Bill would lift small works roster caps in phases to reflect rising construction costs

House Bill 2420, with a proposed substitute (H-3267.2), would raise the maximum value for public works projects that may use the small works roster instead of competitive bidding. Staff briefed the committee that the substitute phases increases to $530,000 on Jan. 1, 2027; $560,000 on July 1, 2027; $590,000 on July 1, 2029; and $650,000 on July 1, 2030.

Representative Janice Sohn, introduced herself as the sponsor and said the proposal grew from work by the Capital Project Advisory Review Board (CPARB). She said the substitute moves an initial effective date to Jan. 1 to allow Labor & Industries time for rulemaking. "The committee ... formed a subcommittee that worked really hard to look at the cost indexes, the escalation factors and unanimously developed this recommendation that's in the bill before you today," Sohn said.

Stakeholders from higher education, cities, ports and utilities testified in support. Steve DuPont, speaking for the public four‑year university sector, said increasing the cap will "save time and effort from our staff" and may increase utilization of small, minority, veteran and women‑owned businesses. John McClellan, representing a group of water and sewer districts, said the change "modernizes outdated procurement thresholds that no longer reflect real construction costs" and helps utilities respond faster to emergencies while preserving prevailing wage and rotation requirements.

Staff noted a fiscal note that reported no increased cost to many state agencies, public universities, local governments and school districts. Proponents described multi‑stakeholder work through CPARB and other interim committees that led to the substitute. The committee closed the public hearing after testimony; no vote was taken during this session.