SENATE BILL REPORT

                   SB 6425

              As Passed Senate, February 8, 1996

Title:  An act relating to public loans to port districts.

Brief Description:  Concerning the indebtedness of a port district.

Sponsors:  Senators Swecker, Fraser and Zarelli.

Brief History:

Committee Activity:  Government Operations:  1/25/96, 1/31/96 [DP].

Passed Senate, 2/8/96, 45-0.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass.

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

Staff:  Eugene Green (786-7405)

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 of Bill:  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.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This corrects an oversight and will be especially helpful to some of our smaller port districts.

Testimony Against:  None.

Testified:  Heidi Pehl, Port of Chehalis (pro); John Fratt, Port of Kalama (pro).