SB 6089 — Concerning state general obligation bonds and related accounts.

S-3906.1SUBSTITUTES-3536.1SENATE SENATE BILL 6089State of Washington65th Legislature2018 Regular SessionBy Senate Ways & Means (originally sponsored by Senators Frockt, Honeyford, Mullet, Takko, Keiser, Van De Wege, Hunt, Nelson, Dhingra, Chase, Saldaña, Rolfes, McCoy, Carlyle, Wellman, Ranker, and Kuderer)READKudererPrefiled FIRST01/05/18. TIME 01/16/18.AN ACT Relating to state general obligation bonds and related accounts;

Read first time 01/08/18.

Referred to Committee on Ways & Means.AN ACT Relating to state general obligation bonds and related accounts;

and declaring an emergency.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:PART ICAPITAL PROJECTS BONDSNEW SECTION.  Sec. 101.  For the purpose of providing funds to finance the projects described and authorized by the legislature in the omnibus capital and operating appropriations acts for the 2017-2019 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 two billion nine hundred thirtyforty-five million twoeleven hundred thirty thousand dollars, or as much thereof as may be required, to finance these projects and all costs incidental thereto.

The proceeds shall be transferred as follows:(a) Two billion seven hundred sixtwenty million onenine hundred thirty-onetwelve thousand dollars to remain in the state building construction account created by RCW 43.83.020;(b) Two hundred twenty-four million ninety-nine thousand dollars to the state taxable building construction account.

Moneys in the account may be spent only after appropriation.(c) The treasurer shall transfer bond proceeds deposited in the state building construction account into the outdoor recreation account created by RCW 79A.25.060, the habitat conservation account created by RCW 79A.15.020, the farm and forest account created by RCW 79A.15.130, and the early learning facilities development account, at various times and in various amounts necessary to support authorized expenditures from those accounts.(d) The treasurer shall transfer bond proceeds deposited in the state taxable building construction account into the early learning facilities revolving account, at various times and in various amounts necessary to support authorized expenditures from that account.(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. 103.  (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 101 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 101 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 102(1) (a) through (d) 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. 104.  (1) Bonds issued under section 101 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. 105.  The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 101 of this act, and sections 102 and 103 of this act shall not be deemed to provide an exclusive method for the payment.PART IIWATER RESTORATION AND ENHANCEMENT BONDSNEW SECTION.  Sec. 201.  For the purpose of providing funds for the watershed and fisheries restoration and enhancement program, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of threetwo hundred million dollars, or as much thereof as may be required, to finance the projects and all costs incidental thereto.

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. 202.  ItSECTION.  Sec. 202.  (1) It is the intent of the legislature that the proceeds of the new bonds authorized in section 201 of this act will be appropriated in phases over fifteenfive years,biennia, beginning with the 2017-2019 biennium.

This is not intended to limit the legislature's ability to appropriate bond proceeds if the full amount authorized in section 201 of this act has not been appropriated after fifteenfive years.biennia.

The authorization to issue bonds contained in section 201 of this act does not expire until the full authorization has been appropriated and issued.NEWissued.(2) SECTION.  Sec. 203.  TheThe proceedsbonds fromissued theunder saleauthority of the bonds authorized in section 201 of this act mustare benot deposited in theaddition watershedto: restoration and enhancement bond account.

(a) The bonds authorized under section 101 of this act;

or (b) the general obligation bonds of the state of Washington authorized between the effective date of this section and June 30, 2028.NEW SECTION.  Sec. 203.  The proceeds from the sale of the bonds authorized in section 201 of this act must be deposited in the watershed restoration and enhancement bond account.