FINAL BILL REPORT

SB 5425

C 84 L 03

Synopsis as Enacted

Brief Description: Increasing the authorized total outstanding indebtedness of the higher education facilities authority.

Sponsors: Senators Winsley, Prentice, Benton, Kohl-Welles, Carlson, B. Sheldon, Brown, Schmidt, Rossi, West and Sheahan; by request of Lieutenant Governor.

Senate Committee on Ways & Means

House Committee on Capital Budget

Background: In 1983, the Legislature authorized the Washington Higher Education Facilities Authority to issue tax-exempt bonds on behalf of private nonprofit colleges and universities to build, improve, and equip higher education facilities in a manner that minimizes capital costs.

To be eligible, the institution must be accredited, certified by the IRS under Section 501 (c)(3), have its main campus permanently situated in the state, and be open to residents of the state.

Eligible projects include dormitories, dining halls, student unions, administration buildings, academic buildings, classrooms, athletic facilities, health care facilities, parking facilities, etc.

The total allowable bonded indebtedness of the authority may not exceed $500 million.

Summary: The total allowable bonded indebtedness of the authority is increased from $500 million to $1 billion.

Votes on Final Passage:

Senate       49   0

House       85  10

Effective: July 27, 2003