BILL REQ. #: Z-0931.1
State of Washington | 62nd Legislature | 2012 Regular Session |
Read first time 01/16/12. Referred to Committee on Capital Budget.
BE IT RESOLVED, BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
STATE OF WASHINGTON, IN LEGISLATIVE SESSION ASSEMBLED:
THAT, At the next general election to be held in this state the
secretary of state shall submit to the qualified voters of the state
for their approval and ratification, or rejection, an amendment to
Article VIII, section 1 of the Constitution of the state of Washington
to read as follows:
Article VIII, section 1. (a) The state may contract debt, the
principal of which shall be paid and discharged within thirty years
from the time of contracting thereof, in the manner set forth herein.
(b) The aggregate debt contracted by the state, as calculated by
the treasurer at the time debt is contracted, shall not exceed that
amount for which payments of principal and interest in any fiscal year
would require the state to expend more than ((nine)) eight and three-quarters percent of the arithmetic mean of its general state revenues
for the ((three)) six immediately preceding fiscal years as certified
by the treasurer. The term "fiscal year" means that period of time
commencing July 1 of any year and ending on June 30 of the following
year.
(c) The term "general state revenues," when used in this section,
shall include all state money received in the treasury from each and
every source ((whatsoever except)), including moneys received from ad
valorem taxes levied by the state and deposited in the general fund in
each fiscal year, but not including: (1) Fees and other revenues
derived from the ownership or operation of any undertaking, facility,
or project; (2) Moneys received as gifts, grants, donations, aid, or
assistance or otherwise from the United States or any department,
bureau, or corporation thereof, or any person, firm, or corporation,
public or private, when the terms and conditions of such gift, grant,
donation, aid, or assistance require the application and disbursement
of such moneys otherwise than for the general purposes of the state of
Washington; (3) Moneys to be paid into and received from retirement
system funds, and performance bonds and deposits; (4) Moneys to be paid
into and received from trust funds ((including but not limited to
moneys received from taxes levied for specific purposes)) and the
several permanent and irreducible funds of the state and the moneys
derived therefrom but excluding bond redemption funds; (5) Moneys
received from taxes levied for specific purposes and required to be
deposited for those purposes into specified funds or accounts other
than the general fund; and (6) Proceeds received from the sale of bonds
or other evidences of indebtedness.
(d) In computing the amount required for payment of principal and
interest on outstanding debt under this section, debt shall be
construed to mean borrowed money represented by bonds, notes, or other
evidences of indebtedness which are secured by the full faith and
credit of the state or are required to be repaid, directly or
indirectly, from general state revenues and which are incurred by the
state, any department, authority, public corporation, or quasi public
corporation of the state, any state university or college, or any other
public agency created by the state but not by counties, cities, towns,
school districts, or other municipal corporations, but shall not
include obligations for the payment of current expenses of state
government, nor shall it include debt hereafter incurred pursuant to
section 3 of this article, obligations guaranteed as provided for in
subsection (g) of this section, principal of bond anticipation notes or
obligations issued to fund or refund the indebtedness of the Washington
state building authority. In addition, for the purpose of computing
the amount required for payment of interest on outstanding debt under
subsection (b) of this section and this subsection, "interest" shall be
reduced by subtracting the amount scheduled to be received by the state
as payments from the federal government in each year in respect of
bonds, notes, or other evidences of indebtedness subject to this
section.
(e) The state may pledge the full faith, credit, and taxing power
of the state to guarantee the voter approved general obligation debt of
school districts in the manner authorized by the legislature. Any such
guarantee does not remove the debt obligation of the school district
and is not state debt.
(f) The state may, without limitation, fund or refund, at or prior
to maturity, the whole or any part of any existing debt or of any debt
hereafter contracted pursuant to section 1, section 2, or section 3 of
this article, including any premium payable with respect thereto and
interest thereon, or fund or refund, at or prior to maturity, the whole
or any part of any indebtedness incurred or authorized prior to the
effective date of this amendment by any entity of the type described in
subsection (h) of this section, including any premium payable with
respect thereto and any interest thereon. Such funding or refunding
shall not be deemed to be contracting debt by the state.
(g) Notwithstanding the limitation contained in subsection (b) of
this section, the state may pledge its full faith, credit, and taxing
power to guarantee the payment of any obligation payable from revenues
received from any of the following sources: (1) Fees collected by the
state as license fees for motor vehicles; (2) Excise taxes collected by
the state on the sale, distribution or use of motor vehicle fuel; and
(3) Interest on the permanent common school fund: Provided, That the
legislature shall, at all times, provide sufficient revenues from such
sources to pay the principal and interest due on all obligations for
which said source of revenue is pledged.
(h) No money shall be paid from funds in custody of the treasurer
with respect to any debt contracted after the effective date of this
amendment by the Washington state building authority, the capitol
committee, or any similar entity existing or operating for similar
purposes pursuant to which such entity undertakes to finance or provide
a facility for use or occupancy by the state or any agency, department,
or instrumentality thereof.
(i) The legislature shall prescribe all matters relating to the
contracting, funding or refunding of debt pursuant to this section,
including: The purposes for which debt may be contracted; by a
favorable vote of three-fifths of the members elected to each house,
the amount of debt which may be contracted for any class of such
purposes; the kinds of notes, bonds, or other evidences of debt which
may be issued by the state; and the manner by which the treasurer shall
determine and advise the legislature, any appropriate agency, officer,
or instrumentality of the state as to the available debt capacity
within the limitation set forth in this section. The legislature may
delegate to any state officer, agency, or instrumentality any of its
powers relating to the contracting, funding or refunding of debt
pursuant to this section except its power to determine the amount and
purposes for which debt may be contracted.
(j) The full faith, credit, and taxing power of the state of
Washington are pledged to the payment of the debt created on behalf of
the state pursuant to this section and the legislature shall provide by
appropriation for the payment of the interest upon and installments of
principal of all such debt as the same falls due, but in any event, any
court of record may compel such payment.
(k) Notwithstanding the limitations contained in subsection (b) of
this section, the state may issue certificates of indebtedness in such
sum or sums as may be necessary to meet temporary deficiencies of the
treasury, to preserve the best interests of the state in the conduct of
the various state institutions, departments, bureaus, and agencies
during each fiscal year; such certificates may be issued only to
provide for appropriations already made by the legislature and such
certificates must be retired and the debt discharged other than by
refunding within twelve months after the date of incurrence.
(l) Bonds, notes, or other obligations issued and sold by the state
of Washington pursuant to and in conformity with this article shall not
be invalid for any irregularity or defect in the proceedings of the
issuance or sale thereof and shall be incontestable in the hands of a
bona fide purchaser or holder thereof.
BE IT FURTHER RESOLVED, That the amendments to Article VIII,
Section 1, if approved and ratified by the qualified voters of the
state, shall be effective on and after July 1, 2014.
BE IT FURTHER RESOLVED, That the statement of subject and concise
description for the ballot title of this constitutional amendment shall
read "The legislature has proposed a constitutional amendment on
implementing the Commission on State Debt recommendations regarding
Washington's debt limit. This amendment would, effective July 1, 2014,
reduce the debt limit percentage from nine to eight and three-quarters
and modify the calculation date, calculation period, and the term
general state revenues. Should this constitutional amendment be:
Approved | . . . . . . . . . . . . |
Rejected | . . . . . . . . . . . . " |
BE IT FURTHER RESOLVED, That the secretary of state shall cause
notice of this constitutional amendment to be published at least four
times during the four weeks next preceding the election in every legal
newspaper in the state.