AN
ACT Relating to state general obligation bonds; amending RCW 39.42.060 and
39.42.070; adding a new chapter to Title 43 RCW; and declaring an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. For
the purpose of providing funds for the construction, reconstruction, planning,
design, and other necessary costs of the various facilities defined in chapter
. . . (Senate Bill No. 6396), Laws of 2002, the state finance committee
is authorized to issue general obligation bonds of the state of Washington in
the sum of eighty-nine million seven hundred thousand dollars, or as much
thereof as may be required, to finance these 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. 2. (1)
The proceeds from the sale of the bonds authorized in section 1 of this act
shall be deposited in the state building construction account created by RCW
43.83.020, with eighty-seven million five hundred thousand dollars to remain in
the state building construction account created by RCW 43.83.020. If the state
finance committee deems it necessary to issue the bonds authorized in section 1
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 additional taxable bonds shall be transferred to
the state taxable building construction account in lieu of any transfer
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 additional transfer to the state taxable building construction account is
necessary. Moneys in the account may be spent only after appropriation.
(2)
These proceeds shall be used exclusively for the purposes specified in this
section and for the payment of expenses incurred in the issuance and sale of
the bonds issued for the purposes of this section, and shall be administered by
the office of financial management subject to legislative appropriation.
NEW
SECTION. Sec. 3. (1)
The debt-limit general fund bond retirement account shall be used for the
payment of the principal of and interest on the bonds authorized in section 1
of this act.
(2)
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 the bonds authorized in
section 1 of this act.
(3)
On each date on which any interest or principal and interest payment is due on
bonds issued for the purposes of section 1 of this act the state treasurer
shall withdraw from any general state revenues received in the state treasury
and deposit in the debt-limit general fund bond retirement account an amount
equal to the amount certified by the state finance committee to be due on the
payment date.
NEW
SECTION. Sec. 4. (1)
Bonds issued under section 1 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.
(2)
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 1 of this act,
and sections 2 and 3 of this act shall not be deemed to provide an exclusive
method for the payment.
NEW
SECTION. Sec. 6. The
bonds authorized in section 1 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.
Sec.
7. RCW
39.42.060 and 2001 2nd sp.s. c 9 s 18 are each amended to read as follows:
No
bonds, notes, or other evidences of indebtedness for borrowed money shall be
issued by the state which will cause the aggregate debt contracted by the state
to exceed that amount for which payments of principal and interest in any
fiscal year would require the state to expend more than seven percent of the
arithmetic mean of its general state revenues, as defined in ((section 1(c)
of Article VIII of the Washington state Constitution)) RCW 39.42.070,
for the three immediately preceding fiscal years as certified by the treasurer
in accordance with RCW 39.42.070. It shall be the duty of the state finance
committee to compute annually the amount required to pay principal of and
interest on outstanding debt. In making such computation, the state finance
committee shall include all 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 paid, 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,
and shall include debt incurred pursuant to section 3 of Article VIII of the
Washington state Constitution, but shall exclude the following:
(1)
Obligations for the payment of current expenses of state government;
(2)
Indebtedness incurred pursuant to RCW 39.42.080 or 39.42.090;
(3)
Principal of and interest on bond anticipation notes;
(4)
Any indebtedness which has been refunded;
(5)
Financing contracts entered into under chapter 39.94 RCW;
(6)
Indebtedness authorized or incurred before July 1, 1993, pursuant to statute
which requires that the state treasury be reimbursed, in the amount of the
principal of and the interest on such indebtedness, from money other than
general state revenues or from the special excise tax imposed pursuant to
chapter 67.40 RCW;
(7)
Indebtedness authorized and incurred after July 1, 1993, pursuant to statute
that requires that the state treasury be reimbursed, in the amount of the
principal of and the interest on such indebtedness, from (a) moneys outside the
state treasury, except higher education operating fees, (b) higher education
building fees, (c) indirect costs recovered from federal grants and contracts,
and (d) fees and charges associated with hospitals operated or managed by
institutions of higher education;
(8)
Any agreement, promissory note, or other instrument entered into by the state
finance committee under RCW 39.42.030 in connection with its acquisition of
bond insurance, letters of credit, or other credit support instruments for the
purpose of guaranteeing the payment or enhancing the marketability, or both, of
any state bonds, notes, or other evidence of indebtedness;
(9)
Indebtedness incurred for the purposes identified in RCW 43.99N.020;
(10)
Indebtedness incurred for the purposes of the school district bond guaranty
established by chapter 39.98 RCW;
(11)
Indebtedness incurred for the purposes of replacing the waterproof membrane
over the east plaza garage and revising related landscaping construction
pursuant to RCW 43.99Q.070; and
(12)
Indebtedness incurred for the purposes of the state legislative building
rehabilitation, to the extent that principal and interest payments of such
indebtedness are paid from the capitol building construction account pursuant
to RCW 43.99Q.140(2)(b).
To
the extent necessary because of the constitutional or statutory debt
limitation, priorities with respect to the issuance or guaranteeing of bonds,
notes, or other evidences of indebtedness by the state shall be determined by
the state finance committee.
Sec.
8. RCW
39.42.070 and 1971 ex.s. c 184 s 7 are each amended to read as follows:
(1)
On or after the effective date of this act, the treasurer shall compute general
state revenues for the three fiscal years immediately preceding such date and
shall determine the arithmetic mean thereof. As soon as is practicable after
the close of each fiscal year thereafter, he or she shall do likewise.
In determining the amount of general state revenues, the treasurer shall
include all state money received in the treasury from each and every source
whatsoever except: (((1))) (a) Fees and revenues derived from
the ownership or operation of any undertaking, facility or project; (((2)))
(b) 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))) (c) moneys to be
paid into and received from retirement system funds, and performance bonds and
deposits; (((4))) (d) 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)))
(e) proceeds received from the sale of bonds or other evidences of
indebtedness. Upon computing general state revenues, the treasurer shall make
and file in the office of the secretary of state, a certificate containing the
results of such computations. Copies of said certificate shall be sent to each
elected official of the state and each member of the legislature. The treasurer
shall, at the same time, advise each elected official and each member of the
legislature of the current available debt capacity of the state, and may make
estimated projections for one or more years concerning debt capacity.
(2)
For purposes of this chapter, general state revenues shall also include
revenues that are deposited in the general fund under RCW 82.45.180(2) and
lottery revenues as provided in RCW 67.70.240(3).
NEW
SECTION. Sec. 9.
Sections 1 through 6 of this act constitute a new chapter in Title 43 RCW.
NEW
SECTION. Sec. 10. 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.
NEW SECTION. Sec. 11. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect immediately.
