SB 5576 — Addressing compliance with apprenticeship utilization requirements.

S-4715.1THIRDS-0450.2SENATE SUBSTITUTE SENATE BILL 5576State of Washington65th Legislature2018Legislature2017 Regular SessionBy Senate Transportation (originally sponsored by Senators Keiser, Fortunato, Conway, Miloscia, Hobbs, Takko, Hasegawa, Wellman, and Saldaña)READSaldañaRead FIRSTfirst TIMEtime 02/06/18.AN01/30/17. ACT Relating to compliance with apprenticeship utilization requirements;

amendingReferred RCWto 39.04.320;Committee on Commerce, Labor & Sports.AN ACT Relating to compliance with apprenticeship utilization requirements;

addingamending aRCW new39.04.310, section39.04.320, to39.04.350, chapterand 49.0439.12.055; RCW;

and providingadding ana effectivenew date.BEsection to chapter 49.04 RCW.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 39.04.32039.04.310 and 2015 3rdc sp.s.48 s 1 are each amended to read as follows:The definitions in this section apply throughout this section and RCW 39.04.300 and 39.04.320 unless the context clearly requires otherwise.(1) "Apprentice" means an apprentice enrolled in a state-approved apprenticeship training program.(2) "Apprentice utilization requirement" means the requirement that the appropriate percentage of labor hours be performed by apprentices for each and every contractor and subcontractor on the public works project.(3) "Labor hours" means the total hours of workers receiving an hourly wage who are directly employed by the contractor or subcontractor upon the public works project.

"Labor hours" includes hours performed by workers employed by the contractor and all subcontractors working on the project and is measured on a per contractor basis.

"Labor hours" does not include hours worked by foremen, superintendents, owners, and workers who are not subject to prevailing wage requirements.(4) "School district" has the same meaning as in RCW 28A.315.025.(5) "State-approved apprenticeship training program" means an apprenticeship training program approved by the Washington state apprenticeship council.Sec. 2.  RCW 39.04.320 and 2015 3rd sp.s.

However, this section does not apply to contracts awarded by state agencies headed by a separately elected public official.(b) WithinAwarding existing resources, awarding agencies are responsible for monitoring apprenticeshipa utilizationcontractor's hoursand bysubcontractor's contractor.compliance with the specifications requiring apprenticeship utilization hours.

ThereIf musta becontractor aor specificsubcontractor linefails itemto incomply with the contractapprenticeship specifyingutilization requirements, the awarding agency shall report that noncompliance to the supervisor of apprenticeship utilizationat goalsthe shoulddepartment beof met,labor monetaryand incentivesindustries forno meetinglater than upon final project acceptance.(5)(a) The department of enterprise services must provide information and technical assistance to affected agencies and collect the goals,following monetarydata penaltiesfrom affected agencies for noteach meetingproject thecovered goals,by this section:(i) The name of each apprentice and anapprentice expectedregistration costnumber;(ii) The name of each project;(iii) The dollar value toof beeach includedproject;(iv) inThe date of the bidcontractor's associatednotice withto meetingproceed;(v) theThe goals.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;

The awarding agency must report the apprenticeship utilization by contractor and subcontractor to the supervisor of apprenticeship at the department of labor and industries by final project acceptance.

The electronic reporting system that is being developed by the department of labor and industries may be used for either or both monitoring and reporting apprenticeship utilization hours.(c) In lieu of the monetary penalty and incentive requirements specified in (b) of this subsection, the Washington state department of transportation may use its three strike system for ensuring compliance including the allowance for a good faith effort.(5)(a) The department of 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;

The report shall include recommendations on modifications or improvements to the apprentice utilization program and information on skill shortages in each trade or craft.(8) All contracts subject to this section mustshall include specifications that a contractor or subcontractor may not be required to exceed the apprenticeship utilization requirements of this section.NEWsection.Sec. 3.  RCW SECTION.  Sec. 2.  A39.04.350 newand section2010 isc added276 tos chapter2 49.04are RCWeach amended to read as follows:(1) InBefore additionaward toof thea dutiespublic establishedworks undercontract, RCWa 49.04.030,bidder must meet the supervisorfollowing ofresponsibility apprenticeshipcriteria mustto verifybe complianceconsidered bya contractors,responsible subcontractors,bidder and awardingqualified agenciesto ofbe apprenticeshipawarded utilizationa requirements.public works project.

The supervisorbidder maymust:(a) coordinateAt with the departmenttime of enterprisebid services,submittal, thehave statea departmentcertificate of transportation,registration the office of the superintendent of public instruction, and any other appropriate agency or organization to assist in trackingcompliance compliance.(2)with Compliancechapter information18.27 mustRCW;(b) beHave madea availablecurrent tostate theunified apprenticeshipbusiness councilidentifier andnumber;(c) mustIf beapplicable, usedhave toindustrial determineinsurance compliancecoverage for purposesthe ofbidder's RCWemployees 39.04.350working andin 39.12.055.(3)Washington Theas directorrequired ofin laborTitle and51 industriesRCW; must adopt rules to implement this section.NEW SECTION.  Sec. 3.  This act takes effect January 1, 2020.--- END ---

an employment security department number as required in Title 50 RCW;

and a state excise tax registration number as required in Title 82 RCW;(d) Not be disqualified from bidding on any public works contract under RCW 39.06.010 or 39.12.065(3);(e) If bidding on a public works project subject to the apprenticeship utilization requirements in RCW 39.04.320, not have been found out of compliance with the percentage of labor hours required to be performed by apprentices under RCW 39.04.320 or not have been found out of compliance by the Washington state apprenticeship and training council for working apprentices out of ratio, without appropriate supervision, or outside their approved work processes as outlined in their standards of apprenticeship under chapter 49.04 RCW, for the one-year period immediately preceding the date of the bid solicitation;

and(f) Until December 31, 2013, not have violated RCW 39.04.370 more than one time as determined by the department of labor and industries.(2) In addition to the bidder responsibility criteria in subsection (1) of this section, the state or municipality may adopt relevant supplemental criteria for determining bidder responsibility applicable to a particular project which the bidder must meet.(a) Supplemental criteria for determining bidder responsibility, including the basis for evaluation and the deadline for appealing a determination that a bidder is not responsible, must be provided in the invitation to bid or bidding documents.(b) In a timely manner before the bid submittal deadline, a potential bidder may request that the state or municipality modify the supplemental criteria.

The state or municipality must evaluate the information submitted by the potential bidder and respond before the bid submittal deadline.

If the evaluation results in a change of the criteria, the state or municipality must issue an addendum to the bidding documents identifying the new criteria.(c) If the bidder fails to supply information requested concerning responsibility within the time and manner specified in the bid documents, the state or municipality may base its determination of responsibility upon any available information related to the supplemental criteria or may find the bidder not responsible.(d) If the state or municipality determines a bidder to be not responsible, the state or municipality must provide, in writing, the reasons for the determination.

The bidder may appeal the determination within the time period specified in the bidding documents by presenting additional information to the state or municipality.

The state or municipality must consider the additional information before issuing its final determination.

If the final determination affirms that the bidder is not responsible, the state or municipality may not execute a contract with any other bidder until two business days after the bidder determined to be not responsible has received the final determination.(3) The capital projects advisory review board created in RCW 39.10.220 shall develop suggested guidelines to assist the state and municipalities in developing supplemental bidder responsibility criteria.

The guidelines must be posted on the board's web site.Sec. 4.  RCW 39.12.055 and 2009 c 197 s 3 are each amended to read as follows:A contractor shall not be allowed to bid on any public works contract for one year from the date of a final determination that the contractor has committed any combination of two of the following violations or infractions within a five-year period:(1) Violated RCW 51.48.020(1) or 51.48.103;

(2) Committed an infraction or violation under chapter 18.27 RCW for performing work as an unregistered contractor;

((or))(3) Determined to be out of compliance by the Washington state apprenticeship and training council for working apprentices out of ratio, without appropriate supervision, or outside their approved work processes as outlined in their standards of apprenticeship under chapter 49.04 RCW;

or(4) Determined to be out of compliance with the percentage of labor hours required to be performed by apprentices under RCW 39.04.320.NEW SECTION.  Sec. 5.  A new section is added to chapter 49.04 RCW to read as follows:(1) In addition to the duties established under RCW 49.04.030, the supervisor of apprenticeship shall verify compliance by contractors, subcontractors, and awarding agencies of apprenticeship utilization requirements.

The supervisor may coordinate with the department of enterprise services, the state department of transportation, the office of the superintendent of public instruction, and any other appropriate agency or organization to assist in tracking compliance.(2) Compliance information must be made available to the apprenticeship council and must be used to determine compliance for purposes of RCW 39.04.350 and 39.12.055.(3) The director of labor and industries must adopt rules to implement this section.--- END ---