Legislature(2005 - 2006)BELTZ 211

03/24/2005 02:00 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
+= SB 2 LIEN REQUIREMENTS TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
Including But Not Limited to:
= SB 130 WORKERS' COMPENSATION
Heard & Held
= SB 140 BAN INTERNET SPYWARE
Moved SB 140 Out of Committee
= SB 137 EVICTING INSTITUTIONAL PROPERTY USERS
Moved SB 137 Out of Committee
                    SB   2-LIEN REQUIREMENTS                                                                                
                                                                                                                                
CHAIR CON BUNDE announced SB 2 to be up for consideration.                                                                      
                                                                                                                                
SENATOR BEN  STEVENS moved to  adopt CSSB 2(L&C), version  Y, for                                                               
discussion.                                                                                                                     
                                                                                                                                
CHAIR BUNDE objected for discussion purposes.                                                                                   
                                                                                                                                
SENATOR GUESS,  sponsor, explained that  the change can  be found                                                               
on  page 2,  lines 17  through 19.  The Department  of Labor  and                                                               
Workforce Development (DOLWD)  requested another exemption, their                                                               
wage claim and wage assignment process.                                                                                         
                                                                                                                                
CHAIR BUNDE removed his objection and the CS was adopted.                                                                       
                                                                                                                                
2:14:41 PM                                                                                                                    
SENATOR  GUESS said  SB 2  came  from constituents.  Right now  a                                                               
person does not have to show  that they had an agreement with the                                                               
owner of a property  before filing a lien and the  onus is on the                                                               
owner  to  try  to  undo  the lien.  She  tried  to  balance  the                                                               
importance of taking  care of labor with what an  owner has to do                                                               
in responding  to a  lien. SB  2 asks that  either a  contract or                                                               
other documentation showing  there is a contract for  the work be                                                               
presented when a  lien is filed. If you don't  have that, you can                                                               
get  a  court order  that  shows  the  existence of  lien.  Often                                                               
laborers go  to the DOLWD that  goes through a process  that says                                                               
you  should   have  been  paid.  The   department  requested  the                                                               
amendment  to  protect  its  ability   to  file  a  lien  against                                                               
employers  after it  had investigated  claims  of non-payment  in                                                               
wages. Her goal was to stop the frivolous liens.                                                                                
                                                                                                                                
2:16:46 PM                                                                                                                    
SENATOR STEVENS  asked if language  saying "wage claim"  or "wage                                                               
assignment"  is boiler-plate  and would  the Department  of Labor                                                               
now be able to go after a contractor for assignments of a wage.                                                                 
                                                                                                                                
SENATOR GUESS  replied that  the department's  process determines                                                               
that a  wage needs  to be  paid, but  Mr. Mitchell  would explain                                                               
that.                                                                                                                           
                                                                                                                                
2:18:31 PM                                                                                                                    
GREY MITCHELL, Director, Division  of Labor Standards and Safety,                                                               
explained:                                                                                                                      
                                                                                                                                
     It's simply  a terminology issue.  A wage claim  is the                                                                    
     same  thing  as  a wage  assignment,  essentially.  The                                                                    
     people at Legislative Legal,  when they were wrangling,                                                                    
     wanted  to   include  both  terms.  So   an  assignment                                                                    
     basically means  that someone  has assigned  their wage                                                                    
     claim  to   the  Department  of  Labor   and  Workforce                                                                    
     Development, which means that  we have the authority to                                                                    
     act on their behalf.                                                                                                       
                                                                                                                                
2:19:26 PM                                                                                                                    
CHAIR BUNDE  asked if someone  has child support to  claim, would                                                               
they use this vehicle.                                                                                                          
                                                                                                                                
MR.  MITCHELL  replied  that  it  applies  just  to  wage  claims                                                               
assignments.                                                                                                                    
                                                                                                                                
SENATOR  STEVENS asked  if  a garnishment  is  not considered  an                                                               
assignment.                                                                                                                     
                                                                                                                                
MR. MITCHELL replied that's true.                                                                                               
                                                                                                                                
2:20:11 PM                                                                                                                    
CHAIR  BUNDE asked  if this  bill  applies to  a situation  where                                                               
someone who  is undercapitalized builds  a building,  doesn't pay                                                               
the  suppliers,  leaves  town,   files  bankruptcy  so  he's  not                                                               
available to pay his bills and  the supply company puts a lien on                                                               
the home.                                                                                                                       
                                                                                                                                
MR. MITCHELL replied that he wasn't  sure since it's not a labor-                                                               
related question, but he thought  the supplier would have to come                                                               
forward with a contract or judgment to file a lien.                                                                             
                                                                                                                                
2:20:51 PM                                                                                                                    
CHAIR  BUNDE  said  the contractors'  bonds  are  $10,000,  which                                                               
hasn't been changed in  a long time and he asked  if now would be                                                               
a good time to discuss changing it.                                                                                             
                                                                                                                                
MR. MITCHELL replied that that would be up to the committee.                                                                    
                                                                                                                                
CHAIR BUNDE  asked Senator Guess if  she thought this was  a good                                                               
time to  review the bonding  amount and  if her bill  covered his                                                               
concern  about   builders  who   are  undercapitalized   and  the                                                               
homeowner gets the lien because of it.                                                                                          
                                                                                                                                
2:21:31 PM                                                                                                                    
SENATOR GUESS  replied that she  hadn't considered it,  but would                                                               
be more  than willing to. In  this bill, they would  have to show                                                               
an  agreement  with  the  property owner,  not  with  the  middle                                                               
person. She  promised to  give it and  the bond  requirement more                                                               
thought.                                                                                                                        
                                                                                                                                
2:22:34 PM                                                                                                                    
SENATOR  GUESS said  for the  record, she  asked to  postpone the                                                               
hearing so  she could meet  with the laborer's community  and the                                                               
Homebuilders' Association who have no problems with the bill.                                                                   
                                                                                                                                
CHAIR BUNDE set SB 2 aside for the time being.                                                                                  

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