Subject of Possible Rule Making: Homeowner recovery program under the contractor registration rule; chapter 296-200A WAC, Contractor certificate of registration renewals—Security—Insurance.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: This rule making considers amendments to the contractor registration rules for new legislation. In 2023, the legislature passed 2SHB 1534 (chapter 213, Laws of 2023), to strengthen protections for consumers in the construction industry. The legislation directed the department of labor and industries (L&I) to establish and administer a new homeowner recovery program by July 1, 2024. The program provides a safeguard and a path to financial recovery for consumers harmed by construction contractors. Beginning July 1, 2026, eligible construction consumers can apply for recovery payments from the program for financial losses stemming from work by construction contractors. This rule making considers amendments to administer the newly established program and ensure construction consumers have access to the program's recovery payments.

In addition to the homeowner recovery program, 2SHB 1534 introduced several other statutory amendments that strengthen consumer protections in Washington's construction industry. L&I is adopting rules to implement the legislation in three phases. This rule making initiates the final stage. The phase 1 rule was adopted under WSR 23-17-145 and phase 2 was adopted under WSR 24-10-086.

Process for Developing New Rule: Interested parties can participate in the decision to adopt the new rules and formulation of the proposed rules before publication by contacting the individual listed below. The public can also participate after amendments are proposed by providing written comments and/or testimony during the public hearing and comment process.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Alicia Curry, L&I, Field Services and Public Safety Division, P.O. Box 44400, Olympia, WA 98504-4400, phone 360-902-6244, fax 360-902-6134, email FSPSRules@Lni.wa.gov, website https://lni.wa.gov/licensing-permits/contractors/contractor-laws-rules.