SENATE BILL REPORT

                   HB 1068

              As Reported By Senate Committee On:

             Government Operations, March 30, 1995

Title:  An act relating to preserving port district debt limits.

Brief Description:  Preserving port district debt limits.

Sponsors:  Representatives Brumsickle, Chappell and Radcliff.

Brief History:

Committee Activity:  Government Operations:  3/16/95, 3/30/95 [DP].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass.

  Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Drew, Hale, Heavey, McCaslin and Winsley.

Staff:  Eugene Green (786-7405)

Background:  In general, unless authorized by the voters, a port district may not contract indebtedness or borrow money in an amount exceeding one-fourth of 1 percent of the value of taxable property.

In 1991, port districts having less than $800 million in value of taxable property were authorized to contract nonvoted authorized indebtedness in an amount not to exceed three-eights of 1 percent of the value of taxable property.  Due to inflation of the value of their taxable property, port districts that are presently using this increased indebtedness will no longer be able to in the future.

Summary of Bill:  Port districts having less than $800 million in value of taxable property in 1991 are authorized to continue to use their increased indebtedness.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  Only the Port of Centralia is eligible and they have made good use of this additional debt capacity.  It would be a significant loss to the district if this higher debt ceiling cannot be continued.

Testimony Against:  None.

Testified:  Scott Taylor, WPPA (pro); Wendy Daulin, Port of Centralia (pro).