H-3667              _______________________________________________

                                                   HOUSE BILL NO. 1782

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Crane, Amondson, Todd, Vekich, Beck, Dorn, Chandler, Zellinsky, Winsley and Patrick

Read first time 1/25/88 and referred to Committee on Commerce & Labor.

AN ACT Relating to a purchase preference for fuels produced within the state of Washington; adding new sections to chapter 39.24 RCW; and repealing RCW 39.24.020, 39.24.030, 39.24.040, and 39.24.050.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 39.24 RCW to read as follows:

          Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

          (1) "Fuel" means coal or natural gas purchased for use as fuel.

          (2) "In-state" fuel means fuel mined or produced wholly in the state of Washington.

          (3) "Out-of-state" fuel means fuel not mined or produced wholly in the state of Washington.

          (4) "In-state fuel supplier" means a supplier who offers to satisfy the requirements of a purchase contract that is subject to this chapter exclusively with in-state fuel.

          (5) "Out-of-state fuel supplier" means a supplier who offers to satisfy the requirements of a purchase contract that is subject to this chapter partly or entirely with out-of-state fuel.

NEW SECTION. Sec. 2.  A new section is added to chapter 39.24 RCW to read as follows:

          When fuel is purchased by the state of Washington or by any agency, institution, institution of higher education, county, city, town, school district, or other municipal corporation of the state of Washington, the fuel shall be purchased from the in-state fuel supplier offering the lowest price of all  in-state fuel suppliers who bid.  This restriction shall not apply if the lowest price offered by an in-state fuel supplier exceeds by more than six percent the lowest price offered by an out-of-state fuel supplier, after all in-state fuel suppliers who have bid on the contract have been given notice and an opportunity to make new bids at a price within six percent of the out-of-state fuel supplier's offer.

NEW SECTION. Sec. 3.  The following acts or parts of acts are each repealed:

                   (1) Section 1, chapter 179, Laws of 1933, section 1, chapter 164, Laws of 1937 and RCW 39.24.020;

          (2) Section 2, chapter 179, Laws of 1933 and RCW 39.24.030;

          (3) Section 3, chapter 179, Laws of 1933 and RCW 39.24.040; and

          (4) Section 3, chapter 61, Laws of 1982 and RCW 39.24.050.

NEW SECTION. Sec. 4.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.