BILL REQ. #:  H-1470.1 

Read first time 02/08/11.   Referred to Committee on Transportation.

     AN ACT Relating to certain toll facilities; amending RCW 47.10.882, 47.10.887, 47.10.888, and 47.56.810; reenacting RCW 47.10.886; adding a new section to chapter 47.56 RCW; creating a new section; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature recognizes that Washington voters strongly supported Initiative Measure No. 1053 during the 2010 general election, which indicates the clear desire on the part of the state's citizens that legislators approve any new fees or increases to existing fees. The legislature further recognizes that during the 2009 legislative session tolling was authorized on the state route number 520 corridor, bonds were authorized to finance construction of corridor projects, and the legislature committed to continue imposing tolls on the corridor in amounts sufficient to pay the principal and interest on those bonds. As tolling is scheduled to begin on the corridor in early April 2011, the legislature intends to honor the voter's clear direction as identified in Initiative Measure No. 1053 by approving the transportation commission's schedule of toll charges applicable to the state route number 520 corridor.

NEW SECTION.  Sec. 2   A new section is added to chapter 47.56 RCW to read as follows:
     (1) Consistent with RCW 43.135.055 and 47.56.805 through 47.56.876, the legislature approves the action taken by the transportation commission on January 5, 2011, adopting amended rules to set the schedule of toll rates applicable to the state route number 520 corridor. The legislature approves the delegation to the transportation commission, as the tolling authority for the state, of the authority to set and adjust toll rates on the state route number 520 corridor in accordance with the requirements and guidelines set forth in RCW 47.56.830, 47.56.850, and 47.56.870. The transportation commission may exceed the toll rates, as identified in the adopted schedule of toll rates, only in amounts not greater than those sufficient to meet obligations for the timely payment of debt service on bonds issued under chapter 498, Laws of 2009 and this act, and any other associated financing costs including, but not limited to, required reserves, minimum debt coverage or other appropriate contingency funding, insurance, and compliance with all other financial and other covenants made by the state in the bond proceedings.
     (2) Consistent with RCW 43.135.055 and 47.46.100, the legislature approves the action taken by the transportation commission on January 25, 2011, adopting amended rules to set the schedule of photo toll, or "pay by mail," charges applicable to the Tacoma Narrows bridge.
     (3) Consistent with RCW 43.135.055 and 47.56.795(6), the legislature approves the action taken by the transportation commission on January 5, 2011, adopting amended rules concerning the assessment of administrative fees for toll collection processes. The administrative fees must not exceed toll collection costs.

Sec. 3   RCW 47.10.882 and 2009 c 498 s 11 are each amended to read as follows:
     The toll facility bond retirement account is created in the state treasury for the purpose of payment of the principal of and interest and premium on bonds. Both principal of and interest on the bonds issued for the purposes of chapter 498, Laws of 2009 and this act shall be payable from the toll facility bond retirement account. The state finance committee may provide that special subaccounts be created in the account to facilitate payment of the principal of and interest on the bonds. 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 the bonds in accordance with the bond proceedings.

Sec. 4   RCW 47.10.886 and 2009 c 498 s 16 are each reenacted to read as follows:
     If and to the extent that the state finance committee determines, in consultation with the department of transportation and the tolling authority, that it will be beneficial for the state to issue any bonds authorized in RCW 47.10.879 and 47.10.883 through 47.10.885 as toll revenue bonds rather than as general obligation bonds, the state finance committee is authorized to issue and sell, upon the request of the department of transportation, such bonds as toll revenue bonds and not as general obligation bonds. Notwithstanding RCW 47.10.883, each such bond shall contain a recital that payment or redemption of the bond and payment of the interest and any premium thereon is payable solely from and secured solely by a direct pledge, charge, and lien upon toll revenue and is not a general obligation of the state to which the full faith and credit of the state is pledged.
     Toll revenue is hereby pledged to the payment of any bonds and the interest thereon issued under the authority of this section, and the legislature agrees to continue to impose these toll charges on the state route number 520 corridor, and on any other eligible toll facility designated by the legislature and on which the imposition of tolls is authorized by the legislature in respect of the bonds, in amounts sufficient to pay, when due, the principal and interest on all bonds issued under the authority of this section.

Sec. 5   RCW 47.10.887 and 2009 c 498 s 17 are each amended to read as follows:
     The state finance committee may determine and include in any resolution authorizing the issuance of any bonds under chapter 498, Laws of 2009 and this act, such terms, provisions, covenants, and conditions as it may deem appropriate in order to assist with the marketing and sale of the bonds, confer rights upon the owners of bonds, and safeguard rights of the owners of bonds including, among other things:
     (1) Provisions regarding the maintenance and operation of eligible toll facilities;
     (2) The pledges, uses, and priorities of application of toll revenue;
     (3) Provisions that bonds shall be payable from and secured solely by toll revenue as provided by RCW 47.10.886, or shall be payable from and secured by both toll revenue and by a pledge of excise taxes on motor vehicle and special fuels and the full faith and credit of the state as provided in RCW 47.10.879 and 47.10.883 through 47.10.885;
     (4) In consultation with the department of transportation and the tolling authority, financial covenants requiring that the eligible toll facilities must produce specified coverage ratios of toll revenue to debt service on bonds;
     (5) The purposes and conditions that must be satisfied prior to the issuance of any additional bonds that are to be payable from and secured by any toll revenue on an equal basis with previously issued and outstanding bonds payable from and secured by toll revenue;
     (6) Provisions that bonds for which any toll revenue are pledged, or for which a pledge of any toll revenue may be reserved, may be structured on a senior, parity, subordinate, or special lien basis in relation to any other bonds for which toll revenue is pledged, with respect to toll revenue only; and
     (7) Provisions regarding reserves, credit enhancement, liquidity facilities, and payment agreements with respect to bonds.
     Notwithstanding the foregoing, covenants and conditions detailing the character of management, maintenance, and operation of eligible toll facilities, insurance for eligible toll facilities, financial management of toll revenue, and disposition of eligible toll facilities must first be approved by the department of transportation.
     The owner of any bond may by mandamus or other appropriate proceeding require and compel performance of any duties imposed upon the tolling authority and the department of transportation and their respective officials, including any duties imposed upon or undertaken by them or by their respective officers, agents, and employees, in connection with the construction, maintenance, and operation of eligible toll facilities and in connection with the collection, deposit, investment, application, and disbursement of the proceeds of the bonds and toll revenue.

Sec. 6   RCW 47.10.888 and 2009 c 498 s 18 are each amended to read as follows:
     (1) For the purposes of chapter 498, Laws of 2009 and this act, "toll revenue" means all toll receipts, all interest income derived from the investment of toll receipts, and any gifts, grants, or other funds received for the benefit of transportation facilities in the state, including eligible toll facilities. However, for the purpose of any pledge of toll revenue to the payment of particular bonds issued under chapter 498, Laws of 2009 and this act, "toll revenue" means and includes only such toll revenue or portion thereof that is pledged to the payment of those bonds in the resolution authorizing the issuance of such bonds. Toll revenue constitutes "fees and revenues derived from the ownership or operation of any undertaking, facility, or project" as that phrase is used in Article VIII, section 1(c)(1) of the state Constitution.
     (2) For the purposes of chapter 498, Laws of 2009 and this act, "tolling authority" has the same meaning as in RCW 47.56.810.

Sec. 7   RCW 47.56.810 and 2008 c 122 s 3 are each amended to read as follows:
     The definitions in this section apply throughout this subchapter unless the context clearly requires otherwise:
     (1) "Tolling authority" means the governing body that is legally empowered to review and adjust toll rates. Unless otherwise delegated, the transportation commission is the tolling authority for all state highways.
     (2) "Eligible toll facility" or "eligible toll facilities" means portions of the state highway system specifically identified by the legislature including, but not limited to, transportation corridors, bridges, crossings, interchanges, on-ramps, off-ramps, approaches, bistate facilities, and interconnections between highways.
     (3) "Toll revenue" or "revenue from an eligible toll facility" means toll receipts, all interest income derived from the investment of toll receipts, and any gifts, grants, or other funds received for the benefit of ((the)) transportation facilities in the state, including eligible toll ((facility)) facilities.

NEW SECTION.  Sec. 8   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.