Event Details

Contractor Registration (2SHB 1534 - Phase 2 Implementation)

Public Hearing on Proposed Rules
Tuesday, March 26, 2024
9 a.m.

Location

In-person:
Department of Labor & Industries
7273 Linderson Way SW, Room S117
Tumwater, WA 98501

Olympia-Tumwater, L&I Office Location

To join on your computer or mobile app (Zoom):
https://lni-wa-gov.zoom.us/j/82737231807?pwd=VmdmTGdkMGh2dDAybGpnbjRsOHBBUT09
Passcode: hearing1@!

To join by phone (audio only):
253-215-8782
Webinar ID: 827 3723 1807
Passcode: 5064095270

The hearing will start at 9:00 a.m. and continue until all oral comments are received.

L&I encourages the submittal of written comments, due by 5:00 p.m. on March 26, 2024.

Purpose

The purpose of this rulemaking is to amend the Contractor Registration rule to implement legislation and to support operating expenses for the Contractor Registration Program. The amendments affect the definitions, penalty and bond amounts, and fees for general and specialty contractors. Second Substitute House Bill 1534 (2SHB 1534) (Chapter 213, Laws of 2023) helps to strengthen protections for consumers in the construction industry. Provisions of the bill increase fines, penalties, and bond amounts for contractors. These provisions take effect July 1, 2024. Senate Bill 5795 (SB 5795) (Chapter 155, Laws of 2019) increases bond requirements for contractors. The law gives L&I the authority to require up to three times the normal bond amount if there has been one judgment against a contractor involving a residential single-family dwelling. The law took effect July 28, 2019. The proposed amendments include: (1) Increasing fees by the fiscal growth factor of 6.40% to support operating expenses. (2) Amendments for consistency with the statutory amendments under 2SHB 1534. This includes: adding a new definition to define the meaning of “due diligence” related to a successor of an entity verifying the entity is in good standing related to unsatisfied final judgment against it for work performed under chapter 18.27 RCW or owes money to L&I for assessed penalties or fees as a result of a final judgment; increasing surety bond and savings account amounts for general and specialty contractors; and increasing the monetary penalty amounts that may be assessed for infractions issued for violations of chapter 18.27 RCW. (3) Amendments for consistency with the statutory amendments under SB 5795. This includes amending the number of final judgements and single-family dwelling structures involved for when a bond or savings account can be increased. (4) Amendments for updates and clarification. This includes: clarifying the service fee for summons and complaints by removing the fee amount and referencing the fee schedule, and clarifying the requirements for collection of penalties from a contractor and payments of restitution. This rulemaking is the second phase.