HOUSE BILL REPORT

                  SB 6159

             As Reported By House Committee On:

                    Agriculture & Ecology

Title:  An act relating to eliminating authority for the Washington land bank.

Brief Description:  Repealing the authority for the Washington land bank.

Sponsors:  Senators Morton and Rasmussen.

Brief History:

  Committee Activity:

Agriculture & Ecology:  2/23/98 [DP].

HOUSE COMMITTEE ON AGRICULTURE & ECOLOGY

Majority Report:  Do pass.  Signed by 10 members:  Representatives Chandler, Chairman; Parlette, Vice Chairman; Schoesler, Vice Chairman; Linville, Ranking Minority Member; Anderson, Assistant Ranking Minority Member; Delvin; Koster; Mastin; Regala and Sump.

Staff:  Kenneth Hirst (786-7105).

Background:  Legislation was enacted in 1986 to create a Washington Land Bank patterned after the federal land bank.  The legislation instructed the director of the Department of General Administration to establish the bank by rule.  It was to be organized by borrowers to provide loans to farmers and ranchers, with the voting stock to be held by the borrower members of the bank.  The bank was authorized to make loans using farm real estate as collateral.  The debts and obligations of the bank were declared not to be debts or obligations of the state.

These land bank statutes were amended in 1987 to grant the state's supervisor of banking regulatory authority to examine and monitor the bank for solvency.  They were amended again in 1994 to reflect the transfer of bank regulatory authorities from the Department of General Administration and the Department of Licensing to the Department of Financial Institutions.

Summary of Bill:  The statutes authorizing the Washington Land Bank and regulating its activities are repealed.

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.