BILL REQ. #:  H-1655.1 

Read first time 02/15/11.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to waiving certain requirements for public works projects costing less than five thousand dollars; amending RCW 39.12.040; and adding a new section to chapter 39.04 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 39.04 RCW to read as follows:
     (1) A state agency or municipality may waive the payment and performance bond requirements under chapter 39.08 RCW and the retainage requirements of chapter 60.28 RCW for public works projects with a total contract amount of five thousand dollars or less, exclusive of sales tax.
     (2) A state agency or municipality electing to waive payment and performance bonds under subsection (1) of this section assumes the liability for the contractor's and their subcontractors' nonpayment of laborers, mechanics, subcontractors, materialpersons, and suppliers. The state agency or municipality shall have the right of recovery against the contractor for any payments made on the contractor's or subcontractors' behalf.
     (3) A state agency or municipality electing to waive the retainage requirements under subsection (1) of this section assumes the liability for the contractor's or subcontractors' nonpayment of laborers, mechanics, subcontractors, materialpersons, suppliers, and taxes imposed under Titles 50, 51, and 82 RCW. The state agency or municipality shall have the right of recovery against the contractor for any payments made on the contractor's or subcontractors' behalf.
     (4) A state agency or municipality electing to waive payment and performance bonds and retainage under this section must establish and adopt procedures implementing the requirements of this section.

Sec. 2   RCW 39.12.040 and 2009 c 219 s 2 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, before payment is made by or on behalf of the state, or any county, municipality, or political subdivision created by its laws, of any sum or sums due on account of a public works contract, it shall be the duty of the officer or person charged with the custody and disbursement of public funds to require the contractor and each and every subcontractor from the contractor or a subcontractor to submit to such officer a "Statement of Intent to Pay Prevailing Wages". For a contract in excess of ten thousand dollars, the statement of intent to pay prevailing wages shall include:
     (a) The contractor's registration certificate number; and
     (b) The prevailing rate of wage for each classification of workers entitled to prevailing wages under RCW 39.12.020 and the estimated number of workers in each classification.
     Each statement of intent to pay prevailing wages must be approved by the industrial statistician of the department of labor and industries before it is submitted to said officer. Unless otherwise authorized by the department of labor and industries, each voucher claim submitted by a contractor for payment on a project estimate shall state that the prevailing wages have been paid in accordance with the prefiled statement or statements of intent to pay prevailing wages on file with the public agency. Following the final acceptance of a public works project, it shall be the duty of the officer charged with the disbursement of public funds, to require the contractor and each and every subcontractor from the contractor or a subcontractor to submit to such officer an "Affidavit of Wages Paid" before the funds retained according to the provisions of RCW 60.28.011 are released to the contractor. Each affidavit of wages paid must be certified by the industrial statistician of the department of labor and industries before it is submitted to said officer.
     (2) As an alternate to the procedures provided for in subsection (1) of this section, for public works projects of ((two thousand five hundred)) five thousand dollars or less ((and)), exclusive of sales tax, or for projects where the limited public works process under RCW 39.04.155(3) is followed:
     (a) An awarding agency may authorize the contractor or subcontractor to submit the statement of intent to pay prevailing wages directly to the officer or person charged with the custody or disbursement of public funds in the awarding agency without approval by the industrial statistician of the department of labor and industries. The awarding agency shall retain such statement of intent to pay prevailing wages for a period of not less than three years.
     (b) Upon final acceptance of the public works project, the awarding agency shall require the contractor or subcontractor to submit an affidavit of wages paid. Upon receipt of the affidavit of wages paid, the awarding agency may pay the contractor or subcontractor in full, including funds that would otherwise be retained according to the provisions of RCW 60.28.011. Within thirty days of receipt of the affidavit of wages paid, the awarding agency shall submit the affidavit of wages paid to the industrial statistician of the department of labor and industries for approval.
     (c) A statement of intent to pay prevailing wages and an affidavit of wages paid shall be on forms approved by the department of labor and industries.
     (d) In the event of a wage claim and a finding for the claimant by the department of labor and industries where the awarding agency has used the alternative process provided for in this subsection (2) ((of this section)), the awarding agency shall pay the wages due directly to the claimant. If the contractor or subcontractor did not pay the wages stated in the affidavit of wages paid, the awarding agency may take action at law to seek reimbursement from the contractor or subcontractor of wages paid to the claimant, and may prohibit the contractor or subcontractor from bidding on any public works contract of the awarding agency for up to one year.
     (e) Nothing in this section shall be interpreted to allow an awarding agency to subdivide any public works project of more than ((two thousand five hundred)) five thousand dollars for the purpose of circumventing the procedures required by ((RCW 39.12.040(1))) subsection (1) of this section.