SENATE BILL REPORT
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.
As Passed Senate - Amended, April 27, 2019
Title: An act relating to state general obligation bonds and related accounts.
Brief Description: Concerning state general obligation bonds and related accounts.
Sponsors: House Committee on Capital Budget (originally sponsored by Representative Tharinger; by request of Office of Financial Management).
Brief History: Passed House: 4/03/19, 94-0.
Committee Activity: Ways & Means: 4/04/19 [DPA, w/oRec].
Passed Senate - Amended: 4/27/19, 48-0.
SENATE COMMITTEE ON WAYS & MEANS
Majority Report: Do pass as amended.
Signed by Senators Rolfes, Chair; Frockt, Vice Chair, Operating, Capital Lead; Mullet, Capital Budget Cabinet; Brown, Assistant Ranking Member, Operating; Honeyford, Assistant Ranking Member, Capital; Bailey, Becker, Billig, Conway, Darneille, Hasegawa, Hunt, Keiser, Liias, Palumbo, Pedersen, Van De Wege, Wagoner and Warnick.
Minority Report: That it be referred without recommendation.
Signed by Senator Schoesler.
Staff: Richard Ramsey (786-7412)
Background: The State Finance Committee (committee), composed of the Governor, the Lieutenant Governor, and the state treasurer, is responsible for supervising and controlling the issuance of all state bonds. The committee periodically issues general obligation bonds to finance projects authorized in the capital budget. No bonds may be authorized for sale without prior legislative appropriation of the net proceeds.
General obligation bonds pledge the full faith, credit, and taxing power of the state toward payment of debt service. Funding to pay for principal and interest on those bonds is appropriated from the state general fund in the operating budget. When debt service payments are due, the state treasurer withdraws the amounts necessary to make the payments and deposits them into bond retirement funds.
A bond bill authorizes the committee to issue general obligation bonds up to a specific amount to finance many of the projects in the capital budget. It specifies the amount of bonds to be issued, the account or accounts into which bond sale proceeds are to be deposited, and identifies sources and timing of debt service payments. Legislation authorizing the issuance of bonds requires a 60 percent majority vote in both the House of Representatives and the Senate.
Summary of Amended Bill: The committee is authorized to issue up to $3,200,926,000 in state general obligation bonds to finance projects in the 2019-21 capital budget and to pay expenses incurred by issuing and selling bonds. Proceeds from the bond sales must be deposited into the State Building Construction Account. The state treasurer must withdraw the amounts necessary from general state revenues and then make the principal and interest payments on the bonds, before depositing these amounts into the Debt Limit General Fund Bond Retirement Account.
Fiscal Note: Not requested.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: The bill contains an emergency clause and takes effect immediately.
Staff Summary of Public Testimony: No public hearing was held.
Persons Testifying: N/A
Persons Signed In To Testify But Not Testifying: N/A