SENATE BILL REPORT

SHB 2635

As Reported By Senate Committee On:

Economic Development, February 20, 2004

Title: An act relating to port districts.

Brief Description: Authorizing port districts to provide limited consulting services.

Sponsors: House Committee on Trade & Economic Development (originally sponsored by Representatives Pettigrew, Skinner, Jarrett, Clibborn, McDonald, Veloria, Anderson, Chase, Morrell and Rockefeller).

Brief History:

Committee Activity: Economic Development: 2/20/04 [DPA].

SENATE COMMITTEE ON ECONOMIC DEVELOPMENT

Majority Report: Do pass as amended.

      Signed by Senators T. Sheldon, Chair; Hale, Murray, B. Sheldon and Shin.

Staff: Jack Brummel (786- 7428)

Background: Washington has the largest locally controlled port system in the world with 76 ports in 33 of the state's 39 counties. The primary purpose of a port district is to promote economic development and they are authorized to acquire, construct, maintain, operate, develop and regulate within the district harbor improvements, rail or motor vehicle transfer and terminal facilities and other commercial transportation, transfer, handling, storage and terminal facilities, and industrial improvements.

The port districts are authorized to levy a tax of up to $0.45 per $1,000 of assessed value on property in the port district. The port district may also generate revenue through the lease or rental of warehouses or office buildings, proceeds from bond sales for capital project construction, and grants and gifts.

Summary of Amended Bill: A port district is authorized to provide consulting services on matters within their statutory jurisdiction only to governments and public agencies. The port district may receive compensation for these consulting services. The port must maintain a roster of firms interested in taking advantage of the opportunities that result from the consultant work. The bill does not authorize direct competition with private business. The act expires July 1, 2008.

Amended Bill Compared to Substitute Bill: The amendment eliminates the provisions requiring a JLARC sunset review and terminates the act on July 1, 2008

Appropriation: None.

Fiscal Note: Available.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: Ports are often asked to provide consultation and this would allow them to recover their costs. This would provide another economic development tool by improving relationships with emerging ports and passing knowledge of new opportunities to Washington businesses.

Testimony Against: None.

Testified: PRO: Representative Pettigrew, prime sponsor; Pat Jones, WA Public Ports Assn; Linda Strout, Port of Seattle; Steve Sewell, Parsons Brinckerhoff; Cliff Webster, American Council of Engineering Companies.