SENATE 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

Rereferred House Committee on Ways & Means/Appropriations

Senate Committee on Ways & Means

Senate Hearing Date(s):February 25, 1988

Senate Staff:Charles Langen (786-7715)

AS OF FEBRUARY 24, 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested