SENATE BILL REPORT

HB 1332

BYRepresentatives Silver and H. Sommers 

Removing requirement that state bond certificates be printed by the public printer.

House Committe on State Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 18, 1988

Majority Report:  Do pass as amended.

      Signed by Senators McCaslin, Chairman; Zimmerman, Vice Chairman; DeJarnatt, Garrett, Halsan.

Senate Staff:Barbara Howard (786-7410)

                  February 19, 1988

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 18, 1988

BACKGROUND:

In 1987 the Legislative Budget Committee (LBC) completed a study dealing with general obligation bonds issued by the State Finance Committee.  One purpose of the study was to reduce debt issuance costs and to improve bond management.  One of LBC's recommendations was that the State Finance Committee be "authorized to arrange for the printing of bond certificates without the involvement of the Department of Printing."

Printing bond certificates is a highly specialized process.  Staff in the treasurer's office provides support services to the State Finance Committee and serves as the primary contact point with bond certificate printers throughout the bidding, contracting, and printing process.

However, under RCW 43.78.030, the department has responsibility for printing all state documents except the records of the Supreme Court and the Court of Appeals.  In the case of bond certificates, the department processes the orders to comply with this law and then contracts with the specialty printers.  The department then charges the treasurer a departmental service charge of 5 percent plus sales tax, thus increasing bond certificate printing costs.

SUMMARY:

The printing of bond certificates issued by the committee is exempted from the law which requires that state documents be printed by the public printer.

SUMMARY OF PROPOSED AMENDMENT:

Printing of bond certificates or bond offering disclosure documents is exempted from the requirement that state documents must be produced by the Public Printer.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: John Van Gorkom, WA Health Care Facility Authority (pro); Lee Blankenship, Dept. of Printing (pro); Tim Kiser, Office of State Treasurer (pro)