AN
ACT Relating to state general obligation bonds and related accounts; amending
RCW 39.42.060; adding a new chapter to Title 43 RCW; 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 appropriation acts for the
2001-2003 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 thirty-five million five 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.
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)
Seven hundred seventy-four million two hundred thousand dollars to remain in
the state building construction account created by RCW 43.83.020;
(2)
Twenty-two million five hundred thousand dollars to the outdoor recreation account
created by RCW 79A.25.060;
(3)
Twenty-two million five hundred thousand dollars to the habitat conservation
account created by RCW 79A.15.020;
(4)
Sixty million dollars to the state taxable building construction account which
is hereby established in the state treasury. All receipts from taxable bond
issues are to be deposited into the account. If the state finance committee
deems it necessary to issue more than fifty million dollars of the bonds
authorized in section 1 of this act as taxable bonds in order to comply with
federal internal revenue service rules and regulations pertaining to the use of
nontaxable bond proceeds, the proceeds of such additional taxable bonds shall
be transferred to the state taxable building construction account in lieu of
any transfer otherwise provided by this section. The state treasurer shall
submit written notice to the director of financial management if it is
determined that any such additional transfer to the state taxable building
construction account is necessary. Moneys in the account may be spent only
after appropriation;
(5)
Twenty-nine million twenty-five thousand dollars to the higher education
construction account created by RCW 28B.140.040.
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 debt-limit general fund bond retirement account shall be used for the
payment of the principal of and interest on the bonds authorized in section 2
(1), (2), (3), and (4) 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 bonds authorized in
section 2 (1), (2), (3), and (4) of this act.
(3)
On each date on which any interest or principal and interest payment is due on
bonds issued for the purposes of section 2 (1), (2), (3), and (4) of this act
the state treasurer shall withdraw from any general state revenues received in
the state treasury and deposit in the debt-limit general fund bond retirement
account an amount equal to the amount certified by the state finance committee
to be due on the payment date.
NEW
SECTION. Sec. 4. (1)
The nondebt-limit reimbursable bond retirement account shall be used for the
payment of the principal of and interest on the bonds authorized in section
2(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 bonds authorized in
section 2(5) of this act.
(3)
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 nondebt-limit reimbursement bond retirement account the amount computed in
subsection (2) of this section for bonds issued for the purposes of section
2(5) of this act.
NEW
SECTION. Sec. 5. (1)
Bonds issued under sections 1 through 4 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.
(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. 6. 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 sections 2 through 4 of this act shall not be deemed to provide an
exclusive method for the payment.
NEW
SECTION. Sec. 7. For
the purpose of providing funds for the planning, design, construction, and
other necessary costs for replacing the waterproof membrane over the east plaza
garage and revising related landscaping, the state finance committee is
authorized to issue general obligation bonds of the state of Washington in the
sum of sixteen million dollars, or as much thereof as may be required, to
finance this project 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. 8. The
proceeds from the sale of the bonds authorized in section 7 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: Fifteen million five
hundred twenty thousand dollars to the state vehicle parking account created by
RCW 43.01.225.
These
proceeds shall be used exclusively for the purposes specified in section 7 of
this act 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. 9. (1)
The nondebt-limit reimbursable bond retirement account shall be used for the
payment of the principal of and interest on the bonds authorized in section 7
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 bonds authorized in
section 7 of this act.
(3)
On each date on which any interest or principal and interest payment is due on
bonds issued for the purposes of section 8 of this act, the state treasurer
shall transfer from the state vehicle parking account for deposit into the
nondebt-limit reimbursable bond retirement account, the amount computed in
subsection (2) of this section for bonds issued for the purposes of section 7
of this act.
NEW
SECTION. Sec. 10. (1)
Bonds issued under section 7 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.
(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. 11. The
legislature may provide additional means for raising moneys for the payment of
the principal of and interest on the bonds authorized in section 7 of this act,
and sections 8 and 9 of this act shall not be deemed to provide an exclusive
method for the payment.
NEW
SECTION. Sec. 12. The
bonds authorized in sections 1, 7, and 14 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.
NEW
SECTION. Sec. 13. The
legislature finds that it is necessary to complete the rehabilitation of the
state legislative building, to extend the useful life of the building, and
provide for the permanent relocation of offices displaced by the rehabilitation
and create new space for public uses.
Furthermore,
it is the intent of the legislature to fund the majority of the rehabilitation
and construction using bonds repaid by the capitol building construction
account, as provided for in the enabling act and dedicated by the federal
government for the sole purpose of establishing a state capitol, to fund the
cash elements of the project using capital project surcharge revenues in the
Thurston county capital facilities account, and to support the establishment of
a private foundation to engage the public in the preservation of the state
legislative building and raise private funds for restoration and educational
efforts. The bonds repaid by the capitol building construction account, whose
revenues are from the sale of capitol building lands, timber, or other
materials, shall be exempt from the state debt limit under RCW 39.42.060, and
if at any time the capitol building construction account has insufficient
revenues to repay the bonds, the legislature may provide additional means for
the payment of the bonds, but any such additional means shall be subject to the
state debt limit.
NEW
SECTION. Sec. 14. For
the purpose of providing funds for the planning, design, construction, and
other necessary costs for the rehabilitation of the state legislative building,
the state finance committee is authorized to issue general obligation bonds of
the state of Washington in the sum of eighty‑two million five hundred ten
thousand dollars or as much thereof as may be required to finance the
rehabilitation and improvements to the legislative building and all costs
incidental thereto. The approved rehabilitation plan includes costs associated
with earthquake repairs and future earthquake mitigation and allows for
associated relocation costs and the acquisition of appropriate relocation
space. Bonds authorized in this section shall not constitute indebtedness for
purposes of the limitations set forth in RCW 39.42.060, to the extent that the
bond payments are paid from the capitol building construction account. Bonds
authorized in this section may be sold at a price the state finance committee
determines. 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. The proceeds of the sale of the bonds issued for the purposes of this
section shall be deposited in the capitol historic district construction
account hereby created in the state treasury. 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. 15. (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 14
of this act.
(2)(a)
The state finance committee must, 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
14 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 capitol building construction
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 14 of this act.
(3)
If the capitol building construction account has insufficient revenues to pay
the principal and interest computed in subsection (2)(a) of this section, then
the debt‑limit reimbursable bond retirement account shall be used for the
payment of the principal and interest on the bonds authorized in section 14 of
this act from any additional means provided by the legislature.
NEW
SECTION. Sec. 16. (1)
Bonds issued under section 14 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 and interest, and shall 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. 17. The
legislature may provide additional means for raising moneys for the payment of
the principal and interest on the bonds authorized in section 14 of this act,
and sections 15 and 16 of this act shall not be deemed to provide an exclusive
method for their payment.
Sec.
18. RCW
39.42.060 and 1999 c 273 s 9 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;
(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;
(9)
Indebtedness incurred for the purposes identified in RCW 43.99N.020; ((and))
(10)
Indebtedness incurred for the purposes of the school district bond guaranty
established by chapter 39.98 RCW;
(11)
Indebtedness incurred for the purposes of replacing the waterproof membrane
over the east plaza garage and revising related landscaping construction
pursuant to section 7 of this act; and
(12)
Indebtedness incurred for the purposes of the state legislative building
rehabilitation, to the extent that principal and interest payments of such
indebtedness are paid from the capitol building construction account pursuant
to section 15(2)(b) 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.
NEW
SECTION. Sec. 19.
Sections 1 through 17 of this act constitute a new chapter in Title 43 RCW.
NEW
SECTION. Sec. 20. 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. 21. This
act is 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.
