HOUSE BILL REPORT

                  HB 1592

             As Reported By House Committee On:

                      Local Government

Title:  An act relating to bid limitations for cities and towns.

Brief Description:  Adjusting bid limitations for cities and towns.

Sponsors:  Representatives Springer, Brumsickle, Dorn, Dunshee, Peery, H. Myers, Romero, Lemmon, Reams, Brough, Basich and Locke.

Brief History:

  Reported by House Committee on:

Local Government, March 1, 1993, DPS.

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 12 members:  Representatives H. Myers, Chair; Bray, Vice Chair; Edmondson, Ranking Minority Member; Reams, Assistant Ranking Minority Member; Dunshee; R. Fisher; Horn; Rayburn; Romero; Springer; Van Luven; and Zellinsky.

Staff:  Bill Lynch (786-7092).

Background:  A second class city, third class city, or town may perform any public works project by contract or day labor without calling for competitive bids, if the cost of the project does not exceed: (a) $30,000 for work involving more than one craft; or (b) $20,000 for work involving a single craft or when the work is street signalization or street lighting.  A small works roster may be used for any public works contract with an estimated cost of $100,000 or less.

It has been suggested that the day labor limits should be increased.

Summary of Substitute Bill:  A joint select committee is created to review the laws relating to day labor limits and bidding requirements for cities and towns.  The committee is composed of three members of the House of Representatives appointed by the chief clerk, and three members of the Senate appointed by the secretary of the Senate.  The chief clerk and the secretary of the Senate may each appoint no more than two members of the same political party.  The committee must submit its report by December 31, 1993.  The committee terminates on that date.

Substitute Bill Compared to Original Bill:  The original bill increased the day labor limits for these cities and towns from $30,000 up to $60,000 if more than one craft or trade is involved, and from $20,000 up to $40,000 if a single craft or trade is involved or the public works project is street signalization or street lighting.  These amounts would be adjusted each year to account for inflation.

Fiscal Note:  Requested March 1, 1993.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The day labor limits have not been increased for several years.  It is time to review the limits.

Testimony Against:  None.

Witnesses:  (Pro to substitute): Sam Kinville, Washington State Council of County and City Employees; Jim Justin, Association of Washington Cities; Larry Stevens, United Subcontractors Association; Doug Bohlke, Subcontractors Association; and Gary Smith, Independent Business Association.