BILL REQ. #:  H-2985.3 

READ FIRST TIME 04/06/09.   

     AN ACT Relating to the authorization of bonds for the financing of eligible toll facilities; and adding new sections to chapter 47.10 RCW.

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, and construction of the state route number 520 corridor projects, there shall be issued and sold upon the request of the state toll agency a total of one billion nine hundred fifty million dollars of general obligation bonds of the state of Washington.

NEW SECTION.  Sec. 2   Upon the request of the state toll agency, the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by this act in accordance with chapter 39.42 RCW. Bonds authorized by this act shall be sold in the manner, at time or 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.

NEW SECTION.  Sec. 3   The proceeds from the sale of bonds authorized by this act shall be deposited in the state route number 520 corridor account created under section 4, chapter . . . (House Bill No. 2211), Laws of 2009, and shall be available only for the purposes enumerated in section 1 of this act, for the payment of bond anticipation notes or other interim financing, if any, capitalizing interest on the bonds, and for the payment of bond issuance costs, including the costs of underwriting.

NEW SECTION.  Sec. 4   The toll facility bond retirement account is created in the state treasury for the purpose of payment of the principal of and interest and premium on bonds. Both principal of and interest on the bonds issued for the purposes of this act shall be payable from the toll facility bond retirement account. The state finance committee may provide that special subaccounts be created in the account to facilitate payment of the principal of and interest on the bonds. 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.

NEW SECTION.  Sec. 5   Bonds issued under the authority of this section and sections 1, 6, and 7 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 the principal thereof and the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall become due. The principal of and interest on the bonds shall be first payable in the manner provided in this section and sections 1, 6, and 7 of this act from toll revenue and then from proceeds of excise taxes on motor vehicle and special fuels to the extent toll revenue is not available for that purpose. Toll revenue and the state excise taxes on motor vehicle and special fuels imposed by chapters 82.36 and 82.38 RCW are hereby pledged to the payment of any bonds and the interest thereon issued under the authority of this section and sections 1, 6, and 7 of this act, and the legislature agrees to continue to impose these toll charges on the state route number 520 corridor, and on any other eligible toll facility designated by the legislature and on which the imposition of tolls is authorized by the legislature in respect of the bonds, and 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 this section and sections 1, 6, and 7 of this act.

NEW SECTION.  Sec. 6   For bonds issued under the authority of this section and sections 1, 5, and 7 of this act, the state treasurer shall first withdraw toll revenue from the state route number 520 corridor account created under section 4, chapter . . . (House Bill No. 2211), Laws of 2009, and, to the extent toll revenue is not available, excise taxes on motor vehicle and special fuels in the motor vehicle fund and deposit in the toll facility bond retirement account, or a special subaccount in the account, such amounts, and at such times, as are required by the bond proceedings.
     Any excise taxes on motor vehicle and special fuels required for bond retirement or interest on the bonds authorized by this section and sections 1, 5, and 7 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 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 any such 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 available toll revenue in the manner provided in the bond proceedings or, if toll revenue is not available for that purpose, from the first excise taxes on motor vehicle and special fuels distributed to the motor vehicle fund not required for bond retirement or interest on the bonds.

NEW SECTION.  Sec. 7   Bonds issued under the authority of sections 1, 5, and 6 of this act and this section 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 fuels excise taxes for the payment of principal and interest thereon shall be an equal charge against the revenues from such motor vehicle and special fuels excise taxes.

NEW SECTION.  Sec. 8   The tolling authority shall fix and adjust toll rates in respect of eligible toll facilities in amounts, together with other available toll revenue, sufficient to provide for payment of operating and maintenance costs of eligible toll facilities, for timely payment of debt service on bonds and to secure bonds issued for eligible toll facilities, to comply with all financial and other covenants made by the state in the bond proceedings, for reimbursement of the motor vehicle fund for excise taxes on motor vehicle and special fuels applied to the payment of bonds, and for construction costs of any projects or portions thereof not financed with proceeds of bonds. In fixing and adjusting toll rates under this section, the only toll revenue to be taken into account shall be toll revenue pledged to bonds that includes toll receipts, and the only debt service requirements to be taken into account shall be debt service on bonds payable from and secured by toll revenue that includes toll receipts. The legislature pledges to appropriate toll revenue as necessary to carry out the foregoing purposes. The legislature further agrees for the benefit of the owners of outstanding bonds issued by the state for eligible toll facilities to continue in effect and not to impair or withdraw the authorization of the tolling authority to fix and adjust tolls as provided in this act. The state finance committee shall pledge the state's obligation to impose and maintain tolls, together with the application of toll revenue as described in this section, to the owners of any bonds.

NEW SECTION.  Sec. 9   If and to the extent that the state finance committee determines, in consultation with the state toll agency and the tolling authority, that it will be beneficial for the state to issue any bonds authorized in sections 1 and 5 through 7 of this act as toll revenue bonds rather than as general obligation bonds, the state finance committee is authorized to issue and sell, upon the request of the state toll agency, such bonds as toll revenue bonds and not as general obligation bonds. Notwithstanding section 5 of this act, each such bond shall contain a recital that payment or redemption of the bond and payment of the interest and any premium thereon is payable solely from and secured solely by a direct pledge, charge, and lien upon toll revenue and is not a general obligation of the state to which the full faith and credit of the state is pledged.
     Toll revenue is hereby pledged to the payment of any bonds and the interest thereon issued under the authority of this section, and the legislature agrees to continue to impose these toll charges on the state route number 520 corridor, and on any other eligible toll facility designated by the legislature and on which the imposition of tolls is authorized by the legislature in respect of the bonds, in amounts sufficient to pay, when due, the principal and interest on all bonds issued under the authority of this section.

NEW SECTION.  Sec. 10   The state finance committee may determine and include in any resolution authorizing the issuance of any bonds under this act, such terms, provisions, covenants, and conditions as it may deem appropriate in order to assist with the marketing and sale of the bonds, confer rights upon the owners of bonds, and safeguard rights of the owners of bonds including, among other things:
     (1) Provisions regarding the maintenance and operation of eligible toll facilities;
     (2) The pledges, uses, and priorities of application of toll revenue;
     (3) Provisions that bonds shall be payable from and secured solely by toll revenue as provided by section 9 of this act, or shall be payable from and secured by both toll revenue and by a pledge of excise taxes on motor vehicle and special fuels and the full faith and credit of the state as provided in sections 1 and 5 through 7 of this act;
     (4) In consultation with the state toll agency and the tolling authority, financial covenants requiring that the eligible toll facilities must produce specified coverage ratios of toll revenue to debt service on bonds;
     (5) The purposes and conditions that must be satisfied prior to the issuance of any additional bonds that are to be payable from and secured by any toll revenue on an equal basis with previously issued and outstanding bonds payable from and secured by toll revenue;
     (6) Provisions that bonds for which any toll revenue are pledged, or for which a pledge of any toll revenue may be reserved, may be structured on a senior, parity, subordinate, or special lien basis in relation to any other bonds for which toll revenue is pledged, with respect to toll revenue only; and
     (7) Provisions regarding reserves, credit enhancement, liquidity facilities, and payment agreements with respect to bonds.
     Notwithstanding the foregoing, covenants and conditions detailing the character of management, maintenance, and operation of eligible toll facilities, insurance for eligible toll facilities, financial management of toll revenue, and disposition of eligible toll facilities must first be approved by the state toll agency.
     The owner of any bond may by mandamus or other appropriate proceeding require and compel performance of any duties imposed upon the tolling authority and the state toll agency and their respective officials, including any duties imposed upon or undertaken by them or by their respective officers, agents, and employees, in connection with the construction, maintenance, and operation of eligible toll facilities and in connection with the collection, deposit, investment, application, and disbursement of the proceeds of the bonds and toll revenue.

NEW SECTION.  Sec. 11   For the purposes of this act, "toll revenue" means all toll receipts, all interest income derived from the investment of toll receipts, and any gifts, grants, or other funds received for the benefit of eligible toll facilities. However, for the purpose of any pledge of toll revenue to the payment of particular bonds issued under this act, "toll revenue" means and includes only such toll revenue or portion thereof that is pledged to the payment of those bonds in the resolution authorizing the issuance of such bonds. Toll revenue constitutes "fees and revenues derived from the ownership or operation of any undertaking, facility, or project" as that phrase is used in Article VIII, section 1(c)(1) of the state Constitution.

NEW SECTION.  Sec. 12   Sections 1 through 11 of this act are each added to chapter 47.10 RCW.