HOUSE BILL REPORT

HB 2964

BYRepresentatives 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 REPORTED BY COMMITTEE ON CAPITAL FACILITIES & FINANCING

FEBRUARY 28, 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 $130 million in state general obligation bonds to finance capital projects appropriated in the 1990 supplemental capital budget.  The $130 million in new bonding authority is distributed to the following accounts:  State Building Construction Account $135 million; Outdoor Recreation Account $22.5 million; Habitat Conservation Account $22.5 million; Common School Construction Fund ($32) million; and State Social and Health Services Construction account ($2.7) million.  The balance of $15.3 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 State General Fund will be reimbursed from the drug enforcement and education account for the debt service costs on $100 million in general obligation bonds.

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

The expiration date on the non-alcoholic beverage tax is repealed.

SUBSTITUTE BILL AND SUBSTITUTE BILL COMPARED TO ORIGINAL:  The extension of the non-alcoholic beverage tax and the reduction of the school construction bonds is deleted.  The bond authorization level is increased $41 million.  Debt service on $16 million in bonds are to be reimbursed from the Public Safety and Education Account. Bonds for the outdoor recreation and the habitat conservation accounts are reduced to $22.5 million.  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.