H-3062              _______________________________________________

                                                   HOUSE BILL NO. 2476

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Horn, Haugen, Nutley, Ferguson and May

Read first time 1/12/90 and referred to Committees on Local Government/Capital Facilities & Financing.

AN ACT Relating to leasing by cities and towns; and amending RCW 35.42.200.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 35.42.200, chapter 7, Laws of 1965 and RCW 35.42.200 are each amended to read as follows:

          Any city or town may execute leases for a period of years with or without an option to purchase with the state or any of its political subdivisions, with the government of the United States, or with any private party for the lease of any real or personal property, or property rights, if the annual rental specified in such lease does not result in a total indebtedness in excess of one and one-half percent of the taxable property of such city or town computed in accordance with RCW 39.36.030:  PROVIDED, That if the annual rental payment specified in such a proposed lease would result in a total indebtedness in excess of one and one-half percent of the taxable property of such city or town, a proposition in regard to whether or not such a lease may be executed shall be submitted to the voters for their approval or rejection in the same manner that bond issues for capital purposes are submitted:  PROVIDED FURTHER, That any city or town may execute leases authorized by ((this act)) Title 35 RCW jointly with the state or any of its political subdivisions. For purposes of this section, indebtedness is deemed incurred only with respect to leases which finance the acquisition of property by the lessee and in such cases the portion of lease payments allocable to principal shall be aggregated for the term of the lease and the portion of lease payments allocable to interest shall be excluded from the calculation.