[atlas:bill]

AN ACT Relating to prevailing wages in public contracts; amending RCW 39.12.010; adding a new section to chapter 47.28 RCW; adding a new section to chapter 35.21 RCW; adding a new section to chapter 36.75 RCW; 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 finds that transportation projects should be provided at the lowest cost possible to achieve the maximum benefits to the citizens of Washington state. Projects and services must be delivered by the most safe, efficient, and effective means available. Prior to imposing tax increases upon Washington's citizens in order to fund new transportation projects, the legislature owes Washington's citizens a duty to make every current dollar stretch as far as possible in the provision of transportation services, always keeping in mind that quality results should not be sacrificed in pursuit of cost savings. To this end, the legislature finds that the use of cost/benefit analysis can assist in decisions regarding all facets of transportation project delivery.

NEW SECTION. Sec. 2. A new section is added to chapter 47.28 RCW to read as follows:

(1) Except as provided in subsection (2) of this section, the projects and services contracted for by the department of transportation shall be exempt from the provisions of chapter 39.12 RCW. Nothing in this section shall be construed to affect or alter federal requirements regarding the payment of prevailing wages under the Davis-Bacon act or other federal statutes.

(2) The department of transportation, in preparing the specifications for projects to be put out to bid under this chapter, shall analyze the costs and benefits of paying the "prevailing rate of wage," as defined in RCW 39.12.010(1), and shall only require contractors to pay prevailing wages when the benefits of paying such wages exceed the costs. The department may share information developed in analyzing the costs and benefits of paying prevailing wages on transportation projects within a given county with the county or with cities and towns located in the county in order to assist them with their own analysis under sections 3 and 4 of this act.

NEW SECTION. Sec. 3. A new section is added to chapter 35.21 RCW to read as follows:

(1) Except as provided in subsection (2) of this section, the transportation projects and services contracted for by cities, towns, and transportation benefit districts regulated under this title shall be exempt from the provisions of chapter 39.12 RCW. Nothing in this section shall be construed to affect or alter federal requirements regarding the payment of prevailing wages under the Davis-Bacon act or other federal statutes.

(2) Cities, towns, and transportation benefit districts regulated under this title, in preparing the specifications for transportation projects to be put out to bid, shall analyze the costs and benefits of paying the "prevailing rate of wage," as defined in RCW 39.12.010(1), and shall only require contractors to pay prevailing wages when the benefits of paying such wages exceed the costs.

NEW SECTION. Sec. 4. A new section is added to chapter 36.75 RCW to read as follows:

(1) Except as provided in subsection (2) of this section, the transportation projects and services contracted for by counties and transportation benefit districts regulated under this title shall be exempt from the provisions of chapter 39.12 RCW. Nothing in this section shall be construed to affect or alter federal requirements regarding the payment of prevailing wages under the Davis-Bacon act or other federal statutes.

(2) Counties and transportation benefit districts regulated under this title, in preparing the specifications for transportation projects to be put out to bid, shall analyze the costs and benefits of paying the "prevailing rate of wage," as defined in RCW 39.12.010(1), and shall only require contractors to pay prevailing wages when the benefits of paying such wages exceed the costs.

Sec. 5. RCW 39.12.010 and 1989 c 12 s 6 are each amended to read as follows:

(1) The "prevailing rate of wage", for the intents and purposes of this chapter, shall be the rate of hourly wage, usual benefits, and overtime paid in the locality, as hereinafter defined, to the majority of workers, laborers, or mechanics, in the same trade or occupation. In the event that there is not a majority in the same trade or occupation paid at the same rate, then the average rate of hourly wage and overtime paid to such laborers, workers, or mechanics in the same trade or occupation shall be the prevailing rate. If the wage paid by any contractor or subcontractor to laborers, workers, or mechanics on any public work is based on some period of time other than an hour, the hourly wage for the purposes of this chapter shall be mathematically determined by the number of hours worked in such period of time.

(2) The "locality" for the purposes of this chapter shall be the ((~~largest city in the~~)) county wherein the physical work is being performed.

(3) The "usual benefits" for the purposes of this chapter shall include the amount of:

(a) The rate of contribution irrevocably made by a contractor or subcontractor to a trustee or to a third person pursuant to a fund, plan, or program; and

(b) The rate of costs to the contractor or subcontractor which may be reasonably anticipated in providing benefits to workers, laborers, and mechanics pursuant to an enforceable commitment to carry out a financially responsible plan or program which was communicated in writing to the workers, laborers, and mechanics affected, for medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, for unemployment benefits, life insurance, disability and sickness insurance, or accident insurance, for vacation and holiday pay, for defraying costs of apprenticeship or other similar programs, or for other bona fide fringe benefits, but only where the contractor or subcontractor is not required by other federal, state, or local law to provide any of such benefits.

(4) An "interested party" for the purposes of this chapter shall include a contractor, subcontractor, an employee of a contractor or subcontractor, an organization whose members' wages, benefits, and conditions of employment are affected by this chapter, and the director of labor and industries or the director's designee.

NEW SECTION. Sec. 6. A new section is added to chapter 39.12 RCW to read as follows:

Public works projects and public building service maintenance contracts of the state or any county, municipality, or political subdivision created by its laws, that are under one hundred thousand dollars in total project costs, are exempt from this chapter.