BILL REQ. #:  H-4976.1 

Read first time 02/05/10.   Referred to Committee on Capital Budget.

     AN ACT Relating to a new surcharge on certain recorded documents for affordable housing purposes; adding a new section to chapter 36.22 RCW; adding a new chapter to Title 43 RCW; and making an appropriation.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 36.22 RCW to read as follows:
     The county auditor shall charge a surcharge of sixty-two dollars for each document recorded, which is in addition to any other charge allowed by law. The surcharge in this section applies only to assignments or substitutions of previously recorded deeds of trust. The funds collected under this section must be transmitted monthly to the state treasurer who shall deposit the funds in the Washington housing trust fund account created in RCW 43.185.030. The department of commerce must use these funds solely for the bond retirement and interest requirements of the bonds authorized in section 2 of this act.

NEW SECTION.  Sec. 2   For the purpose of providing funds for the housing trust fund program at the department of commerce, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of one hundred million three hundred forty thousand dollars, or as much thereof as may be required, to finance the 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. 3   The proceeds from the sale of the bonds authorized in section 2 of this act must be deposited in the Washington housing bond account created in the state treasury. If the state finance committee deems it necessary to issue the bonds authorized in section 2 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 taxable bonds shall be transferred to the state taxable building construction account in lieu of any deposit 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 transfer to the state taxable building construction account is necessary. Moneys in the account may be spent only after appropriation. The proceeds shall be used exclusively for the purposes specified in section 2 of this act and for the payment of expenses incurred in the issuance and sale of the bonds. These proceeds must be administered by the office of financial management, subject to legislative appropriation.

NEW SECTION.  Sec. 4   The debt-limit general fund bond retirement account must be used for the payment of the principal of and interest on the bonds authorized in section 2 of this act.
     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 or before the date on which any interest or principal and interest payment is due, the state treasurer shall transfer from the Washington housing trust account for deposit in the debt-limit general fund bond retirement account the following:
     (1) An amount equal to the amount certified by the state finance committee to be due on the payment date; and
     (2) Any additional revenue generated in section 1 of this act in excess of the amount required to meet annual bond retirement and interest requirements and reasonable reserve requirements. Such excess revenue must be used for early retirement of the bonds authorized in section 2 of this act.
     Bonds issued under section 2 of this act must state that they are a general obligation of the state of Washington, must pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and must contain an unconditional promise to pay the principal and interest as the same shall become due.
     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. 5   The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 2 of this act, and section 4 of this act is not deemed to provide an exclusive method for the payment.

NEW SECTION.  Sec. 6   The bonds authorized in section 2 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. 7   The sum of one hundred million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 2011, from the Washington housing bond account to the department of commerce for the purposes of this act. Up to ten million dollars of the appropriation is for the workforce housing program established in chapter . . . ., Laws of 2010 (HB 2753).

NEW SECTION.  Sec. 8   Sections 2 through 6 of this act constitute a new chapter in Title 43 RCW.