HOUSE 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 Reported by House Committee On:
Community Development & Housing
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:
Community Development & Housing: 3/16/11, 3/17/11 [DP].
Brief Summary of Bill |
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HOUSE COMMITTEE ON COMMUNITY DEVELOPMENT & HOUSING |
Majority Report: Do pass. Signed by 9 members: Representatives Kenney, Chair; Finn, Vice Chair; Smith, Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Ahern, Maxwell, Ryu, Santos and Walsh.
Staff: Jennifer Thornton (786-7147).
Background:
The Washington Economic Development Finance Authority (WEDFA) was created by the Legislature to act as a financial conduit to businesses through the issuance of nonrecourse revenue bonds. The WEDFA has the authority to issue these bonds on both a taxable and tax-exempt basis, and has a debt limit of $1 billion.
The WEDFA is a public body governed by a 17 member Board of Directors that helps small- and medium-sized businesses meet their capital needs. The primary types of projects that qualify for financing include, but are not limited to, manufacturing, processing, and waste disposal facilities. The WEDFA does not receive state funds, and does not lend the credit of the state or local governments.
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Summary of Bill:
The WEDFA's debt limit is increased from $1 billion to $1.5 billion.
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Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony:
(In support) The WEDFA is a relatively small organization with two staff members that does not cost the taxpayers any money. The only source of money the WEDFA receives is revenue from fee income. Borrowers come to us because of the ability to do projects more economically due to leveraging tax-exempt status. Transactions are secured solely by company repayments. There is no recourse to obtain WEDFA or state funds. We assist small- and medium-size companies, particularly manufacturing, but also waste-disposal, waste water treatment, and nonprofits with a job creation or job training mission consistent with the WEDFAs. The WEDFA financing has created or supported over 8,000 jobs since it started operations as an independent agency in 1996, with over 800 jobs last year alone. The bonds over that period totaled a little more than $1 billion. The WEDFA requested an increase to have the capacity in the event that the right combination of projects comes up.
(Opposed) None.
Persons Testifying: Senator Kastama, prime sponsor; and Rodney Wendt, Washington Economic Development Finance Authority.
Persons Signed In To Testify But Not Testifying: None.