Provides that a state agency or authorized local government may adopt procedures to award small works roster contracts to small businesses with gross revenues under one million dollars annually as reported on their federal tax return. Additional procedures may be developed to award small works roster contracts to small businesses with gross revenues under two hundred fifty thousand dollars annually as reported on their federal tax return.

Provides that, for contracts awarded to small businesses with gross revenues under two hundred fifty thousand dollars annually, a state agency or authorized local government may waive the payment and performance bond requirements of chapter 39.08 RCW and the retainage requirements of chapter 60.28 RCW, and assume the liability for the contractor's nonpayment of laborers, mechanics, subcontractors, materialpersons, suppliers, and taxes imposed under Title 82 RCW. If the state agency or authorized local government assumes this liability, it has the right of recovery against the contractor for any payments made on behalf of the contractor.