Z-0481.1  _______________________________________________

                         SENATE BILL 5676

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Senators Shin, Prentice, Winsley and Franklin; by request of Housing Finance Commission

Read first time 02/02/1999.  Referred to Committee on Commerce, Trade, Housing & Financial Institutions.

Adjusting private activity bond allocation ceilings.

    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) 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%))

BOND USE 2000 and

CATEGORY THEREAFTER

Housing 35%

Student Loans 15%

Public Utility 10%

Small Issue/Exempt Facilities 35%

Remainder and Redevelopment 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.

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