S-4225

AN ACT Relating to transportation bonds; amending RCW 39.46.070 and 47.56.245; adding new sections to chapter 47.46 RCW; and creating new sections.

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

NEW SECTION. Sec. 1. INTENT. The legislature finds that the needs of the state transportation system have grown beyond the capacity of traditional state and local tax and fee revenues. It is necessary and desirable to expedite selected local and regional transportation facilities by using direct user fee support in the form of tolls or other charges. It is therefore the intent of the legislature to establish a reimbursable bonding mechanism that allows for secure and cost-effective public toll financing of transportation facilities that preserves and protects the fuel tax bonding capacity. Therefore, this act provides for reimbursable bond financing based on tolls for the development, construction, and operation of the Tacoma Narrows bridge public-private initiative project.

Furthermore, it is the intent of the legislature that reimbursable toll facility bonds will enjoy the support of the full faith and credit of the state. Tolls will be charged in amounts sufficient to repay the state treasury for all financing costs, operations of the facility, and other costs incidental to the project. These funds will be held by the state treasurer in a nonappropriated account outside the state treasury. Indebtedness repaid with the proceeds of tolls will be excluded from the statutory debt limit as provided in RCW 39.42.060.

NEW SECTION. Sec. 2. A new section is added to chapter 47.46 RCW to read as follows:

BONDS‑-AUTHORIZED, USE OF PROCEEDS. (1) For the purposes of providing funds for the planning, design, construction, and other necessary costs for the Tacoma Narrows bridge project, the state finance committee may issue general obligation bonds of the state of Washington in the sum of nine hundred million dollars or as much thereof as may be required to finance the Tacoma Narrows bridge public-private initiative project and all costs incidental thereto. Proceeds of the sale of bonds authorized in this section must be expended only for the purposes enumerated in this chapter, for payment of the expense incurred in the issuance and sale of any such bonds, and to repay the motor vehicle fund, except for funds previously expended from a legislative appropriation, for any sums advanced to pay the cost of surveys, location, design, development, right-of-way, and other activities related to the financing and construction of the bridge and its approaches.

(2) Bonds authorized in this section do not constitute indebtedness for the purposes set forth in RCW 39.42.060. Bonds authorized in this section may be sold at a price the state finance committee determines. The proceeds of the sale of bonds issued for the purposes of this section must be deposited in the Tacoma Narrows toll bridge account. These proceeds must 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.

NEW SECTION. Sec. 3. A new section is added to chapter 47.46 RCW to read as follows:

BONDS‑-PAYMENT OF PRINCIPAL AND INTEREST. (1) The nondebt-limit reimbursable bond retirement account must be used for the payment of the principal and interest on the bonds authorized in section 2 of this act.

(2)(a) 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 bonds authorized in section 2 of this act.

(b) On or before the date on which any interest or principal and interest is due, the state treasurer shall transfer from the Tacoma Narrows toll bridge account for deposit into the nondebt-limit reimbursable bond retirement account, the amount computed in (a) of this subsection for bonds issued for the purposes of section 2 of this act.

(3) If the Tacoma Narrows toll bridge account has insufficient revenues to pay the principal and interest computed in subsection (2)(a) of this section, then the nondebt-limit reimbursable bond retirement account must be used for the payment of principal and interest on the bonds authorized in section 2 of this act. The treasurer shall first use funds from the excise taxes collected on the sale, distribution, or use of motor vehicle fuel and then use funds from any additional means provided by the legislature for the nondebt-limit reimbursable bond retirement account.

NEW SECTION. Sec. 4. A new section is added to chapter 47.46 RCW to read as follows:

BONDS‑-REQUIREMENTS. (1) Bonds issued under section 2 of this act must state that they are a general obligation of the state of Washington, must pledge the full faith and credit of the state to the payment of the principal and interest, and must contain an unconditional promise to pay the principal and interest as it becomes due.

(2) 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. 5. A new section is added to chapter 47.46 RCW to read as follows:

BONDS‑-ADDITIONAL MEANS OF PAYMENT. The legislature may provide additional means for raising moneys for the payment of the principal and interest on the bonds authorized in section 2 of this act, and sections 3 and 4 of this act do not provide an exclusive method for their payment.

NEW SECTION. Sec. 6. A new section is added to chapter 47.46 RCW to read as follows:

PROCEDURES AFTER TOLLS REMOVED. The department may liquidate and close toll facility trust and other facility accounts established outside the state treasury under chapter 47.56 RCW after the removal of tolls from the facility for which the accounts were established. Any balance remaining in the accounts must thereupon be transferred to the motor vehicle fund. In addition, the department may, after removal of tolls from a particular facility or facilities, require that all moneys transferred to the place of payment named in the bonds, for the purpose of paying principal or interest or for redemption of the bonds not then expended for such purpose, be returned to the state treasurer for deposit in the motor vehicle fund.

NEW SECTION. Sec. 7. A new section is added to chapter 47.46 RCW to read as follows:

TACOMA NARROWS TOLL BRIDGE ACCOUNT CREATED. A special account to be known as the Tacoma Narrows toll bridge account is created in the custody of the state treasurer.

(1) Deposits to the account must include:

(a) All proceeds of bonds issued for construction of the Tacoma Narrows public-private initiative project, including any capitalized interest;

(b) All of the toll charges and other revenues received from the operation of the Tacoma Narrows bridge as a toll facility, to be deposited at least monthly; and

(2) Proceeds of bonds shall be used consistent with section 2 of this act, including the reimbursement of expenses and fees incurred under agreements entered into under RCW 47.46.040 as required by those agreements.

(3) Toll charges, other revenues, and interest must be used to pay any required costs of financing, operation, maintenance, and management and necessary repairs of the facility.

(4) The state treasurer may establish subaccounts for the purpose of segregating toll charges, bond sale proceeds, and other revenues.

(5) Only the secretary of the department or the secretary's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 8. RCW 39.46.070 and 1983 c 167 s 7 are each amended to read as follows:

BONDS‑-PAYMENT OF COSTS OF ISSUANCE AND SALE. (1) Except as provided in subsection (2) of this section, the proceeds of any bonds issued by the state or a local government may be used to pay incidental costs and costs related to the sale and issuance of the bonds. Such costs include payments for fiscal and legal expenses, obtaining bond ratings, printing, engraving, advertising, establishing and funding reserve accounts and other accounts, an amount for working capital, capitalized interest for up to six months after completion of construction, necessary and related engineering, architectural, planning, and inspection costs, and other similar activities or purposes.

(2) In addition to the costs enumerated in subsection (1) of this section, costs authorized under this section include capitalized interest for up to seventy-two months from the date of issuance for bonds issued by the state for the construction of a public toll bridge under chapter 47.46 RCW.

Sec. 9. RCW 47.56.245 and 1984 c 7 s 267 are each amended to read as follows:

TOLL CHARGES RETAINED UNTIL COSTS PAID. 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, except for funds previously expended from a legislative appropriation, and obligations incurred under RCW 47.56.250 and chapter 16, Laws of 1945 have been fully paid.

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.

NEW SECTION. Sec. 10. CAPTIONS. Captions used in this act do not constitute any part of the law.