Z-1687               _______________________________________________

                                                   HOUSE BILL NO. 2707

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives H. Sommers and Schoon

Read first time 1/19/90 and referred to Committee on Capital Facilities & Financing.

AN ACT Relating to school district indebtedness; amending RCW 28A.58.428; and adding a new section to Title 28A RCW.

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

NEW SECTION. Sec. 1.  A new section is added to Title 28A RCW to read as follows:

          In addition to the authority granted under RCW 28A.51.010, a school district may contract indebtedness for the purpose of purchasing any real or personal property, or property rights, in connection with the exercise of any powers or duties which it is now or hereafter authorized to exercise, and issue bonds, notes, or other evidences of indebtedness therefor without a vote of the qualified electors of the district, subject to the limitations on indebtedness set forth in RCW 39.36.020(3).  Such bonds, notes, or other evidences of indebtedness shall be issued and sold in accordance with chapter 39.46 RCW, and the proceeds thereof shall be deposited in the capital projects fund, the transportation vehicle fund, or the general fund, as applicable.

        Sec. 2.  Section 7, chapter 265, Laws of 1981 and RCW 28A.58.428 are each amended to read as follows:

          (1) There is created a fund on deposit with each county treasurer for each school district of the county, which shall be known as the transportation vehicle fund.  Money to be deposited into the transportation vehicle fund shall include, but is not limited to, the following:

          (a) The balance of accounts held in the general fund of each school district for the purchase of approved transportation equipment and for major transportation equipment repairs under RCW 28A.41.160, as now or hereafter amended.  The amount transferred shall be the balance of the account as of September 1, 1982;

          (b) Reimbursement payments provided for in RCW 28A.41.540 except  those provided under RCW 28A.41.540(4) that are necessary for contracted payments to private carriers;

          (c) Earnings from transportation vehicle fund investments as authorized in RCW 28A.58.430, as now or hereafter amended; and

          (d) The district's share of the proceeds from the sale of transportation vehicles, as determined by the superintendent of public instruction.

          (2) Funds in the transportation vehicle fund may be used for the following purposes:

          (a) Purchase of pupil transportation vehicles pursuant to RCW 28A.41.540 and RCW 28A.41.160, as now or hereafter amended;

          (b) Payment of conditional sales contracts ((for the purchase of pupil transportation vehicles)) as authorized in RCW 28A.58.550, as now or hereafter amended or payment of bonds authorized in section 1 of this 1990 act, entered into or issued for the purpose of pupil transportation vehicles;

          (c) Major repairs to pupil transportation vehicles.

          The superintendent of public instruction shall promulgate rules which shall establish the standards, conditions, and procedures governing the establishment and use of the transportation vehicle fund.  The rules shall not permit the transfer of funds from the transportation vehicle fund to any other fund of the district.