FINAL BILL REPORT

                   SB 6425

                           C 66 L 96

                      Synopsis as Enacted

Brief Description:  Concerning the indebtedness of a port district.

Sponsors:  Senators Swecker, Fraser and Zarelli.

Senate Committee on Government Operations

House Committee on Capital Budget

Background:  A port district may contract indebtedness, not authorized by the voters, of one-fourth of 1 percent of the value of taxable property in the district.  Port districts having less than $800 million in value during 1991 may contract indebtedness, not authorized by the voters, of three-eighths of 1 percent.  With the assent of three-fifths of the voters, a port district may contract a total indebtedness of three-fourths of 1 percent of the value of the taxable property in the district.

Any municipal corporation, including port districts, may enter into a loan agreement containing the terms and conditions of a loan from an agency of the state of Washington or the United States.  Generally, these loans are excluded from the computation of indebtedness of the municipal corporation.

Summary:  It is clarified that the amount of a loan from an agency of the state of Washington or the United States is excluded from the computation of indebtedness of a port district.

Votes on Final Passage:

Senate    45 0

House     94 0

Effective:  June 6, 1996