BILL REQ. #:  H-3149.2 

Read first time 01/20/14.   Referred to Committee on Labor & Workforce Development.

     AN ACT Relating to increasing the use of apprenticeships; amending RCW 39.12.055, 39.04.350, and 39.04.320; and adding a new section to chapter 39.04 RCW.

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

Sec. 1   RCW 39.12.055 and 2009 c 197 s 3 are each amended to read as follows:
     A contractor shall not be allowed to bid on any public works contract for one year from the date of a final determination that the contractor has committed any combination of two of the following violations or infractions within a five-year period:
     (1) Violated RCW 51.48.020(1) or 51.48.103;
     (2) Committed an infraction or violation under chapter 18.27 RCW for performing work as an unregistered contractor; ((or))
     (3) Determined to be out of compliance by the Washington state apprenticeship and training council for working apprentices out of ratio, without appropriate supervision, or outside their approved work processes as outlined in their standards of apprenticeship under chapter 49.04 RCW; or
     (4) Determined to be out of compliance with the percentage of labor hours required to be performed by apprentices under RCW 39.04.320.

Sec. 2   RCW 39.04.350 and 2010 c 276 s 2 are each amended to read as follows:
     (1) Before award of a public works contract, a bidder must meet the following responsibility criteria to be considered a responsible bidder and qualified to be awarded a public works project. The bidder must:
     (a) At the time of bid submittal, have a certificate of registration in compliance with chapter 18.27 RCW;
     (b) Have a current state unified business identifier number;
     (c) If applicable, have industrial insurance coverage for the bidder's employees working in Washington as required in Title 51 RCW; an employment security department number as required in Title 50 RCW; and a state excise tax registration number as required in Title 82 RCW;
     (d) Not be disqualified from bidding on any public works contract under RCW 39.06.010 or 39.12.065(3);
     (e) If bidding on a public works project subject to the apprenticeship utilization requirements in RCW 39.04.320, not have been found out of compliance with the percentage of labor hours required to be performed by apprentices under RCW 39.04.320 or not have been found out of compliance by the Washington state apprenticeship and training council for working apprentices out of ratio, without appropriate supervision, or outside their approved work processes as outlined in their standards of apprenticeship under chapter 49.04 RCW for the one-year period immediately preceding the date of the bid solicitation; and
     (f) Until December 31, 2013, not have violated RCW 39.04.370 more than one time as determined by the department of labor and industries.
     (2) In addition to the bidder responsibility criteria in subsection (1) of this section, the state or municipality may adopt relevant supplemental criteria for determining bidder responsibility applicable to a particular project which the bidder must meet.
     (a) Supplemental criteria for determining bidder responsibility, including the basis for evaluation and the deadline for appealing a determination that a bidder is not responsible, must be provided in the invitation to bid or bidding documents.
     (b) In a timely manner before the bid submittal deadline, a potential bidder may request that the state or municipality modify the supplemental criteria. The state or municipality must evaluate the information submitted by the potential bidder and respond before the bid submittal deadline. If the evaluation results in a change of the criteria, the state or municipality must issue an addendum to the bidding documents identifying the new criteria.
     (c) If the bidder fails to supply information requested concerning responsibility within the time and manner specified in the bid documents, the state or municipality may base its determination of responsibility upon any available information related to the supplemental criteria or may find the bidder not responsible.
     (d) If the state or municipality determines a bidder to be not responsible, the state or municipality must provide, in writing, the reasons for the determination. The bidder may appeal the determination within the time period specified in the bidding documents by presenting additional information to the state or municipality. The state or municipality must consider the additional information before issuing its final determination. If the final determination affirms that the bidder is not responsible, the state or municipality may not execute a contract with any other bidder until two business days after the bidder determined to be not responsible has received the final determination.
     (3) The capital projects advisory review board created in RCW 39.10.220 shall develop suggested guidelines to assist the state and municipalities in developing supplemental bidder responsibility criteria. The guidelines must be posted on the board's web site.

Sec. 3   RCW 39.04.320 and 2009 c 197 s 1 are each amended to read as follows:
     (1)(a) Except as provided in (b) through (d) of this subsection, from January 1, 2005, and thereafter, for all public works estimated to cost one million dollars or more, all specifications shall require that no less than fifteen percent of the labor hours be performed by apprentices.
     (b)(i) This section does not apply to contracts advertised for bid before July 1, 2007, for any public works by the department of transportation.
     (ii) For contracts advertised for bid on or after July 1, 2007, and before July 1, 2008, for all public works by the department of transportation estimated to cost five million dollars or more, all specifications shall require that no less than ten percent of the labor hours be performed by apprentices.
     (iii) For contracts advertised for bid on or after July 1, 2008, and before July 1, 2009, for all public works by the department of transportation estimated to cost three million dollars or more, all specifications shall require that no less than twelve percent of the labor hours be performed by apprentices.
     (iv) For contracts advertised for bid on or after July 1, 2009, for all public works by the department of transportation estimated to cost two million dollars or more, all specifications shall require that no less than fifteen percent of the labor hours be performed by apprentices.
     (c)(i) This section does not apply to contracts advertised for bid before January 1, 2008, for any public works by a school district, or to any project funded in whole or in part by bond issues approved before July 1, 2007.
     (ii) For contracts advertised for bid on or after January 1, 2008, for all public works by a school district estimated to cost three million dollars or more, all specifications shall require that no less than ten percent of the labor hours be performed by apprentices.
     (iii) For contracts advertised for bid on or after January 1, 2009, for all public works by a school district estimated to cost two million dollars or more, all specifications shall require that no less than twelve percent of the labor hours be performed by apprentices.
     (iv) For contracts advertised for bid on or after January 1, 2010, for all public works by a school district estimated to cost one million dollars or more, all specifications shall require that no less than fifteen percent of the labor hours be performed by apprentices.
     (d)(i) For contracts advertised for bid on or after January 1, 2010, for all public works by a four-year institution of higher education estimated to cost three million dollars or more, all specifications must require that no less than ten percent of the labor hours be performed by apprentices.
     (ii) For contracts advertised for bid on or after January 1, 2011, for all public works by a four-year institution of higher education estimated to cost two million dollars or more, all specifications must require that no less than twelve percent of the labor hours be performed by apprentices.
     (iii) For contracts advertised for bid on or after January 1, 2012, for all public works by a four-year institution of higher education estimated to cost one million dollars or more, all specifications must require that no less than fifteen percent of the labor hours be performed by apprentices.
     (2) Awarding entities may adjust the requirements of this section for a specific project for the following reasons:
     (a) The demonstrated lack of availability of apprentices in specific geographic areas;
     (b) A disproportionately high ratio of material costs to labor hours, which does not make feasible the required minimum levels of apprentice participation;
     (c) Participating contractors have demonstrated a good faith effort to comply with the requirements of RCW 39.04.300 and 39.04.310 and this section; or
     (d) Other criteria the awarding entity deems appropriate, which are subject to review by the office of the governor.
     (3) The secretary of the department of transportation shall adjust the requirements of this section for a specific project for the following reasons:
     (a) The demonstrated lack of availability of apprentices in specific geographic areas; or
     (b) A disproportionately high ratio of material costs to labor hours, which does not make feasible the required minimum levels of apprentice participation.
     (4) This section applies to public works contracts awarded by the state, to public works contracts awarded by school districts, and to public works contracts awarded by state four-year institutions of higher education. However, this section does not apply to contracts awarded by state agencies headed by a separately elected public official.
     (5)(a) The department of ((general administration)) enterprise services must provide information and technical assistance to affected agencies and collect the following data from affected agencies for each project covered by this section:
     (i) The name of each apprentice and apprentice registration number;
     (ii) The name of each project;
     (iii) The dollar value of each project;
     (iv) The date of the contractor's notice to proceed;
     (v) The number of apprentices and labor hours worked by them, categorized by trade or craft;
     (vi) The number of journey level workers and labor hours worked by them, categorized by trade or craft; and
     (vii) The number, type, and rationale for the exceptions granted under subsection (2) of this section.
     (b) The department of labor and industries shall assist the department of ((general administration)) enterprise services in providing information and technical assistance.
     (c) The department of enterprise services shall monitor contractors' compliance with this section. The department of enterprise services shall maintain on its web site a list of contractors that have been found to be out of compliance with the percentage of labor hours required to be performed by apprentices under this section. The department of enterprise services may adopt rules to implement this subsection (5)(c).
     (6) The secretary of transportation shall establish an apprenticeship utilization advisory committee, which shall include statewide geographic representation and consist of equal numbers of representatives of contractors and labor. The committee must include at least one member representing contractor businesses with less than thirty-five employees. The advisory committee shall meet regularly with the secretary of transportation to discuss implementation of this section by the department of transportation, including development of the process to be used to adjust the requirements of this section for a specific project. The committee shall provide a report to the legislature by January 1, 2008, on the effects of the apprentice labor requirement on transportation projects and on the availability of apprentice labor and programs statewide.
     (7) At the request of the senate labor, commerce, research and development committee, the house of representatives commerce and labor committee, or their successor committees, and the governor, the department of ((general administration)) enterprise services and the department of labor and industries shall compile and summarize the agency data and provide a joint report to both committees. The report shall include recommendations on modifications or improvements to the apprentice utilization program and information on skill shortages in each trade or craft.

NEW SECTION.  Sec. 4   A new section is added to chapter 39.04 RCW to read as follows:
     (1) For the purposes of determining the lowest responsible bidder on a contract for public works under this chapter, the state or municipality shall decrease the bid amount of a bidder by five percent if the bidder is employing a trade on the public work, the trade is one for which there is a registered apprenticeship program with the department of labor and industries, and the bidder is a party to an apprenticeship agreement registered with the department of labor and industries for that trade. If the bidder will employ more than one trade on the public work, the bidder must be a party to an apprenticeship agreement for each trade it is employing that has a registered apprenticeship program. The preference granted in this section does not reduce the contract amount awarded.
     (2)(a) To receive the preference in this section, the responsible bidder must, at the time of submitting a bid, furnish written proof of being a party to a registered apprenticeship agreement for each apprenticed trade the bidder will employ on the public work.
     (b) After being awarded the contract, if the bidder at any time during the contract is no longer a party to a registered apprenticeship agreement for each apprenticed trade the bidder is employing on the public work, the bidder shall notify the state or municipality within thirty days of no longer being a party to a registered apprenticeship agreement.
     (c) The state or municipality may include in the contract sanctions to be imposed on a bidder that fails to remain a party to a registered apprenticeship agreement during the duration of the contract. Sanctions may include, but are not limited to, temporary or permanent cessation of work on the project without recourse to breach of contract claims by the bidder or restitution for nonperformance.