HOUSE BILL REPORT

EHB 1448

BYRepresentatives Wineberry, Heavey, Anderson, Holland, Holm, Nelson, Hargrove, Locke, Jones and Unsoeld

Prohibiting state purchases of products originating in countries with apartheid policies.

House Committe on Trade & Economic Development

Majority Report:  Do pass.  (10)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Beck, Braddock, Cantwell, Fox, Hargrove, Heavey, Holm and Rasmussen.

Minority Report:  Do not pass.  (4)

      Signed by Representatives Amondson, Doty, McLean and Moyer.

House Staff:Stephen Hodes (786-7092)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:  Do pass with amendments.  (13)

      Signed by Representatives Locke, Chair; Belcher, Braddock, Brekke, Grant, Grimm, Hine, Holland, Sayan, H. Sommers, Spanel, Sprenkle and Wang.

Minority Report:  Do not pass.  (6)

      Signed by Representatives Butterfield, Fuhrman, McLean, Nealey, Silver and B. Williams.

House Staff:      Randy Acker (786-7136)

AS PASSED HOUSE FEBRUARY 15, 1988

BACKGROUND:

Worldwide concern over the apartheid policies of such countries as South Africa and Namibia has been increasing during the past several years, especially as the civil unrest in these countries escalates.  Apartheid policies are defined as official policies authorizing the denial of equal voting rights or political, educational, or economic rights on the basis of race.  In response to this concern, federal, state, and local governments have imposed various types of economic sanctions to protest apartheid.

In 1986 the United States Congress enacted the Comprehensive Anti-Apartheid Act of 1986.  This Act puts major restrictions on U.S. trade with South Africa, including: prohibitions on the importation of many products from South Africa (krugerrands, military articles, uranium, coal, iron, steel, sugar, food and agricultural products), prohibitions on the export of many products to South Africa (computers, munitions, petroleum products), and other prohibitions on air transportation, loans, nuclear trade, new investment, procurement, and tourism.

The states of Michigan and Maryland and many cities give some type of preference in bidding for public supply or service contracts to companies which limit their involvement in South Africa.

RCW 43.19 gives the Department of General Administration general authority to set standards for the purchase of products, supplies, and equipment by state agencies.  It also establishes guidelines and procedures for competitive bidding for state agency contracts.

SUMMARY:

No state agency may contract with any business firm for the purchase of any finished product, supplies, or equipment unless the firm stipulates that none of the finished products, supplies, or equipment to be provided originated in a country that has an apartheid policy.

Any business that knowingly makes a false stipulation as to this requirement shall be liable for liquidated damages in an amount equal to one-half the contract purchase price.

No state agency may contract for the purchase of any product, supplies, or equipment from any governmental entity representing a country that has an apartheid policy.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    (Trade & Economic Development)  Larry Hildes, Evergreen Anti-Apartheid Alliance; Todd Hawkins, American Friends Service Company.

(Ways & Means/Appropriations)  Representative Jesse Wineberry; Todd Hawkins, American Friends Service Committee; William Proctor, Coalition Against South African Trade.

House Committee - Testified Against:      (Trade & Economic Development)  None Presented.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:    (Trade & Economic Development)  This is a moral issue.  Washington should enact this legislation to make a statement that this state does not condone apartheid.  Taking no action would be tantamount to condoning the situation in South Africa.

(Ways & Means/Appropriations)  Purchasing products and supplies from countries with apartheid policies gives support to those countries.  Enacting this legislation would put Washington on record as being firmly against apartheid.  Whatever the fiscal impact is on the the state from this act, it would be worth it.

House Committee - Testimony Against:      (Trade & Economic Development)  None Presented.

(Ways & Means/Appropriations)  None Presented.