SENATE BILL REPORT

                           2ESB 5719

                 AS PASSED SENATE, MAY 6, 1993

Brief Description:  Authorizing general obligation bonds for costs incidental to the 1993‑95 biennium.

SPONSORS: Senators Rinehart, Bluechel and Snyder; by request of Office of Financial Management

SENATE COMMITTEE ON WAYS & MEANS

Staff:  Terry Wilson (786‑7715)

Hearing Dates: April 9, 1993

HOUSE COMMITTEE ON CAPITAL BUDGET

BACKGROUND:

The state of Washington periodically issues general obligation bonds to finance capital construction projects throughout the state.  The specific legislative approval of a capital project is contained in the Capital Appropriations Act.  Those appropriations requiring state bonding depend on legislation authorizing the sale of bonds.  Bond authorization legislation requires a 60 percent majority vote in both the House of Representatives and the Senate.

SUMMARY:

The State Finance Committee is authorized to issue $926,737,000 in state general obligation bonds to finance new construction and other state projects contained in the 1993-95 capital budget. 

Of this total, $903,000,000 is deposited into the state building construction account and $1,500,000 into the Fruit Commission facility account.

The Fruit Commission facility account is created and all principal and interest on bonds issued for the account will be paid from the Fruit Commission's operating fund.  The bonds for the Fruit Commission can be sold only after the Office of Financial Management has certified that the commission has adequate revenues to pay the debt service on the bonds and has approved the plans for the facility.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested