Washington Gov. Christine Gregoire signed new legislation into law this month that regulates the ability of out-of-state bond issuers to sell private-activity bonds for in-state projects.
The legislation is meant to insure that tax-exempt bond financing in the state will continue to benefit residents and keep jobs within its borders, Washington Housing Finance Commission executive director Kim Herman said in a statement Monday.
The legislation is based on a similar law in Illinois, according to the statement.
Herman said the potential of out-of-state issuers coming into Washington to do business has been an ongoing concern.
The new regulations require an out-of-state issuer proposing a deal in the state to submit information to the state’s bond issuing authority, which will then determine its merits.
The law also prohibits the state Department of Commerce from allocating a portion of the state’s tax-exempt private activity bond cap to an out-of-state issuer and requires state issuers to report to the legislature if out-of-state issuers apply to finance a local project.