AN ACT Relating to bond authorization for the
transportation improvement board; and adding new sections to chapter 47.26 RCW.
BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. In
order to provide funds necessary to meet the urgent construction needs on
state, county, and city transportation projects within urban areas, there are
hereby authorized for issuance general obligation bonds of the state of
Washington in the sum of fifty million dollars, which shall be issued and sold
in such amounts and at such times as determined to be necessary by the state
transportation improvement board. The amount of such bonds issued and sold
under the provisions of sections 1 through 8 of this act in any biennium shall
not exceed the amount of a specific appropriation therefor, from the proceeds
of such bonds, for the construction of state, county, and city transportation
projects in urban areas. The issuance, sale, and retirement of the bonds shall
be under the supervision and control of the state finance committee which, upon
request being made by the state transportation commission on behalf of the
transportation improvement board, shall provide for the issuance, sale, and
retirement of coupon or registered bonds to be dated, issued, and sold from
time to time in such amounts as shall be requested by the state transportation
commission.
NEW SECTION. Sec. 2.
Each of such bonds shall be made payable at any time not exceeding thirty years
from the date of its issuance, with such reserved rights of prior redemption,
bearing such interest, and such terms and conditions, as the state finance
committee may prescribe to be specified therein. The bonds shall be signed by
the governor and the state treasurer under the seal of the state, either or
both of which signatures may be in printed facsimile, and any coupons attached
to such bonds shall be signed by the same officers whose signatures thereon may
be in printed facsimile. Any bonds may be registered in the name of the holder
on presentation to the state treasurer or at the fiscal agency of the state of
Washington in Seattle or New York City, as to principal alone, or as to both
principal and interest under such rules as the state treasurer may adopt. Such
bonds shall be payable at such places as the state finance committee may
provide. All bonds issued hereunder shall be fully negotiable instruments.
NEW SECTION. Sec. 3.
The bonds issued under sections 1 through 8 of this act shall be in
denominations to be prescribed by the state finance committee and may be sold
in such manner and in such amounts and at such times and on such terms and
conditions as the committee may prescribe. The state finance committee may
obtain insurance, letters of credit, or other credit facility devices with
respect to the bonds and may authorize the execution and delivery of
agreements, promissory notes, and other obligations for the purpose of insuring
the payment or enhancing the marketability of the bonds. Promissory notes or
other obligations issued pursuant to this section shall not constitute a debt
or the contracting of indebtedness under any constitutional or statutory indebtedness
limitation if their payment is conditioned upon the failure of the state to pay
the principal of or interest on the bonds with respect to which the promissory
notes or other obligations relate. The state finance committee may authorize
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. Bonds issued under the
provisions of sections 1 through 8 of this act shall be legal investment for
any of the funds of the state, except the permanent school fund.
NEW SECTION. Sec. 4.
The money arising from the sale of the bonds shall be deposited in the state
treasury to the credit of the transportation improvement account in the motor
vehicle fund, and such money shall be available only for the construction and
improvement of state, county, and city transportation projects, and for payment
of the expense incurred in the printing, issuance, and sale of any such bonds.
The costs of obtaining insurance, letters of credit, or other credit
enhancement devices with respect to the bonds shall be considered to be
expenses incurred in the issuance and sale of the bonds.
NEW SECTION. Sec. 5.
Bonds issued under the provisions of sections 1 through 8 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. The
principal and interest on such bonds shall be first payable in the manner
provided in sections 1 through 8 of this act from the proceeds of state excise
taxes on motor vehicle and special fuels imposed by chapters 82.36, 82.37, and
82.38 RCW. The proceeds of such excise taxes are hereby pledged to the payment
of any such bonds and the interest thereon, and the legislature hereby agrees
to continue to impose the same excise taxes on motor vehicle and special fuels
in amounts sufficient to pay, when due, the principal and interest on all such
bonds.
NEW SECTION. Sec. 6.
Any funds required to repay such bonds, or the interest thereon when due, shall
be taken from that portion of the motor vehicle fund which results from the
imposition of excise taxes on motor vehicle and special fuels and which is
distributed to the transportation improvement account in the motor vehicle
fund, and shall never constitute a charge against any allocations of any other
such funds in the motor vehicle fund to the state, counties, cities, and towns
unless and until the amount of the motor vehicle fund arising from the excise
tax on motor vehicle and special fuels and distributed to the transportation
improvement account proves insufficient to meet the requirements for bond
retirement or interest on any such bonds.
NEW SECTION. Sec. 7. At
least one year prior to the date any interest is due and payable on such bonds
or before the maturity date of any such bonds, the state finance committee
shall estimate, subject to the provisions of section 6 of this act the
percentage of the receipts in money of the motor vehicle fund, resulting from
collection of excise taxes on motor vehicle and special fuels, for each month
of the year which shall be required to meet interest or bond payments under
sections 1 through 8 of this act when due, and shall notify the state treasurer
of such estimated requirement. The state treasurer, subject to section 6 of
this act, shall thereafter from time to time each month as such funds are paid
into the motor vehicle fund, transfer such percentage of the monthly receipts
from excise taxes on motor vehicle and special fuels of the motor vehicle fund
to the highway bond retirement fund, maintained in the office of the state
treasurer, which fund shall be available for payment of interest or bonds when
due. If in any month it shall appear that the estimated percentage of money so
made is insufficient to meet the requirements for interest or bond retirement,
the treasurer shall notify the state finance committee forthwith and such
committee shall adjust its estimates so that all requirements for interest and
principal of all bonds issued shall be fully met at all times.
NEW SECTION. Sec. 8.
Whenever the percentage of the motor vehicle fund arising from excise taxes on
motor vehicle and special fuels payable into the highway bond retirement fund,
shall prove more than is required for the payment of interest on bonds when due,
or current retirement of bonds, any excess may, in the discretion of the state
finance committee, be available for the prior redemption of any bonds or remain
available in the fund to reduce the requirements upon the fuel excise tax
portion of the motor vehicle fund at the next interest or bond payment period.
NEW SECTION. Sec. 9.
Sections 1 through 8 of this act are each added to chapter 47.26 RCW.
