SB 5804 — Concerning fish habitat restoration.

S-2675.2S-2385.2 SUBSTITUTE SENATE BILL 5804 State of Washington 69th Legislature 2025 Regular Session By Senate Ways & Means (originally sponsored by Senators Trudeau, Kauffman, Schoesler, Chapman, Dozier, Liias, and Pedersen)Pedersen READRead FIRSTfirst TIMEtime 04/08/25.03/29/25.

ANReferred ACT Relating to fishCommittee habitaton restorationWays in& responseMeans. to the federal court injunction and supported by changes to the state tax structure and authorization of bonds;

AN ACT Relating to fish habitat restoration;

providing an effective date;

The legislature acknowledges both a moral and legal obligation to address salmon habitat and therefore intends to invoke an exceptional p.

1 SSBSB 5804 The legislature acknowledges both a moral and legal obligation to address salmon habitat and therefore intends to invoke an exceptional remedy to create special tax revenueobligation bonds funded by a tax on light and power utility businesses.projects.

(((3) Twenty percent of the moneys collected under subsection (1) of this section on water distribution businesses and sixty percent of the moneys collected under subsection (1) of this section on sewerage collection businesses must be deposited in the education legacy trust p.

2 SSBSB 5804 the moneys collected under subsection (1) of this section on sewerage collection businesses must be deposited in the education legacy trust account created in RCW 83.100.230 from July 1, 2013, through June 30, 2023, and thereafter in the public works assistance account created in RCW 43.155.050.)) NEW SECTION.

(1) There is levied and collected from every person engaging within this state in any light and power business, a tax imposedin at the rateamount of 2.010532.011 percent, multiplied by the gross income of the business.

(2) The moneys collected from the tax pursuant to this section must be deposited in the federal injunction salmon habitat restoration account created in section 117 of this act and must be used exclusively for the purposes of mitigating the impact of fish passage barriers and improving salmon and steelhead recovery and habitat restoration as provided in section 11 (2) of this act.

If a taxpayer fails to pay the tax imposed by this chapter to the person charged with collection of the tax and the person charged with collection fails to pay the tax to the p.department, the department may, in its discretion, proceed directly against the taxpayer for collection of the tax.

3p. SSB 5804 department, the department may, in its discretion, proceed directly against the taxpayer for collection of the tax.

3 SB 5804 (2) The tax is due from the taxpayer within twenty-five days from the date the taxpayer is billed by the person collecting the tax.

Money may be placed in the public works assistance account from the proceeds of bonds when authorized by the p.legislature or from any other lawful source.

4Money SSBin 5804the legislaturepublic orworks fromassistance anyaccount othershall lawfulbe source.used to make loans and grants and p.

Money4 inSB the5804 public works assistance account shall be used to make loans and grants and to give financial guarantees to local governments for public works projects.

During the 2023-2025 fiscal biennium, the legislature may appropriate moneys from the account for activities related to developing a data dashboard to map investments p.

5 SSBSB 5804 the legislature may appropriate moneys from the account for activities related to developing a data dashboard to map investments made by the public works board, the department of commerce, the department of health, the department of ecology, the department of transportation, the transportation improvement board, and by board partners to the system improvement team created in RCW 43.155.150.

(1) The federal injunction salmon habitat bondrestoration retirement account is created in the state treasury.

Moneys in the account must be used only for the payment of principal and interest on bonds authorized in section 8 of this act in accordance with the state finance committee's bond proceedings, and may be spent only after appropriation.

(2) TheMoneys statein finance committee shall, on or before June 30th of each year, certify to the stateaccount treasurermust thefirst amountbe neededused tofor meet the bondpayment retirementof principal and interest requirements on the bonds authorized in section 8 of this actact. in accordance with the state finance committee's bond proceedings.

(3) The state treasurerfinance shallcommittee withdrawshall, fromon theor federalbefore injunctionJune salmon30th habitatof restorationeach accountyear, createdcertify into sectionthe 11state oftreasurer thisthe actamount andneeded deposit in the federalensuing injunction12 salmonmonths habitatto meet the bond retirement account created in this section such amounts, and atinterest suchrequirements times,on asthe arebonds requiredauthorized byin thesection state8 financeof committee'sthis bondact. proceedings.

(4) TheOn July 1st of each year, the state treasurer mayshall establishtransfer separatefrom subaccountsthe infederal theinjunction salmon habitat restoration account to facilitatethe paymentfederal injunction salmon habitat bond retirement account created in section 12 of thethis principalact andan interestamount onequal to the bondsamount incertified accordanceby with the bondstate proceedings.finance committee in this section.

(1) The state finance committee may issue special tax revenueobligation bonds of the state of Washington in amounts not to exceed the sum of $5,000,000,000, or as much thereof as may be necessary, payable from receipts from the federal injunction salmon habitat tax imposedestablished in section 3 of this act and deposited into the federal injunction salmon habitat bondrestoration retirement account created in section 7 of this act to finance projects as described in section 11(2) of this act, and all costs incidental thereto.

Proceeds from the sale of bonds p.must be deposited in the federal injunction salmon habitat account created in section 11 of this act.

6 SSB 5804 must be deposited in the federal injunction salmon habitat restoration account created in section 11 of this act.

(3) The state finance committee may determine and include in any resolution authorizing the issuance of any bonds authorized by this chapterp. 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, but not limited to:

(a)6 ProvisionsSB that5804 thechapter bondssuch areterms, payableprovisions, solelycovenants, from and securedconditions solelyas byit revenuesmay fromdeem theappropriate tax imposed in sectionorder 3to ofassist thiswith actthe marketing and receivedsale inof the federalbonds, injunctionconfer salmonrights habitatupon bondthe retirementowners accountof createdbonds, inand sectionsafeguard 7rights of thisthe act;owners of bonds, including:

(b)(a) TheProvisions conditions that must be satisfied before the issuance of any additional bonds that are to be payable solely from and secured solely by therevenues federalfrom injunctionthe salmontax habitat bond retirement account created in section 73 of this act on an equal basis with previously issued and outstandingreceived bondsin payable from the federal injunction salmon habitat bondrestoration retirement account created in section 7 of this act;

(c)(b) ProvisionsThe regardingconditions reservesthat must be satisfied before the issuance of any additional bonds that are to be payable from and creditsecured enhancements,by ifthe any;federal injunction salmon habitat restoration account created in section 7 of this act on an equal basis with previously issued and outstanding bonds payable from the federal injunction salmon habitat restoration account created in section 7 of this act;

(c) Provisions regarding reserves and credit enhancements;

If the state treasurer deems it necessary to issue the bonds as taxable bonds in order to comply with federal internal revenue service regulations pertaining to the use of nontaxable bond proceeds, the proceeds of such taxable bonds must be deposited into the account.

The state treasurer shall submit written notice to the director of financial management if the state treasurer determines that any such bonds should be issued as taxable bonds.

(1) The authorizationspecial totax issueobligation bonds providedauthorized underby section 8 of this actchapter expiresmay uponbe theissued fullfor authorizationa havingperiod beennot issuedto andexceed dispersed.15 years.

(2)The Onauthorization anto annualissue basis,bonds andprovided inunder compliancesection with8 RCWof 43.01.036,this theact statedoes treasurernot mayexpire submituntil athe reportfull toauthorization thehas legislaturebeen thatissued providesand recommendationsdispersed, onor until the levelend of issuancesthe over15-year theperiod, dispersalwhichever periodoccurs p.first.

7The SSBstate 5804finance committee may decrease the period of issuance based on updated revenueforecasts forecasts,and marketfiscal factors,needs, andbut fiscalany needs.increase in the period of issuance beyond the 15-year period authorized under this section requires the approval of the legislature.

(2) On a quarterly basis, and in compliance with RCW 43.01.036, the state treasurer may submit a report to the legislature that provides recommendations on the level of issuances over the 15-year period based on updated revenue forecasts, market factors, and fiscal needs.

Each bond issued under the authority of this chapter must distinctly state thatp. payment or redemption of the bond and payment of the interest and any premium thereon is payable solely from and secured solely by a pledge of the revenues derived from the special tax imposed in section 3 of this act and received in the federal injunction salmon habitat restoration account created in section 11 of this act, and that such a bond is not a general obligation of the state.

The7 legislatureSB agrees5804 tothat continuepayment toor imposeredemption thisof specialthe taxbond atand ratespayment atof leastthe sufficientinterest toand payany andpremium securethereon paymentis ofpayable debtsolely servicefrom onand thesecured bondssolely andby pledgesa topledge appropriateof the revenues derivedof from the tax tocreated payin debtsection service3 onof this act and received in the bondsfederal wheninjunction due,salmon habitat restoration account created in accordancesection with7 theof statethis financeact, committee'sand bondis proceedings.not a general obligation of the state.

The statelegislature financepledges committeeto shallappropriate includethe thistax agreementrevenues andpledged pledge to ownersthe withpayment anyof the bonds issued under this chapter.