FINAL BILL REPORT

SHB 2651

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background:

Port districts are authorized to acquire, construct, maintain, operate, develop, and regulate harbor improvements, and rail, by state law motor vehicle, water and air transfer and terminal facilities, or any combination of these facilities. State law also explicitly permits ports to promote tourism by advertising, publicizing, and distributing information to attract.

Among the general powers granted to ports are the power to: acquire land, property, leases, and easements; condemn property and exercise the power of eminent domain; develop lands for industrial and commercial purposes; impose taxes, rates, and charges; sell or otherwise convey rights to property; and construct and maintain specified types of park and recreation facilities.

Article VII, section 8, of the state Constitution explicitly allows the Legislature to grant authority to port districts to use public funds for industrial development or trade promotion and promotional hosting. Such use is considered a public use for a public purpose and therefore not subject to the constitutional prohibition against making a gift of public funds to a private party.

There is no explicit constitutional or statutory authority for a port district to provide resources to help nonprofit organizations operate job training and placement programs.

Summary:

With respect to the authority of port districts to contract with nonprofit corporations for economic development activities, "economic development programs" may include job training and placement programs, pre-apprenticeship training or educational programs associated with port tenants, customers and local port-related economic development, that are: (1) sponsored by a port; (2) operated by a nonprofit entity; and (3) in existence on the act's effective date. A sponsoring port must require the nonprofit entity to submit to the port annual quantitative information on program outcomes.

Votes on Final Passage:

House	60	37
Senate	43	2