S-1936               _______________________________________________

 

                                         SUBSTITUTE SENATE BILL NO. 5648

                        _______________________________________________

 

State of Washington                               51st Legislature                              1989 Regular Session

 

By Senate Committee on Economic Development & Labor (originally sponsored by Senators Smitherman, Lee, Murray and Vognild)

 

 

Read first time 2/27/89.

 

 


AN ACT Relating to creation of a federation of Washington ports; amending RCW 53.06.020, 53.06.030, 53.29.010, 53.29.020, 53.29.030, 53.29.900, 53.31.010, 53.31.020, and 53.31.900; adding a new section to chapter 53.06 RCW; and creating new sections.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

          NEW SECTION.  Sec. 1.     The legislature finds:  (1) That the continuous development of Washington's ports should be a long-term goal for the state of Washington; (2) that Washington's ports are a valuable economic development resource, whose strength as a combined, coordinated entity for the purpose of trade and tourism development would far exceed their individual strength's in those areas; and (3) that, therefore, the ports should work together as a federation, coordinating their efforts further still with other public entities as well as the private sector.

          The legislature concurs with the 1989 report of the economic development board on a long-term economic development strategy for Washington state as follows:  (a) Competition for tourism dollars, as well as dollars to purchase Washington's goods and services, is global in nature and to compete, the state must identify its unique market niches, and market its trade, travel, and tourism assets aggressively; (b) the ports of the state of Washington are an integral part of the technological and physical infrastructure needed to help the state compete in the international marketplace; (c) links among public agencies, associate development organizations, including ports, universities, and industry-oriented organizations must be strengthened in an effort to improve coordination and prevent duplication; and (d) a determination needs to be made on the long-term international competitiveness and best use of each Washington port in order to maximize long-term value and capacity utilization.

 

          NEW SECTION.  Sec. 2.  A new section is added to chapter 53.06 RCW to read as follows:

          The Washington public ports association is authorized to create a federation of Washington ports to enable member ports to strengthen their international trading capabilities and market the region's products worldwide.  Such a federation shall maintain the authority of individual ports and have the following purposes:

          (1) To operate as an export trading company under the provisions enumerated in chapter 53.31 RCW;

          (2) To provide a network to market the services of the members of the Washington public ports association;

          (3) To provide expertise and assistance to businesses interested in export markets;

          (4) To assist in the efficient marketing of the state's trade, tourism, and travel resources.

          This section shall expire July 1, 1994, and shall be subject to review under chapter 43.131 RCW.

 

        Sec. 3.  Section 2, chapter 31, Laws of 1961 and RCW 53.06.020 are each amended to read as follows:

          It shall be the duty of the port district commissions in the state to take such action to effect the coordination of the administrative programs and operations of each port district in the state and to submit to the governor and the legislature biennially a joint report or joint reports containing the recommendations for procedural changes which would increase the efficiency of the respective port districts.  Beginning with the 1990 legislative session, the association shall report on steps being taken to establish a federation of Washington ports pursuant to section 2 of this 1989 act.

 

        Sec. 4.  Section 3, chapter 31, Laws of 1961 and RCW 53.06.030 are each amended to read as follows:

          The port district commissions in this state are empowered to designate the Washington public ports association as a coordinating agency through which the duties imposed by RCW 53.06.020 may be performed, harmonized or correlated.  The purposes of the Washington public ports association shall be:

          (1) To initiate and carry on the necessary studies, investigations and surveys required for the proper development and improvement of the commerce and business generally common to all port districts, and to assemble and analyze the data thus obtained and to cooperate with the state of Washington, port districts both within and without the state of Washington, and other operators of terminal and transportation facilities for this purpose, and to make such expenditures as are necessary for these purposes, including the proper promotion and advertising of all such properties, utilities and facilities;

          (2) To establish coordinating and joint marketing bodies comprised of association members, including but not limited to establishment of a federation of Washington ports as described in section 2 of this 1989 act, as may be necessary to provide effective and efficient marketing of the state's trade, tourism, and travel resources;

          (3) To exchange information relative to port construction, maintenance, operation, administration and management;

          (((3))) (4) To promote and encourage port development along sound economic lines;

          (((4))) (5) To promote and encourage the development of transportation, commerce and industry;

          (((5))) (6) To operate as a clearing house for information, public relations and liaison for the port districts of the state and to serve as a channel for cooperation among the various port districts and for the assembly and presentation of information relating to the needs and requirements of port districts to the public.

 

        Sec. 5.  Section 1, chapter 56, Laws of 1967 and RCW 53.29.010 are each amended to read as follows:

          It is declared to be the finding of the legislature of the state of Washington that:

          (1) The servicing functions and activities connected with the oceanborne and overseas airborne trade and commerce of port districts, including customs clearance, shipping negotiations, cargo routing, freight forwarding, financing, insurance arrangements and other similar transactions which are presently performed in various, scattered locations in the districts should be centralized to provide for more efficient and economical transportation of persons and more efficient and economical facilities for the exchange and buying, selling and transportation of commodities and other property in world trade and commerce;

          (2) Unification, at a single, centrally located site of a facility of commerce, i.e., a trade center, accommodating the functions and activities described in subsection (1) of this section and the appropriate governmental, administrative and other services connected with or incidental to transportation of persons and property and the promotion and protection of port commerce, and providing a central locale for exhibiting, and otherwise promoting the exchange and buying and selling of commodities and property in world trade and commerce, will materially assist in preserving the material and other benefits of a prosperous port community;

          (3) The undertaking of the aforesaid unified trade center project by a port district or the Washington public ports association has the single object of preserving, and will aid in the promotion and preservation of, the economic well-being of ((the)) port districts and the state of Washington and is found and determined to be a public purpose.

 

        Sec. 6.  Section 2, chapter 56, Laws of 1967 and RCW 53.29.020 are each amended to read as follows:

          In addition to all other powers granted to port districts, any such district, the Washington public ports association, or the federation of Washington ports as described in section 2 of this 1989 act may acquire, as provided for other port properties in RCW 53.08.010, construct, develop, operate and maintain all land or other property interests, buildings, structures or other improvements necessary to provide a trade center including but not limited to:

          (1) A facility consisting of one or more structures, improvements and areas for the centralized accommodation of public and private agencies, persons and facilities in order to afford improved service to waterborne and airborne import and export trade and commerce;

          (2) Facilities for the promotion of such import and export trade and commerce, inspection, testing, display and appraisal facilities, foreign trade zones, terminal and transportation facilities, office meeting rooms, auditoriums, libraries, language translation services, storage, warehouse, marketing and exhibition facilities, facilities for federal, state, county and other municipal and governmental agencies providing services relating to the foregoing and including, but not being limited to, customs houses and customs stores, and other incidental facilities and accommodations.

 

        Sec. 7.  Section 3, chapter 56, Laws of 1967 and RCW 53.29.030 are each amended to read as follows:

          (1) In carrying out the powers authorized by this chapter and chapter 53.06 RCW, port districts and the Washington public ports association are authorized to cooperate and act jointly with other public and private agencies, including, but not limited to the federal government, the state, other ports and municipal corporations, other states and their political subdivisions, and private nonprofit trade promotion groups and associate development organizations.

          (2) Port districts operating trade center buildings or operating association or federation trade centers, shall pay an annual service fee to the county treasurer wherein the center is located for municipal services rendered to the trade center building.  The measure of such service fee shall be equal to three percent of the gross rentals received from the nongovernmental tenants of such trade center building.  Such proceeds shall be distributed by the county treasurer as follows:  Forty percent to the school district, forty percent to the city, and twenty percent to the county wherein the center is located:  PROVIDED, That if the center is located in an unincorporated area, twenty percent shall be allocated to the fire district, forty percent to the school district, and forty percent to the county.

 

        Sec. 8.  Section 4, chapter 56, Laws of 1967 and RCW 53.29.900 are each amended to read as follows:

          This chapter, which may be known and cited as the "Trade Center Act", shall be liberally construed, its purpose being to provide port districts, and their related association and federation, with additional powers to provide trade centers and to promote and encourage trade, tourism, travel, and economic development in a coordinated and efficient manner through the ports of the state of Washington.  The powers herein granted shall be in addition to all others granted to port districts.

 

        Sec. 9.  Section 1, chapter 276, Laws of 1986 and RCW 53.31.010 are each amended to read as follows:

          It is declared to be the public policy of the state to promote and preserve the economic well-being of the citizens of this state by creating opportunities for expanded participation in international trade by state businesses and expanding international trade through state ports.  Increased international trade of state products creates and retains jobs, increases the state's tax base, and diversifies the state's economy.  Port districts, through economies of scale, are uniquely situated to promote and expand international trade and provide greater opportunities for state businesses to participate in international trade.

          The legislature finds that significant public benefit, in the form of increased employment and tax revenues, can be realized through export trading companies without lending the credit of port districts, and without capital investment of public funds by port districts.  The legislature finds that the use of port district funds to promote and establish export trading companies under this chapter constitutes trade promotion and industrial development within the meaning of Article VIII, section 8 of the state Constitution.

          It is the purpose of this chapter:  (1) To stimulate greater participation by private businesses in international trade; (2) to authorize port districts and the federation of Washington ports to promote and facilitate international trade more actively; (3) to make export services more widely available; (4) to generate revenue for port districts and the federation of Washington ports; and (5) to develop markets for Washington state goods and services.  Port and federation of Washington ports sponsored export trading companies can also assist small to medium-sized companies in achieving economies of scale in order to expand into the export market.

          It is the intent of this chapter to enhance export trade and not to create outside competition for existing Washington state businesses.  The primary intent of a port and federation of Washington ports sponsored export trading company is to increase exports of Washington state products.

          This chapter shall not be construed as modifying or restricting any other powers granted to port districts by law.  The legislature does not intend by the enactment of this chapter for port districts to use export trading companies to create unfair competition with private business.

 

        Sec. 10.  Section 2, chapter 276, Laws of 1986 and RCW 53.31.020 are each amended to read as follows:

          Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

          (1) "Port district" means any port district other than a county-wide port district in a class A or AA county, established under Title 53 RCW; except that a class A or AA county port district may participate in an export trading company established by the federation of Washington ports as described in chapter 53.06 RCW.

          (2) "Export services" means the following services when provided in order to facilitate the export of goods or services through Washington ports:  International market research, promotion, consulting, marketing, legal assistance, trade documentation, communication and processing of foreign orders to and for exporters and foreign purchasers, financing, and contracting or arranging for transportation, insurance, warehousing, foreign exchange, and freight forwarding.

          (3) "Export trading company" means an entity created by a port district  under RCW 53.31.040.

          (4) "Obligations" means bonds, notes, securities, or other obligations or evidences of indebtedness.

          (5) "Person" means any natural person, firm, partnership, association, private or public corporation, or governmental entity.

          (6) "Federation of Washington ports" means the cooperative marketing organization created by the Washington public ports association pursuant to section 2 of this 1989 act, and comprised of its members.

 

          NEW SECTION.  Sec. 11.    The department of trade and economic development shall provide to the Washington public ports association the necessary resources to carry out this act.

 

          NEW SECTION.  Sec. 12.    If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 

        Sec. 13.  Section 10, chapter 276, Laws of 1986 and RCW 53.31.900 are each amended to read as follows:

          This chapter shall expire July 1, ((1991)) 1994, and shall be subject to review under chapter 43.131 RCW.