BILL REQ. #: S-2382.1
| State of Washington | 60th Legislature | 2007 Regular Session |
READ FIRST TIME 02/28/07.
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, 60.04.041, 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 residential 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 or 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.)) (6) "General residential contractor" means a contractor whose
business operations are primarily focused on work done for residential
homeowners or on residences and 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
residential contractor" shall not include an individual who does all
work personally without employees or other "specialty contractors" as
defined in this section.
(5)
(7) "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.
(8) "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.
(9) "Licensed contractor" means a general residential contractor or
a residential contractor.
(10) "Partnership" means a business formed under Title 25 RCW.
(((6))) (11) "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))) (12) "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))) (13) "Residential 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 residential building, or other structure,
project, development, or improvement attached to residential real
estate including the installation or repair of roofing or siding.
(14) "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))) (15) "Specialty contractor" means a contractor whose
operations do not fall within the definition of "general contractor".
(((10))) (16) "Unregistered or unlicensed contractor" means a
person, firm, corporation, or other entity doing work as a contractor
without being registered or licensed in compliance with this chapter.
"Unregistered or unlicensed contractor" includes contractors whose
registration or license is expired, revoked, or suspended.
"Unregistered or 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 or license has lapsed
for thirty or fewer days.
(((11))) (17) "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))) (18) "Verification" means the receipt and duplication by
the city, town, or county of a contractor registration or license card
that is current on its face, checking the department's contractor
registration or license database, or calling the department to confirm
that the contractor is registered or 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 the department. Beginning
July 1, 2008, every residential contractor shall be licensed by the
department.
(2) It is a misdemeanor for any contractor or residential
contractor to:
(a) Advertise, offer to do work, submit a bid, or perform any work
as a contractor without being registered or 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 or license is
suspended or revoked;
(c) Use a false or expired registration or license number in
purchasing or offering to purchase an advertisement for which a
contractor's registration or license number is required; or
(d) Transfer a valid registration or license to an unregistered or
unlicensed contractor or allow an unregistered or unlicensed contractor
to work under a registration or license issued to another contractor.
(3) It is not unlawful for a general contractor or general
residential contractor to employ an unregistered or unlicensed
contractor, as the case may be, who was registered or 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 or 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 or unlicensed, or while his or her
registration or license is suspended or revoked, or works under a
registration or 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 or licensed contractor.
(6) The director by rule shall establish a two-year audit and
monitoring program for a contractor not registered or licensed under
this chapter who becomes registered or licensed after receiving an
infraction or conviction under this chapter as an unregistered or
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 or licensure as a contractor or
residential 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 passage of the written exam as provided in section
5 of this act.
(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.
(((d))) (e) Employment security department number.
(((e))) (f) State excise tax registration number.
(((f))) (g) Unified business identifier (UBI) account number may be
substituted for the information required by (((c))) (d) of this
subsection if the applicant will not employ employees in Washington,
and by (((d) and)) (e) and (f) of this subsection.
(((g))) (h) Type of contracting activity, whether a general,
residential, or a specialty contractor and if the latter, the type of
specialty.
(((h))) (i) 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))) (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.
(3)(a) The department shall deny an application for registration or
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 or license
if (i) the department has notice that the registrant or licensee is a
sole proprietor or a principal or officer of a registered or 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 or license because of an unsatisfied final judgment if the
applicant's ((or)), registrant's, or 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 residential construction contractors advisory board
is established, consisting of six members appointed by the director.
The members of the board shall be selected and appointed as follows:
Three members shall be contractors who primarily work on residential
structures; two members shall be contractors engaged primarily in the
business of residential remodeling; and one member shall represent the
public.
(2) The members shall serve four-year terms. Of the initial
members, two must be appointed for a one-year term, two must be
appointed for a two-year term, and two must be appointed for a three-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 director shall make an appointment immediately effective for
the unexpired term.
(3) To be eligible for board membership, the residential 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
residential 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
residential 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
residential 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 residential 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 residential
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 for registration or licensure 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 or 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 or license issued to the registrant or
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 of
either, 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 or 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. Any contractor or
residential contractor registered or licensed as of July 1, 2008, who
maintains that registration or license in accordance with this chapter
is in compliance with this chapter until the next renewal of the
contractor's registration or 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 or residential 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 or residential
contractor, the contractor's or residential 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 or
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 or licensee at the address listed in the registrant's
or 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 or general residential 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 or license of the
contractor or residential 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 or residential 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 or 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 or license or applying for a new registration
or 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 or license of a corporate officer, owner, or partner of a
current applicant, has had in the past five years a total of ((six))
three 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 or
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 or 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)) a registration or 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)) registrations or 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)) registration or 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 or residential 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 or licensure is required under this chapter without
alleging and proving that he or she was a duly registered or licensed
contractor and held a current and valid ((certificate of)) registration
or 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 or residential contractor in
substantial compliance with the registration or licensing requirements
of this chapter unless: (1) The department has on file the information
required by RCW 18.27.030; (2) the contractor or residential contractor
has a current bond or other security as required by RCW 18.27.040; and
(3) the contractor or residential contractor has current insurance as
required by RCW 18.27.050. In determining under this section whether
a contractor or residential contractor is in substantial compliance
with the registration or licensing requirements of this chapter, the
court shall take into consideration the length of time during which the
contractor or residential contractor did not hold a valid ((certificate
of)) registration or license.
Sec. 11 RCW 18.27.090 and 2003 c 399 s 401 are each amended to
read as follows:
The registration or 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 residential 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
residential contractor, or that he or she is qualified to engage in the
business of contractor or residential 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 or licensed contractor;
(11) An owner who contracts for a project with a registered or
licensed contractor, except that this exemption shall not deprive the
owner of the protections of this chapter against registered and
unregistered or 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 or 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 or 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 or is licensed under one name as
provided in this chapter shall engage in the business, or act in the
capacity, of a contractor or residential contractor under any other
name unless such name also is registered or licensed under this
chapter.
(2) All advertising and all contracts, correspondence, cards,
signs, posters, papers, and documents which show a contractor's or
residential contractor's name or address shall show the contractor's or
residential contractor's name or address as registered or licensed
under this chapter.
(3)(a) All advertising that shows the contractor's or residential
contractor's name or address shall show the contractor's or residential
contractor's current registration or license number. The registration
or license number may be omitted in an alphabetized listing of
registered or 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 or residential contractor's current registration or
license number. A contractor or residential contractor shall not use
a false or expired registration or license number in purchasing or
offering to purchase an advertisement for which a contractor or
residential contractor registration or 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 or residential 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 or residential contractor shall not falsify a
registration or license number and use it, or use an expired
registration or license number, in connection with any solicitation or
identification as a contractor or residential contractor. All
individual contractors, residential contractors, and all partners,
associates, agents, salesmen, solicitors, officers, and employees of
contractors or residential contractors shall use their true names and
addresses at all times while engaged in the business or capacity of a
contractor or residential contractor or related activities ((related
thereto)).
(6) Any advertising by a person, firm, or corporation soliciting
work as a contractor or residential contractor when that person, firm,
or corporation is not registered ((pursuant to)) or 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 or
license, an applicant for a registration or license, or a person acting
in the capacity of a contractor or residential 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 or residential
contractor required to be registered or licensed under this chapter
without verification that such contractor or residential contractor is
currently registered or 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 or residential contractor registration or 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 or residential contractor registration
or license number on the building permit; and
(b) Providing a written notice to the building permit applicant
informing them of contractor or residential contractor registration or
license laws and the potential risk and monetary liability to the
homeowner for using an unregistered or unlicensed contractor.
(3) If a building permit is obtained by an applicant ((or)),
contractor, or residential 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 or residential 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 or residential contractor is registered or licensed with the state of Washington, registration or license no. . . ., and has posted with the state a bond or deposit of . . . . . for the purpose of satisfying claims against the contractor or residential contractor for breach of contract including negligent or improper work in the conduct of the contractor's or residential contractor's business. The expiration date of this contractor's or residential contractor's registration or 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 or residential 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 residential 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 OR RESIDENTIAL CONTRACTOR TO PROVIDE YOU WITH ORIGINAL "LIEN RELEASE" DOCUMENTS FROM EACH SUPPLIER OR SUBCONTRACTOR ON YOUR PROJECT.
The contractor or residential 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 or residential contractor registered or 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 and
residential contractors registered or 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 or residential contractor is registered or licensed,
and if a contractor or residential 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 or residential contractors not required to be registered or
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 or residential contractor to:
(a) Advertise, offer to do work, submit a bid, or perform any work
as a contractor or residential contractor without being registered or
licensed as required by this chapter;
(b) Advertise, offer to do work, submit a bid, or perform any work
as a contractor or residential contractor when ((the contractor's)) his
or her registration or license is suspended or revoked;
(c) Transfer a valid registration or license to an unregistered or
unlicensed contractor or residential contractor or allow an
unregistered or unlicensed contractor or residential contractor to work
under a registration or license issued to another contractor or
residential contractor; or
(d) If the contractor or residential contractor is a contractor as
defined in RCW 18.106.010, violate RCW 18.106.320.
(2) Each day that a contractor or residential contractor works
without being registered or licensed as required by this chapter, works
while ((the contractor's)) his or her registration or license is
suspended or revoked, or works under a registration or license issued
to another contractor or residential contractor is a separate
infraction. Each worksite at which a contractor or residential
contractor works without being registered or licensed as required by
this chapter, works while ((the contractor's)) his or her registration
or license is suspended or revoked, or works under a registration or
license issued to another contractor or residential 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 or residential contractor had bid or presently is working to
determine whether the contractor or residential contractor is
registered or 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, residential contractor, or an employee of the contractor
or residential contractor shall provide information identifying the
contractor or residential contractor.
(2) If the employee of an unregistered or unlicensed contractor is
cited by a compliance inspector, that employee is cited as the agent of
the employer-contractor or employer-residential contractor, and
issuance of the infraction to the employee is notice to the employer-contractor or employer-residential contractor that the contractor or
residential 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 or residential 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
or residential contractor has failed to register or 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 or residential
contractor. The order shall describe the specific violation that
necessitated issuance of the restraining order. The contractor,
residential 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 or residential
contractor and that the contractor or residential 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 or residential 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 or
residential 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 or residential 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 or residential contractor named in the notice
of infraction does not elect to contest the notice of infraction, then
((the contractor)) he or she 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 or residential contractor named in the notice
of infraction elects to contest the notice of infraction, the
contractor or residential contractor shall respond by filing an answer
of protest with the department specifying the grounds of protest.
(4) If any contractor or residential contractor issued a notice of
infraction fails to respond within the prescribed response period, the
contractor or residential 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 or residential
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 or residential 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 or residential contractor who is issued a
notice of infraction is a contractor or residential contractor who has
failed to register or obtain a license as a contractor or residential
contractor under this chapter, the contractor or residential 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 or 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' or
residential 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
or licensed by the department, without suspension, or was exempt from
registration or 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 or residential contractor named in the notice of infraction
was registered or 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 or residential 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 or residential contractor found to have committed
an infraction under RCW 18.27.200 for failure to register or 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 or obtain a license, but in no case
below five hundred dollars, if the person becomes registered or
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 and residential contractors found to
have committed an infraction for failure to register or obtain a
license;
(2) The number of contractors and residential 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 or
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 or 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 or 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 or unlicensed contractor or residential
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 or unlicensed contractor or residential
contractor by mailing the notice to the unregistered or unlicensed
contractor or residential contractor by certified mail to the
unregistered or unlicensed contractor's or residential 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 or unlicensed contractor or
residential 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 or unlicensed
contractor's or residential 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 or unlicensed contractor or residential 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 or unlicensed contractor or residential 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 or
unlicensed contractor or residential 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 or unlicensed contractor or
residential 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 or
unlicensed contractor's or residential 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 or unlicensed contractor or residential contractor and the
property subject to it is wages, the unregistered or unlicensed
contractor or residential 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 residential construction contractor's license account is
created in the state treasury. All receipts from application fees, the
issuance or renewal of residential contractor licenses, training, or
other sources related to licensing of residential 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.
Sec. 30 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 or 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. 31 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 or
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. 32 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 or licensed as a contractor as required under
chapter 18.27 RCW or this chapter, or being employed by a person who is
registered or licensed as a contractor or residential 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 or licensed as a contractor or a residential 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. 33 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 or 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. 34 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 or 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. 35 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
or 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. 36 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. 37 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.)) 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.
(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)
(((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. 38 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 or 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. 39 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 or 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. 40 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 or
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. 41 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. 42 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 or 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. 43 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 or licensed under chapter 18.27 ((RCW or licensed under
chapter)) or 19.28 RCW when:
(1) Contracting to perform work for any contractor registered or
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 or 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. 44 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 or
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 or 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. 45 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 or 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 or 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. 46 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 or
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 or
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 or licensed under
chapter 18.27 ((RCW or licensed under chapter)) or 19.28 RCW including
those performing work for any contractor registered or 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. 47 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 or
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 or 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. 48 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
or 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. 49 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 or 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 or
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. 50 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 or 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. 51 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 or 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 or 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. 52 A new section is added to chapter 18.27 RCW
to read as follows:
All residential contractors who have been registered before July 1,
2008, must file an application for a license on or before July 1, 2008.
All applicants for a license under this chapter are required to take
and pass an examination if he or she, on and after July 1, 2008,
applies for a license under this chapter.
NEW SECTION. Sec. 53 Except for section 52 of this act, this act
takes effect July 1, 2008.