Z-1497               _______________________________________________

                                                   SENATE BILL NO. 4980

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senator McDermott; by request of Office of Financial Management

Read first time 1/24/86 and referred to Committee on Ways & Means.

AN ACT Relating to general obligation bonds for capital projects; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     For the purpose of providing funds for capital projects, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of credit enhancement agreements, and other expenses incidental to the administration of capital projects, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of five million dollars, or so much thereof as may be required, to finance these projects and all costs incidental thereto.

          Bonds authorized in this section shall be sold in such manner, at such time or times, in such amounts, and at such price as the state finance committee shall determine.  No such bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.  The state finance committee may obtain insurance or letters of credit and may authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring the payment or enhancing the marketability of bonds authorized in this section.  Promissory notes or other obligations issued pursuant to this section shall not constitute a debt or the contracting of indebtedness under any constitutional or statutory indebtedness limitation if their payment is conditioned upon the failure of the state to pay the principal of or interest on the bonds with respect to which the same relate.

          Bonds authorized under this section shall be sold in accordance with chapter 39.42 RCW.

NEW SECTION. Sec. 2.     The proceeds from the sale of the bonds authorized in section 1 of this act shall be deposited in the state building construction account and shall be used exclusively for the purposes specified in section 1 of this act and for the payment of expenses incurred in the issuance and sale of the bonds.  These proceeds shall be administered by the department of .......... , subject to legislative appropriation.

NEW SECTION. Sec. 3.     Both principal of and interest on the bonds authorized by section 1 of this act shall be payable from the state general obligation bond retirement fund.  The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest.

          The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on such bonds in accordance with the provisions of the bond proceedings.  The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the state general obligation bond retirement fund, or a special account in such fund, such amounts and at such times as are required by the bond proceedings.

          Bonds issued under section 1 of this act shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.

          The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NEW SECTION. Sec. 4.     The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 1 of this act, and section 3 of this act shall not be deemed to provide an exclusive method for the payment.

NEW SECTION. Sec. 5.     The bonds authorized  in section 1 of this act shall be a legal investment for all state funds or funds under state control and for all funds of any other public body.

NEW SECTION. Sec. 6.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.