SENATE BILL REPORT

SB 5770

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.

As Reported by Senate Committee On:

Government Operations & Elections, February 17, 2009

Title: An act relating to public notification of industrial development levies by port districts.

Brief Description: Requiring public notification of industrial development levies by port districts.

Sponsors: Senators Kilmer, Benton and Carrell.

Brief History:

Committee Activity: Government Operations & Elections: 2/16/09, 2/17/09 [DP].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS & ELECTIONS

Majority Report: Do pass.

Signed by Senators Fairley, Chair; Oemig, Vice Chair; Roach, Ranking Minority Member; McDermott, Pridemore and Swecker.

Staff: Sharon Swanson (786-7447)

Background: A port commission (commission) has the authority to create industrial development districts (IDD) within the boundary of a port district if the commission determines that the creation of an IDD is proper and desirable in establishing and developing a system of improvements and industrial development in the port district.

Port districts have the authority to enact an IDD levy. An IDD levy is limited to six years and cannot be renewed. Ports are limited to two uses of the six-year IDD levy during the port lifetime. Funds raised through an IDD levy may be used for capital investment and improvements, acquisition and development, environmental work, and debt service within a commission designated IDD for development of port properties and facilities.

This tax levy affects only the port's portion of property taxes, raising it by 45 cents per $1,000 on the assessed value of property located within the port district. The levy averages about $135 annually for a $300,000 property value, or $11.25 per month.

Summary of Bill: A port district, intending to implement a tax under an IDD levy is required to hold a public hearing within 20 days of publication of notice of the intention. Additionally, the commission must provide notice of the public hearing in the official newspaper of record in the county in which the port district is located at least ten days prior to the date of the public hearing.

The notice must clearly state that the port district intends to levy a tax and must contain the date, time, and location of the port district meeting at which the levy will be considered and voted upon.

If the levy is the second and final levy authorized for the IDD, the notice must clearly state that the public may, within 90 days of publication of the notice, gather a petition to submit the levy to the voters of the port district for approval.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony: PRO: This is a good bill that provides notice to voters if their local port district plans to raise a tax. The Committee heard this bill last session and passed the bill out; it made it to the House but we ran out of time.

Persons Testifying: PRO: Senator Kilmer, prime sponsor.