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

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

(2) "Contract" includes any agreement or modification of an agreement with a state agency for the construction, alteration, or repair of any public building, public highway, or other public work and any agreement or modification of an 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.

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

(4) "Subcontractor" means a person who has an agreement or arrangement with a contractor in which the parties do not stand in the relationship of employer and employee (a) for the furnishing of supplies or services or for the use of real or personal property, including lease arrangements, which in whole or in part, is necessary to the performance of a contract or (b) under which any portion of the contractor's obligation under any contract is performed, undertaken, or assumed.

(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 and subcontractors shall submit for review and approval to the commission an affirmative action plan 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. No contract may be awarded to a contractor nor subcontracted to a subcontractor without such a plan and a demonstration that the plan is being implemented.

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

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

(2) Review and approve or disapprove affirmative action plans submitted by current or prospective state contractors and subcontractors.

(3) Develop, adopt, and implement rules governing the content of affirmative action plans, 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 or subcontractor 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. If no agreement can be reached for compliance, then the commission may take one or more of the following actions:

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

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

NEW SECTION. Sec. 6. 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 ten percent of the amount of the contract and disqualification from further participation in state contracts for one year.

NEW SECTION. Sec. 7. 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. 8. Sections 1 through 7 of this act shall constitute a new chapter in Title 39 RCW.