BILL REQ. #:  H-3029.1 

READ FIRST TIME 04/23/03.   

     AN ACT Relating to state general obligation bonds and related accounts; amending RCW 28B.50.370 and 28B.20.720; 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 to finance the projects described and authorized by the legislature in the capital and operating appropriations acts for the 2003-2005 fiscal biennium, and all costs incidental thereto, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of nine hundred eighty-six million 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   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. The net proceeds shall be transferred as follows:
     (1) Eight hundred twenty million dollars to remain in the state building construction account created by RCW 43.83.020;
     (2) Twenty-five million dollars to the outdoor recreation account created by RCW 79A.25.060;
     (3) Twenty-five million dollars to the habitat conservation account created by RCW 79A.15.020;
     (4) Eighty million dollars to the state taxable building construction account. All receipts from taxable bond issues are to be deposited into the account. If the state finance committee deems it necessary to issue more than eighty million dollars of 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;
     (5) Three million six hundred thousand dollars to the University of Washington building account for the UW Bothell/Cascadia Phase 2B Offramp; and
     (6) Three million six hundred thousand dollars to the capital projects account of the college board for the community and technical colleges for the UW Bothell/Cascadia Phase 2B Offramp.
     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 legislature intends to provide additional resources for the capital needs of education above the traditional bond-supported level of appropriations in the capital budget. The increased level of bond-supported appropriations is intended to be temporary, over approximately three biennia, before returning to a more traditional base level to ensure the debt service on total outstanding obligations stays well within debt limit provisions.
     (2) For the purpose of providing funds for necessary capital costs of public higher education institutions and common schools, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of one billion eighty-one million five 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. 4   The proceeds from the sale of the bonds authorized in section 3 of this act shall be deposited in the state education building construction account created by section 9 of this act. These proceeds shall be used exclusively for the purposes specified in section 3 of this act 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. 5   (1) The debt-limit general fund bond retirement account shall be used for the payment of the principal of and interest on the bonds issued for the purposes of sections 2 (1) through (4) and 3 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 issued for the purposes of sections 2 (1) through (4) and 3 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 sections 2 (1) through (4) and 3 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. 6   (1) The nondebt-limit reimbursable bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in section 2 (5) and (6) 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 issued for the purposes of section 2 (5) and (6) 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 2(6) of this act, the treasurer shall cause to be transferred out of the bond retirement fund of the state board for community and technical colleges under RCW 28B.50.370 to the nondebt-limit reimbursement bond retirement account the amount computed in subsection (2) of this section for bonds issued for the purposes of section 2(6) of this act, and the treasurer shall cause to be transferred out of the bond retirement fund of the University of Washington under RCW 28B.20.720 to the nondebt-limit reimbursement bond retirement account the amount computed in subsection (2) of this section for bonds issued for the purposes of section 2(5) of this act.

NEW SECTION.  Sec. 7   (1) Bonds issued under sections 1 and 3 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. 8   The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in sections 1 and 3 of this act, and sections 1 through 7 of this act shall not be deemed to provide an exclusive method for the payment.

NEW SECTION.  Sec. 9   The state education building construction account is created in the state treasury. Proceeds from bonds issued under section 3 of this act shall be deposited in the account. The account shall be used for capital costs of public higher education institutions and common schools. Moneys in the account may be spent only after appropriation.

Sec. 10   RCW 28B.50.370 and 1991 c 238 s 52 are each amended to read as follows:
     For the purpose of paying and securing the payment of the principal of and interest on the bonds as the same shall become due, there shall be paid into the state treasury and credited to the bond retirement fund of the college board, the following:
     (1) Amounts derived from building fees as are necessary to pay the principal of and interest on the bonds and to secure the same;
     (2) Amounts derived from parking fees and operating fees at Cascadia Community College necessary to pay the principal of and interest on the bonds issued for purposes of section 2(6) of this act;
     (3) Any grants which may be made, or may become available for the purpose of furthering the construction of any authorized projects, or for the repayment of the costs thereof;
     (((3))) (4) Such additional funds as the legislature may provide.
     Said bond retirement fund shall be kept segregated from all moneys in the state treasury and shall, while any of such bonds or any interest thereon remains unpaid, be available solely for the payment thereof. As a part of the contract of sale of such bonds, the college board shall charge and collect building fees as established by this chapter and deposit such fees in the bond retirement fund in amounts which will be sufficient to pay and secure the payment of the principal of, and interest on all such bonds outstanding.

Sec. 11   RCW 28B.20.720 and 1985 c 390 s 39 are each amended to read as follows:
     For the purpose of paying and securing the payment of the principal of and interest on the bonds as the same shall become due, there shall be paid into the state treasury and credited to a special trust fund to be known as the University of Washington bond retirement fund, the following:
     (1) One-half of such building fees as the board may from time to time determine, or such larger portion as may be necessary to prevent default in the payments required to be made out of the bond retirement fund, and in no event shall such one-half be less than twelve dollars and fifty cents per each resident student per quarter and less than thirty-seven dollars and fifty cents per each nonresident student per quarter;
     (2) Amounts derived from parking fees and operating fees at University of Washington Bothell necessary to pay the principal of and interest on the bonds issued for purposes of section 2(5) of this act;
     (3) Any gifts, bequests, or grants which may be made, or may become available, for the purpose of furthering the construction of any authorized projects, or for the repayment of the costs thereof;
     (((3))) (4) Such additional funds as the legislature may provide.
     Said bond retirement fund shall be kept segregated from all moneys in the state treasury and shall, while any of such bonds or any interest thereon remains unpaid, be available solely for the payment thereof except as provided in RCW 28B.20.725(5). As a part of the contract of sale of such bonds, the board undertakes to charge and collect building fees and to deposit the portion of such fees in the bond retirement fund in amounts which will be sufficient to pay the principal of, and interest on all such bonds outstanding.

NEW SECTION.  Sec. 12   Sections 1 through 9 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 13   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. 14   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.