BILL REQ. #:  S-3752.3 

Read first time 01/23/12.   Referred to Committee on Labor, Commerce & Consumer Protection.

     AN ACT Relating to certified payroll records on public works projects; and amending RCW 39.04.320 and 39.12.040.

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

Sec. 1   RCW 39.04.320 and 2009 c 197 s 1 are each amended to read as follows:
     (1)(a) Except as provided in (b) through (d) of this subsection, from January 1, 2005, and thereafter, for all public works estimated to cost one million dollars or more, all specifications shall require that no less than fifteen percent of the labor hours be performed by apprentices. Contracts for public works subject to this section must include a provision requiring a participating contractor or subcontractor to submit certified payroll records demonstrating proof of apprentice utilization to the awarding entity.
     (b)(i) This section does not apply to contracts advertised for bid before July 1, 2007, for any public works by the department of transportation.
     (ii) For contracts advertised for bid on or after July 1, 2007, and before July 1, 2008, for all public works by the department of transportation estimated to cost five million dollars or more, all specifications shall require that no less than ten percent of the labor hours be performed by apprentices.
     (iii) For contracts advertised for bid on or after July 1, 2008, and before July 1, 2009, for all public works by the department of transportation estimated to cost three million dollars or more, all specifications shall require that no less than twelve percent of the labor hours be performed by apprentices.
     (iv) For contracts advertised for bid on or after July 1, 2009, for all public works by the department of transportation estimated to cost two million dollars or more, all specifications shall require that no less than fifteen percent of the labor hours be performed by apprentices.
     (c)(i) This section does not apply to contracts advertised for bid before January 1, 2008, for any public works by a school district, or to any project funded in whole or in part by bond issues approved before July 1, 2007.
     (ii) For contracts advertised for bid on or after January 1, 2008, for all public works by a school district estimated to cost three million dollars or more, all specifications shall require that no less than ten percent of the labor hours be performed by apprentices.
     (iii) For contracts advertised for bid on or after January 1, 2009, for all public works by a school district estimated to cost two million dollars or more, all specifications shall require that no less than twelve percent of the labor hours be performed by apprentices.
     (iv) For contracts advertised for bid on or after January 1, 2010, for all public works by a school district estimated to cost one million dollars or more, all specifications shall require that no less than fifteen percent of the labor hours be performed by apprentices.
     (d)(i) For contracts advertised for bid on or after January 1, 2010, for all public works by a four-year institution of higher education estimated to cost three million dollars or more, all specifications must require that no less than ten percent of the labor hours be performed by apprentices.
     (ii) For contracts advertised for bid on or after January 1, 2011, for all public works by a four-year institution of higher education estimated to cost two million dollars or more, all specifications must require that no less than twelve percent of the labor hours be performed by apprentices.
     (iii) For contracts advertised for bid on or after January 1, 2012, for all public works by a four-year institution of higher education estimated to cost one million dollars or more, all specifications must require that no less than fifteen percent of the labor hours be performed by apprentices.
     (2) Awarding entities may adjust the requirements of this section for a specific project for the following reasons:
     (a) The demonstrated lack of availability of apprentices in specific geographic areas;
     (b) A disproportionately high ratio of material costs to labor hours, which does not make feasible the required minimum levels of apprentice participation;
     (c) Participating contractors have demonstrated a good faith effort to comply with the requirements of RCW 39.04.300 and 39.04.310 and this section; or
     (d) Other criteria the awarding entity deems appropriate, which are subject to review by the office of the governor.
     (3) The secretary of the department of transportation shall adjust the requirements of this section for a specific project for the following reasons:
     (a) The demonstrated lack of availability of apprentices in specific geographic areas; or
     (b) A disproportionately high ratio of material costs to labor hours, which does not make feasible the required minimum levels of apprentice participation.
     (4) This section applies to public works contracts awarded by the state, to public works contracts awarded by school districts, and to public works contracts awarded by state four-year institutions of higher education. However, this section does not apply to contracts awarded by state agencies headed by a separately elected public official.
     (5)(a) The department of ((general administration)) enterprise services must provide information and technical assistance to affected agencies and collect the following data from affected agencies for each project covered by this section:
     (i) The name of each apprentice and apprentice registration number;
     (ii) The name of each project;
     (iii) The dollar value of each project;
     (iv) The date of the contractor's notice to proceed;
     (v) The number of apprentices and labor hours worked by them, categorized by trade or craft;
     (vi) The number of journey level workers and labor hours worked by them, categorized by trade or craft; and
     (vii) The number, type, and rationale for the exceptions granted under subsection (2) of this section.
     (b) The department of labor and industries shall assist the department of ((general administration)) enterprise services in providing information and technical assistance.
     (6) The secretary of transportation shall establish an apprenticeship utilization advisory committee, which shall include statewide geographic representation and consist of equal numbers of representatives of contractors and labor. The committee must include at least one member representing contractor businesses with less than thirty-five employees. The advisory committee shall meet regularly with the secretary of transportation to discuss implementation of this section by the department of transportation, including development of the process to be used to adjust the requirements of this section for a specific project. The committee shall provide a report to the legislature by January 1, 2008, on the effects of the apprentice labor requirement on transportation projects and on the availability of apprentice labor and programs statewide.
     (7) At the request of the senate labor, commerce, research and development committee, the house of representatives commerce and labor committee, or their successor committees, and the governor, the department of ((general administration)) enterprise services and the department of labor and industries shall compile and summarize the agency data and provide a joint report to both committees. The report shall include recommendations on modifications or improvements to the apprentice utilization program and information on skill shortages in each trade or craft.

Sec. 2   RCW 39.12.040 and 2009 c 219 s 2 are each amended to read as follows:
     (1) 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, finalizes a contract for any public work subject to prevailing wage requirements, ((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)) must receive from 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) The contractor's registration certificate number; and
     (b) 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. ((Unless otherwise authorized by the department of labor and industries, each)) Before the officer charged with the disbursement of public funds makes any payment due on a public works contract, the officer must have certified payroll records from the contractor and any subcontractor receiving part or all of the disbursement, and the contractor must submit a voucher claim ((submitted by a contractor)) for payment ((on a project estimate shall state)) that includes a statement 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. 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 60.28.011 are released to the contractor, the officer charged with the disbursement of public funds must have the affidavit of wages paid and certified payroll records from the contractor and each and every subcontractor. 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. Certified payroll records required under this section must be submitted to the public officer in an electronic format. Upon receipt of certified payroll records, the public officer must publish the certified records, with social security numbers redacted, on a publicly accessible database, and forward unredacted copies of the records to the department of labor and industries.
     (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 60.28.011. 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.