HOUSE BILL REPORT

                  HB 2726

                      As Passed House:

                      February 8, 1996

Title:  An act relating to school bond election resolutions.

Brief Description:  Moving school bond election resolution provisions.

Sponsors:  By House Committee on Education (originally sponsored by Representatives Radcliff and Blanton).

Brief History:

  Committee Activity:

Education:  1/30/96, 2/1/96 [DP].

  Floor Activity:

     Passed House: 2/8/96, 96-0.

HOUSE COMMITTEE ON EDUCATION

Majority Report:  Do pass.  Signed by 19 members:  Representatives Brumsickle, Chairman; Elliot, Vice Chairman; Johnson, Vice Chairman; Cole, Ranking Minority Member; Keiser, Assistant Ranking Minority Member; Clements; Fuhrman; Hatfield; Linville; McMahan; Pelesky; Poulsen; Quall; Radcliff; Smith; Talcott; B. Thomas; Thompson and Veloria.

Staff:  Susan Ronn (786-7292).

Background:  The board of directors of any school district has the authority to borrow money and issue negotiable bonds for certain stated purposes.  To issue bonds above a district's non-voter-approved debt limit, the school district must get approval from the voters.  Districts are also eligible for state assistance for capital construction.

Prior to elections, school districts inform voters of the likely ways the proceeds will be spent.  Nothing, however, requires the school district to use the funds for these stated purposes.

In 1995, SHB 1777 was passed by the Legislature and enacted into law.  The bill requires that prior to an election on a bond measure, the school district must adopt a resolution specifying the purposes of both the measure and any state financing assistance.  This is to include a description of any specific buildings to be constructed or remodeled.  If the school board subsequently determines that circumstances have changed, the board must first conduct a public hearing to consider the circumstances and receive public testimony.  If the board, after such a hearing, determines that alterations are in the best interest of the district, the board may adopt a new resolution or amend the original resolution at a public meeting.

SHB 1777 was codified into a section of the RCW dealing with the district's authority to validate and ratify indebtedness instead of into the section dealing with the district's authority to borrow money and issue bonds.

Summary of Bill:   The requirement that districts adopt resolutions specifying the purposes of a bond measure is moved from the section of the RCW relating to validating indebtedness to the section of the RCW authorizing bond issuance.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Testified:  None.