BILL REQ. #:  S-0762.1 

Read first time 01/16/2007.   Referred to Committee on Government Operations & Elections.

     AN ACT Relating to state contracts with veteran-owned businesses; 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 recognizes the unique sacrifices made by veterans and the substantial challenges that returning veterans face after a period of military duty away from home. The legislature further recognizes that veterans who own private businesses may face particular hardships as a direct result of their military service. The purpose of this act is to mitigate economic damage to veteran-owned businesses as a result of military service, and to provide opportunities to them in recognition of the outstanding service they have given to their country.

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 veteran-owned businesses.
     (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-owned business" means a business that is certified by the department to be at least fifty-one percent owned and controlled by:
     (a) A veteran as defined in RCW 41.04.007; or
     (b) An active or reserve member in any branch of the armed forces of the United States, including the national guard, coast guard, and armed forces reserves.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.60A RCW to read as follows:
     (1) 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.
     (2) The department shall develop a procedure for certifying veteran-owned businesses and maintain a list of veteran-owned businesses on the department's public web site.
     (3) 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.
     (4) The department shall collaborate with and may assist agencies in implementing outreach to veteran-owned businesses.

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 veteran-owned businesses certified by the department under section 3 of this act.
     (2) State agencies shall:
     (a) Perform outreach to veteran-owned businesses in collaboration with the department to increase opportunities for veteran-owned businesses to sell goods and services to the state;
     (b) Keep a record of all contracts awarded to veteran-owned businesses as required by the department; and
     (c) 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 veteran-owned businesses 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 veteran-owned firms 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 veteran-owned firms 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((,)) and veteran, 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.