AN ACT Relating to state general obligation bonds; amending RCW 43.99G.020, 43.99G.102, 67.40.030, 46.08.172, and 79.24.060; adding a new chapter to Title 28B RCW; and creating new sections.

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

Sec. 1. Section 2, chapter 4, Laws of 1985 ex. sess. as amended by section 1, chapter 103, Laws of 1986 and RCW 43.99G.020 are each amended to read as follows:

Bonds issued under RCW 43.99G.010 are subject to the following conditions and limitations:

(1) General obligation bonds of the state of Washington in the sum of thirty-eight million ((~~fifty-four~~)) fifty thousand dollars, or so much thereof as may be required, shall be issued for the purpose of providing funds for grants and loans to local governments and subdivisions of the state for capital projects through the community economic revitalization board and for the department of general administration, military department, parks and recreation commission, and department of corrections to acquire real property and perform capital projects which consist of the planning, designing, constructing, remodeling, repairing, furnishing, and equipping of state buildings, structures, utilities, roads, grounds, lands, and waters, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. The proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited in the state building construction account, shall be used exclusively for the purposes specified in this subsection and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection, and shall be administered by the department of general administration, subject to legislative appropriation.

(2) General obligation bonds of the state of Washington in the sum of four million six hundred thirty-five thousand dollars, or so much thereof as may be required, shall be issued for the purpose of providing funds for the planning, design, acquisition, construction, and improvement of a Washington state agricultural trade center, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. The proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited in the state building construction account, shall be used exclusively for the purposes specified in this subsection and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection, and shall be administered as provided in the capital budget acts, subject to legislative appropriation.

(3) General obligation bonds of the state of Washington in the sum of thirty-eight million seven hundred ((~~sixty-two~~)) sixty thousand dollars, or so much thereof as may be required, shall be issued for the purpose of providing funds for the department of social and health services and the department of corrections to perform capital projects which consist of the planning, designing, constructing, remodeling, repairing, furnishing, and equipping of state buildings, structures, utilities, roads, and grounds, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. The proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited in the social and health services construction account, shall be used exclusively for the purposes specified in this subsection and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection, and shall be administered by the department of social and health services, subject to legislative appropriation.

(4) General obligation bonds of the state of Washington in the sum of three million two hundred thirty thousand dollars, or so much thereof as may be required, shall be issued for the purpose of providing funds for the department of ecology, parks and recreation commission, department of fisheries, department of ((~~game~~)) wildlife, and the department of natural resources to acquire real property and perform capital projects which consist of the planning, designing, constructing, remodeling, repairing, furnishing, and equipping of state buildings, structures, utilities, roads, grounds, lands, and waters, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. The proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited in the outdoor recreation account, shall be used exclusively for the purposes specified in this subsection and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection, and shall be administered by the interagency committee for outdoor recreation, subject to legislative appropriation.

(5) General obligation bonds of the state of Washington in the sum of ((~~three~~)) one million ((~~three hundred fifty-nine thousand~~)) dollars, or so much thereof as may be required, shall be issued for the purpose of providing funds for the department of fisheries to acquire real property and perform capital projects which consist of the planning, designing, constructing, remodeling, repairing, furnishing, and equipping of state buildings, structures, utilities, roads, grounds, lands, and waters, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. The proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited in the fisheries capital projects account, shall be used exclusively for the purposes specified in this subsection and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection, and shall be administered by the department of fisheries, subject to legislative appropriation.

(6) General obligation bonds of the state of Washington in the sum of fifty-nine million six hundred thirty thousand dollars, or so much thereof as may be required, shall be issued for the purpose of providing funds for state agencies and the institutions of higher education, including the community colleges, to perform capital renewal projects which consist of the planning, designing, constructing, remodeling, repairing, furnishing, and equipping of state buildings, structures, utilities, roads, grounds, lands, and waters, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. The proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited in the state facilities renewal account hereby created in the state treasury, shall be used exclusively for the purposes specified in this subsection and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection, and shall be administered as provided in the capital budget acts, subject to legislative appropriation.

(7) General obligation bonds of the state of Washington in the sum of twenty-three million six hundred ((~~forty-three~~)) forty thousand dollars, or so much thereof as may be required, shall be issued for the purpose of providing funds for the University of Washington and the state community colleges to perform capital projects which consist of the planning, designing, constructing, remodeling, repairing, improving, furnishing, and equipping of state buildings, structures, utilities, roads, grounds, and lands, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. The proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited in the higher education reimbursable short-term bond account hereby created in the state treasury, shall be used exclusively for the purposes specified in this subsection and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection, and shall be administered by the University of Washington, subject to legislative appropriation.

(8) General obligation bonds of the state of Washington in the sum of thirty-three million nine hundred ((~~twenty-eight~~)) twenty-five thousand dollars, or so much thereof as may be required, shall be issued for the purpose of providing funds for the institutions of higher education to perform capital projects which consist of the planning, designing, constructing, remodeling, repairing, furnishing, and equipping of state buildings, structures, utilities, roads, grounds, and lands, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. The proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited in the higher education construction account, shall be used exclusively for the purposes specified in this subsection and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection, and shall be administered by Washington State University, subject to legislative appropriation.

(9) General obligation bonds of the state of Washington in the sum of eighty million six hundred ten thousand dollars, or so much thereof as may be required, shall be issued for the purpose of providing funds for the institutions of higher education, including facilities for the community college system, to perform capital projects which consist of the planning, designing, constructing, remodeling, repairing, furnishing, and equipping of state buildings, structures, utilities, roads, grounds, and lands, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. The proceeds from the sale of the bonds issued for the purposes of this subsection, together with all grants, donations, transferred funds, and all other moneys which the state finance committee may direct the state treasurer to deposit therein, shall be deposited in the state higher education construction account in the state treasury and shall be used exclusively for the purposes specified in this subsection and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection.

Sec. 2. Section 2, chapter 3, Laws of 1987 1st ex. sess. and RCW 43.99G.102 are each amended to read as follows:

Bonds issued under RCW 43.99G.100 are subject to the following conditions and limitations:

(1) General obligation bonds of the state of Washington in the sum of four hundred four million four hundred thousand dollars, or so much thereof as may be required, shall be issued for the purposes described and authorized by the legislature in the capital and operating appropriations acts for the 1987-1989 fiscal biennium and subsequent fiscal biennia, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. Subject to such changes as may be required in the appropriations acts, the proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited as follows:

(a) Thirty million dollars in the common school construction fund ((~~created in RCW 28A.40.101~~));

(b) An amount up to two hundred thousand dollars in the fisheries capital projects account;

(c) Three hundred sixty-two million seven hundred thousand dollars in the state building construction account created in RCW 43.83.020.

These proceeds shall be used exclusively for the purposes specified in this subsection, and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection, and shall be administered by the office of financial management, subject to legislative appropriation.

(2) General obligation bonds of the state of Washington in the sum of ((~~three~~)) eight million ((~~two~~)) seven hundred eighty thousand dollars, or so much thereof as may be required, shall be issued for the purpose of providing funds for Washington State University to perform capital projects which consist of the planning, designing, constructing, remodeling, repairing, furnishing, and equipping of state buildings, structures, utilities, roads, grounds, and lands, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of insurance or credit enhancement agreements, and other expenses incidental to the administration of capital projects. The proceeds from the sale of the bonds issued for the purposes of this subsection shall be deposited in the higher education construction account, shall be used exclusively for the purposes specified in this subsection and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this subsection, and shall be administered by Washington State University, subject to legislative appropriation.

Sec. 3. Section 3, chapter 34, Laws of 1982 as last amended by section 12, chapter 3, Laws of 1987 1st ex. sess. and RCW 67.40.030 are each amended to read as follows:

For the purpose of providing funds for the state convention and trade center, the state finance committee is authorized to issue, upon request of the corporation formed under RCW 67.40.020 and in one or more offerings, general obligation bonds of the state of Washington in the sum of one hundred ((~~three~~)) sixty million, seven hundred sixty-five thousand dollars, or so much thereof as may be required, to finance this project and all costs incidental thereto, to capitalize all or a portion of interest during construction, to provide for expansion, renovation, exterior cleanup and repair of the Eagles building, conversion of various retail and other space to meeting rooms, and contingency costs of the center, purchase of the McKay Parcel as defined in the property and purchase agreement entered into by the corporation on June 12, 1986, and to reimburse the general fund for expenditures in support of the project. The state finance committee may make such bond covenants as it deems necessary to carry out the purposes of this section and this chapter. No bonds authorized in this section may be offered for sale without prior legislative appropriation. If House Bill No. 2052 is not enacted by June 30, 1988, this 1988 section shall be null and void.

NEW SECTION. Sec. 4. For the purpose of providing funds for the renovation and construction of state-owned office buildings on the capitol campus, and to provide for the administrative cost of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of credit enhancement agreements, and other expenses incidental to the administration of capital projects, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of one hundred ten million dollars, or so much thereof as may be required, to finance these projects and all costs incidental thereto.

Bonds authorized in this section shall be sold in such manner, at such time or times, in such amounts, and at such price as the state finance committee shall determine. No such bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds. The state finance committee may obtain insurance or letters of credit and may authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring the payment or enhancing the marketability of bonds authorized in this section. Promissory notes or other obligations issued pursuant to this section shall not constitute a debt or the contracting of indebtedness under any constitutional or statutory indebtedness limitation if their payment is conditioned upon the failure of the state to pay the principal of or interest on the bonds with respect to which the same relate.

Bonds authorized under this section shall be sold in accordance with chapter 39.42 RCW.

NEW SECTION. Sec. 5. Subject to section 9 of this act, the following moneys shall be deposited in the capitol campus office development account hereby created in the state treasury and shall be used exclusively for the purposes specified in section 4 of this act and for the payment of expenses incurred in the issuance and sale of the bonds: (1) The proceeds from the sale of the bonds authorized in section 4 of this act; (2) the account balance and the investment earnings thereon in the state capitol vehicle parking account not required for the retirement of current outstanding parking bond debt service or necessary reserves therefor; (3) each year until June 30, 2018, all rent received from general fund agencies from leasing the new state-owned office buildings, the construction of which was financed with the proceeds of such bonds, the amount to be deposited in a separate subaccount in the capitol campus office development account; (4) each year until June 30, 2018, all rents received from nongeneral fund agencies from leasing the new state-owned office buildings the construction of which was financed with the proceeds of such bonds, the amount to be deposited in a separate subaccount in the capitol campus office development account; (5) the treasurer shall transfer on July first of each year from the capitol building construction account the amount of three million eight hundred fifty thousand dollars per year until June 30, 1993, four million one hundred thousand dollars per year from July 1, 1993, until June 30, 2000, three million seven hundred fifty thousand dollars per year from July 1, 2000, until June 30, 2011, and four million dollars per year from July 1, 2011, until June 30, 2018; and (6) all earnings from the investment of money deposited in the capitol campus office development account, including the earnings from money in the subaccounts referred to in subsections (3) and (4) of this section which shall be credited to the respective subaccounts. These proceeds shall be administered by the department of general administration, subject to legislative appropriation.

NEW SECTION. Sec. 6. Both principal of and interest on the bonds authorized by section 4 of this act shall be payable from the state general obligation bond retirement fund. The state finance committee may provide that a special account be created in such fund to facilitate payment of such 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 such bonds in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the state general obligation bond retirement fund, or a special account in such fund, such amounts and at such times as are required by the bond proceedings.

Bonds issued under section 4 of this act shall 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 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. 7. The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 4 of this act, and section 6 of this act shall not be deemed to provide an exclusive method for the payment.

NEW SECTION. Sec. 8. Subject to section 9 of this act, on each date on which any interest or principal and interest payment is due on the bonds authorized in section 4 of this act, the state treasurer shall withdraw from the capitol campus office development account an amount equal to the amount required for such interest or principal and interest payment and deposit the amount into the general fund of the state treasury: PROVIDED, That no such withdrawal may be made from the subaccount of the capitol campus office development account into which the rents from general fund agencies and the earnings from the investment thereof are deposited if such reimbursement to the state treasury is intended to satisfy the requirements of RCW 39.42.060(5).

NEW SECTION. Sec. 9. No provision of sections 4 through 8 of this act repeals, overrides, or limits any provision or covenant of the proceedings of the state capitol committee taken in the issuance of revenue bonds of the state secured by a pledge of receipts from any parking facilities or from leases and contracts of sale made of lands, timber, and other products from the surface or beneath the surface of lands granted to the state by the United States pursuant to the act of Congress and/or other revenues mentioned in RCW 79.24.650 through 79.24.668. The obligation to make the deposit to or withdrawal from the capitol campus office development account, as provided in sections 5 and 8 of this act, shall be subordinate to the lien and charge of any revenue bonds issued against such receipts pledged to pay and secure such bonds, and on any money in the state capitol vehicle parking account and the capitol building construction account pledged therefor.

Sec. 10. Section 1, chapter 158, Laws of 1963 as last amended by section 59, chapter 57, Laws of 1985 and RCW 46.08.172 are each amended to read as follows:

There is hereby established an account in the state treasury to be known as the "state capitol vehicle parking account". The director of the department of general administration shall establish an equitable and consistent employee parking rental fee for state owned or leased property, effective July 1, 1988. All fees shall take into account the market rate of comparable privately owned rental parking, as determined by the director. All unpledged parking rental income collected by the department of general administration from rental of parking space on the capitol grounds and the east capitol site shall be deposited in the "state capitol vehicle parking account". All earnings of investments of balances in the state capitol vehicle parking account shall be credited to the general fund or as otherwise provided by law.

The "state capitol vehicle parking account" shall be used to pay costs incurred in the operation, maintenance, regulation and enforcement of vehicle parking and parking facilities at the state capitol or as otherwise provided by law.

Sec. 11. Section 5, chapter 69, Laws of 1909 as last amended by section 77, chapter 57, Laws of 1985 and RCW 79.24.060 are each amended to read as follows:

The proceeds of such sale of capitol building lands, or the timber or other materials shall be paid into the capitol building construction account which is hereby established in the state treasury to be used as in this act provided or as otherwise provided by law. All contracts for the construction of capitol buildings shall be let after notice for proposals or bids have been advertised for at least four consecutive weeks in at least three newspapers of general circulation throughout the state.

NEW SECTION. Sec. 12. The bonds authorized in section 4 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. 13. The legislature declares that for the benefit of the people of the state of Washington, it is essential that this and future generations of youth be given the fullest opportunity to learn and to develop their intellectual and mental capacities and skills. The legislature further finds that to achieve these ends people should be provided with investment alternatives to enhance their financial access to public and private institutions of higher education. The purpose of this chapter, therefore, is to encourage parents and other persons to save so that future generations may attend public and private higher education institutions, to provide an alternative low-cost method of borrowing to benefit public higher education institutions, and to encourage enrollment in public and private institutions of higher education.

NEW SECTION. Sec. 14. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Bonds" means general obligation bonds of the state of Washington issued under the authority of this chapter.

(2) "Board" means the higher education coordinating board.

NEW SECTION. Sec. 15. For the purpose of providing needed capital improvements consisting of the acquisition, construction, remodeling, furnishing and equipping of state buildings and facilities for the state institutions of higher education, including facilities for the community college system, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of fifty million dollars, or so much thereof as may be required, to finance these projects, and all costs incidental thereto.

No bonds may be offered for sale without prior legislative appropriation of the net proceeds of the bonds to be sold.

The bonds shall pledge the full faith and credit of the state of Washington and shall contain an unconditional promise to pay the principal thereof and interest thereon when due.

NEW SECTION. Sec. 16. The state finance committee is authorized to prescribe the form, terms, conditions, and covenants of the bonds, the time or times of sale of all or any portion of them, and the manner of their sale and issuance. However, if and to the extent that the state finance committee determines it is economically feasible and in the best interest of the state to do so, the bonds shall be sold at a "deep discount" from their par value.

NEW SECTION. Sec. 17. The proceeds from the sale of the bonds, together with all grants, donations, transferred funds, and all other moneys which the state finance committee may direct the state treasurer to deposit therein, shall be deposited in the state building construction account of the general fund in the state treasury. All such proceeds shall be used exclusively for the purposes specified in section 15 of this act and for incidental costs and costs relating to the payment of the expenses incurred in connection with the sale and issuance of the bonds.

NEW SECTION. Sec. 18. The state higher education bond retirement fund of 1988 is hereby created in the state treasury and shall be used for the purpose of the payment of principal of and interest on the bonds.

The state finance committee, on or before June 30th of each year, shall certify to the state treasurer the amount required in the next succeeding twelve months for the payment of the principal of and the interest coming due on the bonds and any amounts required to be set aside in the state higher education bond retirement fund of 1988 pursuant to the bond resolution. Not less than thirty days prior to the date on which any interest or principal and interest payment is due, or any date on which any funds are required by the bond resolution to be transferred to the state higher education bond retirement fund of 1988, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the state higher education bond retirement fund of 1988 an amount equal to the amount certified by the state finance committee to be due on the payment date or required to be set aside in the state higher education bond retirement fund of 1988.

If directed by the state finance committee by resolution, the state higher education bond retirement fund of 1988, or any portion thereof, may be deposited in trust with any qualified public depository.

NEW SECTION. Sec. 19. The bonds shall constitute a legal investment for all state funds or for funds under state control and all funds of municipal corporations.

NEW SECTION. Sec. 20. In marketing the bonds and consistent with other provisions of law, the state finance committee shall consider methods for encouraging purchase of the bonds as a means of college savings.

The board shall develop and implement an educational program and marketing strategy designed to inform parents about the options available for financing a college education, including college savings bonds, and the need to accumulate the financial resources necessary to pay for a college education.

NEW SECTION. Sec. 21. The state finance committee and the board shall evaluate the effectiveness of the college savings bond program created by this chapter, and report to the governor and the appropriate committees of the house and the senate about the program and any changes recommended by December 1, 1991. The board and the state finance committee shall specifically consider the advisability of offering incentives to parents to purchase college savings bonds.

NEW SECTION. Sec. 22. Sections 13 through 21 of this act may be known and cited as the college savings bond act.

NEW SECTION. Sec. 23. Sections 13 through 21 of this act shall constitute a new chapter in Title 28B RCW.

NEW SECTION. Sec. 24. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.