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, 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; and (c) links among public agencies, associate development organizations, including ports, universities, and industry-oriented organizations must be strengthened in an effort to improve coordination, prevent duplication, and build local capacity.

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 promote cooperative efforts between ports and local associate development organizations to assist local economic development efforts and build local capacity; and

(5) 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.

NEW SECTION. Sec. 9. (1) There is created a temporary task force for purposes of examining cooperative measures available to ports and local associate development organizations to improve coordination and increase efficiency, and examining methods to build local capacity by implementing recommendations contained in the 1989 report of the economic development board.

(2) The task force shall study and make recommendations in the following areas:

(a) The feasibility of joint marketing efforts to advance the goals and mission of ports and local associate development organizations;

(b) 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;

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

(d) Opportunities for ports and local associate development organizations to enter into contracts to assist local economic development efforts and build local capacity; and

(e) Such other areas as the task force determines are relevant to the mission of the task force: PROVIDED, That the task force shall not consider, nor shall its findings or recommendations include, matters relating to rates, rate setting, or price-fixing by Washington ports or local associate development organizations.

(3) The task force shall consist of the following twenty members:

(a) A member of the governing board of each county-wide port district in a class A or AA county selected by the respective port commissions;

(b) The executive director of each county-wide port district in a class A or AA county;

(c) A member of a governing board of a port district which is located east of the Cascade mountains, appointed by the governor;

(d) A member of a governing board of a port district which has an industrial area and a marine terminal, appointed by the governor;

(e) An executive director of a port district which is located east of the Cascade mountains, appointed by the governor;

(f) An executive director of a port district which has an industrial area and a marine terminal, appointed by the governor;

(g) Four members from the general public representing business, labor, and community organizations, appointed by the governor;

(h) Two executive directors of local associate development organizations, one of which is located east of the Cascade mountains, appointed by the governor;

(i) The directors, or the directors' designees, of the department of community development and the department of trade and economic development to serve as nonvoting members; and

(j) A representative from each of the four legislative caucuses. The president of the senate shall appoint the two senate members and the speaker of the house of representatives shall appoint the two house members. The legislators shall serve as nonvoting members.

(4) The governor shall designate the chair of the task force.

(5) The department of trade and economic development and the department of community development shall provide staff assistance as required.

(6) Task force members may be reimbursed for necessary travel expenses in accordance with RCW 43.03.050 and 43.03.060.

(7) The task force shall report its findings and recommendations to the legislature by January 1, 1990.

(8) The task force shall expire on March 1, 1990.

NEW SECTION. Sec. 10. The temporary task force shall also identify opportunities to expand the state's air cargo capacity by identifying air cargo trends worldwide, identifying existing, planned, and potential air cargo capabilities and facilities in the state, analyzing the economic feasibility of planned and potential air cargo facilities with respect to transport shipping costs, and developing alternative policies for state and local government action to help ensure Washington remains competitive with respect to air cargo facilities.

NEW SECTION. Sec. 11. Nothing in section 9 or 10 of this act shall be construed to limit or impinge upon the autonomy of port districts.

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.