HOUSE BILL REPORT

HB 1165

BYRepresentatives O'Brien, Ferguson, Winsley, Haugen and Nelson

Establishing a temporary commission of public ports.

House Committe on Trade & Economic Development

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

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

House Staff:Bill Lynch (786-7340)

Rereferred House Committee on Appropriations

Majority Report:  The substitute bill by Committee on Trade & Economic Development be substituted therefor and the substitute bill do pass.  (16)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Appelwick, Belcher, Braddock, Brekke, Bristow, Hine, Peery, Rust, Sayan, Spanel, Sprenkle, Valle and Wineberry.

Minority Report:  Do not pass.  (7)

      Signed by Representatives Silver, Ranking Republican Member; Bowman, Brough, May, McLean, Nealey and Padden.

House Staff:      Susan Nakagawa (786-7136)

AS REPORTED BY COMMITTEE ON APPROPRIATIONS MARCH 4, 1989

BACKGROUND:

The Economic Development Board recommended that the public ports play an increased role in local capacity building.  The board specifically recommended that the ports should provide funding for local associate development organizations, and that ports should increase their cooperative efforts in order to provide a higher level of services.  Services mentioned by the board include the marketing of services of all the state's ports to the rest of the world, assisting Washington businesses to export, providing a pooled bonding capacity for investment purposes, and establishing trade offices throughout the world in cooperation with state government. It is suggested that a temporary task force could help identify areas for increased cooperation among ports, recommend opportunities for contracts between ports and local economic development organizations, identify other cooperative efforts between ports and local associate development organizations, and help implement the recommendations of the Economic Development Board.

SUMMARY:

SUBSTITUTE BILL:  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 to advance the goals and mission of ports and local associate development organizations;

-Measures available to enhance the economic development and trade development mission of ports and local associate development organizations, including the establishment of joint trade offices and joint efforts to assist businesses to export;

-Opportunities to enhance the financial base of ports and local associate development organizations independent of additional taxation measures;

-Opportunities for ports and local associate development organizations to enter into contracts 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 composed of the following 20 members:

-A port commissioner from each of the port districts which are county-wide port districts located in class A or AA counties chosen by the port commissions;

-The executive director of each of the port districts which are county-wide port districts located in class A or AA counties;

-Two port commissioners from other port districts.  One commissioner 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 executive director must be from a port district in eastern Washington and the other commissioner must be from a medium-size port district;

-Two executive directors of local associate development organizations. One of the executive directors must be from eastern Washington;

-Four members from the general public representing business, labor, and community organizations;

-The directors, or the directors' designees, from the Department of Trade and Economic Development and the Department of Community Development; and

-A representative from each of the four legislative caucuses.

The governor designates the chair of the task force and appoints the task force members with the exception of the legislators, agency directors, and representatives from the county-wide port districts in class A or AA counties. 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.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The original measure established a temporary commission to develop recommendations for increasing the efficiency of public port operations.  The commission was directed to review various port activities according to a timetable it would develop as part of a four-year plan. The original measure did not specifically address local capacity building or include involvement of local associate development organizations.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS:  None.

Fiscal Note:      Requested March 1, 1989.

House Committee ‑ Testified For:    (Trade & Economic Development)  Paul Knox, Economic Development Board; Representative John O'Brien, prime sponsor.

(Appropriations)  None Presented.

House Committee - Testified Against:      (Trade & Economic Development)  Don White, Washington Public Ports Association; Pat Davis, Commissioner, Port of Seattle; Steve Sewell, Port of Seattle; John Terpstra, Port of Tacoma; Jack Fabulich, Commissioner, Port of Tacoma; and Jerry Hendricks, Port of Port Angeles.

(Appropriations)  None Presented.

House Committee - Testimony For:    (Trade & Economic Development)  Ports can increase the level of cooperation between themselves. By assisting local associate development organizations in economic development efforts, partnerships are forged.

(Appropriations)  None Presented.

House Committee - Testimony Against:      (Trade & Economic Development)  Port districts are already cooperating with each other in a number of areas.  Ports vary considerably from area to area.  It is difficult to generalize about all ports.

(Appropriations)  None Presented.