AN ACT Relating to products manufactured in the United States for the purposes of public works projects; amending RCW 39.04.010; adding new sections to chapter 39.04 RCW; and creating a new section.

(2) "Award" means the formal decision by the state or municipality notifying a responsible bidder with the lowest responsive bid of the state's or municipality's acceptance of the bid and intent to enter into a contract with the bidder.

(3) "Contract" means a contract in writing for the execution of public work for a fixed or determinable amount duly awarded after advertisement and competitive bid, or a contract awarded under the small works roster process in RCW 39.04.151 through 39.04.154.

(4) "Manufactured product" means: Articles, materials, or supplies that have been: (i) Processed into a specific form and shape; or (ii) combined with other articles, materials, or supplies to create a product with different properties that the individual articles, materials, or supplies. If an item is classified as an iron or steel product, a construction material, or a section 70917(c) material as defined in Title 2, Part 184 of the Code of Federal Regulations as it existed on December 1, 2024, then it is not a manufactured product for the purposes of this chapter. However, an article, material, or supply classified as a manufactured product may include components that are construction materials, iron or steel products, or section 70917(c) materials.

(5) "Manufactured in the United States" means: (a) For iron or steel products, all manufacturing processes, from the initial melting stage through the application of coatings, took place in the United States; and (b) for a manufactured product: (i) The product was manufactured in the United States; and (ii) the cost of the components of the product that are mined, produced, or manufactured in the United States is greater than 55 percent of the total cost of all components of the manufactured product, unless another standard that meets or exceeds this standard has been established under applicable law or regulation for determining the minimum amount of domestic content of the manufactured product.

(6) "Municipality" means every city, county, town, port district, district, or other public agency authorized by law to require the execution of public work, except drainage districts, diking districts, diking and drainage improvement districts, drainage improvement districts, diking improvement districts, consolidated diking and drainage improvement districts, consolidated drainage improvement districts, consolidated diking improvement districts, irrigation districts, or other districts authorized by law for the reclamation or development of waste or undeveloped lands.

(((5)))(7) "Public work" means all work, construction, alteration, repair, or improvement other than ordinary maintenance, executed at the cost of the state or of any municipality, or which is by law a lien or charge on any property therein. All public works, including maintenance when performed by contract shall comply with chapter 39.12 RCW. "Public work" does not include work, construction, alteration, repair, or improvement performed under contracts entered into under RCW 36.102.060(4) or under development agreements entered into under RCW 36.102.060(7) or leases entered into under RCW 36.102.060(8).

(((7)))(9) "Small business" means a business meeting certification criteria for size, ownership, control, and personal net worth adopted by the office of minority and women's business enterprises in accordance with RCW 39.19.030.

(((9)))(11) "State agency" means the department of enterprise services, the state parks and recreation commission, the department of natural resources, the department of fish and wildlife, the department of transportation, any institution of higher education as defined under RCW 28B.10.016, and any other state agency delegated authority by the department of enterprise services to engage in construction, building, renovation, remodeling, alteration, improvement, or repair activities.

(12) "United States" means the United States of America, including all territories, continental or insular, subject to the jurisdiction of the United States.

(1) The state, a school district, or a municipality entering into a contract for the construction, reconstruction, alteration, repair, improvement, or maintenance of a public building or other public works project receiving more than $500,000 of state funds in a state capital budget or financed through a financing contract as defined in RCW 39.94.020, must require that the iron, steel, aluminum, and manufactured products used or supplied in the performance of the contract or any subcontract be manufactured in the United States, unless otherwise exempted under this section.

(2)(a) The requirements of subsection (1) of this section may be waived by the director of the office of financial management on behalf of the state, a school district superintendent on behalf of a school district, or the executive head of a municipality on behalf of a municipality, if he or she determines that:

(b)(i) Prior to issuing a waiver under this subsection, the director, superintendent, or executive head must provide public notice on the agency website of the proposed waiver and an opportunity for public comment on the proposal for at least 30 days before making a final determination. The public notice must include information used in making the decision to propose a waiver and the public must be given the opportunity to provide comments electronically.

(ii) The director, superintendent, or executive head must publish on the agency website a detailed justification of the decision made that addresses the public comments received. The publication must take place prior to the waiver taking effect.

(4) For the purposes of this section, "municipality" means every city, county, town, port district, district, or other public agency authorized by law to require the execution of public work.

(1) A contract for a public works project must contain a provision that if a court or a federal or state agency determines that a party to the contract or subcontract intentionally:

(a) Affixed a label bearing a "Made in America" inscription, or any inscription with the same meaning, to any iron, steel, aluminum, or manufactured product used in public works projects subject to RCW 39.04.010, that was not manufactured in the United States, as defined in RCW 39.04.010; or

(b) Represented that any iron, steel, aluminum, or manufactured product used in public works projects subject to RCW 39.04.010 that was not manufactured in the United States, was manufactured in the United States;

that party shall be ineligible to bid or enter into any public works contract or subcontract pursuant to debarment provisions provided under this title.

(2) Such contracts must provide that in the case of any dispute arising pertaining to the provisions of this section, the matter shall be referred for arbitration to the director of the department of labor and industries of the state and his or her decision shall be final and conclusive and binding on all parties involved in the dispute.

NEW SECTION. Sec. 4. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.