HOUSE BILL REPORT

SSB 5648

As Amended by the House

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Smitherman, Lee, Murray and Vognild)

Authorizing creation of a federation of Washington ports.

House Committe on Trade & Economic Development

Majority Report:  Do pass with amendments.  (9)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member; Kremen, Moyer, Raiter, Rector, Schoon and Youngsman.

Minority Report:  Do not pass.  (3)

      Signed by Representatives Rasmussen, Tate and Walk.

House Staff:Bill Lynch (786-7092)

Rereferred House Committee on Appropriations

Majority Report:  Do pass as amended by Committee on Trade & Economic Development as such amendments are amended by Committee on Appropriations. (16)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Youngsman, Assistant Ranking Minority Member; Appelwick, Brekke, Ferguson, Hine, May, McLean, Nealey, Peery, Spanel, Sprenkle, Valle and Wineberry.

Minority Report:  Do not pass. (4)

      Signed by Representatives Belcher, Bowman, Dorn and Wang.

House Staff:      Susan Nakagawa (786-7136)

AS PASSED HOUSE APRIL 14, 1989

BACKGROUND:

The Washington Public Ports Association is currently employed to:  coordinate programs among the ports; study ways of improving commerce; promote development of transportation and industry throughout the state; act as a clearinghouse for information for the port districts; and serve as a channel for cooperation among the port districts.

Individual port districts may operate trade centers for the promotion of import and export trade.  Individual port districts, except for port districts located in class A or AA counties, may establish export trading companies.  The export trading company law sunsets on July 1, 1991.

The Economic Development Board was established to develop long- range economic development goals.  It has recommended that the ports increase their cooperative efforts between themselves and with local associate development organizations in order to increase local economic development efforts.

SUMMARY:

The Washington Public Ports Association is authorized to establish a federation of Washington ports to strengthen international trading capacities.  Beginning with the 1990 legislative session, the association shall report to the Legislature on progress toward establishing and operating the federation.  The authority to establish and maintain a federation of ports expires on July 1, 1994 and is subject to sunset review.

The sunset review and termination of the Export Trading Company Act is changed from 1991 to 1994.

Both the association and federation are given specific authority to operate trade centers.  Associate development organizations are added to the list of groups with which the association and its member districts are directed to work with on trade centers.

A temporary task force is created to identify increased areas of cooperation available to ports and local associate development organizations to improve coordination, increase efficiency, and to help build local capacity.

The task force is required to study the following:  the feasibility of joint marketing efforts; measures available to enhance the mission of ports and local associate development organizations, including the establishment of joint trade offices; opportunities to enhance the financial base of ports and local associate development organizations independent of additional taxation measures; opportunities to expand the state's air cargo capacity; opportunities to assist local economic development efforts and build local capacity; and other areas which are deemed relevant by the task force.  The task force is prohibited from considering or making recommendations relating to rates, rate setting, or price-fixing by Washington ports or local associate development organizations.

The task force is composed of 20 members:  one commissioner and one executive director from the Ports of Seattle and Tacoma; two commissioners from other ports, one of which must be from a port district in eastern Washington and the other port commissioner must be from a medium-size port district; two executive directors from other port districts, one of which must be from a port district in eastern Washington and the other must be from a medium-size port district; two executive directors of local associate development organizations, one of which must be from eastern Washington; four members from the general public representing business, labor, and community organizations; the directors from the Departments of Trade and Economic Development and Community Development; and a representative from each of the four legislative caucuses.

The Department of Community Development and the Department of Trade and Economic Development are required to furnish staff support to the task force.

The task force is required to report its findings and recommendations to the Legislature by January 1, 1990.  The task force expires on March 1, 1990.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Trade & Economic Development) Senator Bill Smitherman, Prime Sponsor; Bill Stewart, Department of Trade and Economic Development; Don White, Washington Public Ports Association; and Paul Knox, Economic Development Board.

(Appropriations) None Presented.

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

(Appropriations) None Presented.

House Committee - Testimony For:    (Trade & Economic Development) These are opportunities for ports to cooperate further.  It is important to extend the expiration date for the export trading company law.

(Appropriations) None Presented.

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

(Appropriations) None Presented.