BILL REQ. #: H-5044.2
State of Washington | 60th Legislature | 2008 Regular Session |
READ FIRST TIME 02/05/08.
AN ACT Relating to implementing the recommendations of the joint legislative task force on the underground economy in the construction industry; amending RCW 18.27.030, 18.27.100, 51.16.070, 50.13.060, 50.12.070, 51.48.103, and 51.48.020; amending 2007 c 288 s 2 (uncodified); adding a new section to chapter 39.12 RCW; adding new sections to chapter 18.27 RCW; adding a new section to chapter 43.22 RCW; creating new sections; and providing expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 18.27.030 and 2007 c 436 s 3 are each amended to read
as follows:
(1) An applicant for registration 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.)) Unified business identifier (UBI) account number may be
substituted for the information required by (c) and (d) of this
subsection if the applicant will not employ employees in Washington((
(f),
and by (d) and (e) of this subsection)).
(((g))) (f) Type of contracting activity, whether a general or a
specialty contractor and if the latter, the type of specialty.
(((h))) (g) 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
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
work performed subject to 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 an owner,
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)); (iv) the department determines that the
applicant has falsified information on the application, unless the
error was inadvertent; or (v) the applicant does not have an active and
valid certificate of registration with the department of revenue.
(b) The department shall suspend an active registration if (i) the
department has determined that the registrant has an unsatisfied final
judgment against it for work within the scope of this chapter; (ii) the
department has determined that the registrant is a sole proprietor or
an owner, principal, or officer of a registered contractor that has an
unsatisfied final judgment against it for work within the scope of this
chapter; ((or)) (iii) the registrant does not maintain a valid unified
business identifier number((, if required by the department of
revenue)); (iv) the department has determined that the registrant
falsified information on the application, unless the error was
inadvertent; or (v) the registrant does not have an active and valid
certificate of registration with the department of revenue.
(c) The department may suspend an active registration if the
department has determined that an owner, principal, partner, or officer
of the registrant was an owner, principal, or officer of a previous
partnership, corporation, or other entity that has an unsatisfied final
judgment against it.
(4) The department shall not deny an application or suspend a
registration because of an unsatisfied final judgment if the
applicant's or registrant's unsatisfied final judgment was determined
by the director to be the result of the fraud or negligence of another
party.
Sec. 2 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 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
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 under
this chapter.
(3)(a) All advertising that shows the contractor's name or address
shall show the contractor's current registration number. The
registration number may be omitted in an alphabetized listing of
registered 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 number. A contractor shall not use
a false or expired registration number in purchasing or offering to
purchase an advertisement for which a contractor registration 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 number and use
it, or use an expired registration 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 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 this chapter is a violation of this chapter.
(7) An applicant or registrant who falsifies information on an
application for registration commits a violation under this section.
(8)(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.
NEW SECTION. Sec. 3 A new section is added to chapter 39.12 RCW
to read as follows:
A contractor shall not be allowed to bid on any public works
contract for one year from the date of a final determination that the
contractor has committed any combination of two of the following
violations or infractions within a five-year period:
(1) Willfully violated RCW 51.48.020(1) or 51.48.103; or
(2) Committed an infraction or violation under chapter 18.27 RCW
for performing work as an unregistered contractor.
NEW SECTION. Sec. 4 A new section is added to chapter 18.27 RCW
to read as follows:
A contractor found to have committed an infraction or violation
under this chapter for performing work as an unregistered contractor
shall, in addition to any penalties under this chapter, be subject to
the penalties in section 3 of this act.
Sec. 5 RCW 51.16.070 and 1997 c 54 s 3 are each amended to read
as follows:
(1)(a) Every employer shall keep at his or her place of business a
record of his or her employment from which the information needed by
the department may be obtained and such record shall at all times be
open to the inspection of the director, supervisor of industrial
insurance, or the traveling auditors, agents, or assistants of the
department, as provided in RCW 51.48.040.
(b) An employer who contracts with another person or entity for
work subject to chapter 18.27 or 19.28 RCW shall obtain and preserve a
record of the unified business identifier account number for and the
compensation paid to the person or entity performing the work. Failure
to obtain or maintain the record is subject to RCW 39.06.010 and to a
penalty under RCW 51.48.030.
(2) Information obtained from employing unit records under the
provisions of this title shall be deemed confidential and shall not be
open to public inspection (other than to public employees in the
performance of their official duties), but any interested party shall
be supplied with information from such records to the extent necessary
for the proper presentation of the case in question: PROVIDED, That
any employing unit may authorize inspection of its records by written
consent.
Sec. 6 RCW 50.13.060 and 2005 c 274 s 322 are each amended to
read as follows:
(1) Governmental agencies, including law enforcement agencies,
prosecuting agencies, and the executive branch, whether state, local,
or federal shall have access to information or records deemed private
and confidential under this chapter if the information or records are
needed by the agency for official purposes and:
(a) The agency submits an application in writing to the employment
security department for the records or information containing a
statement of the official purposes for which the information or records
are needed and specific identification of the records or information
sought from the department; and
(b) The director, commissioner, chief executive, or other official
of the agency has verified the need for the specific information in
writing either on the application or on a separate document; and
(c) The agency requesting access has served a copy of the
application for records or information on the individual or employing
unit whose records or information are sought and has provided the
department with proof of service. Service shall be made in a manner
which conforms to the civil rules for superior court. The requesting
agency shall include with the copy of the application a statement to
the effect that the individual or employing unit may contact the public
records officer of the employment security department to state any
objections to the release of the records or information. The
employment security department shall not act upon the application of
the requesting agency until at least five days after service on the
concerned individual or employing unit. The employment security
department shall consider any objections raised by the concerned
individual or employing unit in deciding whether the requesting agency
needs the information or records for official purposes.
(2) The requirements of subsections (1) and (9) of this section
shall not apply to the state legislative branch. The state legislature
shall have access to information or records deemed private and
confidential under this chapter, if the legislature or a legislative
committee finds that the information or records are necessary and for
official purposes. If the employment security department does not make
information or records available as provided in this subsection, the
legislature may exercise its authority granted by chapter 44.16 RCW.
(3) In cases of emergency the governmental agency requesting access
shall not be required to formally comply with the provisions of
subsection (1) of this section at the time of the request if the
procedures required by subsection (1) of this section are complied with
by the requesting agency following the receipt of any records or
information deemed private and confidential under this chapter. An
emergency is defined as a situation in which irreparable harm or damage
could occur if records or information are not released immediately.
(4) The requirements of subsection (1)(c) of this section shall not
apply to governmental agencies where the procedures would frustrate the
investigation of possible violations of criminal laws or to the release
of employing unit names, addresses, number of employees, and aggregate
employer wage data for the purpose of state governmental agencies
preparing small business economic impact statements under chapter 19.85
RCW or preparing cost-benefit analyses under RCW 34.05.328(1) (c) and
(d). Information provided by the department and held to be private and
confidential under state or federal laws must not be misused or
released to unauthorized parties. A person who misuses such
information or releases such information to unauthorized parties is
subject to the sanctions in RCW 50.13.080.
(5) Governmental agencies shall have access to certain records or
information, limited to such items as names, addresses, social security
numbers, and general information about benefit entitlement or employer
information possessed by the department, for comparison purposes with
records or information possessed by the requesting agency to detect
improper or fraudulent claims, or to determine potential tax liability
or employer compliance with registration and licensing requirements.
In those cases the governmental agency shall not be required to comply
with subsection (1)(c) of this section, but the requirements of the
remainder of subsection (1) of this section must be satisfied.
(6) Governmental agencies may have access to certain records and
information, limited to employer information possessed by the
department for purposes authorized in chapter 50.38 RCW. Access to
these records and information is limited to only those individuals
conducting authorized statistical analysis, research, and evaluation
studies. Only in cases consistent with the purposes of chapter 50.38
RCW are government agencies not required to comply with subsection
(1)(c) of this section, but the requirements of the remainder of
subsection (1) of this section must be satisfied. Information provided
by the department and held to be private and confidential under state
or federal laws shall not be misused or released to unauthorized
parties subject to the sanctions in RCW 50.13.080.
(7) Disclosure to governmental agencies of information or records
obtained by the employment security department from the federal
government shall be governed by any applicable federal law or any
agreement between the federal government and the employment security
department where so required by federal law. When federal law does not
apply to the records or information state law shall control.
(8) The department may provide information for purposes of
statistical analysis and evaluation of the WorkFirst program or any
successor state welfare program to the department of social and health
services, the office of financial management, and other governmental
entities with oversight or evaluation responsibilities for the program
in accordance with RCW 43.20A.080. The confidential information
provided by the department shall remain the property of the department
and may be used by the authorized requesting agencies only for
statistical analysis, research, and evaluation purposes as provided in
RCW 74.08A.410 and 74.08A.420. The department of social and health
services, the office of financial management, or other governmental
entities with oversight or evaluation responsibilities for the program
are not required to comply with subsection (1)(c) of this section, but
the requirements of the remainder of subsection (1) of this section and
applicable federal laws and regulations must be satisfied. The
confidential information used for evaluation and analysis of welfare
reform supplied to the authorized requesting entities with regard to
the WorkFirst program or any successor state welfare program are exempt
from public inspection and copying under chapter 42.56 RCW.
(9) The disclosure of any records or information by a governmental
agency which has obtained the records or information under this section
is prohibited unless the disclosure is (a) directly connected to the
official purpose for which the records or information were obtained or
(b) to another governmental agency which would be permitted to obtain
the records or information under subsection (4) or (5) of this section.
(10) In conducting periodic salary or fringe benefit studies
pursuant to law, the department of personnel shall have access to
records of the employment security department as may be required for
such studies. For such purposes, the requirements of subsection (1)(c)
of this section need not apply.
(11)(a) To promote the reemployment of job seekers, the
commissioner may enter into data-sharing contracts with partners of the
one-stop career development system. The contracts shall provide for
the transfer of data only to the extent that the transfer is necessary
for the efficient provisions of workforce programs, including but not
limited to public labor exchange, unemployment insurance, worker
training and retraining, vocational rehabilitation, vocational
education, adult education, transition from public assistance, and
support services. The transfer of information under contracts with
one-stop partners is exempt from subsection (1)(c) of this section.
(b) An individual who applies for services from the department and
whose information will be shared under (a) of this subsection (11) must
be notified that his or her private and confidential information in the
department's records will be shared among the one-stop partners to
facilitate the delivery of one-stop services to the individual. The
notice must advise the individual that he or she may request that
private and confidential information not be shared among the one-stop
partners and the department must honor the request. In addition, the
notice must:
(i) Advise the individual that if he or she requests that private
and confidential information not be shared among one-stop partners, the
request will in no way affect eligibility for services;
(ii) Describe the nature of the information to be shared, the
general use of the information by one-stop partner representatives, and
among whom the information will be shared;
(iii) Inform the individual that shared information will be used
only for the purpose of delivering one-stop services and that further
disclosure of the information is prohibited under contract and is not
subject to disclosure under chapter 42.56 RCW; and
(iv) Be provided in English and an alternative language selected by
the one-stop center or job service center as appropriate for the
community where the center is located.
If the notice is provided in-person, the individual who does not
want private and confidential information shared among the one-stop
partners must immediately advise the one-stop partner representative of
that decision. The notice must be provided to an individual who
applies for services telephonically, electronically, or by mail, in a
suitable format and within a reasonable time after applying for
services, which shall be no later than ten working days from the
department's receipt of the application for services. A one-stop
representative must be available to answer specific questions regarding
the nature, extent, and purpose for which the information may be
shared.
(12) To facilitate improved operation and evaluation of state
programs, the commissioner may enter into data-sharing contracts with
other state agencies only to the extent that such transfer is necessary
for the efficient operation or evaluation of outcomes for those
programs. The transfer of information by contract under this
subsection is exempt from subsection (1)(c) of this section.
(13) The misuse or unauthorized release of records or information
by any person or organization to which access is permitted by this
chapter subjects the person or organization to a civil penalty of five
thousand dollars and other applicable sanctions under state and federal
law. Suit to enforce this section shall be brought by the attorney
general and the amount of any penalties collected shall be paid into
the employment security department administrative contingency fund.
The attorney general may recover reasonable attorneys' fees for any
action brought to enforce this section.
Sec. 7 RCW 50.12.070 and 2007 c 146 s 1 are each amended to read
as follows:
(1)(a) Each employing unit shall keep true and accurate work
records, containing such information as the commissioner may prescribe.
Such records shall be open to inspection and be subject to being copied
by the commissioner or his or her authorized representatives at any
reasonable time and as often as may be necessary. The commissioner may
require from any employing unit any sworn or unsworn reports with
respect to persons employed by it, which he or she deems necessary for
the effective administration of this title.
(b) An employer who contracts with another person or entity for
work subject to chapter 18.27 or 19.28 RCW shall obtain and preserve a
record of the unified business identifier account number for and
compensation paid to the person or entity performing the work. Failure
to obtain or maintain the record is subject to RCW 39.06.010 and to a
penalty determined by the commissioner, but not to exceed two hundred
fifty dollars, to be collected as provided in RCW 50.24.120.
(2)(a) Each employer shall register with the department and obtain
an employment security account number. Registration must include the
names and social security numbers of the owners, partners, members, or
corporate officers of the business, as well as their mailing addresses
and telephone numbers and other information the commissioner may by
rule prescribe. Registration of corporations must also include the
percentage of stock ownership for each corporate officer, delineated by
zero percent, less than ten percent, or ten percent or more. Any
changes in the owners, partners, members, or corporate officers of the
business, and changes in percentage of ownership of the outstanding
shares of stock of the corporation, must be reported to the department
at intervals prescribed by the commissioner under (b) of this
subsection.
(b) Each employer shall make periodic reports at such intervals as
the commissioner may by regulation prescribe, setting forth the
remuneration paid for employment to workers in its employ, the full
names and social security numbers of all such workers, and the total
hours worked by each worker and such other information as the
commissioner may by regulation prescribe.
(c) If the employing unit fails or has failed to report the number
of hours in a reporting period for which a worker worked, such number
will be computed by the commissioner and given the same force and
effect as if it had been reported by the employing unit. In computing
the number of such hours worked, the total wages for the reporting
period, as reported by the employing unit, shall be divided by the
dollar amount of the state's minimum wage in effect for such reporting
period and the quotient, disregarding any remainder, shall be credited
to the worker: PROVIDED, That although the computation so made will
not be subject to appeal by the employing unit, monetary entitlement
may be redetermined upon request if the department is provided with
credible evidence of the actual hours worked. Benefits paid using
computed hours are not considered an overpayment and are not subject to
collections when the correction of computed hours results in an invalid
or reduced claim; however:
(i) A contribution paying employer who fails to report the number
of hours worked will have its experience rating account charged for all
benefits paid that are based on hours computed under this subsection;
and
(ii) An employer who reimburses the trust fund for benefits paid to
workers and fails to report the number of hours worked shall reimburse
the trust fund for all benefits paid that are based on hours computed
under this subsection.
Sec. 8 RCW 51.48.103 and 2003 c 53 s 283 are each amended to read
as follows:
(1) It is a gross misdemeanor:
(a) For any employer to engage in business subject to this title
without having obtained a certificate of coverage as provided for in
this title;
(b) For the president, vice president, secretary, treasurer, or
other officer of any company to cause or permit the company to engage
in business subject to this title without having obtained a certificate
of coverage as provided for in this title.
(2) It is a class C felony punishable according to chapter 9A.20
RCW:
(a) For any employer to engage in business subject to this title
after the employer's certificate of coverage has been revoked by order
of the department;
(b) For the president, vice president, secretary, treasurer, or
other officer of any company to cause or permit the company to engage
in business subject to this title after revocation of a certificate of
coverage.
(3) An employer found to have willfully violated this section
shall, in addition to any other penalties, be subject to the penalties
in section 3 of this act.
Sec. 9 RCW 51.48.020 and 1997 c 324 s 1 are each amended to read
as follows:
(1)(a) Any employer, who knowingly misrepresents to the department
the amount of his or her payroll or employee hours upon which the
premium under this title is based, shall be liable to the state for up
to ten times the amount of the difference in premiums paid and the
amount the employer should have paid and for the reasonable expenses of
auditing his or her books and collecting such sums. Such liability may
be enforced in the name of the department.
(b) An employer is guilty of a class C felony, if:
(i) The employer, with intent to evade determination and payment of
the correct amount of the premiums, knowingly makes misrepresentations
regarding payroll or employee hours; or
(ii) The employer engages in employment covered under this title
and, with intent to evade determination and payment of the correct
amount of the premiums, knowingly fails to secure payment of
compensation under this title or knowingly fails to report the payroll
or employee hours related to that employment.
(c) Upon conviction under (b) of this subsection, the employer
shall be ordered by the court to pay the premium due and owing, a
penalty in the amount of one hundred percent of the premium due and
owing, and interest on the premium and penalty from the time the
premium was due until the date of payment. The court shall:
(i) Collect the premium and interest and transmit it to the
department of labor and industries; and
(ii) Collect the penalty and disburse it pro rata as follows: One-third to the investigative agencies involved; one-third to the
prosecuting authority; and one-third to the general fund of the county
in which the matter was prosecuted.
Payments collected under this subsection must be applied until
satisfaction of the obligation in the following order: Premium
payments; penalty; and interest.
(d) An employer found to have willfully violated this subsection
shall, in addition to any other penalties, be subject to the penalties
in section 3 of this act.
(2) Any person claiming benefits under this title, who knowingly
gives false information required in any claim or application under this
title shall be guilty of a felony, or gross misdemeanor in accordance
with the theft and anticipatory provisions of Title 9A RCW.
Sec. 10 2007 c 288 s 2 (uncodified) is amended to read as
follows:
(1) The joint legislative task force on the underground economy in
the Washington state construction industry is established. For
purposes of this section, "underground economy" means contracting and
construction activities in which payroll is unreported or underreported
with consequent nonpayment of payroll taxes to federal and state
agencies including nonpayment of workers' compensation and unemployment
compensation taxes.
(2) The purpose of the task force is to formulate a state policy to
establish cohesion and transparency between state agencies so as to
increase the oversight and regulation of the underground economy
practices in the construction industry in this state. To assist the
task force in achieving this goal and to determine the extent of and
projected costs to the state and workers of the underground economy in
the construction industry, the task force shall contract with the
institute for public policy, or, if the institute is unavailable,
another entity with expertise capable of providing such assistance.
(3)(a) The task force shall consist of the following members:
(i) The chair and ranking minority member of the senate labor,
commerce, research and development committee;
(ii) The chair and ranking minority member of the house of
representatives commerce and labor committee;
(iii) Four members representing the construction business, selected
from nominations submitted by statewide construction business
organizations and appointed jointly by the president of the senate and
the speaker of the house of representatives;
(iv) Four members representing construction laborers, selected from
nominations submitted by statewide labor organizations and appointed
jointly by the president of the senate and the speaker of the house of
representatives.
(b) In addition, the employment security department, the department
of labor and industries, and the department of revenue shall cooperate
with the task force and shall each maintain a liaison representative,
who is a nonvoting member of the task force. The departments shall
cooperate with the task force and the institute for public policy, or
other entity as appropriate, and shall provide information and data as
the task force or the institute, or other entity as appropriate, may
reasonably request.
(c) The task force shall choose its chair or cochairs from among
its legislative membership. The chairs of the senate labor, commerce,
research and development committee and the house of representatives
commerce and labor committee shall convene the initial meeting of the
task force.
(4)(a) The task force shall use legislative facilities and staff
support shall be provided by senate committee services and the house of
representatives office of program research. Within available funding,
the task force may hire additional staff with specific technical
expertise if such expertise is necessary to carry out the mandates of
this study.
(b) Legislative members of the task force shall be reimbursed for
travel expenses in accordance with RCW 44.04.120. Nonlegislative
members, except those representing an employer or organization, are
entitled to be reimbursed for travel expenses in accordance with RCW
43.03.050 and 43.03.060.
(c) The expenses of the task force will be paid jointly by the
senate and house of representatives. Task force expenditures are
subject to approval by the senate facilities and operations committee
and the house of representatives executive rules committee, or their
successor committees.
(5) The task force shall report its preliminary findings and
recommendations to the legislature by January 1, 2008, and submit a
final report to the legislature by December 31, 2008.
(6) This section expires July 1, ((2008)) 2009.
NEW SECTION. Sec. 11 (1)(a) Three staff members, one being a
working supervisor, must be added to the department of labor and
industries' fraud audit infraction and revenue contractor fraud team.
(b) The department of labor and industries and the employment
security department shall hire more auditors to assist with their
enforcement activities relating to the underground economy in the
construction industry. At a minimum, the department of labor and
industries shall hire three more auditors.
(2) If funds are made available in the 2008 supplemental budget,
money must be dedicated to the attorney general's office to be used in
the enforcement of contractor compliance cases.
NEW SECTION. Sec. 12 A new section is added to chapter 18.27 RCW
to read as follows:
The department shall create an expanded social marketing campaign
using currently available materials and newly created materials as
needed. This campaign should be aimed at consumers and warn them of
the risks and potential consequences of hiring unregistered contractors
or otherwise assisting in the furtherance of the underground economy.
The campaign may include: Providing public service announcements and
other similar materials, made available in English as well as other
languages, to the media and to community groups; providing information
on violations and penalties; and encouraging legitimate contractors and
the public to report fraud.
NEW SECTION. Sec. 13 A new section is added to chapter 43.22 RCW
to read as follows:
(1) A pilot project must be established between the department and
certain local jurisdictions to explore ways to improve the collection
and sharing of building permit information. Participation must be
voluntary for the local jurisdictions who participate, but one large
city, some smaller cities, and at least one county are encouraged to
participate.
(2) The department must report back to the appropriate committees
of the legislature on the progress of the pilot project by November 15,
2013.
(3) The department may adopt rules to undertake the pilot project
under this section.
(4) This section expires December 1, 2014.
NEW SECTION. Sec. 14 An advisory committee must be organized by
the Washington state institute for public policy with the assistance of
the department of revenue, the department of labor and industries, and
the employment security department, with a goal of establishing
benchmarks for future monitoring of activities recommended by the task
force on the underground economy in the construction industry.
Benchmarks should measure the effect of task force recommendations to
determine their efficiency and effectiveness and to determine if
additional approaches should be explored. Establishment of these
benchmarks along with a more concerted effort to develop data that
answer the baseline question of the magnitude of the problem could be
discussed in a legislative extension of the task force. The institute
must provide a preliminary report to the senate labor, commerce,
research and development committee and the house of representatives
commerce and labor committee by December 31, 2008.
NEW SECTION. Sec. 15 If any part of this act is found to be in
conflict with federal requirements that are a prescribed condition to
the allocation of federal funds to the state, the conflicting part of
this act is inoperative solely to the extent of the conflict and with
respect to the agencies directly affected, and this finding does not
affect the operation of the remainder of this act in its application to
the agencies concerned. Rules adopted under this act must meet federal
requirements that are a necessary condition to the receipt of federal
funds by the state.
NEW SECTION. Sec. 16 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.