The bill seeks to strengthen consumer protections in Washington State's construction industry by amending various sections of the Revised Code of Washington (RCW) related to contractor registration and regulation. It introduces a new definition for "successor," which pertains to applicants operating with the assets of a previously registered entity under common ownership or control. The bill allows for the denial of registration for successors to entities with unsatisfied final judgments related to their work. Additionally, it raises the surety bond requirements for general contractors from $12,000 to $30,000 and for specialty contractors from $6,000 to $15,000. The application process for contractor registration is also revised to require individual taxpayer identification numbers and clarifies the conditions under which registration may be denied or suspended.

Moreover, the bill establishes a homeowner recovery program that enables claimants with unsatisfied final judgments against registered contractors to recover damages, subject to certain conditions. It creates a homeowner recovery account to fund this program, with payment limits set at $25,000 per contractor per parcel. The bill also modifies the distribution of earnings from the investment income account, ensuring that payments to financial institutions occur before distributions to the state general fund. Additionally, it adjusts the percentage of revenues transferred to the general fund from the construction registration inspection account from seven percent to three and one-half percent. The act includes provisions for its validity, with specific sections taking effect on different dates to maintain public peace, health, or safety.

Statutes affected:
Original Bill: 18.27.010, 18.27.030, 18.27.040, 18.27.340, 18.27.400, 51.44.190
Substitute Bill: 18.27.010, 18.27.030, 18.27.040, 18.27.340, 18.27.400, 51.44.190
Second Substitute: 18.27.010, 18.27.030, 18.27.040, 18.27.340, 18.27.400, 51.44.190
Bill as Passed Legislature: 18.27.010, 18.27.030, 18.27.040, 18.27.340, 18.27.400, 51.44.190
Session Law: 18.27.010, 18.27.030, 18.27.040, 18.27.340, 18.27.400, 51.44.190