(1) In any bidding process for public works in which a bid is received from a nonresident contractor from a state that provides a percentage bidding preference, a comparable percentage disadvantage must be applied to the bid of that nonresident contractor.
(2) A nonresident contractor from a state that provides a percentage bid preference means a contractor that:
(a) Is from a state that provides a percentage bid preference to its resident contractors bidding on public works contracts; and
(b) At the time of bidding on a public works project, does not have a physical office located in Washington.
(3) The state of residence for a nonresident contractor is the state in which the contractor was incorporated or, if not a corporation, the state where the contractor's business entity was formed.
(4) This section does not apply to public works procured pursuant to RCW 39.04.280, RCW 39.04.151 through 39.04.154, or any other procurement exempt from competitive bidding.