SENATE BILL REPORT
SB 5367
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
As Passed Senate, March 7, 2011
Title: An act relating to authorizing the economic development finance authority to continue issuing bonds.
Brief Description: Authorizing the economic development finance authority to continue issuing bonds.
Sponsors: Senators Kastama, Chase, Holmquist Newbry, Shin and Kilmer.
Brief History:
Committee Activity: Economic Development, Trade & Innovation: 2/02/11, 2/07/11 [DP].
Passed Senate: 3/07/11, 48-0.
SENATE COMMITTEE ON ECONOMIC DEVELOPMENT, TRADE & INNOVATION |
Majority Report: Do pass.
Signed by Senators Kastama, Chair; Chase, Vice Chair; Baumgartner, Ranking Minority Member; Hatfield, Holmquist Newbry, Kilmer and Shin.
Staff: Jack Brummel (786-7428)
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 $1 billion in total outstanding debt.
Summary of Bill: The limitation on WEDFA's outstanding debt is increased to $1.5 billion.
Appropriation: None.
Fiscal Note: Available.
Committee/Commission/Task Force Created: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony: PRO: These bonds don't affect our bond capacity. Private banks back the loans. WEDFA sanctions them as meeting federal tax-free bonding requirements.
Persons Testifying: PRO: Senator Kastama, prime sponsor.