House Bill 1860 — Supply Chain Competitiveness Infrastructure Program, Washington (2025 Regular Session)

Summary

House Bill 1860, version H-1164.1, of the State of Washington 69th Legislature, 2025 Regular Session, by Representatives Reed, Parshley, Leavitt, among others, read first time February 6, 2025 and referred to the Committee on Technology, Economic Development, & Veterans. The act relates to creating a Washington state supply chain competitiveness infrastructure program, and its title lists an effective date and an expiration date. Section 2 directs the department, with the department of commerce and other stakeholders, to set priorities for a program including grants and loans to public ports and federally recognized tribal governments with established public port operations. Section 3 creates the program account in the state treasury.

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Full text

     H-1164.1

                                   HOUSE BILL 1860


     State of Washington           69th Legislature        2025 Regular Session

     By Representatives    Reed,    Parshley,   Leavitt,   Waters,     Paul,   Zahn,
     Nance, and Cortes

     Read first time 02/06/25.      Referred     to   Committee   on   Technology,
     Economic Development, & Veterans.




1        AN ACT Relating to creating a Washington state supply chain
2    competitiveness infrastructure program; reenacting and amending RCW
3    43.84.092 and 43.84.092; adding new sections to chapter 47.04 RCW;
4    creating a new section; providing an effective date; and providing an
5    expiration date.


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


 7       NEW SECTION. Sec. 1. It is the intent of the legislature that
 8   the state of Washington, being one of the most trade driven states in
 9   the nation, maintain and expand its abilities to compete in the
10   global trade market and be a national leader in trade. The
11   legislature finds it is imperative to maintain and expand critical
12   and strategic infrastructure for the transport and movement of the
13   overall supply chain of goods from point of entry, to unload and load
14   processes, and to transport via ground and maritime facilities, to
15   warehouses,   manufacturing   facilities,  and   final   destinations.
16   Strategic infrastructure investments targeted at increased capacity
17   for the supply chain is crucial to the state's public welfare of
18   sending and receiving crucial supplies, goods, and services.


19       NEW SECTION.   Sec. 2.     A new section is added to chapter 47.04
20   RCW to read as follows:
                                         p. 1                              HB 1860
 1       The department, in collaboration with the department of commerce,
 2   the freight mobility strategic investment board, Washington public
 3   ports association, federally recognized tribal governments with port
 4   operations, and other critical supply chain stakeholders including,
 5   but not limited to, those representing trucking, rail, marine,
 6   warehouse, agricultural, manufacturing, and clean energy, shall set
 7   priorities to ensure the successful and efficient operation of a
 8   supply chain competitiveness infrastructure program to include grants
 9   and loans to public ports and federally recognized tribal governments
10   with established public port operations. The department may adopt
11   rules under chapter 34.05 RCW to implement the supply chain
12   competitiveness infrastructure program.

13       NEW SECTION.   Sec. 3.   A new section is added to chapter 47.04
14   RCW to read as follows:
15       (1) The supply chain competitiveness infrastructure program
16   account is created in the state treasury. All receipts from the
17   legislature, proceeds of bonds when authorized by the legislature,
18   and principal and interest payments made on loans from the account
19   must be deposited into the account. Moneys in the account may be
20   spent only after appropriation. Expenditures from the account may be
21   used only for the purposes set forth in section 5 of this act. Public
22   and private entities may deposit moneys from federal, state, local,
23   or private sources in the account.
24       (2) The legislature intends that supply chain competitiveness
25   infrastructure grant funds will be appropriated to the department
26   using existing transportation accounts.

27       NEW SECTION.   Sec. 4.   A new section is added to chapter 47.04
28   RCW to read as follows:
29       (1) In addition to the priorities identified through the
30   stakeholder process in section 2 of this act, projects for the supply
31   chain competitiveness infrastructure program must align with the
32   following programmatic goals:
33       (a) Development or maintenance of transportation infrastructure
34   that ensures the successful and efficient operation of the supply
35   chain to and from the state's public ports and federally recognized
36   tribal governments with established public port operations;
37       (b) Economic, safety, or environmental advantages of efficient
38   freight movement;
                                     p. 2                          HB 1860
 1       (c) Sustaining the state's international trade economy;
 2       (d) Increased access to efficient and cost-effective transport to
 3   market for Washington's agricultural and industrial products;
 4       (e) Model integration and cooperation within the regional,
 5   national, and international systems of freight distribution; and
 6       (f) Mitigation of impacts of increased freight traffic on
 7   communities.
 8       (2) The collaborative process in section 2 of this act shall
 9   result in the development of performance metrics that result in
10   strengthening the state's supply chain competitiveness and evaluation
11   criteria by which to prioritize projects for funding.

12       NEW SECTION.   Sec. 5.   A new section is added to chapter 47.04
13   RCW to read as follows:
14       (1) Supply chain competitiveness infrastructure projects funded
15   from the supply chain competitiveness infrastructure program shall
16   focus on enhancing supply chain competitiveness for public ports and
17   federally recognized tribal governments with established public port
18   operations, and the capacity of ground and maritime transportation
19   and facilities. The department shall govern and operate the grant and
20   revolving loan program. The collaborative process in section 2 of
21   this act shall result in a list of project types eligible for the
22   supply chain competitiveness infrastructure grant and loan program.
23       (2) All eligible projects must be included in a port's freight
24   development plan as defined in RCW 53.20.055.


25       NEW SECTION.   Sec. 6.  A new section is added to chapter 47.04
26   RCW to read as follows:
27       For the purposes of this act, public ports are those authorized
28   under chapter 53.04 RCW.


29       Sec. 7. RCW 43.84.092 and 2024 c 210 s 4 and 2024 c 168 s 12 are
30   each reenacted and amended to read as follows:
31       (1) All earnings of investments of surplus balances in the state
32   treasury shall be deposited to the treasury income account, which
33   account is hereby established in the state treasury.
34       (2) The treasury income account shall be utilized to pay or
35   receive funds associated with federal programs as required by the
36   federal cash management improvement act of 1990. The treasury income
37   account is subject in all respects to chapter 43.88 RCW, but no
                                     p. 3                          HB 1860
 1   appropriation is required for refunds or allocations of interest
 2   earnings required by the cash management improvement act. Refunds of
 3   interest to the federal treasury required under the cash management
 4   improvement act fall under RCW 43.88.180 and shall not require
 5   appropriation. The office of financial management shall determine the
 6   amounts due to or from the federal government pursuant to the cash
 7   management improvement act. The office of financial management may
 8   direct transfers of funds between accounts as deemed necessary to
 9   implement the provisions of the cash management improvement act, and
10   this subsection. Refunds or allocations shall occur prior to the
11   distributions of earnings set forth in subsection (4) of this
12   section.
13       (3) Except for the provisions of RCW 43.84.160, the treasury
14   income account may be utilized for the payment of purchased banking
15   services on behalf of treasury funds including, but not limited to,
16   depository, safekeeping, and disbursement functions for the state
17   treasury and affected state agencies. The treasury income account is
18   subject in all respects to chapter 43.88 RCW, but no appropriation is
19   required for payments to financial institutions. Payments shall occur
20   prior to distribution of earnings set forth in subsection (4) of this
21   section.
22       (4) Monthly, the state treasurer shall distribute the earnings
23   credited to the treasury income account. The state treasurer shall
24   credit the general fund with all the earnings credited to the
25   treasury income account except:
26       (a) The following accounts and funds shall receive their
27   proportionate share of earnings based upon each account's and fund's
28   average daily balance for the period: The abandoned recreational
29   vehicle disposal account, the aeronautics account, the Alaskan Way
30   viaduct replacement project account, the ambulance transport fund,
31   the budget stabilization account, the capital vessel replacement
32   account, the capitol building construction account, the Central
33   Washington University capital projects account, the charitable,
34   educational, penal and reformatory institutions account, the Chehalis
35   basin account, the Chehalis basin taxable account, the clean fuels
36   credit account, the clean fuels transportation investment account,
37   the cleanup settlement account, the climate active transportation
38   account, the climate transit programs account, the Columbia river
39   basin water supply development account, the Columbia river basin
40   taxable bond water supply development account, the Columbia river
                                     p. 4                          HB 1860
 1   basin water supply revenue recovery account, the common school
 2   construction fund, the community forest trust account, the connecting
 3   Washington account, the county arterial preservation account, the
 4   county   criminal   justice    assistance   account,   the   covenant
 5   homeownership account, the deferred compensation administrative
 6   account, the deferred compensation principal account, the department
 7   of licensing services account, the department of retirement systems
 8   expense account, the developmental disabilities community services
 9   account, the diesel idle reduction account, the opioid abatement
10   settlement account, the drinking water assistance account, the
11   administrative subaccount of the drinking water assistance account,
12   the early learning facilities development account, the early learning
13   facilities revolving account, the Eastern Washington University
14   capital projects account, the education construction fund, the
15   education legacy trust account, the election account, the electric
16   vehicle account, the energy freedom account, the energy recovery act
17   account, the essential rail assistance account, The Evergreen State
18   College capital projects account, the fair start for kids account,
19   the family medicine workforce development account, the ferry bond
20   retirement fund, the fish, wildlife, and conservation account, the
21   freight mobility investment account, the freight mobility multimodal
22   account, the grade crossing protective fund, the higher education
23   retirement plan supplemental benefit fund, the Washington student
24   loan account, the highway bond retirement fund, the highway
25   infrastructure account, the highway safety fund, the hospital safety
26   net assessment fund, the Interstate 5 bridge replacement project
27   account, the Interstate 405 and state route number 167 express toll
28   lanes   account,  the  judges'   retirement  account,   the  judicial
29   retirement administrative account, the judicial retirement principal
30   account, the limited fish and wildlife account, the local leasehold
31   excise tax account, the local real estate excise tax account, the
32   local sales and use tax account, the marine resources stewardship
33   trust account, the medical aid account, the money-purchase retirement
34   savings administrative account, the money-purchase retirement savings
35   principal account, the motor vehicle fund, the motorcycle safety
36   education account, the move ahead WA account, the move ahead WA
37   flexible account, the multimodal transportation account, the multiuse
38   roadway safety account, the municipal criminal justice assistance
39   account, the oyster reserve land account, the pension funding
40   stabilization account, the perpetual surveillance and maintenance
                                     p. 5                          HB 1860
 1   account, the pilotage account, the pollution liability insurance
 2   agency underground storage tank revolving account, the public
 3   employees' retirement system plan 1 account, the public employees'
 4   retirement system combined plan 2 and plan 3 account, the public
 5   facilities construction loan revolving account, the public health
 6   supplemental account, the public works assistance account, the Puget
 7   Sound capital construction account, the Puget Sound ferry operations
 8   account, the Puget Sound Gateway facility account, the Puget Sound
 9   taxpayer accountability account, the real estate appraiser commission
10   account, the recreational vehicle account, the regional mobility
11   grant program account, the reserve officers' relief and pension
12   principal fund, the resource management cost account, the rural
13   arterial trust account, the rural mobility grant program account, the
14   rural Washington loan fund, the second injury fund, the sexual
15   assault prevention and response account, the site closure account,
16   the skilled nursing facility safety net trust fund, the small city
17   pavement and sidewalk account, the special category C account, the
18   special wildlife account, the state hazard mitigation revolving loan
19   account, the state investment board expense account, the state
20   investment board commingled trust fund accounts, the state patrol
21   highway account, the state reclamation revolving account, the state
22   route number 520 civil penalties account, the state route number 520
23   corridor account, the statewide broadband account, the statewide
24   tourism marketing account, the supplemental pension account, the
25   supply chain competitiveness infrastructure program account, the
26   Tacoma Narrows toll bridge account, the teachers' retirement system
27   plan 1 account, the teachers' retirement system combined plan 2 and
28   plan 3 account, the tobacco prevention and control account, the
29   tobacco settlement account, the toll facility bond retirement
30   account, the transportation 2003 account (nickel account), the
31   transportation equipment fund, the JUDY transportation future funding
32   program   account,  the   transportation  improvement   account,  the
33   transportation improvement board bond retirement account, the
34   transportation infrastructure account, the transportation partnership
35   account, the traumatic brain injury account, the tribal opioid
36   prevention and treatment account, the University of Washington bond
37   retirement fund, the University of Washington building account, the
38   voluntary cleanup account, the volunteer firefighters' relief and
39   pension principal fund, the volunteer firefighters' and reserve
40   officers' administrative fund, the vulnerable roadway user education
                                     p. 6                          HB 1860
 1   account, the Washington judicial retirement system account, the
 2   Washington law enforcement officers' and firefighters' system plan 1
 3   retirement account, the Washington law enforcement officers' and
 4   firefighters' system plan 2 retirement account, the Washington public
 5   safety employees' plan 2 retirement account, the Washington school
 6   employees' retirement system combined plan 2 and 3 account, the
 7   Washington state patrol retirement account, the Washington State
 8   University building account, the Washington State University bond
 9   retirement fund, the water pollution control revolving administration
10   account, the water pollution control revolving fund, the Western
11   Washington University capital projects account, the Yakima integrated
12   plan   implementation    account,   the   Yakima    integrated   plan
13   implementation revenue recovery account, and the Yakima integrated
14   plan implementation taxable bond account. Earnings derived from
15   investing balances of the agricultural permanent fund, the normal
16   school permanent fund, the permanent common school fund, the
17   scientific permanent fund, and the state university permanent fund
18   shall be allocated to their respective beneficiary accounts.
19       (b) Any state agency that has independent authority over accounts
20   or funds not statutorily required to be held in the state treasury
21   that deposits funds into a fund or account in the state treasury
22   pursuant to an agreement with the office of the state treasurer shall
23   receive its proportionate share of earnings based upon each account's
24   or fund's average daily balance for the period.
25       (5) In conformance with Article II, section 37 of the state
26   Constitution, no treasury accounts or funds shall be allocated
27   earnings without the specific affirmative directive of this section.

28       Sec. 8. RCW 43.84.092 and 2024 c 210 s 5 and 2024 c 168 s 13 are
29   each reenacted and amended to read as follows:
30       (1) All earnings of investments of surplus balances in the state
31   treasury shall be deposited to the treasury income account, which
32   account is hereby established in the state treasury.
33       (2) The treasury income account shall be utilized to pay or
34   receive funds associated with federal programs as required by the
35   federal cash management improvement act of 1990. The treasury income
36   account is subject in all respects to chapter 43.88 RCW, but no
37   appropriation is required for refunds or allocations of interest
38   earnings required by the cash management improvement act. Refunds of
39   interest to the federal treasury required under the cash management
                                     p. 7                          HB 1860
 1   improvement act fall under RCW 43.88.180 and shall not require
 2   appropriation. The office of financial management shall determine the
 3   amounts due to or from the federal government pursuant to the cash
 4   management improvement act. The office of financial management may
 5   direct transfers of funds between accounts as deemed necessary to
 6   implement the provisions of the cash management improvement act, and
 7   this subsection. Refunds or allocations shall occur prior to the
 8   distributions of earnings set forth in subsection (4) of this
 9   section.
10       (3) Except for the provisions of RCW 43.84.160, the treasury
11   income account may be utilized for the payment of purchased banking
12   services on behalf of treasury funds including, but not limited to,
13   depository, safekeeping, and disbursement functions for the state
14   treasury and affected state agencies. The treasury income account is
15   subject in all respects to chapter 43.88 RCW, but no appropriation is
16   required for payments to financial institutions. Payments shall occur
17   prior to distribution of earnings set forth in subsection (4) of this
18   section.
19       (4) Monthly, the state treasurer shall distribute the earnings
20   credited to the treasury income account. The state treasurer shall
21   credit the general fund with all the earnings credited to the
22   treasury income account except:
23       (a) The following accounts and funds shall receive their
24   proportionate share of earnings based upon each account's and fund's
25   average daily balance for the period: The abandoned recreational
26   vehicle disposal account, the aeronautics account, the Alaskan Way
27   viaduct replacement project account, the budget stabilization
28   account, the capital vessel replacement account, the capitol building
29   construction account, the Central Washington University capital
30   projects account, the charitable, educational, penal and reformatory
31   institutions account, the Chehalis basin account, the Chehalis basin
32   taxable account, the clean fuels credit account, the clean fuels
33   transportation investment account, the cleanup settlement account,
34   the climate active transportation account, the climate transit
35   programs account, the Columbia river basin water supply development
36   account, the Columbia river basin taxable bond water supply
37   development account, the Columbia river basin water supply revenue
38   recovery account, the common school construction fund, the community
39   forest trust account, the connecting Washington account, the county
40   arterial preservation account, the county criminal justice assistance
                                     p. 8                          HB 1860
 1   account,   the    covenant   homeownership    account,    the   deferred
 2   compensation   administrative   account,   the   deferred   compensation
 3   principal account, the department of licensing services account, the
 4   department of retirement systems expense account, the developmental
 5   disabilities community services account, the diesel idle reduction
 6   account, the opioid abatement settlement account, the drinking water
 7   assistance account, the administrative subaccount of the drinking
 8   water assistance account, the early learning facilities development
 9   account, the early learning facilities revolving account, the Eastern
10   Washington University capital projects account, the education
11   construction fund, the education legacy trust account, the election
12   account, the electric vehicle account, the energy freedom account,
13   the energy recovery act account, the essential rail assistance
14   account, The Evergreen State College capital projects account, the
15   fair start for kids account, the family medicine workforce
16   development account, the ferry bond retirement fund, the fish,
17   wildlife, and conservation account, the freight mobility investment
18   account, the freight mobility multimodal account, the grade crossing
19   protective fund, the higher education retirement plan supplemental
20   benefit fund, the Washington student loan account, the highway bond
21   retirement fund, the highway infrastructure account, the highway
22   safety fund, the hospital safety net assessment fund, the Interstate
23   5 bridge replacement project account, the Interstate 405 and state
24   route number 167 express toll lanes account, the judges' retirement
25   account, the judicial retirement administrative account, the judicial
26   retirement principal account, the limited fish and wildlife account,
27   the local leasehold excise tax account, the local real estate excise
28   tax account, the local sales and use tax account, the marine
29   resources stewardship trust account, the medical aid account, the
30   money-purchase retirement savings administrative account, the money-
31   purchase retirement savings principal account, the motor vehicle
32   fund, the motorcycle safety education account, the move ahead WA
33   account, the move ahead WA flexible account, the multimodal
34   transportation account, the multiuse roadway safety account, the
35   municipal criminal justice assistance account, the oyster reserve
36   land account, the pension funding stabilization account, the
37   perpetual surveillance and maintenance account, the pilotage account,
38   the pollution liability insurance agency underground storage tank
39   revolving account, the public employees' retirement system plan 1
40   account, the public employees' retirement system combined plan 2 and
                                      p. 9                           HB 1860
 1   plan 3 account, the public facilities construction loan revolving
 2   account, the public health supplemental account, the public works
 3   assistance account, the Puget Sound capital construction account, the
 4   Puget Sound ferry operations account, the Puget Sound Gateway
 5   facility account, the Puget Sound taxpayer accountability account,
 6   the real estate appraiser commission account, the recreational
 7   vehicle account, the regional mobility grant program account, the
 8   reserve officers' relief and pension principal fund, the resource
 9   management cost account, the rural arterial trust account, the rural
10   mobility grant program account, the rural Washington loan fund, the
11   second injury fund, the sexual assault prevention and response
12   account, the site closure account, the skilled nursing facility
13   safety net trust fund, the small city pavement and sidewalk account,
14   the special category C account, the special wildlife account, the
15   state hazard mitigation revolving loan account, the state investment
16   board expense account, the state investment board commingled trust
17   fund accounts, the state patrol highway account, the state
18   reclamation revolving account, the state route number 520 civil
19   penalties account, the state route number 520 corridor account, the
20   statewide broadband account, the statewide tourism marketing account,
21   the supplemental pension account, the supply chain competitiveness
22   infrastructure program account, the Tacoma Narrows toll bridge
23   account, the teachers' retirement system plan 1 account, the
24   teachers' retirement system combined plan 2 and plan 3 account, the
25   tobacco prevention and control account, the tobacco settlement
26   account,    the   toll    facility   bond  retirement   account,   the
27   transportation 2003 account (nickel account), the transportation
28   equipment fund, the JUDY transportation future funding program
29   account, the transportation improvement account, the transportation
30   improvement board bond retirement account, the transportation
31   infrastructure account, the transportation partnership account, the
32   traumatic brain injury account, the tribal opioid prevention and
33   treatment account, the University of Washington bond retirement fund,
34   the University of Washington building account, the voluntary cleanup
35   account, the volunteer firefighters' relief and pension principal
36   fund,    the    volunteer    firefighters'  and    reserve   officers'
37   administrative fund, the vulnerable roadway user education account,
38   the Washington judicial retirement system account, the Washington law
39   enforcement officers' and firefighters' system plan 1 retirement
40   account, the Washington law enforcement officers' and firefighters'
                                     p. 10                         HB 1860
 1   system plan 2 retirement account, the Washington public safety
 2   employees'   plan  2  retirement   account,   the  Washington  school
 3   employees' retirement system combined plan 2 and 3 account, the
 4   Washington state patrol retirement account, the Washington State
 5   University building account, the Washington State University bond
 6   retirement fund, the water pollution control revolving administration
 7   account, the water pollution control revolving fund, the Western
 8   Washington University capital projects account, the Yakima integrated
 9   plan   implementation    account,   the    Yakima   integrated   plan
10   implementation revenue recovery account, and the Yakima integrated
11   plan implementation taxable bond account. Earnings derived from
12   investing balances of the agricultural permanent fund, the normal
13   school permanent fund, the permanent common school fund, the
14   scientific permanent fund, and the state university permanent fund
15   shall be allocated to their respective beneficiary accounts.
16       (b) Any state agency that has independent authority over accounts
17   or funds not statutorily required to be held in the state treasury
18   that deposits funds into a fund or account in the state treasury
19   pursuant to an agreement with the office of the state treasurer shall
20   receive its proportionate share of earnings based upon each account's
21   or fund's average daily balance for the period.
22       (5) In conformance with Article II, section 37 of the state
23   Constitution, no treasury accounts or funds shall be allocated
24   earnings without the specific affirmative directive of this section.


25       NEW SECTION.   Sec. 9.    Section 7 of this act expires July 1,
26   2028.

27       NEW SECTION.   Sec. 10.   Section 8 of this act takes effect July
28   1, 2028.

                                   --- END ---




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