THAT, At the next general election to be held in this state the secretary of state shall submit to the qualified voters of the state for their approval and ratification, or rejection, an amendment to Article XXIX, section 1 of the Constitution of the state of Washington; and an amendment to Article IX of the Constitution of the state of Washington by adding a new section to read as follows:

(b) Money may be placed in the public school revolving fund from the proceeds of bonds when authorized by the legislature or from any lawful source. All moneys received from school districts in the repayment of loans made from appropriations from the public school revolving fund shall be deposited into the public school revolving fund.

(c) Moneys may only be withdrawn and appropriated from the public school revolving fund to provide loans to school districts for capital projects.

(b) As used in this section, "capital projects" means the acquisition, construction, modernization, repair, reconstruction, rehabilitation, or improvement of school plant facilities.

(3)(a) The public school revolving fund board is hereby created. The board shall be composed of the state treasurer and four members of the legislature of the state of Washington, one of whom is appointed by the chairperson of each of the two largest political caucuses in the senate and house of representatives. The chair of the board is the state treasurer and is a nonvoting member.

(b)(i) The board shall oversee a loan program to school districts for capital projects under this section. The board may make loans to school districts from the public school revolving fund for the purposes of financing capital projects.

(ii) The board may offer zero percent interest rate loans but shall not exceed an interest rate of twenty-five percent of the market rate for any approved loan.

(iii) The board may pledge money in the public school revolving fund, or money to be received by the public school revolving fund, to the repayment of all or a portion of the principal of or interest on obligations issued by school districts to finance capital projects. The board shall not pledge any amount greater than the sum of money in the public school revolving fund plus money to be received from the payment of the debt service on loans made from that account, nor shall the board pledge the faith and credit or the taxing power of the state or any agency or subdivision thereof to the repayment of obligations issued by any school district.

(iv) The board shall not sign contracts or otherwise financially obligate funds from the public school revolving fund before the legislature has appropriated funds to the board for the purpose of funding capital projects under this section.

Article XXIX, section 1. Notwithstanding the provisions of sections 5, and 7 of Article VIII and section 9 of Article XII or any other section or article of the Constitution of the state of Washington, the moneys of any public pension or retirement fund, industrial insurance trust fund, ((or)) fund held in trust for the benefit of persons with developmental disabilities, or public school revolving fund may be invested as authorized by law.

BE IT FURTHER RESOLVED, That this amendment is a single amendment within the meaning of Article XXIII, section 1 of the state Constitution.

The legislature finds that the changes contained in this amendment constitute a single integrated plan for the public school revolving fund program. If this amendment is held to be separate amendments, this joint resolution is void in its entirety and is of no further force and effect.

BE IT FURTHER RESOLVED, That the secretary of state shall cause notice of this constitutional amendment to be published at least four times during the four weeks next preceding the election in every legal newspaper in the state.