TUMWATER, Wash. - The Department of Labor and Industries (L&I) of Washington state, which registers contractors, enacted a new law on July 22 giving consumers more protection from fraudulent contractors.

The new law increases contractors' bonding and insurance requirements and ensures that up to 50 percent of the bond is reserved for consumers. More specifically, the new law does the following:

• Increases specialty-contractor bonds from $4,000 to $6,000 and general-contractor bonds from $6,000 to $12,000.

•Allows increases in bonding requirements up to $36,000 for contractors who have judgments placed on their bond or account.

• Ensure that up to 50 percent of the bond is reserved for consumers.

• Increases personal-injury-insurance requirements from $100,000 to $200,000.

• Increases the penalties for false advertising from $5,000 to $10,000.

• Requires contractors to give customers an expanded disclosure statement about consumer rights prior to starting work on a project.

• Allows L&I to deny or suspend a contractor's registration if there are outstanding judgments.

• Provides L&I with additional authority to collect penalties and fines.

This new law is a result of an increased number of complaints. In 1982, only 126 complaints sought to obtain payment from contractors' bonds or sureties. In 1999, the number of complaints rose to 3,500. The value of the complaints also rose from $650,000 to more than $31 million.