FINAL BILL REPORT

SB 5685

                                   C 6 L 87

BYSenators Sellar, Hansen, Newhouse and Barr

Authorizing bonds for new facility for apple advertising commission.

Senate Committee on Agriculture and Committee on Ways & Means

House Committe on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

The Apple Advertising Commission was created in 1937 and is currently the largest commodity commission in the state with an annual budget of $7.2 million.  The budget is completely funded by assessments on all fresh apple sales.

To further promote sales and otherwise fulfill the purposes of the Commission, a new building has been constructed for Commission offices, warehouse space, and a display room.  The Commission needs a long term financing arrangement for acquiring the land and constructing and equipping the building.  The total cost of building the facility and administering the program is estimated to be approximately $1.3 million.  The Commission has $500,000 available for the project and seeks an additional $800,000.

SUMMARY:

The State Finance Committee is authorized to issue general obligation bonds up to $800,000 to provide partial financing of a new building for the Washington Apple Advertising Commission and to pay administrative expenses incidental to the bonding procedures.  The bonds are to be issued and sold in accordance with the general bonding requirements set forth in statute.

Proceeds from the sale of bonds are deposited with the State Treasurer in the state building construction account, and are administered by the Apple Commission.  Debt service on the bonds is paid out of the general fund and reimbursed by the Apple Commission.  Whenever the principal and interest on a bond are due, the Commission pays the amount due from its general fund to the State Treasurer.

The bonds cannot be issued until:  (1) the Commission certifies that the net proceeds of the bonds, together with the other available funds, will be sufficient for the requirements of the capital project; and (2) the estimated future income from assessments levied will maintain an adequate balance to enable the Commission to pay the principal and interest as they become due.

Appropriation:    $800,000

VOTES ON FINAL PASSAGE:

      Senate    45     0

      House 87  10

EFFECTIVE:March 26, 1987