AN ACT Relating to
state highway bonds; and adding new sections to chapter 47.10 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. The legislature finds and
declares:
Successful
implementation of the public-private transportation initiatives program
authorized in chapter 47.46 RCW may require the financial participation of the
state in projects authorized in that chapter.
The participation may
take the form of loans, loan guarantees, user charge guarantees, or such other
cash contribution arrangements as may improve the ability of the private
entities sponsoring the projects to obtain financing.
It is in the best
interests of the people of the state that state funding of possible financial
participation in the projects authorized under chapter 47.46 RCW be in the form
long-term bonds.
NEW SECTION. Sec.
2. In order to provide funds
necessary to implement the public-private transportation initiatives authorized
by chapter 47.46 RCW, there shall be issued and sold upon the request of the
Washington state transportation commission a total of twenty-five million
dollars of general obligation bonds of the state of Washington.
NEW SECTION. Sec.
3. Upon the request of the
transportation commission, the state finance committee shall supervise and
provide for the issuance, sale, and retirement of the bonds authorized by
sections 2 through 9 of this act in accordance with chapter 39.42 RCW. Bonds
authorized by sections 2 through 9 of this act shall be sold in such manner, at
such time or times, in such amounts, and at such price as the state finance
committee shall determine. No such bonds may be offered for sale without prior
legislative appropriation of the net proceeds of the sale of the bonds. In
making such appropriation of the net proceeds of the sale of the bonds, the
legislature shall specify what portion of the appropriation is provided for
possible loans and what portion of the appropriation is provided for other
forms of cash contributions to projects.
The state finance
committee shall consider the issuance of short-term obligations in lieu of
long-term obligations for the purposes of more favorable interest rates, lower
total interest costs, and increased marketability and for the purpose of
retiring the bonds during the life of the project for which they were issued.
NEW SECTION. Sec.
4. (1) The proceeds from the
sale of bonds authorized by sections 2 through 9 of this act that are in
support of possible loans as specified under section 3 of this act shall be
deposited into the transportation revolving loan account, hereby created, in the
transportation fund. The proceeds shall be available only for the purposes of
making loans to entities authorized to undertake projects selected under
chapter 47.46 RCW as enumerated in section 3 of this act, for the payment of
bond anticipation notes, if any, and for the payment of bond issuance costs,
including the costs of underwriting.
(2) The proceeds from
the sale of bonds authorized by sections 2 through 9 of this act that are in
support of all forms of cash contributions to projects selected under chapter
47.46 RCW except loans shall be deposited into the transportation fund. The
proceeds shall be available only for the purposes of making any contributions
except loans to projects selected under chapter 47.46 RCW, for the payment of
bond anticipation notes, if any, and for the payment of bond issuance costs,
including the costs of underwriting.
NEW SECTION. Sec.
5. Principal and interest
payments made on loans from the transportation loan revolving account as authorized
by chapter 47.46 RCW shall be deposited into the transportation loan revolving
account and shall be available for the payment of principal and interest on
bonds authorized by sections 2 through 9 of this act and for such other
purposes as may be specified by law.
NEW SECTION. Sec.
6. (1) Bonds issued under
the authority of sections 2 through 9 of this act shall distinctly 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 such
principal and interest as the same shall become due.
(2) The principal and
interest on the bonds issued for the purposes enumerated in section 4 of this
act shall be first payable in the manner provided in sections 2 through 9 of
this act from the proceeds of the state excise tax on motor vehicles imposed by
RCW 82.44.020(2). Proceeds of those excise taxes are pledged to the payment of
any bonds and the interest thereon issued under the authority of sections 2
through 9 of this act, and the legislature agrees to continue to impose this
excise tax on motor vehicles in amounts sufficient to pay, when due, the
principal and interest on all bonds issued under the authority of sections 2
through 9 of this act.
NEW SECTION. Sec.
7. (1) Both principal and
interest on the bonds issued for the purposes of sections 2 through 9 of this
act are payable from the highway bond retirement fund. The state finance
committee may provide that a special account be created in the fund to
facilitate payment of the principal and interest.
(2) The state finance
committee shall, on or before June 30th of each year certify to the state
treasurer the amount required for principal and interest on the bonds issued
for the purposes specified in section 4 of this act in accordance with the bond
proceedings. The state treasurer shall withdraw from the transportation fund
and deposit into the highway bond retirement fund, or a special account in the
fund, such amounts, and at such times, as are required by the bond proceedings.
(3) Any funds required
for bond retirement or interest on the bonds authorized by sections 2 through 9
of this act shall be taken from that portion of the transportation fund that
results from the imposition of excise taxes on motor vehicles which is, or may
be appropriated to the department of transportation for state highway
purposes. Funds required shall never constitute a charge against any other
allocations of motor vehicle excise tax revenues to the state, counties,
cities, towns, and transit agencies unless the amount arising from excise taxes
on motor vehicles distributed to the state in the transportation fund proves
insufficient to meet the requirements for bond retirement or interest on any
such bonds.
(4) Any payments for
bond retirement or interest on the bonds taken from other revenues from the
motor vehicle excise taxes that are distributable to the state, counties,
cities, towns, and transit agencies shall be repaid from the first revenues
from the motor vehicle excise taxes distributed to the transportation fund not
required for bond retirement or interest on the bonds.
NEW SECTION. Sec.
8. Whenever, under section
7(2) of this act, the state treasurer transfers funds from the transportation
fund to the highway bond retirement fund, or a special account in the fund, the
state treasurer shall at the same time reimburse the transportation fund in an
identical amount from the transportation loan revolving account. The
reimbursements may be made only to the extent funds from the repayment of
principal and interest on loans made from the transportation loan revolving
fund are available.
NEW SECTION. Sec.
9. Bonds issued under the
authority of sections 2 through 8 of this act and this section and any other
general obligation bonds of the state of Washington that have been or that may
be authorized and that pledge motor vehicle excise taxes for the payment of
principal and interest thereon are an equal charge against the revenues from
the motor vehicle excise taxes.
NEW SECTION. Sec.
10. Sections 2 through 9 of
this act are each added to chapter 47.10 RCW.
NEW
SECTION. Sec. 11. 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.
