BP BHEAD INT S [atlas:bill]

AN ACT Relating to transportation bonds; adding new sections to chapter 47.10 RCW; adding new sections to chapter 47.60 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. It is the intent of the legislature to establish a long-term investment strategy for transportation infrastructure improvements to support continued economic growth and development and to provide for efficient and effective people and freight mobility in all areas of the state. This strategic approach requires predictable funding levels to accomplish specific program objectives. It is intended that the following programs receive funding to provide for synergistic transportation solutions, unhampered by jurisdictional or modal conflicts: The program to complete the core lane high occupancy vehicle (HOV) lanes, the freight and goods mobility program, a program of projects to improve safety in high accident corridors and to provide for the more efficient movement of people and freight on state highways, and a marine capital program to increase the capacity of vessels and terminals. These strategic, targeted programs will provide regional, multijurisdictional solutions to mitigate congestion, lead to coordinated state and local government investments, support business and worker productivity by reducing barriers to efficient movement and by improved intermodal connections, highway conditions, port access, and ferry capacity.

NEW SECTION. Sec. 2. In order to provide funds necessary for the location, design, right of way, and construction of highway improvements, there shall be issued and sold upon the request of the Washington state transportation commission a total of two billion dollars of general obligation bonds of the state of Washington for highway improvement projects.

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 7 of this act in accordance with chapter 39.42 RCW. Bonds authorized by sections 2 through 7 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.

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. The proceeds from the sale of bonds authorized by sections 2 through 7 of this act shall be deposited in the motor vehicle fund. The proceeds shall be available only for the purposes enumerated in section 2 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. 5. Bonds issued under the authority of sections 2 through 7 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 the bonds shall be first payable in the manner provided in sections 2 through 7 of this act from the proceeds of the state excise taxes on motor vehicle and special fuels imposed by chapters 82.36 and 82.38 RCW. Proceeds of such excise taxes are hereby pledged to the payment of any bonds and the interest thereon issued under sections 2 through 7 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 2 through 7 of this act.

NEW SECTION. Sec. 6. Both principal and interest on the bonds issued for the purposes of sections 2 through 7 of this act shall be 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. 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 in accordance with the bond proceedings. The state treasurer shall withdraw revenues from the motor vehicle fund and deposit in 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.

Any funds required for bond retirement or interest on the bonds authorized by sections 2 through 7 of this act shall 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 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 fuel and special fuel tax revenues to the state, counties, cities, and towns unless the amount arising from excise taxes on motor vehicle and special fuels distributed to the state in the motor vehicle fund proves insufficient to meet the requirements for bond retirement or interest on any such bonds.

Any payments for bond retirement or interest on the bonds taken from other revenues from the motor vehicle fuel or special fuel taxes that are distributed to the state, counties, cities, and towns shall be repaid from the first revenues from the motor vehicle fuel or special fuel taxes distributed to the motor vehicle fund not required for bond retirement or interest on the bonds.

NEW SECTION. Sec. 7. Bonds issued under sections 2 through 6 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 thereon shall be an equal charge against the revenues from such motor vehicle and special fuels excise taxes.

NEW SECTION. Sec. 8. In order to provide funds necessary for vessel and terminal acquisition, construction, and major and minor improvements, including long lead time materials acquisition for the Washington state ferries, there shall be issued and sold upon the request of the Washington state transportation commission and legislative appropriation a total of one hundred twenty million dollars of general obligation bonds of the state of Washington.

NEW SECTION. Sec. 9. (1) Upon request being made by the transportation commission, the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by sections 8 through 12 of this act in accordance with chapter 39.42 RCW. The bonds may be sold from time to time in such amounts as may be necessary for the purposes under section 8 of this act. The bonds shall be sold in such manner, at such time or times, in such amounts, and at such price or prices 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.

(2) 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 purposes of retiring the bonds during the life of the project for which they were issued.

NEW SECTION. Sec. 10. The proceeds from the sale of bonds authorized in sections 8 through 12 of this act shall be deposited in the Puget Sound capital construction account of the motor vehicle fund and such proceeds shall be available only for the purposes under section 8 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. 11. Bonds issued under sections 8 through 12 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 shall be first payable in the manner provided in sections 8 through 12 of this act from the proceeds of the state excise taxes on motor vehicle and special fuels imposed by chapters 82.36 and 82.38 RCW and distributed to the state pursuant to RCW 46.68.130 and shall never constitute a charge against any allocations of such funds to counties, cities, and towns unless and until the amount of the motor vehicle fund arising from the excise taxes on motor vehicle and special fuels and available for state highway purposes proves insufficient to meet the requirements for bond retirement or interest on any such bonds. Proceeds of such excise taxes are hereby pledged to the payment of any bonds and the interest thereon issued under sections 8 through 12 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 sections 8 through 12 of this act.

NEW SECTION. Sec. 12. Both principal and interest on the bonds issued for the purposes of sections 8 through 11 of this act and this section shall be payable from the ferry bond retirement fund authorized in RCW 47.60.600. Whenever, pursuant to section 8 of this act and this section, the state treasurer transfers funds from the motor vehicle fund to the ferry bond retirement fund, the state treasurer may at the same time reimburse the motor vehicle fund in an identical amount from the Puget Sound capital construction account.

NEW SECTION. Sec. 13. 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. 14. Sections 2 through 7 of this act are each added to chapter 47.10 RCW.

NEW SECTION. Sec. 15. Sections 8 through 12 of this act are each added to chapter 47.60 RCW.