SENATE BILL REPORT

HB 2311

BYRepresentatives H. Sommers, Schoon and Rasmussen; by request of State Treasurer

Reinstating the state fire service training center bond retirement fund.

House Committe on Capital Facilities & Finance

Senate Committee on Ways & Means

Senate Hearing Date(s):February 22, 1990; February 23, 1990

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Johnson, Lee, Matson, Moore, Newhouse, Niemi, Owen, Smith, Talmadge, Williams, Wojahn.

Senate Staff:Steve Jones (786-7715)

                  February 24, 1990

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 23, 1990

BACKGROUND:

In 1983, the Legislature established a sunset review process for several state agencies and commissions.  The Commission for Vocational Education was one of the agencies subject to sunset review and was scheduled to terminate on June 30, 1986 unless extended by law.  The Legislature did not reenact the commission and it terminated, along with its statutory references.  In the termination process, the statute creating the State Fire Service Training Center Bond Retirement Fund was also repealed.  The fund was created in 1977 to pay the debt service on bonds sold for the construction of the fire service training center.  Principal and interest payments will continue to be paid on these bonds through November 1996.  The debt service fund should not have been repealed and needs to be "reenacted" until such time as the bonds have been fully retired.

SUMMARY:

The State Fire Service Training Center Bond Retirement Fund is reinstated.  The purpose of the fund is payment of principal and interest on bonds issued in 1977, or any bonds authorized hereafter, for the State Fire Training Center.  The State Finance Committee will certify the amount of annual principal and interest on the bonds and the State Treasurer will withdraw that amount from the state's general revenues and deposit it into the fund for the payment of the bonds.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: No one