Z-1379               _______________________________________________

                                                   SENATE BILL NO. 5032

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senators Gaspard, Granlund, Bauer and Bender;by request of Superintendent of Public Instruction

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

AN ACT Relating to common school capital projects; authorizing the issuance of general obligation bonds; adding new sections to chapter 28A.47 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1.     For the purpose of furnishing funds for state assistance to school districts in providing common school plant facilities and modernization of existing common school plant facilities and to provide for the state administrative costs 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 thirty million nine hundred thousand dollars, or so much thereof as may be required to finance these projects and all costs incidental thereto.  Bonds authorized in this section may be sold at such price as the state finance committee shall determine.  No bonds authorized in this section 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.

NEW SECTION. Sec. 2.     The proceeds from the sale of the bonds authorized in section 1 of this act shall be deposited in the common school construction fund 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 state board of education.

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

          The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements.  Not less than thirty days before the date on which any interest or principal and interest payment is due, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the general obligation bond retirement fund, or a special account in that fund, an amount equal to the amount certified by the state finance committee to be due on the payment date.

          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.     Sections 1 through 5 of this act are each added to chapter 28A.47 RCW.

NEW SECTION. Sec. 7.     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.

NEW SECTION. Sec. 8.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.