Senate Bill No. 102
(By Senator Dugan)
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[Introduced February 21, 1997; referred to the Committee
on Government Organization; and then to the Committee on
Finance.]
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A BILL to amend article three, chapter five-a of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
by adding thereto a new section, designated section thirty- seven-b, relating to creating a bidding preference for
in-state engineering, surveying and plumbing in the awarding
of state contracts.
Be it enacted by the Legislature of West Virginia:
That article three, chapter five-a of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
thirty-seven-b, to read as follows:
ARTICLE 3. PURCHASING DIVISION.
§5A-3-37b. Preference for resident engineers, surveyors and plumbers; exceptions.
(a) Other provisions of this article notwithstanding, in any
instance involving the purchase of engineering, surveying or
plumbing services where the director or any state department is
required under the provisions of this article to make the
purchase upon competitive bids, the successful bid shall be
determined as provided in this section. The secretary of the
department of tax and revenue shall promulgate any rules
necessary to: (i) Determine that engineers, surveyors and
plumbers have met the residence requirements described in this
section; (ii) establish the procedure for engineers, surveyors
and plumbers to certify the residency requirements at the time of
submitting their bids; (iii) establish a procedure to audit bids
which make a claim for preference permitted by this section and
to reject noncomplying bids; and (iv) otherwise accomplish the
objectives of this section. In prescribing the rules, the
secretary shall use a strict construction of the residence
requirements set forth in this section. For purposes of this
section, a successful bid shall be determined and accepted as
follows:
(1) From an individual resident engineer, surveyor or
plumber who has resided in West Virginia continuously for the
four years immediately preceding the date on which the bid is
submitted, or from a resident engineering, surveying or plumbing partnership, association or corporation, or from a nonresident
engineering, surveying or plumbing corporation which has an
affiliate or subsidiary which employs a minimum of one hundred
state residents and which has maintained its headquarters or
principal place of business within West Virginia continuously for
four years immediately preceding the date on which the bid is
submitted, if the engineer's, surveyor's or plumber's bid does
not exceed the lowest qualified bid from a nonresident engineer,
surveyor or plumber by more than five percent of the latter bid,
and if the engineer, surveyor or plumber has made written claim
for the preference at the time the bid was submitted.
(2) For purposes of this subdivision, any resident
engineering, surveying or plumbing partnership, association or
corporation of this state, which does not meet the requirements
of this subdivision solely because of the continuous four-year
residence requirement, shall be considered to meet the
requirement if at least eighty percent of the ownership interest
of the resident engineering, surveying or plumbing partnership,
association or corporation is held by another individual
engineer, surveyor or plumber or engineering, surveying or
plumbing partnership, association or corporation which otherwise
meets the requirements of this subdivision, including the
continuous four-year residency requirement: Provided, That the secretary of the department of tax and revenue shall promulgate
rules relating to attribution of ownership among several resident
engineers, surveyors and plumbers for purposes of determining the
eighty percent ownership requirement;
(b) If the secretary of the department of tax and revenue
determines under any audit procedure that an engineer, surveyor
or plumber or engineering, surveying or plumbing partnership,
association or corporation which received a preference under this
section fails to continue to meet the requirements for the
preference at any time during the term of the project for which
the preference was received the secretary may: (1) Reject the
bid; or (2) assess a penalty against the engineer, surveyor,
plumber or engineering, surveying or plumbing partnership,
association or corporation of not more than five percent of the
bid on the project.
(c) If any requirement or provision set forth in this
section jeopardizes the receipt of federal funds, then the
requirement or provision is void and of no force and effect for
that specific project.
NOTE: This bill would create a preference for in-state
engineers, surveyors and plumbers for state contracts that are
subject to the competitive bidding process.
This section is new; therefore, strike-throughs and
underscoring have been omitted.