HOUSE BILL REPORT

HB 2401

BYRepresentatives Grant, Brooks, Cantwell and Doty

Increasing limits for associate development organization expenditures.

House Committe on Trade & Economic Development

Majority Report:  Do pass.  (12)

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

House Staff:Paul Leistner (786-7663)

AS PASSED HOUSE FEBRUARY 12, 1990

BACKGROUND:

Port districts, by statute, may only expend funds for promotional hosting from gross operating revenues.  Funds spent on promotional hosting may not exceed the following percentages of gross operating revenues:  (1)  1.00 percent of the first $2,500,000; (2) 0.50 percent of the next $2,500,000; and (3) 0.25 percent of the funds over $5 million.

All ports are allowed to spend up to $2,500 for promotional hosting, even if their gross revenues are less than $250,000.

Currently, there are two port districts in Washington State that serve as Associate Development Organizations (ADOs):  Walla Walla and Clarkston.

SUMMARY:

A port district that has been designated as an Associate Development Organization (ADO) by the state Department of Trade & Economic Development is allowed to spend up to $5,000 on promotional hosting from any funds available to the port, even if the port's gross revenues are less than $500,000.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Scott Taylor, Assistant Director, Washington Public Ports Association.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The Port of Clarkston and the Port of Walla Walla should be able to spend more than $2,500 on hosting because they are also Associate Development Organizations.

House Committee - Testimony Against:      None.