8-6-2007
The real story behind Weinstein’s SB 5550
By Brian Minnich, Legislative Affairs Director
Building Industry Association of Washington
The bill that garnered the most controversy this legislation session, and whose defeat was the biggest success for the Building Industry Association of Washington (BIAW), was Senator Brian Weinstein’s (D-Mercer Island) so-called “Homeowner’s Bill of Rights.” Weinstein’s bill would have mandated lengthy warranties and extended the amount of time homeowners could sue builders and remodelers. The insurance industry warned passage would drive most companies offering builder liability insurance out of the state, resulting in skyrocketing liability insurance premiums for builders and effectively crippling the homebuilding industry.

The debate surrounding SB 5550 was some of the most vitriolic in recent legislative history. Senator Weinstein and his trial attorney colleagues, assisted by a media that showed little interest in reporting the facts, weren’t afraid to play dirty, throwing everything but the kitchen sink at the homebuilding industry in an effort to pass this terrible bill. In his alarmist “scare the pants off consumers” strategy, no insult was too nasty, no lie too outrageous, for Weinstein in this debate. And it all went largely unchecked by the media, eager to jump on the bandwagon painting every builder as a greedy, unethical purveyor of shoddy workmanship taking advantage of homebuyers.

BIAW has compiled some of the blatant lies told by Weinstein in the course of his zealous promotion of SB 5550. Some are more fantastical than others, but they are all disturbing coming from a man who has a law degree (he knows the truth) and was elected to represent the citizens of his district.

Senator Weinstein claimed that “everybody in our country can be sued except a builder in the state of Washington.” This statement is patently false and just plain ridiculous. Weinstein knows his statement is a lie — not only is he an attorney, but he is also a homeowner who successfully sued his homebuilder in Washington State, and received a settlement for that legal action. One would think someone in the media would find that information newsworthy given Weinstein’s tirade that homeowners have no protection or recourse from shoddy builders, and especially newsworthy in juxtaposition with his bizarre claim that builders in this state cannot be sued.

Senator Weinstein claimed California has a stricter warranty provision than what is proposed in SB 5550 and insurers haven’t fled the state en masse. Again, Weinstein is not being honest. California’s warranty law is very different (and far less stringent) than SB 5550 in many ways. California requires a one year warranty — SB 5550 would require two, three, five and ten year warranties. And California does not require general liability insurance as Washington does for all contractors. Finally, California allows alternative dispute resolution, limited exceptions and gives the builder the right to repair before being sued — unlike SB 5550.

Senator Weinstein claimed thirty-three other states have greater protections for consumers against shoddy construction than Washington. Yet another mistruth propagated by Weinstein. The fact is only seven states have mandatory statutory warranties. Of these seven, only three are for 10 years. Of these three, all allow alternative dispute resolution, right to repair, limited exceptions and other provisions not included in SB 5550. None are as strict as proposed in SB 5550.

Senator Weinstein claimed construction defect problems are epidemic in Washington. Another Weinstein lie. There are very few complaints against builders in Washington. According to the Washington Policy Center less than 2 percent of registered contractors had complaints filed against them last year. In comparison, the complaint rate against lawyers was 470 percent higher. And a Construction Quality Survey by Criterium Engineers revealed the Pacific Northwest tied for the region with the fewest homes with construction defects.

The media never called Weinstein on any of these lies. But they were quick to jump on the “story” that BIAW Executive Vice President Tom McCabe had dinner with House Speaker Frank Chopp and another Democrat legislator earlier this year. Weinstein “can’t prove it,” but the media gave him plenty of coverage to postulate his theory that the Speakers’ opposition to SB 5550 was bought by McCabe for a steak and glass of wine. Of course, Weinstein and the media never mentioned that Chopp’s determination that SB 5550 needed further study because of its impact on homebuilding was likely because Chopp is a low-income housing provider. That Chopp had the business sense to recognize what SB 5550 would do to the homebuilding industry, including low-income building, has gone unreported.

On behalf of BIAW and its 12,700 members, a sincere thank you to Speaker Chopp and the other thoughtful leaders of the House and Senate who did not believe Weinstein’s lies about the homebuilding industry and its professionals.

(Editor’s Note: Reprinted from Building Insight, The official magazine of the Building Industry Association of Washington).