AN ACT Relating to countries with apartheid policies; adding new sections to chapter 43.19 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature hereby finds and declares that:

(1) The country of South Africa is the only political system on this planet which constitutionally enshrines a political system whereby a small minority of the population has the power and authority to separate, discriminate against, and deny fundamental political, social, and economic rights to, eighty-three percent of its population solely on the basis of race.

(2) The policy of apartheid restricts the freedom of speech and the freedom of movement of black and colored persons in South Africa, and relegates eighty-three percent of that nation's population to thirteen percent of that nation's land area.

(3) This system of apartheid is contrary to the basic religious and political assumptions underlying our nation, which hold that all people are created equal with the inalienable right to life, liberty, and the pursuit of happiness. The present struggle by blacks and other members of the majority population echoes the call of our Declaration of Independence which recognized the right of an oppressed people to alter or abolish any form of government which becomes destructive to securing these rights.

(4) The United States of America has rejected the separate and unequal treatment of its citizens on the basis of race as ethically immoral and politically indefensible.

(5) Residents of this state of all races, creeds, and religions regard the policies and practices of apartheid in South Africa, as they do repressive policies and practices in other countries, as repugnant to the principles of individual liberty, social justice, and political and social enfranchisement, which are fundamental to free societies everywhere. The opposition to apartheid reflects the deep and long-standing opposition of the American people to inequality and injustice wherever it may be found.

(6) There has been continued unrest and mounting protests against the policy of apartheid in South Africa, which the South African government has responded to with force.

(7) The continued financial participation in South Africa by business firms and financial institutions encourages that nation to continue its systematic violation of human rights under the apartheid system. The state can effectively motivate the South African government to abolish its policy of apartheid by motivating business firms and financial institutions to end their operations in South Africa until the apartheid system is in fact abolished.

(8) One step the legislature can take to effectively motivate business firms and financial institutions to end their operations in South Africa is by requiring all state agencies to provide a bidding preference to those business firms that are not doing business in South Africa.

NEW SECTION. Sec. 2. A new section is added to chapter 43.19 RCW to read as follows:

The definitions in this section apply throughout sections 2 through 4 of this act.

(1) "State agency" means a governmental entity subject to either RCW 43.19.190(2) or 43.19.1911.

(2) "Business firm" means any organization, association, corporation, partnership, venture, or other entity, its subsidiary, or affiliate which exists for profit making purposes or to otherwise secure economic advantage.

(3) "Director" means the state purchasing and material control director appointed pursuant to RCW 43.19.180.

(4) "Business operations" means the maintenance of equipment, facilities, personnel, or any other apparatus of business or commerce, including the ownership or possession of real or personal property located in a country having an apartheid policy. In determining whether an activity constitutes business operations under this definition, reference may be made to the most recent listing of companies with operations in a country having an apartheid policy as compiled by the Investor Responsibility Research Center, Inc., or other such lists compiled by similar organizations.

(5) "Business arrangements" means projects, ventures, undertakings, contractual relations, or other efforts requiring ongoing or periodic performance by either or both parties.

(6) "Apartheid" means an official policy authorizing the denial of equal voting rights or political, educational, or economic rights on the basis of race. This definition includes only the policies of South Africa and Namibia.

(7) "Government" means both the central government of the referenced country and any instrumentality thereof.

NEW SECTION. Sec. 3. A new section is added to chapter 43.19 RCW to read as follows:

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

A business firm that knowingly makes a false stipulation pursuant to this section shall be liable for liquidated damages in an amount equal to one-half the contract purchase price.

NEW SECTION. Sec. 4. A new section is added to chapter 43.19 RCW to read as follows:

(1) The director shall compile a list no later than January 1, 1988, of business firms that have business operations in a country with an apartheid policy, or business arrangements with the government of such a country. This list shall be updated annually, or more frequently as determined necessary by the director.

(2) For the purpose of determining the lowest responsible bidder pursuant to RCW 43.19.1911, bids or proposals submitted by business firms whose names do not appear on the list promulgated by the director pursuant to subsection (1) of this section shall be awarded a five percent preference.