SENATE BILL REPORT

ESB 6062

As Passed Senate, April 26, 2003

Title: An act relating to authorizing bonds for transportation funding.

Brief Description: Authorizing bonds for transportation funding.

Sponsors: Senators Horn, Haugen, Swecker, Jacobsen, Finkbeiner and Spanel.

Brief History:

Committee Activity: Highways & Transportation: 4/2/03, 4/7/03 [DP].

Passed Senate: 4/26/03, 47-2.

SENATE COMMITTEE ON HIGHWAYS & TRANSPORTATION

Majority Report: Do pass.

      Signed by Senators Horn, Chair; Swecker, Vice Chair; Finkbeiner, Haugen, Jacobsen, Kastama, Mulliken, Oke, Prentice and Spanel.

Staff: Dean Carlson (786-7305)

Background: Bonds have been issued in the past to fund transportation projects that have a long term expected life span. The bonds must be authorized by the Legislature and the proceeds from the sale of the bonds must be appropriated for transportation projects.

Summary of Bill: Authorization is provided for the sale of $2.6 billion of general obligation bonds for transportation improvements. The bonds are backed by the motor fuel tax and the full faith and credit of the state.

The sale of $350 million of nondebt-limit general obligation bonds backed by revenues from the multimodal fund (sales tax on vehicles) is authorized.

The following monorail funding provisions are established: 1) the monorail may not incur debt until 30 days after the Environmental Impact Statement (EIS); 2) the amount of the initial bond sale is limited to the estimated project cost in the first two years; and 3) if the city transportation authority (monorail) is dissolved, it may continue to exist only to collect taxes to pay off outstanding debt.

Appropriation: None.

Fiscal Note: None requested.

Effective Date: The bill contains an emergency clause and takes effect on July 1, 2003.

Testimony For: None.

Testimony Against: None.

Testified: No one.