February 5, 1998

BILL ANALYSIS

TO:       Members, Committee on Trade and Economic Development

FROM:     Kenny Pittman, Research Analyst  (786-7392)

RE:       HB 2779 - Extending the Washington economic development finance           authority.

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:

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.