FINAL BILL REPORT

SHB 263

                                   C 19 L 87

BYHouse Committee on Local Government (originally sponsored by Representatives Haugen, Prince, Hine, L. Smith and P. King; by request of  Department of Community Development)

Exempting loans from the state or federal government to local governments from the statutory indebtedness ceiling.

House Committe on Local Government

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

The public works trust account was established in 1985 to make loans to local governments to construct, repair, rehabilitate and improve streets and roads, bridges, storm and sanitary sewers, and water systems.

The constitution establishes limitations on the amount of general indebtedness that a local government may incur.  Statutes restrict local governments to a lesser amount of general indebtedness than the constitution.  Many local governments are authorized to incur general indebtedness without voter approval, as well as general indebtedness with voter approval.

SUMMARY:

Local governments are authorized to evidence loan agreements with the federal government or state government without issuing a bond.  The loan agreements may specify that the loan constitutes a revenue type obligation or a general indebtedness type obligation.  Loan agreements entered into between a local government and the state or federal government, that are of the nature of a general indebtedness, do not constitute indebtedness under the statutory indebtedness limitations.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    43     0

EFFECTIVE:April 3, 1987