Brief Description: Authorizing the economic development finance authority to continue issuing bonds.

Sponsors: Senators Kastama, Roach, Sheldon and Shin.

Senate Committee on Government Operations & Elections
Senate Committee on International Trade & Economic Development
House Committee on Economic Development, Agriculture & Trade
House Committee on Capital Budget

Background: The Washington Economic Development Finance Authority (WEDFA) was established in 1989 to help small and medium-sized businesses meet their capital needs. It is authorized to issue nonrecourse economic development bonds on both a taxable and tax-exempt basis. WEDFA has operated independent of state financial support since 1996.

WEDFA is not to exceed $750 million in total outstanding debt; it is expected to reach this limitation prior to June 30, 2006, when its authority to issue bonds expires.

Summary: The limitation on WEDFA's outstanding debt is increased to $1 billion. The restriction on issuing bonds after June, 30, 2006 is removed.

Votes on Final Passage:

Senate      45   0
House      96   0      

Effective: July 24, 2005