BILL REQ. #:  S-2137.2 

READ FIRST TIME 03/02/05.   

     AN ACT Relating to surety bonds or insurance for public building or construction contracts; amending RCW 48.30.270; repealing RCW 53.08.145; and repealing 2000 c 143 s 3 (uncodified).

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

Sec. 1   RCW 48.30.270 and 2003 c 323 s 1 are each amended to read as follows:
     (1) No officer or employee of this state, or of any public agency, public authority or public corporation except a public corporation or public authority created pursuant to agreement or compact with another state, and no person acting or purporting to act on behalf of such officer or employee, or public agency or public authority or public corporation, shall, with respect to any public building or construction contract which is about to be, or which has been competitively bid, require the bidder to make application to, or to furnish financial data to, or to obtain or procure, any of the surety bonds or contracts of insurance specified in connection with such contract, or specified by any law, general, special or local, from a particular insurer or agent or broker.
     (2) No such officer or employee or any person, acting or purporting to act on behalf of such officer or employee shall negotiate, make application for, obtain or procure any of such surety bonds or contracts of insurance, except contracts of insurance for builder's risk or owner's protective liability, which can be obtained or procured by the bidder, contractor or subcontractor.
     (3) This section shall not be construed to prevent the exercise by such officer or employee on behalf of the state or such public agency, public authority, or public corporation of its right to approve the form, sufficiency or manner or execution of the surety bonds or contracts of insurance furnished by the insurer selected by the bidder to underwrite such bonds, or contracts of insurance.
     (4) Any provisions in any invitation for bids, or in any of the contract documents, in conflict with this section are declared to be contrary to the public policy of this state.
     (5) A violation of this section shall be subject to the penalties provided by RCW 48.01.080.
     (6) This section shall not apply to((:
     (a) The public nonprofit corporation authorized under RCW 67.40.020;
     (b) Projects in excess of one hundred million dollars for port districts formed under chapter 53.04 RCW;
     (c) A regional transit authority authorized under RCW 81.112.030; or
     (d) Projects in excess of one hundred million dollars for counties with a population over one million, for projects administered for public hospitals)) public construction projects, when the actual or estimated aggregate value of the project, exclusive of insurance and surety costs, exceeds two hundred million dollars. For purposes of applying the two hundred million dollar threshold set forth in this subsection, the term "public construction project" means a project that has a public owner and has phases, segments, or component parts relating to a common geographic site or public transportation system, but does not include the aggregation of unrelated construction projects.

NEW SECTION.  Sec. 2   RCW 53.08.145 (Insurance -- Determination of risks, hazards, liabilities -- Acquisition of appropriate insurance) and 2000 c 143 s 1 are each repealed.

NEW SECTION.  Sec. 3   2000 c 143 s 3 (uncodified) is repealed.