Z-0150.1 _______________________________________________
SENATE BILL 5071
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State of Washington 53rd Legislature 1993 Regular Session
By Senator Haugen; by request of Law Revision Commission
Read first time 01/12/93. Referred to Committee on Government Operations.
AN ACT Relating to correcting unconstitutional provisions regarding the construction, sale, and conditions of revenue bonds for pollution control facilities; and amending RCW 70.95A.030 and 70.95A.060.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 70.95A.030 and 1973 c 132 s 4 are each amended to read as follows:
In addition to any other powers which it may now have, each municipality shall have the following powers:
(1) To acquire, whether by construction, purchase, devise, gift or lease, or any one or more of such methods, one or more facilities which shall be located within, or partially within the municipality. Each facility must have a separate value to the municipality beyond its potential use to an entity that has leased the facility from the municipality;
(2) To lease, lease with option to purchase,
sell or sell by installment sale, any or all of the facilities upon such terms
and conditions as the governing body may deem advisable but which shall ((at
least)) more than fully reimburse the municipality for all debt
service on any bonds issued to finance the facilities and for all costs
incurred by the municipality in financing and operating the facilities and as
shall not conflict with the provisions of this chapter. The term of each
lease must be less than the term of the municipality's ownership in the leased
facility by at least one month;
(3) To issue revenue bonds for the purpose of defraying the cost of acquiring or improving any facility or facilities or refunding any bonds issued for such purpose and to secure the payment of such bonds as provided in this chapter. Revenue bonds may be issued in one or more series or issues where deemed advisable, and each such series or issue may have the same or different maturity dates, interest rates, priorities on revenues available for payment of such bonds and priorities on security available for assuring payment thereof, and such other differing terms and conditions as are deemed necessary and are not in conflict with the provisions of this chapter.
Sec. 2. RCW 70.95A.060 and 1973 c 132 s 7 are each amended to read as follows:
Prior to the issuance of the bonds authorized
by this chapter, the municipality may lease the facilities to a lessee or
lessees under an agreement providing for payment to the municipality of such
rentals as will be more than sufficient (a) to pay the principal of and
interest on the bonds issued to finance the facilities, (b) to pay the taxes on
the facilities, (c) to build up and maintain any reserves deemed by the
governing body to be advisable in connection therewith, and (d) unless the
agreement of lease obligates the lessees to pay for the maintenance and
insurance of the facilities, to pay the costs of maintaining the facilities in
good repair and keeping the same properly insured. Subject to the limitations
of this chapter, the lease or extensions or modifications thereof may contain
such other terms and conditions as may be mutually acceptable to the parties((,
and)). The term of the lease must be less than the term of the
municipality's ownership in the leased facility by at least one month. Notwithstanding
any other provisions of law relating to the sale of property owned by
municipalities, such lease may contain an option for the lessees to purchase
the facilities on such terms and conditions with or without consideration as
may be mutually acceptable to the parties.
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