2864-S AMH ORMS ELGE 037

SHB 2864 - H AMD 1187

By Representative Ormsby

ADOPTED 2/18/2008

   Strike everything after the enacting clause and insert the following:

   "Sec. 1. RCW 39.12.030 and 1989 c 12 s 9 are each amended to read as follows:
   (1) The specifications for every contract for the construction, reconstruction, maintenance, or repair of any public work, to which the state or any county, municipality, or political subdivision created by its laws is a party, shall contain a provision stating the hourly minimum rate of wage, not less than the prevailing rate of wage, which may be paid to laborers, workers, or mechanics in each trade or occupation required for such public work employed in the performance of the contract either by the contractor, subcontractor or other person doing or contracting to do the whole or any part of the work contemplated by the contract, and the contract shall contain a stipulation that such laborers, workers, or mechanics shall be paid not less than such specified hourly minimum rate of wage.
   (2) For purposes of compliance with this chapter, including identifying certified payroll records to be requested from a contractor or subcontractor, every contract for the construction, reconstruction, maintenance, or repair of any public work, to which the state or any county, municipality, or political subdivision created by its laws is a party, must contain a provision requiring the general contractor to submit a list of all subcontractors that will supply any off-site prefabricated, nonstandard, project-specific products. The list must identify all products supplied, the name of each subcontractor, the employer identification number of each subcontractor, and each product's anticipated cost.

   Sec. 2. RCW 39.12.040 and 2007 c 210 s 4 are each amended to read as follows:
   (1)(a) Except as provided in subsection (2) of this section, before payment is made by or on behalf of the state, or any county, municipality, or political subdivision created by its laws, of any sum or sums due on account of a public works contract, it shall be the duty of the officer or person charged with the custody and disbursement of public funds to require the contractor and each and every subcontractor from the contractor or a subcontractor to submit to such officer a "Statement of Intent to Pay Prevailing Wages". For a contract in excess of ten thousand dollars, the statement of intent to pay prevailing wages shall include:
   (((a))) (i) The contractor's registration certificate number; and
   (((b))) (ii) The prevailing rate of wage for each classification of workers entitled to prevailing wages under RCW 39.12.020 and the estimated number of workers in each classification.
Each statement of intent to pay prevailing wages must be approved by the industrial statistician of the department of labor and industries before it is submitted to said officer.
   (b) Unless otherwise authorized by the department of labor and industries, each voucher claim submitted by a contractor for payment on a project estimate shall state that the prevailing wages have been paid in accordance with the prefiled statement or statements of intent to pay prevailing wages on file with the public agency.
   (c) For purposes of compliance with this chapter, including identifying certified payroll records to be requested from a contractor or subcontractor, for a public works project involving the off-site prefabrication of a nonstandard, project-specific product, before final acceptance of the project, the awarding agency must require the contractor or subcontractor of all such products to submit a list to the awarding agency and to the department of labor and industries. The list must be certified by the contractor or subcontractor and identify: (i) The contractor or subcontractor's name; (ii) the contractor or subcontractor's employer identification number; (iii) the contract or subcontract amount; (iv) the labor hours expended producing the product; and (v) hourly minimum rate of wages paid in each trade or occupation producing the product.
   (d) Following the final acceptance of a public works project, it shall be the duty of the officer charged with the disbursement of public funds, to require the contractor and each and every subcontractor from the contractor or a subcontractor to submit to such officer an "Affidavit of Wages Paid" before the funds retained according to the provisions of RCW 60.28.010 are released to the contractor. Each affidavit of wages paid must be certified by the industrial statistician of the department of labor and industries before it is submitted to said officer.
   (2) As an alternate to the procedures provided for in subsection (1) of this section, for public works projects of two thousand five hundred dollars or less and for projects where the limited public works process under RCW 39.04.155(3) is followed:
   (a) An awarding agency may authorize the contractor or subcontractor to submit the statement of intent to pay prevailing wages directly to the officer or person charged with the custody or disbursement of public funds in the awarding agency without approval by the industrial statistician of the department of labor and industries. The awarding agency shall retain such statement of intent to pay prevailing wages for a period of not less than three years.
   (b) Upon final acceptance of the public works project, the awarding agency shall require the contractor or subcontractor to submit an affidavit of wages paid. Upon receipt of the affidavit of wages paid, the awarding agency may pay the contractor or subcontractor in full, including funds that would otherwise be retained according to the provisions of RCW 60.28.010. Within thirty days of receipt of the affidavit of wages paid, the awarding agency shall submit the affidavit of wages paid to the industrial statistician of the department of labor and industries for approval.
   (c) A statement of intent to pay prevailing wages and an affidavit of wages paid shall be on forms approved by the department of labor and industries.
   (d) In the event of a wage claim and a finding for the claimant by the department of labor and industries where the awarding agency has used the alternative process provided for in subsection (2) of this section, the awarding agency shall pay the wages due directly to the claimant. If the contractor or subcontractor did not pay the wages stated in the affidavit of wages paid, the awarding agency may take action at law to seek reimbursement from the contractor or subcontractor of wages paid to the claimant, and may prohibit the contractor or subcontractor from bidding on any public works contract of the awarding agency for up to one year.
   (e) Nothing in this section shall be interpreted to allow an awarding agency to subdivide any public works project of more than two thousand five hundred dollars for the purpose of circumventing the procedures required by ((RCW 39.12.040(1))) subsection (1) of this section.

   NEW SECTION. Sec. 3. A new section is added to chapter 39.12 RCW to read as follows:

   If an interested party makes a written request of a contractor or subcontractor to file certified payroll records under rules regarding payroll which have been adopted by the department of labor and industries to enforce this chapter and the records requested are for the off-site prefabrication of a nonstandard, project-specific product, the contractor or subcontractor must file the certified copy of the payroll records only with the awarding agency."

Correct the title.

EFFECT: The substitute bill requires the filing of certified payroll records for the off-site prefabrication of nonstandard, project-specific ("off-site") items on public works contracts. The striking amendment requires public works contracts to contain a provision requiring the general contractor to submit a list of all subcontractors supplying off-site products. The list must identify all off-site products supplied, the name and EIN of each subcontractor, and each product's anticipated cost. Before final acceptance of a project involving off-site products, the awarding agency must require the contractor and subcontractor of off-site products to submit a list to the awarding agency and to the Department of Labor and Industries (department). The list must be certified and must identify: 1) the contractor or subcontractor's name; 2)the EIN; 3) the contract or subcontract amount; 4) the labor hours expended producing the product; and 5) the hourly minimum rate of wages paid in each trade or occupation.

The striking amendment also provides that if an interested party makes a request for certified payroll records under the department's payroll rules and the request is for records for off-site work, the contractor or subcontractor must file the records only with the awarding agency (and not also with the department as required by rule for all payroll requests).