Z-1355.1  _______________________________________________

                         SENATE BILL 6438

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By Senators Winsley and Prentice

Read first time 01/19/98.  Referred to Committee on Financial Institutions, Insurance & Housing.

Using a future increase in the private activity bond allocation ceiling.

    AN ACT Relating to private activity bond allocation ceilings; and amending RCW 39.86.120.

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

    Sec. 1.  RCW 39.86.120 and 1990 c 50 s 1 are each amended to read as follows:

    (1) Except as provided in subsections (2) ((and)), (4), and (6) of this section, the initial allocation of the state ceiling shall be for each year as follows:

                               1989 and           1990 and

                              THEREAFTER         THEREAFTER

                              (If the small      (If the small

                              issue category     issue category

                              is permitted       is not permitted

BOND USE                      under federal      under federal

CATEGORY        1987 1988          law)            law)

Housing           5%  25%           25%                35%  

Student Loans    10%  15%           15%                15%  

Exempt Facility 40%  20%           20%                35%  

Public Utility   10%  10%           10%                10%  

Small Issue      30%  25%           25%                 0%  

Remainder and

  redevelopment    5%  5%            5%                 5%

    (2) Initial allocations may be modified by the agency only to reflect an issuer's carryforward amount.  Any reduction of the initial allocation shall be added to the remainder and be available for allocation or reallocation.

    (3) The remainder shall be allocated by the agency among one or more issuers from any bond use category with regard to the criteria specified in RCW 39.86.130.

    (4) Should any bond use category no longer be subject to the state ceiling due to federal or state provisions of law, the agency shall divide the amount of that initial allocation among the remaining categories as necessary or appropriate with regard to the criteria specified in RCW 39.86.130.

    (5)(a) Prior to September 1 of each calendar year, any available portion of an initial allocation may be allocated or reallocated only to an issuer within the same bond use category, except that the remainder category, or portions thereof, may be allocated at any time to any bond use category.

    (b) Beginning September 1 of each calendar year, the agency may allocate or reallocate any available portion of the state ceiling to any bond use category with regard to the criteria specified in RCW 39.86.130.

(6) In the event that the state ceiling is increased, fifty percent of the initial allocation of any such increase shall be made for housing and the remainder of the initial allocation of any such increase shall be made to the other uses in proportion to their then appropriate allocations contained in subsection (1) of this section.

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