CERTIFICATION OF ENROLLMENT

HOUSE BILL 1487

Chapter 154, Laws of 2005

59th Legislature
2005 Regular Session



PAYMENT AGREEMENTS--PUBLIC FACILITIES DISTRICTS



EFFECTIVE DATE: 7/24/05

Passed by the House March 11, 2005
  Yeas 95   Nays 0

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


Passed by the Senate April 11, 2005
  Yeas 49   Nays 0


BRAD OWEN
________________________________________    
President of the Senate
 
CERTIFICATE

I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1487 as passed by the House of Representatives and the Senate on the dates hereon set forth.


RICHARD NAFZIGER
________________________________________    
Chief Clerk
Approved April 22, 2005.








CHRISTINE GREGOIRE
________________________________________    
Governor of the State of Washington
 
FILED
April 22, 2005 - 3:56 p.m.







Secretary of State
State of Washington


_____________________________________________ 

HOUSE BILL 1487
_____________________________________________

Passed Legislature - 2005 Regular Session
State of Washington59th Legislature2005 Regular Session

By Representatives Ormsby, Dunshee, Serben and Crouse

Read first time 01/25/2005.   Referred to Committee on Capital Budget.



     AN ACT Relating to payment agreements; and amending RCW 39.96.020.

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

Sec. 1   RCW 39.96.020 and 2004 c 108 s 2 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Financial advisor" means a financial services or financial advisory firm:
     (a) With recognized knowledge and experience in connection with the negotiation and execution of payment agreements;
     (b) That is acting solely as financial advisor to the governmental entity in connection with the execution of the payment agreement and the issuance or incurring of any related obligations, and not as a principal, placement agent, purchaser, underwriter, or other similar party, and that does not control, nor is it controlled by or under common control with, any such party;
     (c) That is compensated for its services in connection with the execution of payment agreements, either directly or indirectly, solely by the governmental entity; and
     (d) Whose compensation is not based on a percentage of the notional amount of the payment agreement or of the principal amount of any related obligations.
     (2) "Governmental entity" means state government or local government.
     (3) "Local government" means any city, county, city transportation authority, regional transit authority established under chapter 81.112 RCW, port district, public hospital district, public facilities district, or public utility district, or any joint operating agency formed under RCW 43.52.360, that has or will have outstanding obligations in an aggregate principal amount of at least one hundred million dollars as of the date a payment agreement is executed or is scheduled by its terms to commence or had at least one hundred million dollars in gross revenues during the preceding calendar year.
     (4) "Obligations" means bonds, notes, bond anticipation notes, commercial paper, or other obligations for borrowed money, or lease, installment purchase, or other similar financing agreements or certificates of participation in such agreements.
     (5) "Payment agreement" means a written agreement which provides for an exchange of payments based on interest rates, or for ceilings or floors on these payments, or an option on these payments, or any combination, entered into on either a current or forward basis.
     (6) "State government" means (a) the state of Washington, acting by and through its state finance committee, (b) the Washington health care facilities authority, (c) the Washington higher education facilities authority, (d) the Washington state housing finance commission, or (e) the state finance committee upon adoption of a resolution approving a payment agreement on behalf of any state institution of higher education as defined under RCW 28B.10.016: PROVIDED, That such approval shall not constitute the pledge of the full faith and credit of the state, but a pledge of only those funds specified in the approved agreement.


         Passed by the House March 11, 2005.
         Passed by the Senate April 11, 2005.
         Approved by the Governor April 22, 2005.
         Filed in Office of Secretary of State April 22, 2005.