BILL REQ. #:  H-1185.2 

Read first time 02/13/2007.   Referred to Committee on State Government & Tribal Affairs.

     AN ACT Relating to state contracts with businesses owned by veterans with disabilities; amending RCW 43.60A.010, 43.19.536, 39.80.040, and 47.28.030; adding new sections to chapter 43.60A RCW; adding a new section to chapter 43.19 RCW; adding a new section to chapter 28B.10 RCW; adding a new section to chapter 39.04 RCW; adding a new section to chapter 39.29 RCW; and creating new sections.

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

NEW SECTION.  Sec. 1   The legislature finds that:
     (1) Washington state is the home of large forward deploying military units and bases. These include Fort Lewis, McChord Air Force Base, Whidbey Island Naval Air Station, Naval Station Everett, Naval Station Bangor, and Naval Station Bremerton. Additionally, Washington National Guard Stryker Brigade has been one of the most involved forward deploying national guard units in the country, suffering significant numbers of killed and wounded in recent conflicts.
     (2) The United States and Washington state are experiencing increasing numbers of residents who are returning from combat operations and military service with significant impairment. These men and women who have been injured in defense of our country should be entitled to every reasonable benefit that our state can provide.
     (3) The federal government has established a service disabled veteran certification program with a three percent target for all federal contracting, as has the state of California.

Sec. 2   RCW 43.60A.010 and 2006 c 343 s 2 are each amended to read as follows:
     As used in this chapter the following words and phrases shall have the following meanings unless the context clearly requires otherwise:
     (1) "Department" means the department of veterans affairs.
     (2) "Director" means the director of the department of veterans affairs.
     (3) "Committee" means the veterans affairs advisory committee.
     (4) "Board" means the veterans innovations program board.
     (5) "Goals" means overall agency goals, expressed as a percentage of dollar volume, for participation by businesses owned by veterans with disabilities.
     (6) "Goods and services" includes professional services and all other goods and services.
     (7) "Procurement" means the purchase, lease, or rental of any goods or services.
     (8) "Public works" means all work, construction, highway and ferry construction, alteration, repair, or improvement other than ordinary maintenance, which a state agency or educational institution is authorized or required by law to undertake.
     (9) "State agency" includes the state of Washington and all agencies, departments, offices, divisions, boards, commissions, and correctional and other types of institutions.
     (10) "Veteran with a disability" means a veteran as defined in RCW 41.04.007 who has at least a ten percent service-connected disability.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.60A RCW to read as follows:
     (1) The department shall develop a procedure for certifying businesses owned by veterans with disabilities and maintain a list of businesses owned by veterans with disabilities on the department's public web site. To be certified by the department, the business must meet all the following requirements:
     (a) It is a sole proprietorship at least fifty-one percent owned by one or more veterans with disabilities or, in the case of a publicly owned business, at least fifty-one percent of its stock is owned by one or more veterans with disabilities; a subsidiary that is wholly owned by a parent corporation, but only if at least fifty-one percent of the voting stock of the parent corporation is owned by one or more veterans with disabilities; or a joint venture in which at least fifty-one percent of the joint venture's management, control, and earnings are held by one or more veterans with disabilities;
     (b) The management and control of the daily business operations are by one or more veterans with disabilities. The veterans with disabilities who exercise management and control are not required to be the same veterans with disabilities as the owners of the business;
     (c) It is a sole proprietorship, corporation, or partnership with its home office located in the United States, which is not a branch or subsidiary of a foreign corporation, foreign firm, or other foreign-based business.
     (2) The department shall develop an outreach program for businesses owned by veterans with disabilities.
     (3) The department shall collaborate with and may assist agencies in implementing outreach to businesses owned by veterans with disabilities.
     (4) The department shall adopt rules necessary to implement this act. The rules shall include instructions to agencies regarding what specific information they must report to the department.
     (5) The department shall report to the legislature by December 1, 2009, and December 1st of each odd-numbered year thereafter outlining the progress made in implementing this act.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.60A RCW to read as follows:
     (1) State agencies are encouraged to award three percent of all procurement contracts that are exempt from competitive bidding requirements under RCW 43.19.1906(2) to businesses owned by veterans with disabilities certified by the department under section 3 of this act.
     (2) State agencies shall:
     (a) Perform outreach to businesses owned by veterans with disabilities in collaboration with the department to increase opportunities for businesses owned by veterans with disabilities to sell goods and services to the state;
     (b) Keep a record of all contracts awarded to businesses owned by veterans with disabilities as required by the department;
     (c) Require that any contractor with one million dollars or more in state contracts develop and submit to the agency a plan to hire veterans with disabilities; and
     (d) Report by December 1, 2009, and December 1st of each odd-numbered year thereafter to the department on the progress made in implementing this section as directed by the department.

NEW SECTION.  Sec. 5   A new section is added to chapter 43.19 RCW to read as follows:
     The department of general administration shall identify in the department's vendor registry all vendors that are businesses owned by veterans with disabilities as certified by the department of veterans affairs under section 3 of this act.

Sec. 6   RCW 43.19.536 and 1983 c 120 s 13 are each amended to read as follows:
     (1) All contracts entered into and purchases made, including leasing or renting, under this chapter on or after September 1, 1983, are subject to the requirements established under chapter 39.19 RCW.
     (2) All contracts entered into and purchases made, including leasing or renting, under this chapter on or after the effective date of this act, are subject to the requirements established under sections 3 and 4 of this act.

NEW SECTION.  Sec. 7   A new section is added to chapter 28B.10 RCW to read as follows:
     All contracts entered into and purchases made, including leasing or renting, under this chapter on or after the effective date of this act, are subject to the requirements established under sections 3 and 4 of this act.

NEW SECTION.  Sec. 8   A new section is added to chapter 39.04 RCW to read as follows:
     All contracts entered into and purchases made, including leasing or renting, under this chapter on or after the effective date of this act, are subject to the requirements established under sections 3 and 4 of this act.

NEW SECTION.  Sec. 9   A new section is added to chapter 39.29 RCW to read as follows:
     All contracts entered into and purchases made, including leasing or renting, under this chapter on or after the effective date of this act, are subject to the requirements established under sections 3 and 4 of this act.

Sec. 10   RCW 39.80.040 and 1981 c 61 s 4 are each amended to read as follows:
     In the procurement of architectural and engineering services, the agency shall encourage firms engaged in the lawful practice of their profession to submit annually a statement of qualifications and performance data. The agency shall evaluate current statements of qualifications and performance data on file with the agency, together with those that may be submitted by other firms regarding the proposed project, and shall conduct discussions with one or more firms regarding anticipated concepts and the relative utility of alternative methods of approach for furnishing the required services and then shall select therefrom, based upon criteria established by the agency, the firm deemed to be the most highly qualified to provide the services required for the proposed project. Such agency procedures and guidelines shall include a plan to insure that minority and women-owned firms and businesses owned by veterans with disabilities are afforded the maximum practicable opportunity to compete for and obtain public contracts for services. The level of participation by minority and women-owned firms and businesses owned by veterans with disabilities shall be consistent with their general availability within the professional communities involved.

Sec. 11   RCW 47.28.030 and 1999 c 15 s 1 are each amended to read as follows:
     A state highway shall be constructed, altered, repaired, or improved, and improvements located on property acquired for right of way purposes may be repaired or renovated pending the use of such right of way for highway purposes, by contract or state forces. The work or portions thereof may be done by state forces when the estimated costs thereof ((is [are])) are less than fifty thousand dollars and effective July 1, 2005, sixty thousand dollars: PROVIDED, That when delay of performance of such work would jeopardize a state highway or constitute a danger to the traveling public, the work may be done by state forces when the estimated cost thereof is less than eighty thousand dollars and effective July 1, 2005, one hundred thousand dollars. When the department of transportation determines to do the work by state forces, it shall enter a statement upon its records to that effect, stating the reasons therefor. To enable a larger number of small businesses, businesses owned by veterans with disabilities, and minority((,)) and women contractors to effectively compete for department of transportation contracts, the department may adopt rules providing for bids and award of contracts for the performance of work, or furnishing equipment, materials, supplies, or operating services whenever any work is to be performed and the engineer's estimate indicates the cost of the work would not exceed eighty thousand dollars and effective July 1, 2005, one hundred thousand dollars. The rules adopted under this section:
     (1) Shall provide for competitive bids to the extent that competitive sources are available except when delay of performance would jeopardize life or property or inconvenience the traveling public; and
     (2) Need not require the furnishing of a bid deposit nor a performance bond, but if a performance bond is not required then progress payments to the contractor may be required to be made based on submittal of paid invoices to substantiate proof that disbursements have been made to laborers, materialmen, mechanics, and subcontractors from the previous partial payment; and
     (3) May establish prequalification standards and procedures as an alternative to those set forth in RCW 47.28.070, but the prequalification standards and procedures under RCW 47.28.070 shall always be sufficient.
     The department of transportation shall comply with such goals and rules as may be adopted by the office of minority and women's business enterprises to implement chapter 39.19 RCW with respect to contracts entered into under this chapter. The department may adopt such rules as may be necessary to comply with the rules adopted by the office of minority and women's business enterprises under chapter 39.19 RCW.

NEW SECTION.  Sec. 12   This act is not intended to create a cause of action or entitlement in an individual or class of individuals.