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Washington Legislature· HB 1796C 170 L 26

Concerning school districts' authority to contract indebtedness for school construction., the official text

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CERTIFICATION OF ENROLLMENT
HOUSE BILL 1796
Chapter 170, Laws of 2026
69TH LEGISLATURE
2026 REGULAR SESSION
SCHOOL DISTRICTS—NONVOTED DEBT FOR SCHOOL CONSTRUCTION
EFFECTIVE DATE: June 11, 2026
Passed by the House March 11, 2026
Yeas 95  Nays 2
LAURIE JINKINS

Speaker of the House of Representatives
Passed by the Senate March 5, 2026
Yeas 30  Nays 18
DENNY HECK

President of the Senate
CERTIFICATE
I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1796 as passed by the House of Representatives and the Senate on the dates hereon set forth.
BERNARD DEAN

Chief Clerk
Chief Clerk
Approved March 24, 2026 10:16 AM
FILED
March 25, 2026

BOB FERGUSON

Governor of the State of Washington
Secretary of State
State of Washington

HOUSE BILL 1796

AS AMENDED BY THE SENATE
Passed Legislature - 2026 Regular Session
State of Washington
69th Legislature
2025 Regular Session

By Representatives Callan, Berg, Santos, Parshley, Ramel, Wylie, Reed, Ormsby, and Hill
Read first time 02/03/25. Referred to Committee on Capital Budget.
AN ACT Relating to school districts' authority to contract indebtedness for school construction; and amending RCW 28A.530.080.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 28A.530.080 and 2010 c 241 s 1 are each amended to read as follows:
(1)(a) In addition to the authority granted under RCW 28A.530.010, a school district may contract indebtedness for any purpose specified in RCW 28A.530.010 (2)((, (4), and ))through (5) or 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) and this subsection.
(b) To exercise the authority in (a) of this subsection for any purpose specified in RCW 28A.530.010(3) a school district must:
(i) Have received approval from the qualified electors of the district to collect a levy to support the construction, modernization, or remodeling of school facilities as authorized under RCW 84.52.053, which must be used to fully repay the indebtedness;
(ii) Not have been on binding conditions pursuant to RCW 28A.505.110 in the three years preceding the date of the contract; and
(iii) Agree to delay for two years the receipt of state financial assistance for the project that the school district is eligible for under RCW 28A.525.162 through 28A.525.180 .
(2) Before issuing nonvoted bonds in excess of ((two hundred fifty thousand dollars ))$250,000 , a school district shall publish notice of intent to issue such bonds and shall hold a public hearing on the proposal at any regular or special meeting of the school board. The notice shall designate: The date, time, and place of the hearing; the purpose and amount of the bonds; the type, terms, and conditions of bonds; and the means identified for repayment. The notice shall also state that any person may appear and be heard on the issue of issuing such bonds. The notice shall be published at least once each week for two consecutive weeks in a newspaper of general circulation in the district, or if there is none, in a newspaper of general circulation in the county or counties in which such district is a part. The last notice shall be published no later than seven days immediately before the hearing. At the conclusion of public comment, the board of directors may proceed to determine, by resolution, whether to issue such bonds.
(3) The public notice and hearing requirements in subsection (2) of this section shall not apply to any refinancing or refunding of outstanding nonvoted or voted bonds.
(4) 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.
Passed by the House March 11, 2026.
Passed by the Senate March 5, 2026.
Approved by the Governor March 24, 2026.
Filed in Office of Secretary of State March 25, 2026.
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