral service contract registered under RCW 18.39.240 and 18.39.260;
     (m) A person licensed to enter into prearrangement contracts under RCW 68.05.155 when acting subject to that license;
     (n) A person soliciting the sale of services provided by a cable television system operating under authority of a franchise or permit;
     (o) A person or affiliate of a person whose business is regulated by the utilities and transportation commission or the federal communications commission;
     (p) A person soliciting the sale of agricultural products, as defined in RCW 20.01.010 where the purchaser is a business;
     (q) An issuer or subsidiary of an issuer that has a class of securities that is subject to section 12 of the securities exchange act of 1934 (15 U.S.C. Sec. 781) and that is either registered or exempt from registration under paragraph (A), (B), (C), (E), (F), (G), or (H) of subsection (g) of that section;
     (r) A commodity broker-dealer as defined in RCW 21.30.010 and registered with the commodity futures trading commission;
     (s) A business-to-business sale where:
     (i) The purchaser business intends to resell the property or goods purchased, or
     (ii) The purchaser business intends to use the property or goods purchased in a recycling, reuse, remanufacturing or manufacturing process;
     (t) A person licensed under RCW 19.16.110 when the solicited transaction is governed by that law;
     (u) A person soliciting the sale of food intended for immediate delivery to and immediate consumption by the purchaser;
     (v) A person soliciting the sale of food fish or shellfish when that person is licensed pursuant to the provisions of Title 77 RCW.
     (4) "Purchaser" means a person who is solicited to become or does become obligated to a commercial telephone solicitor.
     (5) "Salesperson" means any individual employed, appointed, or authorized by a commercial telephone solicitor, whether referred to by the commercial telephone solicitor as an agent, representative, or independent contractor, who attempts to solicit or solicits a sale on behalf of the commercial telephone solicitor.
     (6) "Service bureau" means a commercial telephone solicitor who contracts with any person to provide commercial telephone solicitation services.
     (7) "Seller" means any person who contracts with any service bureau to purchase commercial telephone solicitation services.
     (8) "Person" includes any individual, firm, association, corporation, partnership, joint venture, sole proprietorship, or any other business entity.
     (9) "Free gift, award, or prize" means a gratuity which the purchaser believes of a value equal to or greater than the value of the specific product, good, or service sought to be sold to the purchaser by the seller.
     (10) "Solicit" means to initiate contact with a purchaser for the purpose of attempting to sell property, goods or services, where such purchaser has expressed no previous interest in purchasing, investing in, or obtaining information regarding the property, goods, or services attempted to be sold.

Sec. 41   RCW 39.04.155 and 2001 c 284 s 1 are each amended to read as follows:
     (1) This section provides uniform small works roster provisions to award contracts for construction, building, renovation, remodeling, alteration, repair, or improvement of real property that may be used by state agencies and by any local government that is expressly authorized to use these provisions. These provisions may be used in lieu of other procedures to award contracts for such work with an estimated cost of two hundred thousand dollars or less. The small works roster process includes the limited public works process authorized under subsection (3) of this section and any local government authorized to award contracts using the small works roster process under this section may award contracts using the limited public works process under subsection (3) of this section.
     (2)(a) A state agency or authorized local government may create a single general small works roster, or may create a small works roster for different specialties or categories of anticipated work. Where applicable, small works rosters may make distinctions between contractors based upon different geographic areas served by the contractor. The small works roster or rosters shall consist of all responsible contractors who have requested to be on the list, and where required by law are properly licensed ((or registered)) to perform such work in this state. A state agency or local government establishing a small works roster or rosters may require eligible contractors desiring to be placed on a roster or rosters to keep current records of any applicable licenses, certifications, ((registrations,)) bonding, insurance, or other appropriate matters on file with the state agency or local government as a condition of being placed on a roster or rosters. At least once a year, the state agency or local government shall publish in a newspaper of general circulation within the jurisdiction a notice of the existence of the roster or rosters and solicit the names of contractors for such roster or rosters. In addition, responsible contractors shall be added to an appropriate roster or rosters at any time they submit a written request and necessary records. Master contracts may be required to be signed that become effective when a specific award is made using a small works roster.
     (b) A state agency establishing a small works roster or rosters shall adopt rules implementing this subsection. A local government establishing a small works roster or rosters shall adopt an ordinance or resolution implementing this subsection. Procedures included in rules adopted by the department of general administration in implementing this subsection must be included in any rules providing for a small works roster or rosters that is adopted by another state agency, if the authority for that state agency to engage in these activities has been delegated to it by the department of general administration under chapter 43.19 RCW. An interlocal contract or agreement between two or more state agencies or local governments establishing a small works roster or rosters to be used by the parties to the agreement or contract must clearly identify the lead entity that is responsible for implementing the provisions of this subsection.
     (c) Procedures shall be established for securing telephone, written, or electronic quotations from contractors on the appropriate small works roster to assure that a competitive price is established and to award contracts to the lowest responsible bidder, as defined in RCW 43.19.1911. Invitations for quotations shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. However, detailed plans and specifications need not be included in the invitation. This subsection does not eliminate other requirements for architectural or engineering approvals as to quality and compliance with building codes. Quotations may be invited from all appropriate contractors on the appropriate small works roster. As an alternative, quotations may be invited from at least five contractors on the appropriate small works roster who have indicated the capability of performing the kind of work being contracted, in a manner that will equitably distribute the opportunity among the contractors on the appropriate roster. However, if the estimated cost of the work is from one hundred thousand dollars to two hundred thousand dollars, a state agency or local government, other than a port district, that chooses to solicit bids from less than all the appropriate contractors on the appropriate small works roster must also notify the remaining contractors on the appropriate small works roster that quotations on the work are being sought. The government has the sole option of determining whether this notice to the remaining contractors is made by: (i) Publishing notice in a legal newspaper in general circulation in the area where the work is to be done; (ii) mailing a notice to these contractors; or (iii) sending a notice to these contractors by facsimile or other electronic means. For purposes of this subsection (2)(c), "equitably distribute" means that a state agency or local government soliciting bids may not favor certain contractors on the appropriate small works roster over other contractors on the appropriate small works roster who perform similar services.
     (d) A contract awarded from a small works roster under this section need not be advertised.
     (e) Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry.
     (3) In lieu of awarding contracts under subsection (2) of this section, a state agency or authorized local government may award a contract for work, construction, alteration, repair, or improvement projects (([projects])) estimated to cost less than thirty-five thousand dollars using the limited public works process provided under this subsection. Public works projects awarded under this subsection are exempt from the other requirements of the small works roster process provided under subsection (2) of this section and are exempt from the requirement that contracts be awarded after advertisement as provided under RCW 39.04.010.
     For limited public works projects, a state agency or authorized local government shall solicit electronic or written quotations from a minimum of three contractors from the appropriate small works roster and shall award the contract to the lowest responsible bidder as defined under RCW 43.19.1911. After an award is made, the quotations shall be open to public inspection and available by electronic request. A state agency or authorized local government shall attempt to distribute opportunities for limited public works projects equitably among contractors willing to perform in the geographic area of the work. A state agency or authorized local government shall maintain a list of the contractors contacted and the contracts awarded during the previous twenty-four months under the limited public works process, including the name of the contractor, the contractor's ((registration)) license number, the amount of the contract, a brief description of the type of work performed, and the date the contract was awarded. For limited public works projects, a state agency or authorized local government may waive the payment and performance bond requirements of chapter 39.08 RCW and the retainage requirements of chapter 60.28 RCW, thereby assuming the liability for the contractor's nonpayment of laborers, mechanics, subcontractors, materialmen, suppliers, and taxes imposed under Title 82 RCW that may be due from the contractor for the limited public works project, however the state agency or authorized local government shall have the right of recovery against the contractor for any payments made on the contractor's behalf.
     (4) The breaking of any project into units or accomplishing any projects by phases is prohibited if it is done for the purpose of avoiding the maximum dollar amount of a contract that may be let using the small works roster process or limited public works process.
     (5) As used in this section, "state agency" means the department of general administration, the state parks and recreation commission, the department of natural resources, the department of fish and wildlife, the department of transportation, any institution of higher education as defined under RCW 28B.10.016, and any other state agency delegated authority by the department of general administration to engage in construction, building, renovation, remodeling, alteration, improvement, or repair activities.

Sec. 42   RCW 39.06.010 and 1997 c 54 s 1 are each amended to read as follows:
     No agency of the state or any of its political subdivisions may execute a contract:
     (1) With any contractor who is not ((registered or)) licensed as may be required by the laws of this state other than contractors on highway projects who have been prequalified as required by RCW 47.28.070, with the department of transportation to perform highway construction, reconstruction, or maintenance; or
     (2) For two years from the date that a violation is finally determined, with any person or entity who has been determined by the respective administering agency to have violated RCW 50.12.070(1)(b), 51.16.070(1)(b), or 82.32.070(((1)(b))) (2). During this two-year period, the person or entity may not be permitted to bid, or have a bid considered, on any public works contract.

Sec. 43   RCW 49.26.100 and 1995 c 218 s 3 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Asbestos abatement project" means an asbestos project involving three square feet or three linear feet, or more, of asbestos-containing material.
     (2) "Asbestos project" means the construction, demolition, repair, maintenance, remodeling, or renovation of any public or private building or mechanical piping equipment or systems involving the demolition, removal, encapsulation, salvage, or disposal of material, or outdoor activity, releasing or likely to release asbestos fibers into the air.
     (3) "Department" means the department of labor and industries.
     (4) "Director" means the director of the department of labor and industries or the director's designee.
     (5) "Person" means any individual, partnership, firm, association, corporation, sole proprietorship, or the state of Washington or its political subdivisions.
     (6) "Certified asbestos supervisor" means an individual who is certified by the department to supervise an asbestos project. A certified asbestos supervisor is not required for projects involving less than three square feet or three linear feet of asbestos-containing material.
     (7) "Certified asbestos worker" means an individual who is certified by the department to work on an asbestos project.
     (8) "Certified asbestos contractor" means any partnership, firm, association, corporation or sole proprietorship ((registered)) licensed under chapter 18.27 RCW that submits a bid or contracts to remove or encapsulate asbestos for another and is certified by the department to remove or encapsulate asbestos.
     (9) "Owner" means the owner of any public or private building, structure, facility or mechanical system, or the agent of such owner, but does not include individuals who work on asbestos projects on their own single-family residences no part of which is used for any commercial purpose.

Sec. 44   RCW 50.04.145 and 1983 1st ex.s. c 23 s 25 are each amended to read as follows:
     The term "employment" shall not include services rendered by any person, firm, or corporation currently engaging in a business which is ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW when:
     (1) Contracting to perform work for any contractor ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW;
     (2) The person, firm, or corporation has a principal place of business which would be eligible for a business deduction for internal revenue service tax purposes other than that furnished by the contractor for which the business has contracted to furnish services;
     (3) The person, firm, or corporation maintains a separate set of books or records that reflect all items of income and expenses of the business;
     (4) The work which the person, firm, or corporation has contracted to perform is:
     (a) The work of a contractor as defined in RCW 18.27.010; or
     (b) The work of installing wires or equipment to convey electric current or installing apparatus to be operated by such current as it pertains to the electrical industry as described in chapter 19.28 RCW; and
     (5) A contractor ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW does not supervise or control the means by which the result is accomplished or the manner in which the work is performed.

Sec. 45   RCW 50.24.130 and 1982 1st ex.s. c 18 s 15 are each amended to read as follows:
     No employing unit which contracts with or has under it any contractor or subcontractor who is an employer under the provisions of this title shall make any payment or advance to, or secure any credit for, such contractor or subcontractor or on account of any contract or contracts to which ((said)) the employing unit is a party unless such contractor or subcontractor has paid contributions, due or to become due for wages paid or to be paid by such contractor or subcontractor for personal services performed pursuant to such contract or subcontract, or has furnished a good and sufficient bond acceptable to the commissioner for payment of contributions, interest, and penalties. Failure to comply with the provisions of this section ((shall)) renders ((said)) the employing unit directly liable for such contributions, interest, and penalties and the commissioner shall have all of the remedies of collection against ((said)) the employing unit under the provisions of this title as though the services in question were performed directly for ((said)) the employing unit.
     For the purposes of this section, a contractor ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW shall not be responsible for any contributions for the work of any subcontractor if:
     (1) The subcontractor is currently engaging in a business which is ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW;
     (2) There is no other person, firm or corporation doing the same work at the same time on the same project except two or more persons, firms or corporations may contract and do the same work at the same time on the same project if each person, firm, or corporation has employees;
     (3) The subcontractor has a principal place of business which would be eligible for a business deduction for internal revenue service tax purposes other than that furnished by the contractor for which the business has contracted to furnish services;
     (4) The subcontractor maintains a separate set of books or records that reflect all items of income and expenses of the business; and
     (5) The subcontractor has contracted to perform:
     (a) The work of a contractor as defined in RCW 18.27.010; or
     (b) The work of installing wires or equipment to convey electric current or installing apparatus to be operated by such current as it pertains to the electrical industry as described in chapter 19.28 RCW.

Sec. 46   RCW 51.08.070 and 1991 c 246 s 2 are each amended to read as follows:
     "Employer" means any person, body of persons, corporate or otherwise, and the legal representatives of a deceased employer, all while engaged in this state in any work covered by the provisions of this title, by way of trade or business, or who contracts with one or more workers, the essence of which is the personal labor of such worker or workers. Or as a separate alternative, persons or entities are not employers when they contract or agree to remunerate the services performed by an individual who meets the tests set forth in subsections (1) through (6) of RCW 51.08.195.
     For the purposes of this title, a contractor ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW is not an employer when:
     (1) Contracting with any other person, firm, or corporation currently engaging in a business which is ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW;
     (2) The person, firm, or corporation has a principal place of business which would be eligible for a business deduction for internal revenue service tax purposes other than that furnished by the contractor for which the business has contracted to furnish services;
     (3) The person, firm, or corporation maintains a separate set of books or records that reflect all items of income and expenses of the business; and
     (4) The work which the person, firm, or corporation has contracted to perform is:
     (a) The work of a contractor as defined in RCW 18.27.010; or
     (b) The work of installing wires or equipment to convey electric current or installing apparatus to be operated by such current as it pertains to the electrical industry as described in chapter 19.28 RCW.

Sec. 47   RCW 51.08.180 and 1991 c 246 s 3 are each amended to read as follows:
     (1) "Worker" means every person in this state who is engaged in the employment of an employer under this title, whether by way of manual labor or otherwise in the course of his or her employment; also every person in this state who is engaged in the employment of or who is working under an independent contract, the essence of which is his or her personal labor for an employer under this title, whether by way of manual labor or otherwise, in the course of his or her employment, or as a separate alternative, a person is not a worker if he or she meets the tests set forth in ((subsections (1) through (6) of)) RCW 51.08.195((: PROVIDED, That)) (1) through (6). A person is not a worker for the purpose of this title, with respect to his or her activities attendant to operating a truck which he or she owns, and which is leased to a common or contract carrier.
     (2) For the purposes of this title, any person, firm, or corporation currently engaging in a business which is ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW is not a worker when:
     (a) Contracting to perform work for any contractor ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW;
     (b) The person, firm, or corporation has a principal place of business which would be eligible for a business deduction for internal revenue service tax purposes other than that furnished by the contractor for which the business has contracted to furnish services;
     (c) The person, firm, or corporation maintains a separate set of books or records that reflect all items of income and expenses of the business; and
     (d) The work which the person, firm, or corporation has contracted to perform is:
     (i) The work of a contractor as defined in RCW 18.27.010; or
     (ii) The work of installing wires or equipment to convey electric current or installing apparatus to be operated by such current as it pertains to the electrical industry as described in chapter 19.28 RCW.
     (3) Any person, firm, or corporation ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW including those performing work for any contractor ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW is a worker when the contractor supervises or controls the means by which the result is accomplished or the manner in which the work is performed.
     (4) For the purposes of this title, any person participating as a driver or back-up driver in commuter ride sharing, as defined in RCW 46.74.010(1), is not a worker while driving a ride-sharing vehicle on behalf of the owner or lessee of the vehicle.

Sec. 48   RCW 51.12.070 and 2004 c 243 s 2 are each amended to read as follows:
     The provisions of this title apply to all work done by contract; the person, firm, or corporation who lets a contract for such work is responsible primarily and directly for all premiums upon the work. The contractor and any subcontractor are subject to the provisions of this title and the person, firm, or corporation letting the contract is entitled to collect from the contractor the full amount payable in premiums and the contractor in turn is entitled to collect from the subcontractor his or her proportionate amount of the payment.
     For the purposes of this section, a contractor ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW is not responsible for any premiums upon the work of any subcontractor if:
     (1) The subcontractor is currently engaging in a business which is ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW;
     (2) The subcontractor has a principal place of business which would be eligible for a business deduction for internal revenue service tax purposes other than that furnished by the contractor for which the business has contracted to furnish services;
     (3) The subcontractor maintains a separate set of books or records that reflect all items of income and expenses of the business;
     (4) The subcontractor has contracted to perform:
     (a) The work of a contractor as defined in RCW 18.27.010; or
     (b) The work of installing wires or equipment to convey electric current or installing apparatus to be operated by such current as it pertains to the electrical industry as described in chapter 19.28 RCW; and
     (5) The subcontractor has an industrial insurance account in good standing with the department or is a self-insurer. For the purposes of this subsection, a contractor may consider a subcontractor's account to be in good standing if, within a year prior to letting the contract or master service agreement, and at least once a year thereafter, the contractor has verified with the department that the account is in good standing and the contractor has not received written notice from the department that the subcontractor's account status has changed. Acceptable documentation of verification includes a department document which includes an issued date or a dated printout of information from the department's internet web site showing a subcontractor's good standing. The department shall develop an approach to provide contractors with verification of the date of inquiries validating that the subcontractor's account is in good standing.
     It is unlawful for any county, city, or town to issue a construction building permit to any person who has not submitted to the department an estimate of payroll and paid premium thereon as provided by chapter 51.16 RCW of this title or proof of qualification as a self-insurer.

Sec. 49   RCW 51.12.120 and 1999 c 394 s 1 are each amended to read as follows:
     (1) If a worker, while working outside the territorial limits of this state, suffers an injury on account of which he or she, or his or her beneficiaries, would have been entitled to compensation under this title had the injury occurred within this state, the worker, or his or her beneficiaries, shall be entitled to compensation under this title if at the time of the injury:
     (a) His or her employment is principally localized in this state; or
     (b) He or she is working under a contract of hire made in this state for employment not principally localized in any state; or
     (c) He or she is working under a contract of hire made in this state for employment principally localized in another state whose workers' compensation law is not applicable to his or her employer; or
     (d) He or she is working under a contract of hire made in this state for employment outside the United States and Canada.
     (2) The payment or award of compensation or other recoveries, including settlement proceeds, under the workers' compensation law of another state, territory, province, or foreign nation to a worker or his or her beneficiaries otherwise entitled on account of such injury to compensation under this title shall not be a bar to a claim for compensation under this title if that claim under this title is timely filed. If compensation is paid or awarded under this title, the total amount of compensation or other recoveries, including settlement proceeds, paid or awarded the worker or beneficiary under such other workers' compensation law shall be credited against the compensation due the worker or beneficiary under this title.
     (3)(a) An employer not domiciled in this state who is employing workers in this state in work for which the employer must be ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW, or prequalified under RCW 47.28.070, must secure the payment of compensation under this title by:
     (i) Insuring the employer's workers' compensation obligation under this title with the department;
     (ii) Being qualified as a self-insurer under this title; or
     (iii) For employers domiciled in a state or province of Canada subject to an agreement entered into under subsection (7) of this section, as permitted by the agreement, filing with the department a certificate of coverage issued by the agency that administers the workers' compensation law in the employer's state or province of domicile certifying that the employer has secured the payment of compensation under the other state's or province's workers' compensation law.
     (b) The department shall adopt rules to implement this subsection.
     (4) If a worker or beneficiary is entitled to compensation under this title by reason of an injury sustained in this state while in the employ of an employer who is domiciled in another state or province of Canada and the employer:
     (a) Is not subject to subsection (3) of this section and has neither opened an account with the department nor qualified as a self-insurer under this title, the employer or his or her insurance carrier shall file with the director a certificate issued by the agency that administers the workers' compensation law in the state of the employer's domicile, certifying that the employer has secured the payment of compensation under the workers' compensation law of the other state and that with respect to the injury the worker or beneficiary is entitled to the benefits provided under the other state's law.
     (b) Has filed a certificate under subsection (3)(a)(iii) of this section or (a) of this subsection (4):
     (i) The filing of the certificate constitutes appointment by the employer or his or her insurance carrier of the director as its agent for acceptance of the service of process in any proceeding brought by any claimant to enforce rights under this title;
     (ii) The director shall send to such employer or his or her insurance carrier, by registered or certified mail to the address shown on such certificate, a true copy of any notice of claim or other process served on the director by the claimant in any proceeding brought to enforce rights under this title;
     (iii) If the employer is a self-insurer under the workers' compensation law of the other state or province of Canada, the employer shall, upon submission of evidence or security, satisfactory to the director, of his or her ability to meet his or her liability to the claimant under this title, be deemed to be a qualified self-insurer under this title; and
     (iv) If the employer's liability under the workers' compensation law of the other state or province of Canada is insured:
     (A) The employer's carrier, as to such claimant only, shall be deemed to be subject to this title. However, unless the insurer's contract with the employer requires the insurer to pay an amount equivalent to the compensation benefits provided by this title, the insurer's liability for compensation shall not exceed the insurer's liability under the workers' compensation law of the other state or province; and
     (B) If the total amount for which the employer's insurer is liable under (b)(iv)(A) of this subsection is less than the total of the compensation to which the claimant is entitled under this title, the director may require the employer to file security satisfactory to the director to secure the payment of compensation under this title.
     (c) If subject to subsection (3) of this section, has not complied with subsection (3) of this section or, if not subject to subsection (3) of this section, has neither qualified as a self-insurer nor secured insurance coverage under the workers' compensation law of another state or province of Canada, the claimant shall be paid compensation by the department and the employer shall have the same rights and obligations, and is subject to the same penalties, as other employers subject to this title.
     (5) As used in this section:
     (a) A person's employment is principally localized in this or another state when: (i) His or her employer has a place of business in this or the other state and he or she regularly works at or from the place of business; or (ii) if (a)(i) of this subsection is not applicable, he or she is domiciled in and spends a substantial part of his or her working time in the service of his or her employer in this or the other state;
     (b) "Workers' compensation law" includes "occupational disease law" for the purposes of this section.
     (6) A worker whose duties require him or her to travel regularly in the service of his or her employer in this and one or more other states may agree in writing with his or her employer that his or her employment is principally localized in this or another state, and, unless the other state refuses jurisdiction, the agreement shall govern as to any injury occurring after the effective date of the agreement.
     (7) The director is authorized to enter into agreements with the appropriate agencies of other states and provinces of Canada that administer their workers' compensation law with respect to conflicts of jurisdiction and the assumption of jurisdiction in cases where the contract of employment arises in one state or province and the injury occurs in another. If the other state's or province's law requires Washington employers to secure the payment of compensation under the other state's or province's workers' compensation laws for work performed in that state or province, then employers domiciled in that state or province must purchase compensation covering their workers engaged in that work in this state under this state's industrial insurance law. When an agreement under this subsection has been executed and adopted as a rule of the department under chapter 34.05 RCW, it binds all employers and workers subject to this title and the jurisdiction of this title is governed by this rule.

Sec. 50   RCW 60.04.011 and 1992 c 126 s 1 are each amended to read as follows:
     Unless the context requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Construction agent" means any ((registered or)) licensed contractor, ((registered or)) licensed subcontractor, architect, engineer, or other person having charge of any improvement to real property, who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter.
     (2) "Contract price" means the amount agreed upon by the contracting parties, or if no amount is agreed upon, then the customary and reasonable charge therefor.
     (3) "Draws" means periodic disbursements of interim or construction financing by a lender.
     (4) "Furnishing labor, professional services, materials, or equipment" means the performance of any labor or professional services, the contribution owed to any employee benefit plan on account of any labor, the provision of any supplies or materials, and the renting, leasing, or otherwise supplying of equipment for the improvement of real property.
     (5) "Improvement" means: (a) Constructing, altering, repairing, remodeling, demolishing, clearing, grading, or filling in, of, to, or upon any real property or street or road in front of or adjoining the same; (b) planting of trees, vines, shrubs, plants, hedges, or lawns, or providing other landscaping materials on any real property; and (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection.
     (6) "Interim or construction financing" means that portion of money secured by a mortgage, deed of trust, or other encumbrance to finance improvement of, or to real property, but does not include:
     (a) Funds to acquire real property;
     (b) Funds to pay interest, insurance premiums, lease deposits, taxes, assessments, or prior encumbrances;
     (c) Funds to pay loan, commitment, title, legal, closing, recording, or appraisal fees;
     (d) Funds to pay other customary fees, which pursuant to agreement with the owner or borrower are to be paid by the lender from time to time;
     (e) Funds to acquire personal property for which the potential lien claimant may not claim a lien pursuant to this chapter.
     (7) "Labor" means exertion of the powers of body or mind performed at the site for compensation. "Labor" includes amounts due and owed to any employee benefit plan on account of such labor performed.
     (8) "Mortgagee" means a person who has a valid mortgage of record or deed of trust of record securing a loan.
     (9) "Owner-occupied" means a single-family residence occupied by the owner as his or her principal residence.
     (10) "Payment bond" means a surety bond issued by a surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third party beneficiaries.
     (11) "Potential lien claimant" means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington.
     (12) "Prime contractor" includes all contractors, general contractors, and specialty contractors, as defined by chapter 18.27 or 19.28 RCW, or who are otherwise required to be registered or licensed by law, who contract directly with a property owner or their common law agent to assume primary responsibility for the creation of an improvement to real property, and includes property owners or their common law agents who are contractors, general contractors, or specialty contractors as defined in chapter 18.27 or 19.28 RCW, or who are otherwise required to be registered or licensed by law, who offer to sell their property without occupying or using the structures, projects, developments, or improvements for more than one year.
     (13) "Professional services" means surveying, establishing or marking the boundaries of, preparing maps, plans, or specifications for, or inspecting, testing, or otherwise performing any other architectural or engineering services for the improvement of real property.
     (14) "Real property lender" means a bank, savings bank, savings and loan association, credit union, mortgage company, or other corporation, association, partnership, trust, or individual that makes loans secured by real property located in the state of Washington.
     (15) "Site" means the real property which is or is to be improved.
     (16) "Subcontractor" means a general contractor or specialty contractor as defined by chapter 18.27 or 19.28 RCW, or who is otherwise required to be registered or licensed by law, who contracts for the improvement of real property with someone other than the owner of the property or their common law agent.

Sec. 51   RCW 60.04.041 and 1992 c 126 s 4 are each amended to read as follows:
     A contractor or subcontractor required to be ((registered)) licensed under chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW, or otherwise required to be registered or licensed by law, shall be deemed the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so ((registered or)) licensed. Persons dealing with contractors or subcontractors may rely, for the purposes of this section, upon a ((certificate of registration)) license issued pursuant to chapter 18.27 ((RCW or license issued pursuant to chapter)) or 19.28 RCW, or other certificate or license issued pursuant to law, covering the period when the labor, professional services, material, or equipment shall be furnished, and the lien rights shall not be lost by suspension or revocation of ((registration or)) license without their knowledge. No lien rights described in this chapter shall be lost or denied by virtue of the absence, suspension, or revocation of such ((registration or)) license with respect to any contractor or subcontractor not in immediate contractual privity with the lien claimant.

Sec. 52   RCW 70.87.220 and 2003 c 143 s 7 are each amended to read as follows:
     (1) The department may adopt the rules necessary to establish and administer the elevator safety advisory committee. The purpose of the advisory committee is to advise the department on the adoption of rules that apply to conveyances; methods of enforcing and administering this chapter; and matters of concern to the conveyance industry and to the individual installers, owners, and users of conveyances.
     (2) The advisory committee shall consist of seven persons. The director of the department or his or her designee with the advice of the chief elevator inspector shall appoint the committee members as follows:
     (a) One representative of licensed elevator contractors;
     (b) One representative of elevator mechanics licensed to perform all types of conveyance work;
     (c) One representative of owner-employed mechanics exempt from licensing requirements under RCW 70.87.270;
     (d) One registered architect or professional engineer representative;
     (e) One building owner or manager representative;
     (f) One ((registered)) licensed general commercial contractor representative; and
     (g) One ad hoc member representing a municipality maintaining jurisdiction of conveyances in accordance with RCW ((70.87.210 [70.87.200])) 70.87.200.
     (3) The committee members shall serve terms of four years.
     (4) The committee shall meet on the third Tuesday of February, May, August, and November of each year, and at other times at the discretion of the chief elevator inspector. The committee members shall serve without per diem or travel expenses.
     (5) The chief elevator inspector shall be the secretary for the advisory committee.

Sec. 53   RCW 70.87.240 and 2004 c 66 s 2 are each amended to read as follows:
     (1) Any person, firm, public agency, or company wishing to engage in the business of performing conveyance work within the state must apply for an elevator contractor license with the department on a form provided by the department and be a ((registered)) licensed general or specialty contractor under chapter 18.27 RCW.
     (2) Except as provided by RCW 70.87.270, any person wishing to perform conveyance work within the state must apply for an elevator mechanic license with the department on a form provided by the department.
     (3) An elevator contractor license may not be granted to any person or firm who does not possess the following qualifications:
     (a) Five years' experience performing conveyance work, as verified by current and previous elevator contractors licensed to do business; or
     (b) Satisfactory completion of a written examination administered by the department on this chapter and the rules adopted under this chapter.
     (4) Except as provided in subsection (5) of this section, RCW 70.87.305, and 70.87.245, an elevator mechanic license may not be granted to any person who does not possess the following qualifications:
     (a) An acceptable combination of documented experience and education credits: Not less than three years' experience performing conveyance work, as verified by current and previous employers licensed to do business in this state or public agency employers; and
     (b) Satisfactory completion of a written examination administered by the department on this chapter and the rules adopted under this chapter.
     (5) Any person who furnishes the department with acceptable proof that he or she has performed conveyance work in the category for which a license is sought shall upon making application for a license and paying the license fee receive a license without an examination. The person must have:
     (a) Worked without direct and immediate supervision for a general or specialty contractor ((registered)) licensed under chapter 18.27 RCW and engaged in the business of performing conveyance work in this state. This employment may not be less than each and all of the three years immediately before March 1, 2004. The person must apply within ninety days after the effective date of rules adopted under this chapter establishing licensing requirements;
     (b) Worked without direct and immediate supervision for an owner exempt from licensing requirements under RCW 70.87.270 or a public agency as an individual responsible for maintenance of conveyances owned by the owner exempt from licensing requirements under RCW 70.87.270 or the public agency. This employment may not be less than each and all of the three years immediately before March 1, 2004. The person must apply within ninety days after the effective date of rules adopted under this chapter establishing licensing requirements;
     (c) Obtained a certificate of completion and successfully passed the mechanic examination of a nationally recognized training program for the elevator industry such as the national elevator industry educational program or its equivalent; or
     (d) Obtained a certificate of completion of an apprenticeship program for an elevator mechanic, having standards substantially equal to those of this chapter, and registered with the Washington state apprenticeship and training council.
     (6) A license must be issued to an individual holding a valid license from a state having entered into a reciprocal agreement with the department and having standards substantially equal to those of this chapter, upon application and without examination.

NEW SECTION.  Sec. 54   A new section is added to chapter 18.27 RCW to read as follows:
     All persons who have been registered before July 1, 2008, must file an application for a license on or before July 1, 2008. No applicant for a license under this chapter is required to take an examination if he or she, on July 1, 2008, was engaged in a bona fide contractor's business or trade and whose registration is valid at the time he or she applied for a contractor's license. The department shall issue to an applicant who qualifies under this section a license upon the applicant making an application and paying the appropriate fee as provided in RCW 18.27.030 and 18.27.070.

NEW SECTION.  Sec. 55   This act takes effect July 1, 2008.