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AN ACT Relating to state general obligation bonds and related accounts; amending RCW 70.146.030, 39.42.060, 43.99I.020, 43.99I.040, 43.99I.090, 43.99K.010, and 43.99K.020; adding new chapters to Title 43 RCW; repealing RCW 43.99I.050; and declaring an emergency.

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

NEW SECTION. Sec. 1. For the purpose of providing funds to finance the projects described and authorized by the legislature in the capital and operating appropriations acts for the 1997-99 fiscal biennium, and all costs incidental thereto, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of nine hundred ninety-eight million three hundred fifty thousand dollars, or as 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. 2. The proceeds from the sale of the bonds authorized in section 1 of this act shall be deposited in the state building construction account created by RCW 43.83.020. The proceeds shall be transferred as follows:

(1) Eight hundred fifty-six million dollars to remain in the state building construction account created by RCW 43.83.020;

(2) Thirty-five million dollars to the outdoor recreation account created by RCW 43.99.060;

(3) Thirty-five million dollars to the habitat conservation account created by RCW 43.98A.020;

(4) One million six hundred thousand dollars to the public safety reimbursable bond account; and

(5) Forty million eight hundred thousand dollars to the higher education construction account created by RCW 28B.14D.040.

These proceeds shall be used exclusively for the purposes specified in this section and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this section, and shall be administered by the office of financial management subject to legislative appropriation.

NEW SECTION. Sec. 3. (1) 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 (1), (2), (3), (4), and (5) of this act.

(2) 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. On 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 state general obligation bond retirement fund an amount equal to the amount certified by the state finance committee to be due on the payment date.

(3) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of section 2(4) of this act, the state treasurer shall transfer from the public safety and education account to the general fund of the state treasury the amount computed in subsection (2) of this section for the bonds issued for the purposes of section 2(4) of this act.

(4) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of section 2(5) of this act, the board of regents of the University of Washington shall cause to be paid out of University of Washington nonappropriated local funds to the state treasurer for deposit into the general fund of the state treasury the amount computed in subsection (2) of this section for bonds issued for the purposes of section 2(5) of this act.

(5) Bonds issued under this section and sections 1 and 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.

(6) 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. 4. The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 1 of this act, and section 3 of this act shall not be deemed to provide an exclusive method for the payment.

NEW SECTION. Sec. 5. The bonds authorized in section 1 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.

Sec. 6. RCW 70.146.030 and 1996 c 37 s 2 are each amended to read as follows:

(1) The water quality account is hereby created in the state treasury. Moneys in the account may be used only in a manner consistent with this chapter. Moneys deposited in the account shall be administered by the department of ecology and shall be subject to legislative appropriation. Moneys placed in the account shall include tax receipts as provided in RCW 82.24.027, 82.26.025, and 82.32.390, principal and interest from the repayment of any loans granted pursuant to this chapter, and any other moneys appropriated to the account by the legislature.

(2) The department may use or permit the use of any moneys in the account to make grants or loans to public bodies, including grants to public bodies as cost-sharing moneys in any case where federal, local, or other funds are made available on a cost-sharing basis, for water pollution control facilities and activities, or for purposes of assisting a public body to obtain an ownership interest in water pollution control facilities and/or to defray a part of the payments made by a public body to a service provider under a service agreement entered into pursuant to RCW 70.150.060, within the purposes of this chapter and for related administrative expenses. No more than three percent of the moneys deposited in the account may be used by the department to pay for the administration of the grant and loan program authorized by this chapter.

(3) Beginning with the biennium ending June 30, 1997, the department shall present a biennial progress report on the use of moneys from the account to the chairs of the senate committee on ways and means and the house of representatives committee on appropriations. The first report is due June 30, 1996, and the report for each succeeding biennium is due December 31 of the odd-numbered year. The report shall consist of a list of each recipient, project description, and amount of the grant, loan, or both.

(4) ((~~During the fiscal biennium ending June 30, 1997,~~)) Moneys in the account may be transferred by the legislature to the water right permit processing account and the debt service for reimbursable bonds excluded from the debt limit account.

(5) The state treasurer may use or permit the use of any moneys in the account for payment of principal and interest on the bonds authorized in section 7 of this act.

NEW SECTION. Sec. 7. (1) For the purpose of providing funds for programs and projects to address water quality, the state finance committee is authorized to issue bonds of the state of Washington in the sum of one hundred fifty-four million six hundred forty thousand dollars or so much thereof as may be required to finance programs and projects consistent with chapter 70.146 RCW, and all costs incidental thereto. No bonds authorized by chapter . . ., Laws of 1997 (this act) shall be offered for sale without prior legislative appropriation of the net proceeds of sale of bonds.

(2) The proceeds from the sale of bonds authorized by chapter . . ., Laws of 1997 (this act) shall be deposited in the water quality account and shall be used exclusively for the purposes specified in chapter 70.146 RCW and for payment of the expenses incurred in the issuance and sale of the bonds.

(3) The proceeds from the sale of bonds deposited in the water quality account under the terms of chapter . . ., Laws of 1997 (this act) shall be administered by the department of ecology subject to legislative appropriation. The department of ecology may use or permit the use of any funds derived from the sale of bonds authorized under chapter . . ., Laws of 1997 (this act) by direct expenditures and by grants or loans to public bodies, including grants to public bodies as matching funds for federal, local, and other funds that may be available on a matching basis in accordance with chapter 39.42 RCW.

(4) The state finance committee is authorized to prescribe the form, terms, conditions, prices, and covenants of the bonds, the time or times of sale of all or any portion of them, and the conditions and manner of their sale and issuance.

(5) The state general obligation bond retirement fund shall be used for the payment of the principal of and interest on the bonds authorized in this section.

(6)(a) On or before June 30th of each year the state finance committee shall certify to the state treasurer the amount needed in the ensuing fiscal year for the payment of principal and interest on the bonds. On each 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 state general obligation bond retirement fund an amount certified by the state finance committee to be due on the payment date.

(b) On each date on which any interest or principal is due, the state treasurer shall cause an amount equal to the amount certified by the state finance committee under (a) of this subsection to be paid out of the water quality account for deposit into the general fund of the state treasury.

(7) The bonds issued under this section shall state that they are an 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.

(8) The legislature may provide additional means for raising moneys for the payment of the principal and interest of the bonds authorized in this section, and chapter . . ., Laws of 1997 (this act) shall not be deemed to provide an exclusive method for such payment.

(9) The bonds authorized in this section shall be a legal investment for all state funds or for funds under state control and for all funds of any other public body.

NEW SECTION. Sec. 8. The bonds authorized in section 7 of this act are exempt from the statutory limitations of indebtedness under RCW 39.42.060.

Sec. 9. RCW 39.42.060 and 1993 c 52 s 1 are each amended to read as follows:

No bonds, notes, or other evidences of indebtedness for borrowed money shall be issued by the state which will cause the aggregate debt contracted by the state to exceed that amount for which payments of principal and interest in any fiscal year would require the state to expend more than seven percent of the arithmetic mean of its general state revenues, as defined in section 1(c) of Article VIII of the Washington state Constitution for the three immediately preceding fiscal years as certified by the treasurer in accordance with RCW 39.42.070. It shall be the duty of the state finance committee to compute annually the amount required to pay principal of and interest on outstanding debt. In making such computation, the state finance committee shall include all borrowed money represented by bonds, notes, or other evidences of indebtedness which are secured by the full faith and credit of the state or are required to be paid, directly or indirectly, from general state revenues and which are incurred by the state, any department, authority, public corporation or quasi public corporation of the state, any state university or college, or any other public agency created by the state but not by counties, cities, towns, school districts, or other municipal corporations, and shall include debt incurred pursuant to section 3 of Article VIII of the Washington state Constitution, but shall exclude the following:

(1) Obligations for the payment of current expenses of state government;

(2) Indebtedness incurred pursuant to RCW 39.42.080 or 39.42.090;

(3) Principal of and interest on bond anticipation notes;

(4) Any indebtedness which has been refunded;

(5) Financing contracts entered into under chapter 39.94 RCW;

(6) Indebtedness authorized or incurred before July 1, 1993, pursuant to statute which requires that the state treasury be reimbursed, in the amount of the principal of and the interest on such indebtedness, from money other than general state revenues or from the special excise tax imposed pursuant to chapter 67.40 RCW;

(7) Indebtedness authorized and incurred after July 1, 1993, pursuant to statute that requires that the state treasury be reimbursed, in the amount of the principal of and the interest on such indebtedness, from (a) moneys outside the state treasury, except higher education operating fees, (b) higher education building fees, (c) indirect costs recovered from federal grants and contracts, and (d) fees and charges associated with hospitals operated or managed by institutions of higher education; ((~~and~~))

(8) Any agreement, promissory note, or other instrument entered into by the state finance committee under RCW 39.42.030 in connection with its acquisition of bond insurance, letters of credit, or other credit support instruments for the purpose of guaranteeing the payment or enhancing the marketability, or both, of any state bonds, notes, or other evidence of indebtedness; and

(9) Indebtedness incurred under section 7 of this act.

To the extent necessary because of the constitutional or statutory debt limitation, priorities with respect to the issuance or guaranteeing of bonds, notes, or other evidences of indebtedness by the state shall be determined by the state finance committee.

Sec. 10. RCW 43.99I.020 and 1992 c 235 s 2 are each amended to read as follows:

Bonds issued under RCW 43.99I.010 are subject to the following conditions and limitations:

General obligation bonds of the state of Washington in the sum of one billion two hundred ((~~eighty-four~~)) seventy-one million sixty‑five thousand dollars, or so much thereof as may be required, shall be issued for the purposes described and authorized by the legislature in the capital and operating appropriations acts for the 1991‑93 fiscal biennium and subsequent fiscal biennia, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. Subject to such changes as may be required in the appropriations acts, the proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited in the state building construction account created by RCW 43.83.020 and transferred as follows:

(1) Eight hundred thirty-five thousand dollars to the state higher education construction account created by RCW 28B.10.851;

(2) Eight hundred seventy-one million dollars to the state building construction account created by RCW 43.83.020;

(3) ((~~Fifteen million dollars to the energy efficiency construction account created by RCW 39.35C.100;~~

~~(4) Three~~)) Two million ((~~fifty~~)) eight hundred thousand dollars to the energy efficiency services account created by RCW 39.35C.110;

((~~(5)~~)) (4) Two hundred fifty-five million five hundred thousand dollars to the common school reimbursable construction account hereby created in the state treasury;

((~~(6)~~)) (5) Ninety-eight million six hundred forty-eight thousand dollars to the higher education reimbursable construction account hereby created in the state treasury;

((~~(7)~~)) (6) Three million two hundred eighty-four thousand dollars to the data processing building construction account created in RCW 43.99I.100; and

((~~(8)~~)) (7) Nine hundred thousand dollars to the Washington state dairy products commission facility account created in RCW 43.99I.110.

These proceeds shall be used exclusively for the purposes specified in this subsection, and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this section, and shall be administered by the office of financial management, subject to legislative appropriation.

Sec. 11. RCW 43.99I.040 and 1992 c 235 s 3 are each amended to read as follows:

(1) ((On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of RCW 43.99I.020 (3) and (4), the state treasurer shall transfer from the energy efficiency construction account created in RCW 39.35C.100 to the general fund of the state treasury the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020 (3) and (4).

~~(2)~~)) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of RCW 43.99I.020((~~(5)~~)) (4), the state treasurer shall transfer from property taxes in the state general fund levied for this support of the common schools under RCW 84.52.065 to the general fund of the state treasury for unrestricted use the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020((~~(5)~~)) (4).

((~~(3)~~)) (2) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of RCW 43.99I.020((~~(6)~~)) (5), the state treasurer shall transfer from higher education operating fees deposited in the general fund to the general fund of the state treasury for unrestricted use, or if chapter 231, Laws of 1992 (Senate Bill No. 6285) becomes law and changes the disposition of higher education operating fees from the general fund to another account, the state treasurer shall transfer the proportional share from the University of Washington operating fees account, the Washington State University operating fees account, and the Central Washington University operating fees account the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020((~~(7)~~)) (6).

((~~(4)~~)) (3) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of RCW 43.99I.020((~~(7)~~)) (6), the state treasurer shall transfer from the data processing revolving ((~~account [fund]~~)) fund created in RCW 43.105.080 to the general fund of the state treasury the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020((~~(7)~~)) (6).

((~~(5)~~)) (4) On each date on which any interest or principal and interest payment is due on bonds issued for the purpose of RCW 43.99I.020((~~(8)~~)) (7), the Washington state dairy products commission shall cause the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020((~~(8)~~)) (7) to be paid out of the commission's general operating fund to the state treasurer for deposit into the general fund of the state treasury.

(5) The higher education operating fee accounts for the University of Washington, Washington State University, and Central Washington University established by chapter 231, Laws of 1992 and repealed by chapter 18, Laws of 1993 1st sp. sess. are reestablished in the state treasury for purposes of fulfilling debt service reimbursement transfers to the general fund required by bond resolutions and covenants for bonds issued for purposes of RCW 43.99I.020(5).

(6) For bonds issued for purposes of RCW 43.99I.020(5), on each date on which any interest or principal and interest payment is due, the board of regents or board of trustees of the University of Washington, Washington State University, or Central Washington University shall cause the amount as determined by the state treasurer to be paid out of the local operating fee account for deposit by the universities into the state treasury higher education operating fee accounts. The state treasurer, bond retirement and interest, shall transfer the proportional share from the University of Washington operating fees account, the Washington State University operating fees account, and the Central Washington University operating fees account the amount computed in RCW 43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020(6) to reimburse the general fund.

Sec. 12. RCW 43.99I.090 and 1992 c 235 s 5 are each amended to read as follows:

The bonds authorized by RCW 43.99I.020((~~(8)~~)) (7) shall be issued only after the director of financial management has (a) certified that, based on the future income from assessments levied pursuant to chapter 15.44 RCW and other revenues collected by the Washington state dairy products commission, an adequate balance will be maintained in the commission's general operating fund to pay the interest or principal and interest payments due under RCW 43.99I.040((~~(4)~~)) (3) for the life of the bonds; and (b) approved the facility to be acquired using the bond proceeds.

Sec. 13. RCW 43.99K.010 and 1995 2nd sp.s. c 17 s 1 are each amended to read as follows:

For the purpose of providing funds to finance the projects described and authorized by the legislature in the capital and operating appropriations acts for the 1995-97 fiscal biennium, and all costs incidental thereto, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of ((~~eight hundred eleven million~~)) nine hundred twelve million one hundred thousand dollars, or as 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.

Sec. 14. RCW 43.99K.020 and 1995 2nd sp.s. c 17 s 2 are each amended to read as follows:

The proceeds from the sale of the bonds authorized in RCW 43.99K.010 shall be deposited in the state building construction account created by RCW 43.83.020. The proceeds shall be transferred as follows:

(1) ((~~Seven hundred eighty million~~)) Eight hundred twenty-eight million two hundred twenty-six thousand dollars to remain in the state building construction account created by RCW 43.83.020;

(2) ((~~Twenty million~~)) Twenty-two million five hundred thousand dollars to the outdoor recreation account created by RCW 43.99.060;

(3) ((~~Eighteen million six~~)) Twenty-one million one hundred thousand dollars to the habitat conservation account created by RCW 43.98A.020;

(4) Two million nine hundred twelve thousand dollars to the public safety reimbursable bond account; and

(5) Ten million dollars to the higher education construction account created by RCW 28B.14D.040.

NEW SECTION. Sec. 15. RCW 43.99I.050 and 1991 sp.s. c 31 s 5 are each repealed.

NEW SECTION. Sec. 16. (1) Sections 1 through 5 of this act constitute a new chapter in Title 43 RCW.

(2) Sections 7 and 8 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 17. 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. 18. Sections 10 through 15 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.