Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Education

HB 1257

Brief Description:  Modifying educational service districts' borrowing authority.

Sponsors:  Representatives Cox, Haigh, Fromhold, Schoesler and Hunt.

Brief Summary of Bill

$Removes the size restriction on the authority of educational service districts to borrow money for the acquisition of real and personal property.

Hearing Date:  1/31/01

Staff:  Susan Morrissey (786‑7111).

Background: 

By law, educational service districts (ESDs) may purchase, lease, receive by gift, or contract for any real or personal property needed by the district.   ESDs that serve a minimum of 200,000 students may also borrow money for the same purposes.  The State Board of Education must approve the acquisition of any real property and may determine the conditions under which the property is acquired.  ESDs that borrow money to acquire property must use that property as collateral and must have a note signed by the district and the lender.

Puget Sound ESD is the only ESD serving 200,000 students.

Summary of Bill: 

All ESDs may borrow money in order to acquire real or personal property.

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

Appropriation:  None.

Fiscal Note: Received on January 26, 2001.