HOUSE BILL REPORT

HB 1103

BYRepresentatives Unsoeld and Belcher

Requiring public moorage facility operators to establish port charges which cover costs privately-operated facilities would incur.

House Committe on Trade & Economic Development

Majority Report:  Do pass.  (15)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Beck, Belcher, Cantwell, Grant, Holm, McLean, McMullen, Moyer, Rasmussen, Schoon, B. Williams and J. Williams.

House Staff:Bonnie Austin (786-7107)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

MARCH 5, 1987

BACKGROUND:

Ports and other local governmental units are authorized to own and operate moorage facilities.  Port charges are imposed by public moorage facility operators for moorage and storage of vessels and for other services provided by these facilities.

Some operators of private moorage facilities feel that they suffer a competitive disadvantage as compared to public moorage facilities, because public moorage facility operators can subsidize their operations with local tax dollars.  Operators of private moorage facilities feel that this subsidizing ability leads to unfair competition and that public moorage facility operators should be required to charge moorage fees sufficient to cover the entire cost of their operations.

SUMMARY:

Public moorage facility operators who are established in areas where competition with private moorage facilities exists shall establish port charges.  These port charges shall include complete coverage of all costs normally incurred by private entities providing moorage facilities, including costs of capital assets and improvements, administration and overhead, debt service, legal and accounting fees, and lease payments.

Fiscal Note:      Requested March 6, 1987.

House Committee ‑ Testified For:    Lorna Hink, Jarrell's Cove Marina; Donald Carlson, Fiddlehead Marina; Eileen Cloninger and Alex King, West Bay Marina.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Public ports receive tax revenue from local citizens which can serve to subsidize their moorage operations. This allows then to offer moorage at lower rates than those charge by private marinas.  This is unfair competition.  Ports should be basing their moorage rates upon the actual costs of operation.

House Committee - Testimony Against:      None Presented.