Legislature(2005 - 2006)BELTZ 211
03/24/2005 02:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB137 | |
| SB140 | |
| SB2 | |
| SB130 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 2 | TELECONFERENCED | |
| = | SB 130 | ||
| = | SB 140 | ||
| = | SB 137 | ||
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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