Z-1385               _______________________________________________

                                                   HOUSE BILL NO. 1571

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Schmidt, Walk, Zellinsky, Wang, Heavey, S. Wilson, J. Williams and Fisher; by request of Washington State Transportation Commission

Read first time 1/20/88 and referred to Committee on Transportation.

AN ACT Relating to bonding requirements for repair or maintenance of state ferries; and amending RCW 39.08.010.

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

        Sec. 1.  Section 1, chapter 207, Laws of 1909 as last amended by section 5, chapter 98, Laws of 1982 and RCW 39.08.010 are each amended to read as follows:

          Whenever any board, council, commission, trustees, or body acting for the state or any county or municipality or any public body ((shall)) contracts with any person or corporation to do any work for the state, county, or municipality, or other public body, city, town, or district, such board, council, commission, trustees, or body shall require the person or persons with whom such contract is made to make, execute, and deliver to such board, council, commission, trustees, or body a good and sufficient bond, with two or more sureties, or with a surety company as surety, conditioned that such person or persons shall faithfully perform all the provisions of such contract and pay all laborers, mechanics, and subcontractors and materialmen((, and)).  All persons who supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work, which bond in cases of cities and towns shall be filed with the clerk or comptroller thereof, and any person or persons performing such services or furnishing material to any subcontractor ((shall)) have the same right under the provisions of such bond as if such work, services, or material was furnished to the original contractor((:  PROVIDED, HOWEVER, That the provisions of)). RCW 39.08.010 through 39.08.030 shall not apply to any money loaned or advanced to any such contractor, subcontractor, or other person in the performance of any such work((:  PROVIDED FURTHER, That)).  On contracts of twenty-five thousand dollars or less, at the option of the contractor the respective public entity may, in lieu of the bond, retain fifty percent of the contract amount for a period of thirty days after the date of final acceptance, or until receipt of all necessary releases from the  department of revenue and the department of labor and industries and settlement of any liens filed under chapter 60.28 RCW, whichever is later.  On contracts of more than twenty-five thousand dollars for maintenance or repair of any vessel, for which no bids have been received or no bidders have been able to obtain the bond required by this section, the respective public entity may at its option, rebid the contract and specify in writing its intention to permit, subject to specified format and conditions, the substitution of one or more of the following forms of security:  Certified check, cashier's check, treasury bills, an irrevocable bank letter of credit, or assignment of a savings account.