FINAL BILL REPORT
E2SHB 1549
C 63 L 25
Synopsis as Enacted
Brief Description: Modifying the responsible bidder criteria for public works projects.
Sponsors: House Committee on Capital Budget (originally sponsored by Representatives Fosse, Obras, Berry, Reed, Goodman, Stearns, Parshley, Callan, Salahuddin, Taylor, Ormsby, Peterson, Pollet, Scott, Macri and Hill).
House Committee on Labor & Workplace Standards
House Committee on Capital Budget
House Committee on Appropriations
Senate Committee on State Government, Tribal Affairs & Elections
Background:

 

Public works refer to all work, construction, alteration, repair, or improvement, other than ordinary maintenance, executed at the cost of the state or a municipality.  Competitive bidding is required for all public works projects.  A contractor bidding on a public works project must meet certain criteria, known as responsible bidder criteria, to be awarded a public works contract. 

 

Responsible Bidder Criteria: Training Requirement.

Under the responsible bidding criteria, a bidder must designate a person to receive training on public works and the prevailing wage.  A bidder who has completed three or more public works projects and has had a valid Washington business license for three or more years is exempt from the training requirement. 

 

Training on public works and prevailing wage must be provided by the Department of Labor and Industries (Department) or a provider whose curriculum is approved by the Department.  The Department keeps records of entities that have satisfied or are exempt from the training requirements and posts these records on its website.  Responsible parties may rely on these records when determining if a bidder has satisfied the training requirement.

 

 

Responsible Bidder Criteria:  Verification of Compliance.

Under the responsible bidder criteria, a bidder may not have been found by L&I or a court to have willfully violated the state's wage payment laws within the three-year period prior to bid solicitation.  A bidder must submit a signed statement under penalty of perjury that it satisfies the verification requirement.  Contracting agencies may reasonably rely on this sworn statement.

 

Apprentice Utilization Criteria.

On most public works projects estimated to cost $1 million or more, at least 15 percent of the labor hours must be performed by apprentices enrolled in approved apprenticeship training programs.  This requirement applies to contracts awarded by the state, school districts, and state four-year higher education institutions.  An awarding agency may adjust apprenticeship utilization requirements under certain circumstances, such as an insufficient number of apprentices in the project's geographic area.

 

If a bidder has received monetary penalties for not satisfying apprentice utilization requirements or habitually uses the good faith exception process, the bidder must submit an apprenticeship utilization plan within 10 business days immediately following notice to proceed.  An apprenticeship utilization plan details verifiable efforts to meet apprentice utilization requirements.

Summary:

Responsible Bidder Criteria:  Training Requirement.

To satisfy the public works and prevailing wage responsible bidder criterion, a bidder must either:  (1) within the last three years, have completed at least one public works project and not been cited for violating public works, prevailing wage, or certain other enumerated requirements, or (2) have at least one designated current officer or employee who has received training on public works and prevailing wage within the last three years.

 

The Department of Labor and Industries (Department) must keep records of individuals who have satisfied the training requirements in the past three years and post these records on its website.

 

Responsible Bidder Criteria:  Verification of Compliance.

The Department must publish available information on its website so contracting agencies may verify a bidder's compliance with the responsible bidder criteria.  In addition to reasonably relying on a bidder's sworn statement that the bidder has not been found to have willfully violated the state's wage payment laws within the three-year period prior to bid solicitation, contracting agencies must verify that the bidder meets the other responsible bidder criteria based on the available information on the Departments website.

 

Apprentice Utilization Criteria.

A bidder who is awarded a contract subject to apprentice utilization requirements must submit an apprentice utilization plan before the bidder may be given a notice to proceed.  A contracting agency may exempt the bidder from this requirement if the bidder met or exceeded apprentice utilization requirements on the last public works project that the bidder completed.  Contracting agencies may rely on records made available by the Department to determine whether a bidder is eligible for exemption from the apprentice utilization plan requirement.

 

The Department will develop an apprentice utilization plan template that includes, at a minimum:  (1) the expected start and end dates of the project; (2) estimated total work hours; (3) estimated apprentice hours by apprenticeable occupation; (4) a list of state registered apprenticeship programs; (5) a list of anticipated apprenticeship training agents or sponsors on the project; and (6) educational material on apprentice utilization requirements.  Awarding agencies may develop their own templates that meet these minimum requirements, subject to approval by the Department.

 

The Department must publish completed apprentice utilization plans on its website.

Votes on Final Passage:
Final Passage Votes
House 95 0
Senate 48 1
Effective:

 July 1, 2026

 July 1, 2027 (Section 2)