H-4293.1 _______________________________________________
HOUSE BILL 2836
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By Representatives Rasmussen, Forner, Cantwell, Ludwig, Sheldon, Wineberry, Paris and Bowman
Read first time 01/29/92. Referred to Committee on Trade & Economic Development.
AN ACT Relating to the economic development finance authority; amending RCW 43.163.070; and adding a new section to chapter 43.163 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 43.163.070 and 1990 c 53 s 4 are each amended to read as follows:
The
authority may use any funds ((legally available to it for any purpose
specifically authorized by this chapter, or)), including but not limited
to funds derived from the federal government, for ((otherwise))
improving economic development in this state by:
(1)
Assisting businesses and farm enterprises that do not have access to
capital at terms and rates comparable to large corporations due to the location
of the business, the size of the business, the lack of financial expertise((,
or));
(2) The issuance of taxable nonrecourse revenue bonds for any lawful purpose; and
(3)
Any other appropriate ((reasons: PROVIDED, That no)) means as
determined by the authority. However, the authority may not use funds of
the state ((shall be used)) for such purposes.
NEW SECTION. Sec. 2. A new section is added to chapter 43.163 RCW to read as follows:
(1) The authority may receive applications for financing to implement individual transactions, or to develop a program or programs, or both, under which the authority:
(a) Issues nonrecourse revenue bonds the interest on which is not excluded from gross income for federal income tax purposes; and
(b) Lends the proceeds of the bonds to public or private persons, firms, or entities, or to eligible banking organizations for loan to public or private or private persons, firms, or entities.
(2) In financing individual transactions or the development and conduct of a program of financing, or both, the authority shall determine:
(a) That such individual transaction or program or programs furthers the general plan of economic development objectives prepared pursuant to RCW 43.163.090; and
(b) That loans are made to persons, firms, or entities whose business activity is reasonably expected to assist in the fulfillment of a state purpose or to provide economic growth or economic stability by:
(i) Providing employment or security against loss of employment within the state; or
(ii) Increasing the property, excise, or, if applicable, income tax base of such person, firm, or entity.
(3) The authority may make loans to public bodies from the proceeds of bonds the interest on which is not excluded from gross income for federal income tax purposes to assist said public bodies in carrying out their corporate purposes.