S-0780

AN ACT Relating to establishing preferences for in-state contractors in contracts for public works and for public purchase of goods; and adding a new chapter to Title 39 RCW.

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

NEW SECTION. Sec. 1. Unless the context requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Department" means the department of general administration.

(2) "Public agency" means the state of Washington and all departments, commissions, agencies, and political subdivisions of the state as defined in RCW 39.04.010.

(3) "Public works" means all work as defined in RCW 39.04.010.

(4) "Nonresident bidder" means a bidder whose residence is not in Washington, as determined in section 2 of this act.

(5) "Resident bidder" means a bidder whose residence is in Washington, as determined in section 2 of this act.

NEW SECTION. Sec. 2. (1) For the purposes of this section, the word "resident" shall include actual residence of an individual within this state for a period of more than one year immediately prior to bidding.

(2) In a partnership or an association, the majority of all partners or association members shall have been actual residents of the state of Washington for more than one year immediately prior to bidding.

(3) Domestic corporations organized under the laws of the state of Washington are prima facie eligible to bid as residents, but this qualification may be set aside and a successful bid disallowed when it is shown to the satisfaction of the board, commission, officer, or individual charged with the responsibility for the execution of the contract that the corporation is a wholly owned subsidiary of a foreign corporation or that the corporation was formed for circumventing the provisions relating to residence.

NEW SECTION. Sec. 3. (1) To provide for an orderly administration of the business of the state of Washington in awarding public contracts for public works, a public agency shall award a public works contract to the lowest responsible resident bidder whose bid does not exceed ten percent over the lowest responsible nonresident bidder.

(2) The preference in this section applies:

(a) Whether the law requires advertisement for bids; and

(b) To contracts involving funds obtained from the federal government unless expressly prohibited by the laws of the United States or regulations enacted pursuant thereto.

NEW SECTION. Sec. 4. (1) The department shall determine whether certain contractors, registered under chapter 18.27 RCW, are residents of the state of Washington within the meaning of sections 2 and 3 of this act. Any public agency charged by law with the responsibility for the execution of any contract subject to the provisions of section 3 of this act may request that a determination of resident/nonresident status be made by the department. All requests must specify the name and address of the registered public contractor for whom a determination of resident/nonresident status is required.

(2) If a determination is made that a licensed public contractor is not a resident but the contractor thereafter qualifies as a resident, the contractor may apply to the department for a redetermination of residency. If, upon redetermination, the registered public contractor is found to qualify as a resident, the contractor shall be furnished a letter by the department attesting to resident status.

(3) The determination of the department that a registered public contractor is or is not a resident within the meaning of sections 2 and 3 of this act is prima facie evidence of that fact.

NEW SECTION. Sec. 5. Public agencies may not show any partiality or favoritism in making awards or contracts and must be absolutely fair and impartial. If the bids offered are the same, preference shall be given to resident bidders as defined in section 2 of this act over nonresident bidders.

NEW SECTION. Sec. 6. The department shall adopt rules necessary to administer this chapter. All public agencies are subject to this chapter.

NEW SECTION. Sec. 7. Sections 1 through 6 of this act shall constitute a new chapter in Title 39 RCW.