AN ACT Relating to nondiscrimination under state contracts; adding a new chapter to Title 39 RCW; prescribing penalties; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. By enacting chapter 49.60 RCW, the legislature found that practices of discrimination against any of the state's inhabitants because of race, creed, color, national origin, sex, marital status, age, or the presence of any sensory, mental, or physical handicap are a matter of state concern and that such discrimination threatens not only the rights and proper privileges of its inhabitants, but menaces the institutions and foundation of a free democratic state. As a trustee of public funds, the state has a continuing responsibility to expend those funds only on contractors and suppliers of goods and services who do not discriminate and to deposit state funds in financial institutions which do not practice discrimination.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Affirmative action" means a procedure by which racial minorities, women, persons in the protected age category, persons with disabilities, Vietnam-era veterans, and disabled veterans are provided with increased employment opportunities. It shall not mean any sort of quota system.

(2) "Commission" means the Washington state human rights commission.

(3) "Contract" includes any agreement with a state agency for the construction, alteration, or repair of any public building, public highway, or other public work and any agreement with a state agency for the purchase, lease, or furnishing of goods, real or personal property, or services, including utility services, investment services, transportation (including bills of lading), research, and insurance. "Contract" does not include agreements creating the relationship of employee with the contracting agency.

(4) "Contractor" or "state contractor" means an employer, as defined in RCW 49.60.040, who has contracts totaling one hundred thousand dollars of state public works contracts or more than ten thousand dollars of state contracts for goods and services in any fiscal year and includes financial institutions which invest state moneys or serve as a depository for state funds.

(5) "State agency" means any officer or agency of the state of Washington, including educational institutions governed by boards appointed by the governor.

NEW SECTION. Sec. 3. Contractors with state contracts shall submit for review and approval to the commission an affirmative action plan, consistent with the office of federal contract compliance programs' guidelines, designed to increase opportunities in all aspects of employment for racial minorities, women, persons in the protected age category, persons with disabilities, Vietnam-era veterans, and disabled veterans. When there is participating state and federal funds on a singular contract, compliance with federal guidelines shall prevail.

NEW SECTION. Sec. 4. The commission shall have the following powers and duties:

(1) Investigate the employment practices of any state contractor to determine compliance with this chapter.

(2) Review and approve or disapprove affirmative action plans submitted by contractors currently doing business with the state.

(3) Develop, adopt, and implement rules governing the affirmative action plans, including the form and content of the plans, consistent with the guidelines established by the office of federal contract compliance programs, including procedures for developing affirmative action goals, standard contract clauses, and such other rules as may be necessary to effectuate the purpose of this chapter.

(4) In appropriate cases, notify state agencies, the United States equal employment opportunity commission, office of federal contract compliance programs, or other appropriate federal, state, or local agencies whenever it has reason to believe that any contractor is not in compliance with this chapter.

(5) Issue declaratory rulings pursuant to RCW 34.04.080 on the application of this chapter and any implementing rules.

(6) Advise state agencies, contractors, and others on the policy of this chapter and practices under it.

NEW SECTION. Sec. 5. Following the procedures in RCW 49.60.230 and 49.60.240 to the extent applicable, the commission shall receive or initiate complaints of discrimination or noncompliance with this chapter, investigate the complaints, make findings as to whether or not there is reasonable cause to believe that a person is not in compliance, and attempt to achieve compliance by conference, conciliation, and persuasion. If an agreement is reached for compliance, it shall be reduced to writing and issued as an order of the commission.

NEW SECTION. Sec. 6. If no agreement can be reached for compliance, then the commission may take one or more of the following actions:

(1) Acceptance of a corrective action plan which shall include a contractor's written and signed commitment outlining actions taken or proposed, with time limits and goals, to correct, compensate for, and remedy each violation of equal opportunity requirements as specified in a list of deficiencies;

(2) Recommend that the contracting state agency enforce sanctions clauses of the contract; or

(3) File an action in superior court and petition the court to enforce the sanctions clauses of the contract.

NEW SECTION. Sec. 7. Failure to comply with any provision of a contract that is required under this chapter, submission of false or fraudulent information to the commission concerning compliance with this chapter or any rule adopted under this chapter, or violation of this chapter or any rule adopted under this chapter is subject to a civil penalty of not more than one thousand dollars in addition to any other penalty prescribed by law.

After an administrative hearing by the state agency or educational institution pursuant to chapter 34.04 or 28B.16 RCW, as the case may be, and after exhaustion of administrative remedies, any adverse decision under this section may be appealed to Thurston county superior court or to any superior court in any county where the alleged violation occurred.

NEW SECTION. Sec. 8. If a person, firm, corporation, or business does not comply with any provision of a contract required under this chapter, the state may withhold payment on, debar, suspend, or terminate the contract and subject the contractor to civil penalties of ten percent of the amount of the contract or five thousand dollars, whichever is less. Wilful repeated violations, exceeding a single violation, may disqualify the contractor from further participation in state contracts for a period of one year.

After an administrative hearing by the state agency or educational institution pursuant to chapter 34.04 or 28B.16 RCW, as the case may be, and after the exhaustion of administrative remedies, any adverse decision under this section may be appealed to any superior court in any county where the alleged violation occurred.

NEW SECTION. Sec. 9. If necessary to effectuate the purposes of this chapter, contracts shall be awarded to other than the lowest bidder if the lowest bidder fails or refuses to adopt or implement an affirmative action plan approved by the commission.

NEW SECTION. Sec. 10. Enforcement of the provisions of this chapter shall rest solely with the state when contracts involve the expenditure of state funds for public works or goods and services. All complaints arising out of a particular contract must be filed with either the commission or the appropriate municipal corporation as defined in RCW 39.50.010. A person may file a complaint with only one enforcement agency.

NEW SECTION. Sec. 11. Sections 1 through 10 of this act shall constitute a new chapter in Title 39 RCW.

NEW SECTION. Sec. 12. This act shall take effect September 1, 1985.