Bill would require named subcontractors to hold licenses at time bids are submitted for large public works

House Bill 1633 would change the subcontractor listing rules for large public works contracts by requiring that subcontractors named in bids for plumbing, electrical and HVAC work be licensed at the time they are named. The proposal also would prevent a prime contractor from substituting a listed subcontractor on the basis that the subcontractor could not obtain the required license.

Rob Hatfield, staff to the Capital Budget Committee, briefed members that the bill focuses on public works projects expected to exceed $1 million. Under current law, a prime contractor may name itself or a subcontractor to perform plumbing, electrical or HVAC work and may substitute a listed subcontractor in certain circumstances. HB 1633 would require the licensed status to be in place when the subcontractor is named and would remove inability-to-obtain-a-license as a substitution basis.

Hatfield said the fiscal note shows most state agencies reported no fiscal impact from the bill except the Washington State Department of Transportation. WSDOT estimated a fiscal impact of just over $2 million per biennium beginning in the current biennium, primarily from the department's expectation that some low bids would be rejected for licensing noncompliance and the agency would have to award the contract to the next lowest bidder at higher cost.

Representative Liz Berry Hill (sponsor name provided in transcript as Representative Hill) said the bill's intent is to promote transparency and fair competition in bidding and focused on projects over $1 million. She said stakeholders have provided feedback and she is prepared to work on amendments to refine the bill and mitigate unintended consequences.

The committee held a public hearing but had no public witnesses sign in to testify on the bill at this meeting.