H-1562 _______________________________________________
SUBSTITUTE HOUSE BILL NO. 263
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C 019 L 87
State of Washington 50th Legislature 1987 Regular Session
By House Committee on Local Government (originally sponsored by Representatives Haugen, Prince, Hine, L. Smith and P. King; by request of Department of Community Development)
Read first time 2/13/87 and passed to Committee on Rules.
AN ACT Relating to local government debt; adding a new chapter to Title 39 RCW; adding a new section to chapter 39.36 RCW; adding a new section to chapter 43.155 RCW; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. As used in this chapter, "municipal corporation" includes counties, cities, towns, port districts, sewer districts, water districts, school districts, metropolitan park districts, or such other units of local government which are authorized to issue obligations.
NEW SECTION. Sec. 2. Any municipal corporation may enter into a loan agreement containing the terms and conditions of a loan from an agency of the state of Washington or the United States of America and evidencing the obligation of the municipal corporation to repay that loan under the terms and conditions set forth in the loan agreement. A loan agreement may provide that the municipal corporation will repay the loan solely from revenues set aside into a special fund for repayment of that loan. In the case of a municipal corporation authorized to borrow money payable from taxes, and authorized to levy such taxes, the loan agreement may provide that repayment of the loan is a general obligation of the municipal corporation, or both a general obligation and an obligation payable from revenues set aside into a special fund.
The state or federal agency making the loan shall have such rights of recovery in the event of default in payment or other breach of the loan agreement as may be provided in the loan agreement or otherwise by law.
NEW SECTION. Sec. 3. Nothing in this chapter authorizes municipal corporations to incur indebtedness beyond constitutional indebtedness limitations.
NEW SECTION. Sec. 4. The authority under this chapter is supplemental and in addition to the authority to issue obligations under any other provision of law.
NEW SECTION. Sec. 5. A new section is added to chapter 39.36 RCW to read as follows:
This chapter does not apply to a loan made pursuant to a loan agreement under chapter 39.-- RCW (sections 1 through 4 of this act), and any computation of indebtedness under this chapter shall exclude the amount of any loan under such a loan agreement.
NEW SECTION. Sec. 6. A new section is added to chapter 43.155 RCW to read as follows:
Loans from the public works assistance account under this chapter shall be made by loan agreement under chapter 39.-- RCW (sections 1 through 4 of this act).
NEW SECTION. Sec. 7. Sections 1 through 4 of this act shall constitute a new chapter in Title 39 RCW.
NEW SECTION. Sec. 8. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.