BILL REQ. #:  H-2535.2 

Read first time 03/26/2003.   Referred to Committee on Transportation.

     AN ACT Relating to the sale of bonds for highway improvements; adding new sections to chapter 47.10 RCW; creating a new section; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   In order to provide funds necessary for the location, design, right of way acquisition, and construction of selected state and local highway improvements, there shall be issued and sold upon the request of the transportation commission a total of one billion three hundred fifteen million dollars of general obligation bonds of the state of Washington.

NEW SECTION.  Sec. 2   Upon the request of the transportation commission or successor agency, as appropriate, the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by section 1 of this act in accordance with chapter 39.42 RCW. Bonds authorized by this act shall be sold in the manner, at times, in amounts, and at the price as the state finance committee shall determine. No 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. 3   The proceeds from the sale of bonds authorized by section 1 of this act shall be deposited in the motor vehicle account. The proceeds shall be available only for the purposes enumerated in section 1 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. 4   Bonds issued under the authority of section 1 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 principal and interest, and shall contain an unconditional promise to pay principal and interest as the same shall become due. The principal and interest on the bonds shall be first payable 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 these excise taxes are hereby pledged to the payment of any bonds and the interest thereon issued under the authority of sections 1 through 6 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 section 1 of this act.

NEW SECTION.  Sec. 5   Both principal and interest on the bonds issued for the purposes of section 1 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 section 1 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 the 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 distributable 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. 6   Bonds issued under the authority of this act 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 fuel excise taxes for the payment of principal and interest thereon shall be an equal charge against the revenues from the motor vehicle and special fuel excise taxes.

NEW SECTION.  Sec. 7   Sections 1 through 6 of this act are each added to chapter 47.10 RCW.

NEW SECTION.  Sec. 8   The part heading in this act is not any part of the law.

NEW SECTION.  Sec. 9   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 July 1, 2003.