BILL REQ. #:  H-3535.1 

Read first time 01/16/2004.   Referred to Committee on Transportation.

     AN ACT Relating to regional transit authority bonds secured by motor vehicle excise taxes; amending RCW 81.112.130; creating a new section; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature declares that it is the responsibility of governments to implement requirements of voter-approved initiatives. The legislature further recognizes that with the approval of Initiative 776, voters expect license tab fees to be reduced in accordance with that act, both at the state and local level. While certain local government tax revenues are pledged as security for bond indebtedness, every effort should be made to retire those outstanding bonds and to eliminate collection of those taxes repealed by Initiative 776 as soon as possible.

Sec. 2   RCW 81.112.130 and 1992 c 101 s 13 are each amended to read as follows:
     (1) Notwithstanding RCW 39.36.020(1), and subject to the requirements of subsection (2) of this section, an authority may at any time contract indebtedness or borrow money for authority purposes and may issue general obligation bonds in an amount not exceeding, together with any existing indebtedness of the authority not authorized by the voters, one and one-half percent of the value of the taxable property within the boundaries of the authority; and with the assent of three-fifths of the voters therein voting at an election called for that purpose, may contract indebtedness or borrow money for authority purposes and may issue general obligation bonds therefor, provided the total indebtedness of the authority shall not exceed five percent of the value of the taxable property therein. Such bonds shall be issued and sold in accordance with chapter 39.46 RCW.
     (2) An authority may not issue new bonds under this section secured by the pledge of revenues from the excise tax authorized under RCW 81.104.160 nor may it issue new bonds when it has outstanding bond indebtedness secured by the pledge of revenues from the excise tax authorized under RCW 81.104.160. An authority with bonds outstanding on the effective date of this act which are secured by the pledge of revenues from any excise tax authorized under RCW 81.104.160 shall immediately use unused bond proceeds, current tax revenues, and cash reserves to defease those bonds.
     (3) The term "value of the taxable property" shall have the meaning set forth in RCW 39.36.015.

NEW SECTION.  Sec. 3   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.