AN ACT Relating to the Spokane river toll bridge; amending RCW 47.56.712; creating a new section; and repealing RCW 47.56.715.

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

Sec. 1. Section 2, chapter 131, Laws of 1979 and RCW 47.56.712 are each amended to read as follows:

(1) The refunding bonds authorized by RCW 47.56.711 shall be general obligation bonds of the state of Washington and shall be issued in a total principal amount of not to exceed five million six hundred thousand dollars. The exact amount of the refunding bonds to be issued shall be determined by the state finance committee after calculating the amount of money deposited in the Spokane river bridge revenue bond fund which can be used to redeem outstanding series A Spokane river toll bridge revenue bonds after the setting aside of sufficient money from that fund to pay the first interest installment on the refunding bonds. The refunding bonds shall be serial in form maturing at such time, in such amounts, having such denomination or denominations, redemption privileges, and having such terms and conditions as determined by the state finance committee. The last maturity date of the refunding bonds shall not be later than 1996. Refunding bonds to be exchanged for the remaining outstanding series A Spokane river toll bridge revenue bonds shall bear interest at the rate of four and one-half percent per annum. Refunding bonds to be exchanged for the outstanding series B Spokane river toll bridge revenue bonds shall bear interest at the rate of five percent per annum.

(2) The refunding bonds shall be signed by the governor and the state treasurer under the seal of the state, one of which signatures shall be made manually and the other signature may be in printed facsimile, and any coupons attached to the bonds shall be signed by the same officers, whose signatures thereon may be in printed facsimile. Any of these bonds may be registered in the name of the holder on presentation to the state treasurer of at the fiscal agency of the state of Washington in Seattle or New York City, as to principal alone, or as to both principal and interest, under regulations as the state treasurer may prescribe. The refunding bonds shall distinctly state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state, and shall contain an unconditional promise to pay the principal thereof and the interest thereon when due. The refunding bonds shall be fully negotiable instruments.

(3) The principal and interest on the refunding bonds shall be first payable in the manner provided in RCW 47.56.711 through 47.56.716 from the proceeds of state excise taxes on motor vehicle and special fuels imposed by chapters 82.36, 82.37, and 82.38 RCW ((~~and from the tolls and revenues derived from the operation of the Spokane river toll bridge~~)).

(4) ((There is established in the highway bond retirement fund in the state treasury a special account to be known as the Spokane river toll bridge account into which shall be deposited at least monthly all of the tolls and other revenues received from the operation of the toll bridge and from any interest which may be earned from the deposit or investment of these revenues after the payment of costs of operation, maintenance, management, and necessary repairs of the facility.)) The principal of and interest on the refunding bonds shall be paid first from ((money deposited in the Spokane river toll bridge account in the highway bond retirement fund, and then, to the extent that money deposited in that account is insufficient to make any such payment when due, from)) the state excise taxes on motor vehicle and special fuels deposited in the highway bond retirement fund. There is hereby pledged the proceeds of state excise taxes on motor vehicle and special fuels imposed under chapters 82.36, 82.37, and 82.38 RCW to pay the refunding bonds and interest thereon, and the legislature hereby agrees to continue to impose the same excise taxes on motor vehicle and special fuels in amounts sufficient to pay, when due, the principal and interest on the refunding bonds ((~~to the money deposited in the Spokane river toll bridge account is insufficient to make such payments~~)). Not less than fifteen days prior to the date any interest or principal and interest payments are due, the state finance committee shall certify to the state treasurer such amount of additional moneys as may be required for debt service, and the treasurer shall thereupon transfer from the motor vehicle fund such amount from the proceeds of such excise taxes into the highway bond retirement fund. Any proceeds of such excise taxes required for these purposes shall first be taken from that portion of the motor vehicle fund which results from the imposition of the excise taxes on motor vehicle and special fuels and which is distributed to the state. If the proceeds from the excise taxes distributed to the state are ever insufficient to meet the required payments on principal or interest on the refunding bonds when due, the amount required to make the payments on the principal or interest shall next be taken from that portion of the motor vehicle fund which results from the imposition of excise taxes on motor vehicle and special fuels and which is distributed to the state, counties, cities, and towns pursuant to RCW 46.68.100 as now existing or hereafter amended. Any payments of the principal or interest taken from the motor vehicle or special fuel tax revenues which are distributable to the counties, cities, and towns shall be repaid from the first moneys distributed to the state not required for redemption of the refunding bonds or interest thereon. The legislature covenants that it shall at all times provide sufficient revenues from the imposition of such excise taxes to pay the principal and interest due on the refunding bonds.

(5) After the effective date of this 1987 section, tolls shall be removed from the Spokane river toll bridge and the bridge shall be under the sole ownership of the state. The ((~~department of transportation shall fix and maintain the tolls and charges in the manner provided by RCW 47.56.240 so that when collected they will produce revenues sufficient to~~)) state shall pay all expenses of operating, maintaining, managing, and repairing the ((~~toll~~)) bridge, including all insurance costs ((and the amounts required to pay the principal and interest on the refunding bonds when due and to satisfy the other obligations set forth in RCW 47.56.711 through 47.56.716 and 47.56.220 as now or hereafter amended. The principal of and interest on the refunding bonds shall constitute a first direct and exclusive charge and lien on all such tolls and other revenues and interest thereon received from the use and operation of the Spokane river toll bridge, after the payment of all expenses of operating, maintaining, managing, and repairing the toll bridge, and such tolls and revenues together with interest earned thereon, and all other money deposited in the Spokane river toll bridge account in the highway bond redemption fund, shall constitute a trust fund for the security and payment of such bonds and shall not be used or pledged for any other purpose as long as such bonds or any of them are outstanding and unpaid)).

(6) The state finance committee may on behalf of the state make such covenants in connection with the refunding bond proceedings or otherwise to ((~~assure the maintenance of the tolls and charges on the Spokane river toll bridge, the proper application thereof, the proper operation, maintenance, management, and repair of the bridge to~~)) provide for and secure the timely payment of the refunding bonds. Such covenants shall be binding on the department of transportation and transportation commission.

NEW SECTION. Sec. 2. Moneys remaining in the Spokane river toll bridge account on the effective date of this section shall be retained by the state for the purpose of paying the principal and interest on the refunding bonds authorized by RCW 47.56.711.

NEW SECTION. Sec. 3. Section 5, chapter 131, Laws of 1979 and RCW 47.56.715 are each repealed.