AN ACT Relating to state general obligation bonds for agricultural water supply facilities; and adding a new chapter to Title 43 RCW.

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

NEW SECTION. Sec. 1. The legislature finds that the agricultural industry in the state of Washington provides the foundation upon which other segments of the state's economy are based. The long-range economic well-being of the state of Washington's agricultural industry requires that agricultural water supply systems be well maintained and in efficient working order and that expansion of agricultural water supply systems be well planned in order to produce general expansion of the state's economy, create jobs, and provide local and state tax revenues.

The legislature finds that properly planned agricultural water supply projects will also provide benefits to recreation and game and fishery resources. The purpose of this chapter is to assist in the maintenance and development of this important basic industry, assist in attracting federal funds, and promote the general welfare of the citizens of the state of Washington.

It is the intent of the legislature that allocation of waters meet the criteria of the water resources act of 1971 as specified in RCW 90.54.020(2).

NEW SECTION. Sec. 2. For the purpose of providing funds for capital improvements consisting of the planning, acquisition, construction, and improvement of agricultural water supply facilities within the state, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of forty million dollars, or so much thereof as may be required, to finance these projects and all costs incidental thereto. Bonds authorized in this section may be sold at such price as the state finance committee shall determine. No bonds authorized in this section may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

NEW SECTION. Sec. 3. The proceeds from the sale of the bonds authorized in section 2 of this act shall be deposited in the state and local improvements revolving account--water supply facilities in the general fund and shall be used exclusively for the purposes specified in sections 1 through 8 of this act and for the payment of expenses incurred in the issuance and sale of the bonds.

NEW SECTION. Sec. 4. The proceeds from the sale of the bonds deposited under section 3 of this act in the state and local improvements revolving account--water supply facilities of the general fund shall be used for water supply facilities for agricultural use alone or in combination with fishery, recreational, or other beneficial uses of water, and shall be administered by the department of ecology, subject to legislative appropriation. The department of ecology shall submit a cost benefit analysis for each water supply facility project proposed to be funded in whole or in part from the proceeds of the bonds authorized in section 2 of this act. The benefit cost analysis shall be a part of the department's request for appropriation. The department of ecology may use or permit the use of any funds derived from the sale of bonds authorized in section 2 of this act to accomplish the purpose for the issuance of the bonds by direct expenditures and by grants or loans to public bodies, including grants to public bodies as matching funds in any case where federal, local, or other funds are made available on a matching basis for improvements within the purposes of sections 1 through 8 of this act. Not more than twenty-five percent of the total cost of any project may be financed by a grant unless specifically approved by the legislature.

No bond proceeds may be allocated for agricultural water supply projects within the second half of the Columbia Basin Project.

NEW SECTION. Sec. 5. As used in sections 1 through 8 of this act, the term "agricultural water supply facilities" means agricultural (and any associated fishery, recreational, or other beneficial use) water supply or distribution systems including but not limited to all equipment, utilities, structures, real property, and interests in and improvements on real property necessary for or incidental to the acquisition, construction, installation, or use of any such water supply or distribution system.

As used in sections 1 through 8 of this act, the term "public body" means the state of Washington or any agency, political subdivision, taxing district, or municipal or public corporation thereof; an agency of the federal government; and those Indian tribes which may constitutionally receive grants or loans from the state of Washington.

NEW SECTION. Sec. 6. The state general obligation bond retirement fund shall be used for the payment of the principal of and interest on the bonds authorized in section 2 of this act.

The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements. Not less than thirty days prior to the date on which any interest or principal and interest payment is due, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the general obligation bond retirement fund an amount equal to the amount certified by the state finance committee to be due on the payment date.

Bonds issued under section 2 of this act shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.

The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NEW SECTION. Sec. 7. The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 2 of this act, and section 6 of this act shall not be deemed to provide an exclusive method for the payment.

NEW SECTION. Sec. 8. The bonds authorized in section 2 of this act shall be a legal investment for all state funds or funds under state control and for all funds of any other public body.

NEW SECTION. Sec. 9. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 10. Sections 1 through 8 of this act shall constitute a new chapter in Title 43 RCW.