| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Capital Budget Committee | |
HB 1138
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Concerning general obligation bonds.
Sponsors: Representatives Fromhold, McDonald, Ormsby and Moeller; by request of Office of Financial Management.
Brief Summary of Bill |
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Hearing Date: 3/16/07
Staff: Susan Howson (786-7142).
Background:
The State of Washington periodically issues general obligation bonds to finance projects
authorized in the capital and transportation budgets. General obligation bonds pledge the full
faith and credit and taxing power of the state towards payment of debt service. Legislation
authorizing the issuance of bonds requires a 60 percent majority vote in both the House of
Representatives and the Senate.
Bond authorization legislation generally specifies the account or accounts into which bond sale
proceeds are deposited, as well as the source of debt service payments. When debt service
payments are due, the State Treasurer withdraws the amounts necessary to make the payments
from the state general fund and deposits them into the bond retirement funds.
The State Finance Committee, composed of the Governor, the Lieutenant Governor, and the
State Treasurer, is responsible for supervising and controlling the issuance of all state bonds.
Summary of Bill:
The State Finance Committee is authorized to issue state general obligation bonds to finance
$1.95 billion in projects in the 2007 Supplemental and 2007-09 Capital Budgets.
The State Treasurer is required to withdraw from state general revenues the amounts necessary to
make the principal and interest payments on the bonds and to deposit these amounts into the
Bond Retirement Account.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill contains an emergency clause and takes effect immediately.