BILL REQ. #:  S-4121.1 

Read first time 01/21/08.   Referred to Committee on Economic Development, Trade & Management.

     AN ACT Relating to encouraging private investment in port terminal facilities with tax incentives to local governments; adding a new section to chapter 82.32 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that port terminal infrastructure has traditionally been financed through taxpayer funded public investments. However, the legislature further finds that alternative port terminal financing arrangements that utilize private investments are becoming more common.
     The legislature further recognizes that many proposed port terminal projects in Washington state are never developed because public financing is not feasible. The legislature believes that if private financing was available, many of the proposed projects would move forward bringing new jobs and industries to Washington state.
     The purpose of this act is to further develop Washington state's shipping and freight industry by encouraging private investment in port terminal facilities.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.32 RCW to read as follows:
     (1) Subject to the requirements of this section, the estimated taxes collected under chapters 82.08 and 82.12 RCW on the sale or use of tangible personal property and labor and services used in the construction of a qualified port terminal, less any credits allowed for local governments, shall be distributed to a county or city within which a qualified port terminal is located.
     (2) To receive distributions under this section, the city or county must:
     (a) Submit an application to the department of community, trade, and economic development prior to the initiation of construction of the port terminal. The application shall be in a form and manner required by the department of community, trade, and economic development, but must include information that verifies that: (i) The construction of the port terminal is reasonably estimated to exceed one hundred fifty million dollars; and (ii) the date construction of the port terminal is expected to be completed. The department of community, trade, and economic development shall rule on the application within forty-five days;
     (b) Submit an expenditure plan to the department of community, trade, and economic development within one hundred twenty days of the submittal of the application under (a) of this subsection. The plan must be developed in consultation with any port authorities, tribal governments, or other local governments in close proximity to the proposed project as well as private entities involved with the qualified port terminal's development and operation. The plan must specify the use of funds distributed under this section, subject to (c) of this subsection. The department of community, trade, and economic development shall notify the city or county of any deficiencies in the expenditure plan within ninety days of the plan's submittal;
     (c) Use any distributions under this section exclusively for public infrastructure needs related to the qualified port terminal including, but not limited to: Street and road construction necessary to access and service the new terminal; rail construction necessary to access and service the new terminal; water and sewer system construction; construction of facilities for emergency services; construction of storm water and drainage management systems; and environmental impact mitigation.
     (3) The department of revenue shall distribute funds under this section annually at no cost to the city or county receiving such funds. Funds shall be distributed to a city or county by July 1st of each year, beginning in the state fiscal year following the fiscal year in which initiation of construction of the port terminal begins. The department of revenue may not distribute funds under this section for constructing occurring after the date of completion specified in subsection (2)(a)(ii) of this section has elapsed; however, the department of revenue, in consultation with the department of community, trade, and economic development, may extend the date of completion for good cause shown.
     (4) The definitions in this subsection apply to this section.
     (a) "Port terminal" means a facility for cargo related maritime activities.
     (b) "Qualified port terminal" means a port terminal constructed after the effective date of this act that is reasonably estimated to cost over one hundred fifty million dollars to construct.