AN ACT Relating to permitting local governments to opt out of prevailing wage requirements; amending RCW 39.04.260; adding a new section to chapter 39.12 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1.  The legislature intends to eliminate a system of preferred class workers and provide for better budget management and tax base enhancement by political subdivisions of the state by permitting local governments to opt out of state prevailing wage requirements in small public works projects.

NEW SECTION.  Sec. 2.  A new section is added to chapter 39.12 RCW to read as follows:

(1) A county, municipality, or political subdivision of the state may, by a simple majority vote of the local governing body, opt out of the requirements of this chapter for public works projects, building construction projects, public building service contracts, and other maintenance contracts or agreements, estimated to cost less than five million dollars, exclusive of engineering fees, land acquisition costs, taxes, and the cost of any change orders.

(2) An awarding agency may subdivide or otherwise disaggregate a public works project to qualify for this section.

(3) For purposes of this section, "local governing body" means a council, board, commission, or other legislative authority charged with governing the county, municipality, or political subdivision of the state.

Sec. 3.  RCW 39.04.260 and 1993 c 110 s 1 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, any work, construction, alteration, repair, or improvement, other than ordinary maintenance, that the state or a municipality causes to be performed by a private party through a contract to rent, lease, or purchase at least fifty percent of the project by one or more state agencies or municipalities shall comply with chapter 39.12 RCW.

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