HOUSE BILL REPORT

EHB 1849

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Engrossed Bill

Authorizes the Department of Transportation to use the three strike system for ensuring compliance in lieu of monetary penalties.
Requires that contracts must specify that apprenticeship utilization requirements may not be required.

Makes awarding agencies responsible for monitoring a contractor and subcontractor's compliance with apprenticeship utilization hours within existing resources.

Background:

Apprenticeships.

Apprenticeships are a combination of on-the-job training under the supervision of journey level workers and related classroom instruction. Apprenticeships last from one to six years. During an apprenticeship, apprentices are paid lower wages than journey level workers. The Washington State Apprenticeship and Training Council, which is part of the Department of Labor and Industries, establishes apprenticeship program standards, approves apprenticeship training programs, and otherwise governs the programs. Apprenticeship standards address the ratio of apprentices to journey level workers allowed, the type of work apprentices may do, and the required supervision of apprentices.

Apprenticeship Utilization Requirements.

Contracts for public works that are estimated to cost $1 million or more must require that at least 15 percent of the labor hours be performed by apprentices enrolled in approved apprenticeship training programs. This requirement applies to most contracts awarded by the state, school districts, and state four-year higher education institutions. Awarding entities may adjust the apprentice utilization requirements on specific projects for certain reasons, such as if there is a lack of apprentices in a specific geographic area. For the Department of Transportation, apprenticeship utilization requirements apply to public works estimated to cost $3 million or more until July 1, 2020, at which time the dollar threshold changes to $2 million.

Summary of Engrossed Bill:

The awarding agency of the public work contract, within existing resources, must monitor contractor and subcontractor apprenticeship hours. The contractor shall report any noncompliance no later than the final project acceptance to the Department of Labor and Industries.

Contractors may not be required to exceed the apprenticeship utilization requirements.

Authorizes the Department of Transportation to use the three strike system for ensuring compliance in lieu of monetary penalties.

Staff Summary of Public Testimony:

(In support) There is an aging workforce in public works. Apprenticeship utilization provides proper training for entry level apprentices and a workforce for the future. There are occasions that the general contractor will force requirements for apprenticeship utilization requirements to the subcontractors to provide. This is sound public policy and supports contractors meeting the 15 percent utilization requirement. Currently compliance with apprenticeship utilization requirements is about 38 percent and there are problems with implementation.

(Opposed) Contractors support apprentices. There are not enough resources for contractors to meet full compliance of the 15 percent utilization requirement partially due to demographic problems. An incentive would help contractors meet the requirement. The bill is too rigid and does not provide any flexibility for contractors.

Persons Testifying: (In support) Representative Sells, prime sponsor; Larry Stevens, Mechanical Contractors Association and National Electrical Contractors Association; and Neil Hartman, Washington State Building and Construction Council.

(Opposed) Jerry VanderWood, Associated General Contractors of Washington.