HOUSE BILL REPORT

ESHB 2964

BYHouse Committee on Capital Facilities & Financing (originally sponsored by Representatives Schoon, H. Sommers, P. King and Betrozoff)

Authorizing bonds for capital facilities.

House Committe on Capital Facilities & Financing

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (11)

      Signed by Representatives H. Sommers, Chair; Rasmussen, Vice Chair; Schoon, Ranking Republican Member; Betrozoff, Fraser, Heavey, Jacobsen, Peery, Rector, Wang and Winsley.

Minority Report:  Do not pass.  (2)

      Signed by Representatives Beck and Bowman.

House Staff:Bill Robinson (786-7140)

AS PASSED HOUSE MARCH 9, 1990

BACKGROUND:

The state of Washington periodically issues general obligation bonds to finance capital construction projects throughout the state.  Specific legislative approval of a capital project is contained in the capital appropriations act.  Those capital appropriations in the capital budget requiring state bonding must have separate legislation authorizing the sale of the bonds.

SUMMARY:

The state finance committee is authorized to issue $171 million in state general obligation bonds to finance capital projects appropriated in the 1990 supplemental capital budget.  The $171 million in new bonding authority is distributed to the following accounts:  State Building Construction Account $151 million; Outdoor Recreation Account $22.5 million; Habitat Conservation Account $22.5 million; State Reimbursable Account $16 million; and State Social and Health Services Construction Account ($2.7) million.  The balance of $38.3 million is excess bond authority from prior years resulting from lower than anticipated interest rates, expenditures, and other factors.

The 1989 distribution to the University of Washington Building Account is changed to the Higher Education Construction Account.

The following bond statutes are reenacted to correct double amendments:

a)  Referendum 26 waste disposal facilities, 1972

b)  Referendum 38 water supply facilities, 1979

c)  Referendum 39 waste disposal and management facilities, 1980

d)  Salmon enhancement facilities, 1977

Lands transferred to the Department of Wildlife from other agencies are exempt from payments in lieu of property taxes.

House Committee ‑ Testified For:    Russ Cahill, Washington Wildlife and Recreation Coalition.

House Committee - Testified Against:      Bill Fritz, The Tobacco Institute; David Michener, Washington Soft Drink Association; Dick Ducharm, Washington Beer and Wine Wholesalers Association; Mike Roberts, Superintendent of Public Instruction.

House Committee - Testimony For:    The bill provides the bonds necessary to finance the budget appropriations for critical conservation and recreation needs. The amount of bonds for this purpose should be increased from $45 million to $62 million.

House Committee - Testimony Against:      The tax on non-alcoholic beverages should not be extended.  The drug enforcement and education fund should not be used for debt service on state bonds.  Dedicating the use of the drug fund to long-term debt may obligate the fund beyond its termination date.  The reduction of bond financing for school construction should be repealed.

VOTE ON FINAL PASSAGE:

      Yeas 87; Nays 9; Excused 1; 3/9/90

Voting Nay: Representatives Beck, Bowman, Fuhrman, Kirby, McLean, Padden, Silver, Tate, Wolfe

Excused:    Representative Vekich