Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
9a
BRIEFING ITEM
Date of Meeting
May 8, 2018
DATE: April 30, 2018
TO: Steve Metruck, Executive Director
FROM: Eric ffitch, Manager, State Government Relations
Pearse Edwards, Director, Government Relations
SUBJECT: State Legislative End of Session Report
EXECUTIVE SUMMARY
The purpose of this briefing is to provide the Port of Seattle Commission, Executive Director,
and Leadership Team with a final report on the 2018 State Legislative Session, with specific
attention given to the Port’s 2018 State Legislative Agenda. That agenda was adopted by the
Commission by unanimous vote on October 24, 2017.
On March 8, 2018, the state legislature adjourned sine die, marking the first time in five years
they completed their business without requiring additional, “special,” legislative sessions. The
legislature passed three supplemental budgets – operating, capital, and transportation – and
advanced priority issues for the Democratic caucus, in charge of both chambers for the first
time since 2012. Those issues included access to voting rights, net neutrality, a one-time
statewide property tax cut, and education funding to finally resolve the McCleary decision.
Senate Democrats sought passage of a carbon tax, in partnership with Governor Inslee. That
proposal stalled, as did the Low Carbon Fuel Standard proposal in the House.
The Port’s priorities met with varying success, as some advanced and some did not. The
transportation budget included funding for the State Route 518 corridor study, and a bill to
establish a statewide tourism marketing program passed in the seventh year of trying. But the
Port’s priority bill relating to workforce training programs, and legislation to provide tax relief
for the in-state construction of fishing vessels, both failed to advance.
Additional information on the Port’s priority issues, along with a rundown of other issues which
we tracked and were engaged on, is included in this briefing.
Priority Legislative Agenda Items
The four items below were designated in the 2018 legislative agenda document as the Port’s
top priorities for passage in Olympia. As staff has communicated to the Commission and
executive team throughout the agenda drafting process, they do not wholly encompass those
COMMISSION AGENDA – Briefing Item No. 9a Page 2 of 4
Meeting Date: May 8, 2018
Template revised September 22, 2016.
areas in which we are active or have interest. The section below provides updates on some
additional items on which the Port advocated during the 2018 legislative session.
State Route 518 study—With the growth of Seattle-Tacoma International Airport, and the
demand for its services across the region and the state, the transportation corridor leading
from Interstate 5 to the airport has become increasingly strained. For that reason, the Port’s
2018 legislative agenda sought funding through the supplemental transportation budget for a
study of corridor congestion issues on SR 518. The final transportation budget included
$500,000 in funding for that study. The study findings are due to the legislature on June 30,
2019.
Statewide tourism marketing program – After an effort that spanned several sessions, the
legislature in 2018 voted to enact 4SBB 5251. That bill calls for the enactment of a statewide
tourism promotion program. This has long stood as a priority for the Port, and in the 2017
session Ron Peck provided multiple rounds of testimony in support of the legislation. This
session, testimony was provided by Eastern Washington interests, in an effort to make the
point to lawmakers that this new marketing program would not be specific to Seattle. The
Governor signed the legislation into law on March 27, 2018, and it will officially take effect on
July 1, 2018.
Workforce training legislation – For the third session running, Rep. Gael Tarleton (D-36th LD,
Ballard, parts of Downtown) sponsored legislation to clarify the authority of port districts to
engage in worker training programs for port-related tenants. This has been a priority for the
Port of Seattle since 2016, and staff worked with stakeholders in the summer of 2017 to come
to consensus on bill changes to assure the support of the Port of Tacoma, the Ports Association,
the labor unions representing port workers, and the business community.
With that list of diverse stakeholders, the bill sped through its House Committee and received a
perfect 98-0 vote on the House floor. From there, it went to the Senate Higher Education and
Workforce Development Committee. Port workforce lead Marie Kurose traveled to Olympia to
testify, and on the strength of her testimony the bill passed that committee unanimously.
Unfortunately, on Friday, March 2nd, Port staff learned that the bill would not advance beyond
the Senate Rules Committee to the floor calendar, and was therefore “dead” for the session.
Fishing fleet modernization – This was the third session in which the Port supported
Representative Tarleton’s efforts to enact a tax preference for the in-state construction of
fishing and seafood processing vessels. It’s been a priority for the Washington Maritime
Federation as well, and this session it looked set to finally pass. With a 97-1 vote in the House,
and language in the final budget deal to fund implementation tax reduction, Senate passed was
expected on the final day of session. However, staff learned on the morning of Thursday, March
8th, that a disagreement on tax policy broadly would mean the legislation could not advance to
the Senate floor.
In order to remain active next session, Rep. Tarleton will have to reintroduce. Staff intends to
work with her on this effort in the interim, in hopes of finalizing this long process in the 2019
session.
COMMISSION AGENDA – Briefing Item No. 9a Page 3 of 4
Meeting Date: May 8, 2018
Template revised September 22, 2016.
Additional items that advanced:
The following items were determined to be consistent with the Port’s stated interest in the
2018 legislative agenda, and in some cases staff was active in supporting them during the 2018
session.
Sustainable Aviation Biofuels work group: Sen. Billig (D-1st LD, Spokane) introduced a bill to
reestablish a work group on aviation biofuels that has been dormant since 2017. The Port of
Seattle supported that effort, including in testimony to the Senate Energy, Environment, and
Telecommunications Committee and to the House Technology and Economic Development
Committee, and the bill passed the Senate unanimously. The House did not have time to
schedule it for a floor vote, so instead it lived on as a budget proviso. The final compromise
operating budget included language reestablishing this work group, and WSU will be in contact
with the Port in coming months about the first meeting of the group.
Unit price contracting for port districts: The Port of Seattle, Port of Tacoma, and Washington
Public Ports Association supported legislation (ESSB 6329) that would clarify that ports have the
authority to use “unit priced contracting” methods. Bob Maruska, a senior engineer at the Port,
testified in support of this legislation. It passed both chambers before adjournment, and awaits
the Governor’s signature.
SB 6207, NWSA’s clean truck authority: This bill, “clarifying the authority of port districts to
offer programs relating to air quality improvement equipment and fuel programs that provide
emission reductions for engines, vehicles, and vessels” passed and was signed into law by the
Governor. It will allow NWSA to move forward with its plans to help truck drivers upgrade their
vehicles. Port of Seattle signed in as supportive during committee consideration of the bill.
Harbor Maintenance Tax resolution: Another NWSA priority, this piece of policy is a bit different
from standard legislation. Without force of law, passage of this resolution put the legislature on
record as demanding that the U.S. Congress develop a policy to reform the Harbor Maintenance
Tax to address its impact on the competitiveness of Washington state ports. Cmr. Calkins
testified in support of the bill early in session when it was considered by the House Technology
and Economic Development Committee. It was signed by Secretary of State Kim Wyman on
Wednesday, March 7th, and her office will transmit it to Washington, D.C.
Broadband authority for port districts: HB 2664, which modernizes and expands port broadband
authority, advanced through the legislative process without a single ‘no’ vote and was sent to
the Governor’s office for signature in the final week of the session. Upon receiving his
signature, every port district in the state was officially granted the authority to develop “un-lit”
broadband infrastructure.
Items of interest that did not advance
COMMISSION AGENDA – Briefing Item No. 9a Page 4 of 4
Meeting Date: May 8, 2018
Template revised September 22, 2016.
Low carbon fuels standard: Another priority of the Governor, and a progressive environmental
policy proposal that the Port of Seattle supported this session, Rep. Fitzgibbon’s bill to establish
a Low Carbon Fuels Standard in Washington state died after it passed the House Transportation
Committee on a party line vote. The Port provided testimony at the House Environment
Committee in support of the proposal, and will work with the legislative sponsor and advocates
in the interim on a strategy for the 2018 session. This will almost certainly be a priority for the
Democrats should they keep control of the House and Senate going into the 2019 state
legislative session.
Carbon tax: Where many thought that the Governor and Senate Democrats would advance a
carbon pricing proposal in the 2018 session, SB 6203 – the Governor Inslee/Senator Carlyle
proposal – did not make it beyond the Committee process in the Senate and died without a
floor vote. The bill did pass the Senate Ways and Means Committee and the Senate Energy,
Environment, and Technology Committee, and Port Commission President Gregoire sent a
letter to Governor Inslee and Senator Carlyle confirming the Port’s support for the proposal.
With the failure to advance through the Senate, It is now expected to be the subject of an
initiative to the voters this fall.
Initiative 200: For the third session running, the Commission directed staff to actively support
legislation that would repeal Initiative 200. This law, put in place by an initiative vote in 1998,
and prevents the state or public agencies from granting preference in public contracting,
employment, or education based on the race, sex, color, ethnicity, or national origin of the
applicant or contractor. Commissioner Bowman testified in support of legislation (SB 6406) to
repeal this law, which passed its committee of origin in the Senate on a party-line vote. It was
sent to the Senate Rules Committee, but never scheduled for a vote on the Senate floor.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
October 24, 2017 – The Commission approved the 2018 State Legislative Agenda
October 10, 2017 – The Commission was briefed on the 2018 State Legislative Agenda
May 9, 2017 – The Commission was briefed on the End of 2017 Regular Legislative Session
