SENATE BILL REPORT

SHB 2914

BYHouse Committee on Capital Facilities & Financing (originally sponsored by Representatives Betrozoff and Brumsickle)

Revising provisions for school levies for construction, modernization, or remodeling of school facilities.

House Committe on Education

Senate Committee on Education

Senate Hearing Date(s):February 20, 1990

Senate Staff:Leslie Goldstein (786-7424)

AS OF FEBRUARY 19, 1990

BACKGROUND:

In 1986, the Legislature approved House Joint Resolution 55.  The resolution asked the voters of the state to allow districts to pass levies, of up to six years duration, to support the construction, modernization or remodelling of school facilities.  The voters approved the joint resolution in the November 4, 1986 state general election.

Following passage of the resolution, the Lake Washington School District submitted a school capital projects excess levy to its voters for the modernization and remodelling of school facilities.  The money was to be used for the purchase and installation of an integrated computer system within the school district.  This was not tied to a specific construction project.  The levy was passed by the voters on February 2, 1988.

Many legislators felt that the legislative intent of the Legislature in authorizing the capital project excess levy was for projects that involved substantial construction as part of the modernization and remodelling, not just the purchase of equipment.  The legislators requested an Attorney General's Opinion.  The opinion issued June 15, 1988, supported the view point of the legislators.  Lake Washington School District was not bound by the opinion of the Attorney General and decided to resolve the issue by seeking a declaratory judgment from the Superior Court in King County in July, 1989.

The conclusion of the Superior Court was that there was no clear legislative intent to limit the use of money derived from the capital levy.  Consequently, the Lake Washington School District could use the capital projects excess levy for the purchase of the integrated computer system that was not part of a construction project.

SUMMARY:

No more than 15 percent of the proceeds from a two-year through six-year levy for construction, modernization, or remodeling of school facilities may be used to purchase capital equipment that constitutes a fixture or interconnected system that is not part of a construction project.  Under no circumstances may the proceeds of a six-year levy be used to purchase replacement equipment.

No more than 15 percent of the proceeds from a bond issue for capital purposes may be used to purchase capital equipment that constitutes a fixture or interconnected system that is not part of a construction project.  When capital bonds are issued the term of the bonds may be no greater than the useful life of the equipment or facilities being purchased by the bond proceeds.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 23, 1990