BILL REQ. #:  H-0464.2 

Read first time 03/23/11.   Referred to Committee on Local Government.

     AN ACT Relating to port districts; amending RCW 53.47.020 and 53.36.020; adding a new section to chapter 53.36 RCW; adding a new section to chapter 77.55 RCW; adding a new section to chapter 82.04 RCW; adding new sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; adding a new section to chapter 82.16 RCW; adding a new section to chapter 35.21 RCW; adding a new section to chapter 82.29A RCW; adding a new section to chapter 84.36 RCW; adding a new section to chapter 43.33A RCW; adding new chapters to Title 53 RCW; creating new sections; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 101   LEGISLATIVE INTENT. The legislature finds that a well-developed and maintained, effectively managed, and market-competitive freight transportation port infrastructure is essential to the long-term economic prosperity of the state and its citizens in a global economy. The legislature further finds that integrated capital facilities investment, global marketing, and operational management generate operating efficiencies and economies of scale that provide the best value to taxpayers. It is the intent of the legislature that a Puget Sound port authority meet and exceed the operational productivity and financial performance metrics of global and domestic peer ports.

NEW SECTION.  Sec. 201   FORMATION. A port district located in a county with a population of one million five hundred thousand persons or more and any port district located in an adjoining county with a population of over five hundred thousand persons must establish the Puget Sound port authority within one year of the effective date of this section.

NEW SECTION.  Sec. 202   GOVERNANCE. (1) A board of commissioners consisting of eleven nonpartisan commissioners must govern the Puget Sound port authority.
     (2) Commissioners are elected and apportioned as follows:
     (a) Six commissioners apportioned to six geographical districts and elected on a nonpartisan basis. Each commissioner representing a district must be a registered voter residing within that district. Initial apportionment and establishment of district lines must be determined by the county auditors located within the authority within thirty days of the formation of the Puget Sound port authority according to the requirements in (c) of this subsection. Subsequent reapportionment and drawing of district lines must be conducted by the county auditors located within the authority;
     (b) Five commissioners appointed by the governor with the consent of the senate. The governor's appointments shall include individuals who have relevant expertise in international trade, marketing, freight transportation design, construction, operation, and maintenance; and
     (c) At least two districts must be located primarily in each county. Each district must contain a population, excluding nonresident military personnel, as equal as practicable to the population of any other district. To a reasonable extent, each district must contain contiguous territory, be compact, and be convenient.
     (3) Commissioners, including those appointed by the governor, shall serve six-year terms of office, except that two of the initially elected commissioners representing a district shall serve a two-year term of office and two of the initially elected commissioners representing a district shall serve four-year terms. The governor shall designate which districts have commissioners that serve two-year, four-year, and six-year terms. The first election for commissioners must be held at the general election following the formation of the Puget Sound port authority, consistent with Title 29A RCW.
     (4) The commissioners shall: Organize, by the election of its own members, a president and secretary; by resolution, adopt rules governing the transaction of its business; and adopt an official seal. Only an elected commissioner may serve as president or secretary. All proceedings of the Puget Sound port authority commission shall be by motion or resolution recorded in a book or books kept for such purpose, which shall be public records.
     (5) Vacancies in positions appointed by the governor must be filled by appointment of the governor. Vacancies in elected positions must be filled by a person approved by a majority of the remaining commissioners who shall serve until the vacancy is filled at the next general election held more than one hundred eighty days after the date the vacancy is filled on an interim basis. The person appointed to fill a vacancy shall serve for the remainder of the unexpired term of the office to which he or she was appointed.
     (6) If a commissioner is appointed by the governor, the governor may only reappoint a commissioner to one additional six-year term of office.

NEW SECTION.  Sec. 203   POWERS AND PURPOSES. A Puget Sound port authority is hereby granted all powers and purposes consistent with those in this title as now or hereafter amended.

NEW SECTION.  Sec. 204   DISSOLUTION OF PORT DISTRICTS WITHIN THE PUGET SOUND PORT AUTHORITY. After establishment of the Puget Sound port authority under section 201 of this act, any port district located within the boundaries of the Puget Sound port authority shall be dissolved pursuant to the applicable provisions of chapter 53.47 RCW.

Sec. 205   RCW 53.47.020 and 1971 ex.s. c 162 s 2 are each amended to read as follows:
     A port district shall be deemed inactive if, at the time of the filing of the petition for dissolution with the clerk of the superior court of the county in which such port district is situated, such port has failed to comply with ((subdivision)) subsection (1), (2), ((or)) (3), or (4) of this section.
     (1) The port district has failed to file its budget with the board of county commissioners or, in the case of home rule charters, the appropriate governing body for the two fiscal years immediately preceding the date of filing such petition, and the port district, having been in existence for two years or more, has failed to adopt its comprehensive plan of harbor improvement and/or industrial development as provided by statute, and does not presently own or has not leased within two years prior to the filing of such petition, real property for use for port purposes.
     (2) The port district does not presently own or has not leased or owned real property for use for port purposes within the four calendar years prior to the filing of such petition.
     (3) The port district has not filed its budget with the board of county commissioners or, in the case of home rule charters, the appropriate governing body for the two fiscal years immediately preceding the filing of said petition has not adopted its comprehensive plan of harbor improvement and/or industrial development as provided by statute, and has not met with a legal quorum at least twice in the last two calendar years prior to the filing of such petition.
     (4) The port district is located within the boundaries of the Puget Sound port authority established under section 201 of this act.

NEW SECTION.  Sec. 206   COMMISSIONER COMPENSATION. Each commissioner shall receive an annual salary equal to the annual salary of a county councilmember located in a county with a population of one million five hundred thousand persons or more. A commissioner may waive all or a portion of his or her compensation under this section during his or her term of office, by a written waiver filed with the secretary of the commission.

NEW SECTION.  Sec. 207   CONSOLIDATION OF OVERSEAS OFFICES. A Puget Sound port authority shall coordinate with the overseas trade offices within the department of community, trade, and economic development and establish a plan to consolidate trade offices with the Puget Sound port authority.

NEW SECTION.  Sec. 208   REPORT TO THE GOVERNOR AND LEGISLATURE. Within one year of the effective date of this section, the Puget Sound port authority shall submit to the governor and legislature a plan detailing how the authority will significantly enhance Washington state's global marine, air, and rail freight transportation competitiveness with other global and domestic ports and increase international trade commerce providing broad economic benefits to the citizens of the state. The plan shall include, but is not limited to, the following elements:
     (1) An integrated and consolidated management and operations reorganization plan to be implemented in a phased manner over five years. The management and operations reorganization plan must include specific actions and clearly measurable fiscal metrics;
     (2) How the authority will maximize and expand freight transportation capital facilities to significantly increase global marine, air, and rail freight transportation infrastructure capacity, including a fifty-year investment funding plan to support such investments. The authority must include the evaluation and application of environmental technologies and practices to mitigate potential adverse impacts. The joint legislative audit and review committee and the Puget Sound port authority shall jointly collaborate to develop performance metrics to assess capital facilities utilization and productivity;
     (3) A strategic global marketing plan to increase global and domestic market share for North American markets for both inbound and outbound global freight transportation traffic volume and commodity dollar value, including clearly identifiable targeted markets and market penetration performance goals and metrics;
     (4) The capital facilities investment plan and the strategic global marketing plan shall identify and take into consideration existing global freight transportation and marketing assets located in Washington and located across the greater binational Pacific Northwest economic region including, but not limited to, collaboration with the port authorities of the Canadian province of British Columbia.

NEW SECTION.  Sec. 301   TREASURER. (1) A Puget Sound port authority, by resolution, shall designate a person with experience in financial or fiscal matters as treasurer of the authority. The commission may designate the treasurer of any county within which the authority is located to act as its treasurer. The designated treasurer has all of the powers, responsibilities, and duties the county treasurer has related to investing surplus funds. The authority shall require a bond with a surety company authorized to do business in this state in an amount and under the terms and conditions the authority, by resolution, from time to time finds will protect the authority against loss. The authority shall pay the premium on the bond.
     (2) If the treasurer of the authority is also the treasurer of a county, all authority funds must be deposited with a county depository under the same restrictions, contracts, and security as provided for county depositories. If the treasurer of the authority is not the treasurer of a county, all funds must be deposited in a bank or banks that are authorized to do business in this state and are qualified for insured deposits under any federal deposit insurance act as the authority, by resolution, designates, or funds shall be invested in legal investments for counties.
     (3) The authority may provide and require a reasonable bond of any other person handling money or securities of the authority, but the authority shall pay the premium on the bond.

NEW SECTION.  Sec. 302   TAX LEVY--LIMITATION. The Puget Sound port authority may raise revenue by levy of an annual tax not to exceed forty-five cents per thousand dollars of assessed value against the assessed valuation of the taxable property in the authority boundaries. Any levy collected under this section shall be used solely for capital improvements and no levy revenue may be used for operations of the authority. The levy shall be made and taxes collected in the manner provided for the levy and collection of taxes in school districts of the first class.

NEW SECTION.  Sec. 303   PAYMENT OF CLAIMS--USE OF WARRANTS AND CHECKS. The Puget Sound port authority that acts as its own treasurer as provided in section 301 of this act may by resolution adopt a policy for the payment of claims or other obligations of the authority, which are payable out of solvent funds, electing either to pay obligations by warrant or by check. However, no check shall be issued when the applicable fund is not solvent at the time payment is ordered, but a warrant shall be issued instead. When checks are to be used, the commission shall designate the qualified public depository where checks are to be drawn, and the officers authorized or required to sign checks. Wherever in this title reference is made to warrants, the term includes checks authorized by this section.

NEW SECTION.  Sec. 304   INDEBTEDNESS--LIMITATION. (1) The Puget Sound port authority may at any time contract indebtedness or borrow money for authority purposes and may issue general obligation bonds therefor not exceeding an amount, together with any existing indebtedness of the authority not authorized by the voters, of one-fourth of one percent of the value of the taxable property in the district.
     (2) With the assent of three-fifths of the voters voting thereon at a general or special port authority election called for that purpose, the Puget Sound port authority may contract indebtedness or borrow money for authority purposes and may issue general obligation bonds therefor provided the total indebtedness of the authority at any such time shall not exceed three-fourths of one percent of the value of the taxable property in the authority.
     (3) Any port district may issue general district bonds evidencing any indebtedness, payable at any time not exceeding fifty years from the date of the bonds. Any contract for indebtedness or borrowed money authorized by RCW 53.36.030(1)(b) shall not exceed twenty-five years. The bonds shall be issued and sold in accordance with chapter 39.46 RCW.
     (4) Elections required under this section shall be held as provided in RCW 39.36.050.
     (5) This section does not apply to a loan made under a loan agreement under chapter 39.69 RCW, and a computation of indebtedness under this chapter must exclude the amount of a loan under such a loan agreement.

NEW SECTION.  Sec. 305   (1) The Puget Sound port authority is hereby authorized, prior to the receipt of taxes raised by levy, to borrow money or issue the warrants of the authority in anticipation of the revenues to be derived by such authority and such warrants shall be redeemed from the first money available from such taxes when collected. Such warrants may be in any form, including bearer warrants or registered warrants as provided in RCW 39.46.030.
     (2) Notwithstanding subsection (1) of this section, such warrants may be issued and sold in accordance with chapter 39.46 RCW.

NEW SECTION.  Sec. 306   The designated treasurer acting as Puget Sound port authority treasurer shall create a fund to be known as the "Puget Sound port authority fund," into which shall be paid all money received by him or her from the collection of taxes in behalf of such port authority, and shall also maintain such other special funds as may be created by the commission into which shall be placed such moneys as the commission may by its resolution direct. All such port authority funds shall be deposited with the county depositories under the same restrictions, contracts, and security as is provided by statute for county depositories and all interest collected on such port authority funds shall belong to the Puget Sound port authority and shall be deposited to its credit in the proper authority funds: PROVIDED, That any portion of such authority moneys determined by the commission to be in excess of the current needs of the authority may be invested by the county treasurer in accordance with RCW 36.29.020 and 36.29.022 and chapter 39.59 RCW, and all interest collected thereon shall likewise belong to the authority and shall be deposited to its credit in the proper authority funds.

NEW SECTION.  Sec. 307   The commission of the Puget Sound port authority may, by resolution, create an incidental expense fund in such amount as the commission may direct. Such incidental expense fund may be kept and maintained in a bank or banks designated in the resolution creating the fund, and such depository shall be required to give bonds or securities to the authority for the protection of such incidental expense fund, in the full amount of the fund authorized by the resolution. Vouchers shall be drawn to reimburse said incidental expense fund and such vouchers shall be approved by the commission. Transient labor, freight, express, cartage, postage, petty supplies, and minor expenses of the authority may be paid from said incidental expense fund and all such disbursements therefrom shall be by check of the authority auditor or such other officer as the commission shall by resolution direct. All expenditures from said incidental expense fund shall be covered by vouchers drawn by the authority auditor and approved by the manager or such other officer of the authority as the commission may by resolution direct. The officer disbursing said fund shall be required to give bond to the authority in the full authorized amount of the incidental expense fund for the faithful performance of his or her duties in connection with the disbursement of moneys from such fund.

NEW SECTION.  Sec. 401   A new section is added to chapter 53.36 RCW to read as follows:
     (1)(a) Each port district or a port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act) with annual property tax collections of one million dollars or greater must annually transfer seven percent of its gross operating revenues, excluding revenues derived from any property tax levy, to school districts as provided by this section.
     (b) For the purposes of this section, "gross operating revenues" has the same meaning as defined by RCW 53.12.005.
     (2)(a) A school district is eligible to receive the transferred funds as provided by this section if the school district includes within its jurisdiction, territory that is also within the jurisdiction of the port district or a port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).
     (b) The amount of funds an eligible school district may receive from a port district must be proportionate and must be determined by:
     (i) The total number of school district pupils that reside within the jurisdiction of the port district or a port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act); and
     (ii) The total number of school district pupils that reside within the jurisdiction of the port district or a port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act) from each school district.

NEW SECTION.  Sec. 402   For the purposes of this chapter, "port authority" means the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).

NEW SECTION.  Sec. 403   (1) The department of ecology and the department of fish and wildlife must, for port district or port authority property and railway corridors as provided by section 406 of this act, delegate, to the maximum extent consistent with federal law, all environmental permitting authority currently exercised by these agencies, including, but not limited to, chapters 90.48, 90.58, and 77.55 RCW, to each port district or port authority. The department of ecology and the department of fish and wildlife must delegate authority by certifying port commissions to self-permit with regard to all state environmental permits currently issued, approved, or consulted upon by the department of ecology and the department of fish and wildlife.
     (2) As part of a port district's or port authority's self-permitting process, a port commission must, before issuing the final permit for a project on port district property or a railway corridor as provided by section 406 of this act, send a draft copy of the permit to both the department of ecology and the department of fish and wildlife for review and comment. The departments of ecology and fish and wildlife must limit their comments to whether the port commission has complied with the environmental standards the departments are otherwise required to enforce when exercising permitting authority for projects not on port district property, port authority property, or a railway corridor as provided by section 406 of this act. The departments of ecology and fish and wildlife have thirty days to review and comment on the draft permit.

NEW SECTION.  Sec. 404   (1) Upon the certification provided for by section 403 of this act, port districts and port authorities are exempt from obtaining any permit issued by a county, city, or town, regarding projects conducted on port district property, port authority property, or a railway corridor as provided by section 406 of this act, but not limited to, any permit issued under chapter 90.58 RCW, any permit related to regulation of critical areas under chapter 36.70A RCW, and any permit required for filling, grading, building, or construction, or any other permit required for a project that would otherwise be issued under a local ordinance meeting the definition of a development regulation under chapter 35.63, 35A.63, 36.70, 36.70A, or 36.70B RCW. Nothing in this section may be construed as discouraging full and appropriate cooperation and consultation between port districts or a port authority and local governments for projects conducted on port district property or a railway corridor as provided by section 406 of this act.
     (2) For projects subject to the provisions of chapter 43.21C RCW, the port district must serve as the lead entity for all review required under chapter 43.21C RCW. Nothing in this section may be construed as limiting the ability of local governments to participate in the process as provided for in chapter 43.21C RCW.
     (3) In addition to local government participation in the process provided for in chapter 43.21C RCW, and as part of the self-permitting process set forth in this chapter, the port district or port authority must, before issuing the final permit for a project on port district property, port authority property, or a railway corridor as provided by section 406 of this act, send a draft copy of the permit to each local government in whose jurisdiction the project is being constructed for review and comment. Each local government has thirty days to review and comment on the draft permit.

NEW SECTION.  Sec. 405   The department of ecology and the department of fish and wildlife may conduct inspections of projects conducted on port district property, port authority property, or a railway corridor as provided by section 406 of this act where a port district has issued permits under authority delegated by the department of ecology or the department of fish and wildlife. If an inspector from the department of ecology or the department of fish and wildlife discovers an example of substantial noncompliance with the environmental standards the departments are otherwise required to enforce when exercising permitting authority for projects not on port district property, port authority property, or a railway corridor as provided by section 406 of this act, the inspector must document that example and issue a detailed report of that example, which must be transmitted to the port district or port authority that issued the permits. The port district or port authority may issue a formal response to the report addressing whether it believes that the port district, its tenants, or a railway company as provided by section 406 of this act failed to substantially comply with the environmental standards the departments are otherwise required to enforce when exercising permitting authority for projects not on port district or port authority property.

NEW SECTION.  Sec. 406   (1) Any port district or port authority may, at the request of a railroad company operating a class I railroad in the state of Washington, serve as the permitting authority for any mainline railway infrastructure project conducted in a railway corridor.
     (2) Any port district or port authority acting as a permitting authority for any qualifying project in a railway corridor must comply with the requirements of sections 403 through 405 of this act that are otherwise required for projects conducted on port district or port authority property.

NEW SECTION.  Sec. 407   A new section is added to chapter 77.55 RCW to read as follows:
     Where the department of fish and wildlife has delegated hydraulic project permit approval authority contained in this chapter to port districts under chapter 53.--- RCW (the new chapter created in section 503 of this act) or the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act), port districts or the port authority will be substituted for the department of fish and wildlife in an appeal of the approval of a permit concerning a hydraulic project that is on port district property or a railway corridor as provided by section 406 of this act. The appeal process for the permits issued by a port district or port authority under authority delegated by the department of fish and wildlife will operate in the same manner as for permits granted by the department of fish and wildlife under this chapter.

NEW SECTION.  Sec. 408   A new section is added to chapter 82.04 RCW to read as follows:
     (1) This chapter does not apply to a port located business.
     (2) Any person maintaining places of business both on and off port district property that contribute to the business activity must, for the purpose of computing this tax exemption, apportion to this exemption that portion of gross income which is derived from activities rendered from the business location located on port district or port authority property.
     (3) Where the apportionment cannot be accurately made by separate accounting methods, the taxpayer must apportion to this exemption that proportion of total income which the cost of doing business on the port property bears to the total cost of doing business within the state.
     (4) For the purposes of this section:
     (a) "Port located business" means a business whose place of business is located on property owned by a port district or port authority and rented or leased to the business. A port located business includes a port district or port authority.
     (b) "Port authority" means the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).

NEW SECTION.  Sec. 409   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of tangible personal property or services to a port located business when the tangible personal property or services are used exclusively at the business's location on port owned property.
     (2) For the purposes of this section:
     (a) "Port located business" has the same meaning as provided in section 408 of this act.
     (b) "Port authority" means the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).

NEW SECTION.  Sec. 410   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply to the use of tangible personal property or services by a port located business when the tangible personal property or services are used exclusively at the business's location on port owned property.
     (2) For the purposes of this section:
     (a) "Port located business" has the same meaning as provided in section 408 of this act.
     (b) "Port authority" means the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).

NEW SECTION.  Sec. 411   A new section is added to chapter 82.16 RCW to read as follows:
     (1) The provisions of this chapter do not apply to amounts received from sales to port located businesses.
     (2) For the purposes of this section:
     (a) "Port located business" has the same meaning as provided in section 408 of this act.
     (b) "Port authority" means the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).

NEW SECTION.  Sec. 412   A new section is added to chapter 35.21 RCW to read as follows:
     (1) A city or town may not impose a tax on amounts received by a port located business.
     (2) For the purposes of this section:
     (a) "Port located business" has the same meaning as provided in section 408 of this act.
     (b) "Port authority" means the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).

NEW SECTION.  Sec. 413   A new section is added to chapter 82.29A RCW to read as follows:
     (1) All leasehold interests in property of port districts and port authorities are exempt from tax under this chapter.
     (2) "Port authority" means the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).

NEW SECTION.  Sec. 414   A new section is added to chapter 84.36 RCW to read as follows:
     (1) The personal property of a port located business which is used by the business exclusively at the business's location on port owned property is exempt from taxation.
     (2) For the purposes of this section:
     (a) "Port located business" has the same meaning as provided in section 408 of this act.
     (b) "Port authority" means the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).

NEW SECTION.  Sec. 415   A new section is added to chapter 82.08 RCW to read as follows:
     The tax levied by RCW 82.08.020 does not apply to sales of tangible personal property or services used for the expansion of capacity on a mainline rail line. A mainline rail line is a rail line that carried more than five million gross ton-miles per mile in the prior year.

NEW SECTION.  Sec. 416   A new section is added to chapter 82.12 RCW to read as follows:
     The provisions of this chapter do not apply to the use of tangible personal property or services used for the expansion of capacity on a mainline railway.

NEW SECTION.  Sec. 417   A new section is added to chapter 43.33A RCW to read as follows:
     (1) The board is authorized to make direct loans from the commingled trust fund to port districts with one million dollars or greater in annual tax receipts. In the aggregate, loans to all eligible port districts or port authorities made pursuant to this section may not exceed five percent of the portion of the commingled trust fund allocated by the board to fixed income investments. No loan to a port district or port authority under this section may be made by the board from the commingled trust fund at less than the market rate for a comparable investment.
     (2) The pledge of a port district or port authority of any revenues, income, profits, charges, fees, or other moneys for the repayment of a loan from the board is valid and binding from the time of the adoption of any resolution or the execution of any agreement making such pledge notwithstanding the fact that there may not then be any simultaneous delivery thereof, that the revenues, income, receipts, profits, charges, fees, and other moneys so pledged as soon as received by the district are immediately subject to the lien of such pledge without the physical delivery thereof and without further act, and that the lien of any such pledge is valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the district irrespective of whether such parties have notice thereof. Neither the resolutions or loan agreement or any other instrument by which the loan is created need be recorded to be effective.
     (3) Any port district or port authority accepting a loan from the board must agree that, in the event of any shortfall in revenues affecting the ability of the port district to repay the loan, the port district or port authority must increase the levy made under RCW 53.36.020 by an amount sufficient to repay the loan made by the board over a period no greater than the original duration of the loan.
     (4) Loans made under this section must be made in a manner consistent with investment or management criteria established by the board. In making loans to port districts or a port authority under this section, the board's primary objectives are to maximize return at a prudent level of risk, as required by RCW 43.33A.110, and to maintain the diversity of investment as required by RCW 43.33A.140.
     (5) Application for loans must be made by an eligible port district or port authority to the board in the form and manner as the board may prescribe.
     (6) "Port authority" means the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).

Sec. 418   RCW 53.36.020 and 1973 1st ex.s. c 195 s 56 are each amended to read as follows:
     (1) A district or port authority may raise revenue by levy of an annual tax not to exceed forty-five cents per thousand dollars of assessed value against the assessed valuation of the taxable property in such port district or port authority for general port purposes, including the establishment of a capital improvement fund for future capital improvements, except that any levy for the payment of the principal and interest of the general bonded indebtedness, or any indebtedness for a loan made to the district or port authority by the state investment board, of the port district ((shall be)) or port authority is in excess of any levy made by the port district or port authority under the forty-five cents per thousand dollars of assessed value limitation. The levy ((shall)) must be made and taxes collected in the manner provided for the levy and collection of taxes in school districts of the first class.
     (2) For the purposes of this section, "port authority" means the Puget Sound port authority created under chapter 53.--- RCW (the new chapter created in section 502 of this act).

NEW SECTION.  Sec. 501   APPLICABILITY OF PUBLIC LAWS. The Puget Sound port authority, its officers, and the board of commissioners, created under this act, are subject to the general laws regulating local governments and local governmental officials including, but not limited to, applicable requirements under chapters 42.17, 42.23, 42.30, 42.41, and 43.09 RCW.

NEW SECTION.  Sec. 502   Sections 101, 201 through 204, 206 through 208, and 301 through 307 of this act constitute a new chapter in Title 53 RCW.

NEW SECTION.  Sec. 503   Sections 402 through 406 of this act constitute a new chapter in Title 53 RCW.

NEW SECTION.  Sec. 504   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.

NEW SECTION.  Sec. 505   This act shall be liberally construed to effect the policies and purposes of this act.

NEW SECTION.  Sec. 506   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2011.