SENATE BILL REPORT

HB 2401

BYRepresentatives Grant, Brooks, Cantwell and Doty

Increasing limits for associate development organization expenditures.

House Committe on Trade & Economic Development

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 22, 1990

Senate Staff:Jack Brummel (786-7428)

AS OF FEBRUARY 20, 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 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 and 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.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested