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AN ACT Relating to bonds authorized for Tacoma Narrows bridge improvements; amending RCW 47.56.130, 47.56.245, and 47.56.271; and adding new sections to chapter 47.56 RCW.

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

NEW SECTION. Sec. 1. In order to provide funds necessary for the location, design, and construction of an improvement to the Tacoma Narrows bridge, including approaches to the bridge, there shall be issued and sold upon the request of the Washington state transportation commission a total of five hundred million dollars of general obligation bonds of the state of Washington.

NEW SECTION. Sec. 2. 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 1 through 9 of this act in accordance with chapter 39.42 RCW. Bonds authorized by sections 1 through 9 of this act shall be sold in such manner, at such time or times, in such amounts, and at such a price as the state finance committee shall determine. The bonds may not be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

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. 3. The proceeds from the sale of bonds authorized by sections 1 through 9 of this act shall be deposited in the motor vehicle fund. The proceeds shall be available only for the purposes enumerated in section 1 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.

NEW SECTION. Sec. 4. Bonds issued under sections 1 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 of the bonds and the interest on the bonds, and shall contain an unconditional promise to pay such principal and interest as the same becomes due. The principal of and interest on the bonds shall be first payable in the manner provided in sections 1 through 9 of this act from the proceeds of state excise taxes on motor vehicles and special fuels imposed by chapters 82.36 and 82.38 RCW and from the tolls and revenues derived from the operation of the toll bridge. Proceeds of the excise taxes are hereby pledged to the payment of bonds and the interest on the bonds issued under the authority of sections 1 through 9 of this act, and the legislature agrees to continue to impose these excise taxes on motor vehicle and special fuels in amounts sufficient to pay, when due, the principal and interest on all bonds issued under the authority of sections 1 through 9 of this act.

NEW SECTION. Sec. 5. There is hereby created in the state treasury an account to be known as the Tacoma Narrows toll bridge improvement account into which shall be deposited any capitalized interest from the proceeds of the bonds, and at least monthly all of the tolls and other revenues received from the operation of the toll bridge and from any interest that may be earned from the deposit or investment of these revenues after the payment of costs of operation, maintenance, management, and necessary repairs of the facility. The principal of the interest on the bonds shall be paid first from money deposited in the Tacoma Narrows toll bridge improvement account, and then, to the extent that money deposited in that account is insufficient to make a payment when due, from the state excise taxes on motor vehicle and special fuels deposited in the highway bond retirement fund. The state finance committee shall, by June 30 of each year, certify to the state treasurer the amount of additional moneys required for principal and interest on the bonds in accordance with the bond proceedings. The state treasurer shall upon the certification transfer from the motor vehicle fund these excise taxes into the highway bond retirement fund. Any proceeds of the excise taxes required for these purposes shall first be taken from that portion of the motor vehicle fund that results from the imposition of the excise taxes on motor vehicle and special fuels and that is distributed to the state. If the proceeds from the excise taxes distributed to the state are ever insufficient to meet the required payments on principal or interest on the bonds when due, the amount required to make the payments on the principal or interest shall next be taken from that portion of the motor vehicle fund that results from the imposition of excise taxes on motor vehicle and special fuels and that is distributed to the state, counties, cities, and towns under RCW 46.68.100. Any payments of the principal or interest taken from the motor vehicle or special fuel tax revenues that are distributable to the counties, cities, and towns shall be repaid from the first moneys distributed to the state not required for redemption of the bonds or interest on the bonds.

NEW SECTION. Sec. 6. Bonds issued under the authority of sections 1 through 5 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 and special fuels excise taxes for the payment of principal and interest on the bonds shall be an equal charge against the revenues from these motor vehicle and special fuels excise taxes.

NEW SECTION. Sec. 7. (1) The department of transportation may operate and assume full control of the bridge and shall fix and maintain the tolls and charges in the manner provided by RCW 47.56.240 so that when collected they will produce revenues sufficient to pay all expenses of operating, maintaining, managing, and repairing the toll bridge including all insurance costs and the amounts required to pay the principal and interest on the bonds when due and to satisfy the other obligations set forth in sections 1 through 9 of this act and RCW 47.56.220. The revision of tolls and charges shall be determined by the department after considering the effect upon the traffic using the bridge and the projected revenues that will result from the increase of tolls and charges for the use of the bridge.

(2) To the extent that net revenues and income are insufficient to meet the required payments of principal and interest on bonds, the department shall use moneys pledged from the motor vehicle fund as provided in section 5 of this act.

(3) The payment of the principal of and the interest on the bonds shall constitute a first direct and exclusive charge and lien on all tolls and other revenues, and interest on the tolls and other revenues, received from the use and operation of the Tacoma Narrows toll bridge, after the payment of all expenses of operating, maintaining, managing, and repairing the toll bridge, and the tolls and revenues together with interest earned on the tolls and revenues, and all other money deposited in the Tacoma Narrows toll bridge improvement account, shall constitute a trust fund for the security and payment of the bonds, or bonds refunding the bonds, and shall not be used or pledged for any other purpose as long as the bonds are outstanding and unpaid.

(4) The state finance committee may on behalf of the state make covenants in connection with the bond proceedings or otherwise to assure the maintenance of the tolls and charges on the Tacoma Narrows toll bridge, the proper application of the tolls and charges, and the proper operation, maintenance, management, and repair of the bridge to provide for and secure the timely payment of the bonds. The covenants shall be binding on the department of transportation and transportation commission.

NEW SECTION. Sec. 8. All tolls or other revenues received from the operation of the Tacoma Narrows toll bridge constructed with the proceeds of bonds issued and sold under sections 1 through 9 of this act shall be paid over by the department of transportation to the state treasurer who shall deposit the same without delay as demand deposits in such a depositary or depositaries as may be authorized by law to receive deposits of state funds to the credit of a special trust fund to be designated as the toll revenue fund of the Tacoma Narrows toll bridge, which fund shall be a trust fund and shall at all times be kept segregated and set apart from all other funds.

After provision has been made for payment of costs of operation, maintenance, management, and necessary repairs of the facility, the surplus moneys available in the toll revenue fund, or as much thereof as may be required, shall be transferred monthly to the Tacoma Narrows toll bridge improvement account to pay the principal of and interest on the bonds authorized by section 1 of this act.

NEW SECTION. Sec. 9. The department is empowered to receive and accept funds from the state of Washington or the federal government upon a cooperative or other basis for the construction of any improvement to the Tacoma Narrows bridge authorized under sections 1 through 8 of this act and is empowered to enter into such agreements with the state of Washington or the federal government as may be required for the securing of such funds.

NEW SECTION. Sec. 10. Sections 1 through 9 of this act are each added to chapter 47.56 RCW.

Sec. 11. RCW 47.56.130 and 1984 c 7 s 256 are each amended to read as follows:

The department is hereby empowered to issue bonds for the construction of any toll bridge or toll bridges authorized under the provisions of this chapter. Except when specific authorization to the contrary is given under this chapter, any and all bonds issued for the construction of any toll bridge or toll bridges under the authority of the department shall be issued in the name of the department, shall constitute obligations only of the department, shall be identified as . . . . . . toll bridge bonds, and shall contain a recital on the face thereof that the payment or redemption of the bonds and the payment of the interest thereon is secured by a direct and exclusive charge and lien upon the tolls and other revenues of any nature whatever received from the operation of the particular toll bridge or bridges for the construction of which the bonds are issued and that neither the payment of the principal or any part thereof nor of the interest thereon or any part thereof constitutes a debt, liability, or obligation of the state of Washington. The department is empowered to receive and accept funds from the state of Washington or the federal government upon a cooperative or other basis for the construction of any toll bridge authorized under this chapter and is empowered to enter into such agreements with the state of Washington or the federal government as may be required for the securing of such funds.

Sec. 12. RCW 47.56.245 and 1984 c 7 s 267 are each amended to read as follows:

(1) Except for general obligation bonds authorized in 1996 for improvements to the Tacoma Narrows bridge, the department shall retain toll charges on all existing and future facilities until all costs of investigation, financing, acquisition of property, and construction advanced from the motor vehicle fund, and obligations incurred under RCW 47.56.250 and chapter 16, Laws of 1945 have been fully paid.

(2) Except under subsection (1) of this section, with respect to every facility completed after March 19, 1953, costs of maintenance, management, and operation shall be paid periodically out of the revenues of the facility in which such costs were incurred.

Sec. 13. RCW 47.56.271 and 1983 c 3 s 130 are each amended to read as follows:

(1) The Tacoma Narrows bridge hereinbefore by the provisions of RCW 47.17.065 and 47.56.270 made a part of the primary state highways of the state shall be operated and maintained by the department as a toll-free facility at such time as the present bonded indebtedness relating thereto is wholly retired and tolls equaling the present indebtedness of the toll bridge authority to the county of Pierce have been collected. It is the express intent of the legislature that the provisions of RCW 47.56.245 (section 47.56.245, chapter 13, Laws of 1961) shall not be applicable to the Tacoma Narrows bridge.

(2) Subsection (1) of this section does not apply to improvements to the Tacoma Narrows bridge that are funded by general obligation bonds authorized in 1996.