HOUSE BILL REPORT

                  HB 2779

                      As Passed House:

                      February 11, 1998

Title:  An act relating to the Washington economic development finance authority.

Brief Description:  Extending the Washington economic development finance authority.

Sponsors:  Representatives Dunn and Morris.

Brief History:

  Committee Activity:

Trade & Economic Development:   2/5/98 [DP].

Floor Activity:

Passed House:  2/11/98, 96-0.

HOUSE COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

Majority Report:  Do pass.  Signed by 9 members:  Representatives Van Luven, Chairman; Dunn, Vice Chairman; Veloria, Ranking Minority Member; Eickmeyer, Assistant Ranking Minority Member; Alexander; Ballasiotes; Mason; McDonald and Morris.

Staff:  Kenny Pittman (786-7392).

Background:  The Washington Economic Development Finance Authority (WEDFA) was created by the Legislature in 1989 to help meet the capital needs of small- and medium-sized businesses, in particular businesses located in distressed counties.  The WEDFA is authorized to issue nonrecourse revenue bonds to carry out its programs.  The bonds may be issued on either a tax-exempt or taxable basis.  The bonds issued by the WEDFA are not obligations of the state of Washington.

Currently, the WEDFA may not have more than $250 million in outstanding bond debt at any time and the authority to issue bonds for its programs expires June 30, 2000.

Summary of Bill:  The Washington Economic Development Finance Authority (WEDFA) outstanding bond debt limit is increased from $250 million to $500 million.  The authority to issue bonds for the WEDFA programs is extended from June 30, 2000 to June 30, 2004.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  WEDFA has provided needed financing to small- and medium-sized businesses.  These businesses create needed jobs throughout the state.  The proposed changes will allow WEDFA to continue meeting the financing needs of business.

Testimony Against:  None.

Testified:  Representative Dunn, prime sponsor (pro); and Jonathan Hayes, Washington Economic Development Finance Authority (pro).