[atlas:bill]

AN ACT Relating to transportation bonds; 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 highway improvements, and in order to provide funds necessary for vessel and terminal acquisition, construction, and improvements, there will be issued and sold upon the request of the transportation commission, a total of five billion five hundred million dollars of general obligation bonds of the state of Washington for highway improvement projects.

NEW SECTION. Sec. 2. Upon the request of the transportation commission, the state finance committee will supervise and provide for the issuance, sale, and retirement of the bonds authorized by sections 1 through 6 of this act in accordance with chapter 39.42 RCW. Bonds authorized by sections 1 through 6 of this act will be sold in a manner, at a time or times, in amounts, and at prices as the state finance committee will determine. No bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

The state finance committee will consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability, and for the purpose of retiring the bonds during the life of the project for which they were issued.

NEW SECTION. Sec. 3. The proceeds from the sale of bonds authorized by sections 1 through 6 of this act will be deposited in the motor vehicle fund. These proceeds will be available only for the purposes enumerated in section 1 of this act, for the payment of bond anticipation notes, if any, and for the payment of bond issuance costs, including the costs of underwriting.

NEW SECTION. Sec. 4. Bonds issued under the authority of sections 1 through 6 of this act will distinctly state that they are a general obligation of the state of Washington, will pledge the full faith and credit of the state to the payment of the principal and interest, and will contain an unconditional promise to pay principal and interest as they become due. The principal and interest on the bonds will be first payable in the manner provided in sections 1 through 6 of this act from the proceeds of the state excise taxes on motor vehicle and special fuel imposed in chapters 82.36 and 82.38 RCW. Proceeds of these excise taxes are hereby pledged to the payment of any bonds and the interest thereon issued under sections 1 through 6 of this act, and the legislature agrees to continue to impose these excise taxes on motor vehicle and special fuel in amounts sufficient to pay, when due, the principal and interest on all bonds issued under the authority of sections 1 through 6 of this act.

NEW SECTION. Sec. 5. Both principal and interest on the bonds issued for the purposes of sections 1 through 6 of this act will be payable from the highway bond retirement fund. The state finance committee may provide that a special account be created in the fund to facilitate payment of the principal and interest. The state finance committee will, 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. The state treasurer will withdraw revenues from the motor vehicle fund and deposit in the highway bond retirement fund, or a special account in the fund, any amounts, and at such times, as required by the bond proceedings.

Any funds required for bond retirement or interest on the bonds authorized by sections 1 through 6 of this act will be taken from that portion of the motor vehicle fund that results from the imposition of excise taxes on motor vehicle and special fuel and which is, or may be appropriated to the department of transportation for state highway purposes. Funds required will 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 fuel distributed to the state in the motor vehicle fund proves insufficient to meet the requirements for bond retirement or interest on any 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 distributed to the state, counties, cities, and towns will be repaid from the first revenues from the motor vehicle fuel or special fuel taxes distributed to the motor vehicle fund not required for bond retirement or interest on the bonds.

NEW SECTION. Sec. 6. Bonds issued under sections 1 through 5 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 fuel excise taxes for the payment of principal and interest thereon will be an equal charge against the revenues from the motor vehicle and special fuel excise taxes.

NEW SECTION. Sec. 7. Sections 1 through 6 of this act are each added to chapter 47.10 RCW.

NEW SECTION. Sec. 8. 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.