HOUSE BILL REPORT

HB 1332

BYRepresentatives Silver and H. Sommers 

Removing requirement that state bond certificates be printed by the public printer.

House Committe on State Government

Majority Report:  Do pass.  (9)

      Signed by Representatives H. Sommers, Chair; Anderson, Vice Chair; Baugher, Chandler, Hankins, O'Brien, Peery, Taylor and Walk.

House Staff:Ken Conte (786-7135)

AS PASSED HOUSE JANUARY 29, 1988

BACKGROUND:

In 1987 the Legislative Budget Committee (LBC) completed a debt issuance study dealing with general obligation bonds issued by the State Finance Committee.  One purpose of the study was to reduce the cost of capital projects by reducing debt issuance costs and to improve bond issuance operations.  As part of a series of recommendations, the LBC suggested that the State Finance Committee be "authorized to arrange for the printing of bond certificates without the involvement of the Department of Printing."

The printing of bond certificates is a highly specialized and tightly controlled process.  A limited number of bank note companies in the United States engrave and distribute bond certificates according to industry standards.  The staff in the State Treasurer's office who provide support services to the State Finance Committee serve as the primary contact point with bond certificate printers throughout the bidding, contracting, and printing process.

However, under RCW 43.78.030 the Department of Printing has responsibility for printing of state documents.  In the case of bond certificates, the Department of Printing only completes the necessary paperwork to comply with this law.  The Department then charges the State Treasurer state sales tax plus an additional departmental service charge of 5 percent, thus increasing bond certificate printing costs.

SUMMARY:

The printing of bond certificates issued by the State Finance Committee is exempted from the law which requires that printing of state documents be done by the public printer.

EFFECT OF SENATE AMENDMENT(S):  The amendment (1) exempts the printing of bond offering disclosure documents from the law that requires the printing of state documents be done by the public printer and (2) extends this exemption to all state entities that have the authority to ensure bonds.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Jean Silver, prime sponsor; Tim Kerr, State Treasurer's Office.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Since it would save unnecessary administrative fees and improve the process of issuing bonds, this bill contributes toward efficiency and waste-free operations of state government.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 95; Excused 3

Excused:    Representatives Ballard, Taylor, Mr. Speaker