Washington State House of Representatives Office of Program Research | BILL ANALYSIS |
Transportation Committee |
HB 1298
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
Brief Description: Authorizing bonds for the financing of transportation projects.
Sponsors: Representatives Clibborn and Fey; by request of Governor Inslee.
Brief Summary of Bill |
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Hearing Date: 4/7/15
Staff: Mark Matteson (786-7145)
Background:
Washington periodically issues general obligation bonds to fund transportation capital projects with a long-term expected life span. General obligation bonds pledge the full faith, credit, and taxing power of the state towards payment of debt service. Legislation authorizing the issuance of bonds requires a 60 percent majority vote in both the House of Representatives and the Senate. The proceeds of the bonds must then be appropriated for transportation projects.
The State Finance Committee (Committee) was created in 1921, and is composed of the Governor, the Lieutenant Governor, and the State Treasurer. The Committee authorizes the issuance and establishes the terms, conditions, and manner of the sale of all bonds, notes, and other debt for the state to finance capital projects in the state's capital and transportation budgets. Article VIII, Section 1(a) of the State Constitution and existing statutes limit the term of state general obligation bonds to 30 years.
Summary of Bill:
The State Finance Committee is authorized to issue $3.1 billion in state general obligation bonds to finance state transportation projects. The bonds are backed by the motor fuels taxes and the full faith and credit of the state.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.