Z-0837.1  _______________________________________________

                          HOUSE BILL 1776

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Representatives Benton and L. Thomas; by request of State Treasurer

Read first time 02/08/95.  Referred to Committee on Financial Institutions & Insurance.

Extending authority to enter into payment agreements.

    AN ACT Relating to payment agreements; amending RCW 39.96.010 and 39.96.070; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 39.96.010 and 1993 c 273 s 1 are each amended to read as follows:

    The legislature finds and declares that the issuance by state and local governments of bonds and other obligations, and the investment of moneys in connection with these obligations, involve exposure to changes in interest rates; that a number of financial instruments are available to lower the net cost of these borrowings, to increase the net return on these investments, or to reduce the exposure of state and local governments to changes in interest rates; that these reduced costs and increased returns for state and local governments will benefit taxpayers and ratepayers; and that the legislature desires to provide state and local governments with express statutory authority to take advantage of these instruments.  In recognition of the complexity of these financial instruments, the legislature desires that this authority be subject to certain limitations, and be granted for ((an initial)) a period of ((two)) five years.

    Sec. 2.  RCW 39.96.070 and 1993 c 273 s 7 are each amended to read as follows:

    (1) Except as provided in subsection (3) of this section, no governmental entity may enter a payment agreement under RCW 39.96.030 after June 30, ((1995)) 2000.

    (2) The termination of authority to enter payment agreements after June 30, ((1995)) 2000, shall not affect the validity of any payment agreements or other contracts entered into under RCW 39.96.030 on or before that date.

    (3) A governmental entity may enter into a payment agreement under and in accordance with this chapter after June 30, ((1995)) 2000, to replace a payment agreement that relates to specified obligations issued on or before that date and that has terminated before the final term of those obligations.

    (4) The state finance committee shall make a report to the appropriate legislative committees on payment agreements authorized in this chapter.  The report shall include the governmental entity entering into a payment agreement, the amount of the agreement, the expected savings resulting from the agreement, the transactions cost, and any other information the state finance committee determines relevant.  The report shall be submitted ((on November 30, 1993, and December 30, 1994)) each December.

NEW SECTION. Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995.

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