Associated Gen. Contractors of Wash. v. State (Majority)Annotate this Case
This case concerned whether Washington Substitute Senate Bill (SSB) 5493, constituted an unconstitutional delegation of legislative authority. SSB 5493 amended RCW 39.12.015 to modify how the Department of Labor and Industries (L&I) industrial statistician calculated prevailing wage rates for public works projects. Associated General Contractors of Washington, Associated Builders and Contractors of Western Washington Inc., Inland Pacific Chapter of Associate Builders and Contractors Inc., and Inland Northwest AGC Inc. (collectively AGC), filed suit against the State of Washington and various government officials in their official capacities (collectively State), for declaratory and injunctive relief, arguing that requiring the industrial statistician to use the wages from CBAs constituted an unconstitutional delegation of legislative authority. Both parties moved for summary judgment. The superior court granted the State’s cross motion for summary judgment, holding that SSB 5493 was constitutional, and dismissed the case. The Court of Appeals reversed and held that SSB 5493 was an unconstitutional delegation of legislative authority, holding that the amendments have neither the standards nor adequate procedural safeguards as required by the two-part test set forth in Barry & Barry, Inc. v. Department of Motor Vehicles, 81 Wn.2d 155, 163-64, 500 P.2d 540 (1972). The Washington Supreme Court reversed the Court of Appeals: SSB 5493 was not an unconstitutional delegation of legislative authority because it provided standards and procedural safeguards under the test in Barry & Barry. "The legislature made a policy decision to adopt the highest CBA wage rate and has directed the L&I industrial statistician to identify the highest CBA wage rate and adopt it as the prevailing wage. In addition there are procedural safeguards in related statutes and inherent in the collective bargaining process that protect against arbitrary administrative action or abuse of discretionary power." The case was remanded back to the Court of Appeals for consideration of the remaining issue not addressed because of its disposition in this case.