"Sec. 1   RCW 43.185.060 and 1994 c 160 s 2 are each amended to read as follows:
     Organizations that may receive assistance from the department under this chapter are local governments, local housing authorities, regional support networks established under chapter 71.24 RCW, nonprofit community or neighborhood-based organizations, federally recognized Indian tribes in the state of Washington, and regional or statewide nonprofit housing assistance organizations.
     Eligible organizations must have an organizational quality management system equivalent to the Malcolm Baldrige national quality program in place by July, 2007.
     Organizations that receive assistance from the department, as well as any identified subcontractors, must commit to pay, to all employees, hourly wages that are at least equal to or greater than $7.85 for all work performed in 2005. In succeeding years, this minimum hourly wage shall increase as follows:
     (1) $8.35 in 2006;
     (2) $8.85 in 2007;
     (3) $9.35 in 2008;
     (4) $9.85 in 2009;
     (5) $10.35 in 2010;
     (6) $10.85 in 2011;
     (7) $11.35 in 2012;
     (8) $11.85 in 2013;
     (9) $12.35 in 2014; and
     (10) $12.85 in 2015.
     In each year after 2015, hourly wages that must be paid by organizations receiving assistance from the department, as well as identified subcontractors, are to be computed by determining the annual percentage wage increase for the preceding year and increasing the wage paid in the preceding year by that amount.
     Eligibility for assistance from the department under this chapter also requires compliance with the revenue and taxation laws, as applicable to the recipient, at the time the grant is made."