HOUSE BILL REPORT

SSB 5174

BYSenate Committee on Agriculture (originally sponsored by Senators Hansen, Barr, Gaspard, Bauer, Anderson, Bailey, Warnke, Lee and von Reichbauer)

Allowing the state investment board to invest in Washington land bank.

House Committe on Agriculture & Rural Development

Majority Report:  Do pass.  (12)

      Signed by Representatives Rayburn, Chair; Kremen, Vice Chair; Brooks, Chandler, Doty, Grant, Holm, Jacobsen, McLean, Moyer, Nealey and Rasmussen.

House Staff:Kenneth Hirst (786-7105)

AS PASSED HOUSE MARCH 27, 1987

BACKGROUND:

In 1986, the legislature enacted laws permitting the creation of a borrower-owned Washington Land Bank.  Under those laws, a borrower may, during the first five years of a loan from the bank or of the bank's participation in a loan, defer payment of the principal or interest due within certain limitations.

In making any investments, the State Investment Board must consider the probable safety of its capital as well as the probable income to be derived from its investment. The board is expressly authorized by law to invest funds in loans fully guaranteed under the federal Bankhead-Jones Farm Tenant Act.

SUMMARY:

The State Investment Board is expressly authorized to invest funds in the Washington Land Bank.

Under the land bank statutes, a borrower who elects to defer payment of principal and/or interest due on a loan must secure the approval of the land bank to do so.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    Homer Trefry, Washington State Grange.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The bill will correct some of the oversights contained in the organic legislation authorizing the land bank.

House Committee - Testimony Against:      None Presented.