Public works board bonds

AN ACT Relating to authorizing the public works board to issue 1
bonds for the purpose of financing public works infrastructure 2
projects; amending RCW 43.155.010, 43.155.020, 43.155.040, 3
43.155.060, and 43.155.070; adding new sections to chapter 43.155 4
RCW; and creating a new section. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 43.155.010 and 2017 3rd sp.s. c 10 s 1 are each 7
amended to read as follows: 8
The legislature finds that there exists in the state of 9
Washington over four billion dollars worth of critical projects for 10
the planning, acquisition, construction, repair, replacement, 11
rehabilitation, or improvement of streets and roads, bridges, water 12
systems, and storm and sanitary sewage systems. The December, 1983 13
Washington state public works report prepared by the planning and 14
community affairs agency documented that local governments expect to 15
be capable of financing over two billion dollars worth of the costs 16
of those critical projects but will not be able to fund nearly half 17
of the documented needs. 18
The legislature further finds that Washington's local governments 19
have unmet financial needs for solid waste disposal, including 20
H-1459.1
HOUSE BILL 2021
State of Washington 69th Legislature 2025 Regular Session
By Representatives Steele and Pollet
Read first time 02/24/25. Referred to Committee on Capital Budget.
p. 1 HB 2021
recycling, and encourages the board to make an equitable geographic 1
distribution of the funds. 2
It is the policy of the state of Washington to encourage self-3
reliance by local governments in meeting their public works needs and 4
to assist in the financing of critical public works projects by 5
((making loans, grants, financing guarantees, and technical 6
assistance available to local governments for these projects )) 7
authorizing the public works board, without using public funds or 8
lending the credit of the state or local government, to issue 9
nonrecourse revenue bonds and to participate in federal, state, and 10
local public works infrastructure programs and thereby make 11
additional funds available at affordable rates to help provide public 12
works infrastructure improvements throughout the state.13
Sec. 2. RCW 43.155.020 and 2022 c 180 s 503 are each amended to 14
read as follows: 15
The definitions in this section apply throughout this chapter 16
unless the context clearly requires otherwise. 17
(1) "Board" means the public works board created in RCW 18
43.155.030. 19
(2) "Bonds" means any bonds, notes, debentures, interim 20
certificates, conditional sales or lease financing agreements, lines 21
of credit, forward purchase agreements, investment agreements, and 22
other banking or financial arrangements, guaranties, or other 23
obligations issued by or entered into by the board. Such bonds may be 24
issued on either a tax-exempt or taxable basis.25
(3) "Capital facility plan" means a capital facility plan 26
required by the growth management act under chapter 36.70A RCW or, 27
for local governments not fully planning under the growth management 28
act, a plan required by the public works board. 29
(((3))) (4) "Code" means the federal internal revenue code of 30
1954, as now or hereafter amended, and the regulations and rulings 31
promulgated thereunder.32
(5) "Department" means the department of commerce.33
(((4))) (6) "Financing guarantees" means the pledge of money in 34
the public works assistance account, or money to be received by the 35
public works assistance account, to the repayment of all or a portion 36
of the principal of or interest on obligations issued by local 37
governments to finance public works projects. 38
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(((5))) (7) "Local governments" means cities, towns, counties, 1
special purpose districts, and any other municipal corporations or 2
quasi-municipal corporations in the state excluding school districts 3
and port districts. 4
(((6))) (8) "Public works project" means a project of a local 5
government for the planning, acquisition, construction, repair, 6
reconstruction, replacement, rehabilitation, or improvement of 7
streets and roads, bridges, water systems, or storm and sanitary 8
sewage systems, lead remediation of drinking water systems, and solid 9
waste facilities, including recycling facilities and composting and 10
other organic materials management facilities. A planning project may 11
include the compilation of biological, hydrological, or other data on 12
a county, drainage basin, or region necessary to develop a base of 13
information for a capital facility plan. 14
(((7))) (9) "Solid waste or recycling project" means remedial 15
actions necessary to bring abandoned or closed landfills into 16
compliance with regulatory requirements and the repair, restoration, 17
and replacement of existing solid waste transfer, recycling 18
facilities, and landfill projects limited to the opening of landfill 19
cells that are in existing and permitted landfills.20
(((8))) (10) "Technical assistance" means training and other 21
services provided to local governments to: (a) Help such local 22
governments plan, apply, and qualify for loans, grants, and financing 23
guarantees from the board, and (b) help local governments improve 24
their ability to plan for, finance, acquire, construct, repair, 25
replace, rehabilitate, and maintain public facilities.26
(((9))) (11) "Value planning" means a uniform approach to assist 27
in decision making through systematic evaluation of potential 28
alternatives to solving an identified problem. 29
Sec. 3. RCW 43.155.040 and 2017 3rd sp.s. c 10 s 4 are each 30
amended to read as follows: 31
The board may: 32
(1) Accept from any state or federal agency, loans or grants for 33
the planning or financing of any public works project and enter into 34
agreements with any such agency concerning the loans or grants;35
(2) Provide technical assistance to local governments;36
(3) Accept any gifts, grants, or loans of funds, property, or 37
financial or other aid in any form from any other source on any terms 38
and conditions which are not in conflict with this chapter;39
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(4) Develop a program that provides grants and additional 1
assistance to leverage federal programs, and other opportunities to 2
target deeper financial assistance to communities with economic 3
distress or projects that would result in rate increases to 4
residential utility rates that exceed a determined percentage of 5
median household income; 6
(5) Issue bonds in accordance with the authorities set forth in 7
this chapter;8
(6) Participate fully in federal and other governmental programs 9
and take such actions as are necessary and consistent with this 10
chapter to secure to itself and the people of the state the benefits 11
of those programs and to meet their requirements, including such 12
actions as the board considers appropriate in order to have the 13
interest payments on its bonds and other obligations treated as tax 14
exempt under the code;15
(7) Sue and be sued in its own name;16
(8) Make and execute contracts and all other instruments 17
necessary or convenient for the exercise of its purposes or powers;18
(9) Open and maintain accounts in qualified public depositaries 19
and otherwise provide for the investment of any funds, including 20
funds held in reserve, not required for immediate disbursement, and 21
provide for the selection of investments;22
(10) Make such expenditures as are appropriate for paying the 23
administrative costs of the board and for carrying out the provisions 24
of this chapter. These expenditures may be made only from funds 25
consisting of the board's receipts from fees and charges, grants and 26
contributions, the proceeds of bonds issued by the board, loan 27
repayments, and other revenues. Expenditures for the administrative 28
costs of the board may not be made from funds of the state of 29
Washington;30
(11) Establish such special funds, and controls on deposits to 31
and disbursements from them, as it finds convenient for the 32
implementation of this chapter;33
(12) Conduct such investigations and feasibility studies as it 34
deems appropriate;35
(13) Subject to any provisions of the board's contracts with the 36
holders of obligations of the board, consent to any modification with 37
respect to rate of interest, time, and payment of any installment of 38
principal or interest or any other term of any contract, mortgage, 39
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mortgage loan, mortgage loan commitment, contract, or agreement of 1
any kind; 2
(14) Sell, at public or private sale, with or without public 3
bidding, any mortgage, mortgage loan, or other instrument or asset 4
held by the board;5
(15) Employ, contract with, or engage engineers, architects, 6
attorneys, financial advisors, bond underwriters, mortgage lenders, 7
mortgage administrators, housing construction or financing experts, 8
other technical or professional assistants, and such other personnel 9
as are necessary. The board may delegate to the appropriate persons 10
the power to execute legal instruments on its behalf;11
(16) Adopt rules under chapter 34.05 RCW as necessary to carry 12
out the purposes of this chapter; 13
(((6))) (17) Do all acts and things necessary or convenient to 14
carry out the powers expressly granted or implied under this chapter.15
Sec. 4. RCW 43.155.060 and 2017 3rd sp.s. c 10 s 6 are each 16
amended to read as follows: 17
(1) In order to aid the financing of public works projects, the 18
board may: 19
(a) Make loans or grants to local governments from the public 20
works assistance account or other funds and accounts for the purpose 21
of assisting local governments in financing public works projects. 22
Money received from local governments in repayment of loans made 23
under this section from the public works assistance account shall be 24
paid into the public works assistance account for uses consistent 25
with this chapter. 26
(b) Pledge money in the public works assistance account, or money 27
to be received by the public works assistance account, to the 28
repayment of all or a portion of the principal of or interest on 29
obligations issued by local governments to finance public works 30
projects. The board shall not pledge any amount greater than the sum 31
of money in the public works assistance account plus money to be 32
received from the payment of the debt service on loans made from that 33
account, nor shall the board pledge the faith and credit or the 34
taxing power of the state or any agency or subdivision thereof to the 35
repayment of obligations issued by any local government.36
(c) Create such subaccounts in the public works assistance 37
account as the board deems necessary to carry out the purposes of 38
this chapter. 39
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(d) Provide a method for the allocation of loans, grants, and 1
financing guarantees and the provision of technical assistance under 2
this chapter. 3
(2) When establishing interest rates for loan programs authorized 4
in this chapter for projects which are supported by a rate base of at 5
least ((fifty thousand )) 50,000 equivalent residential units, the 6
board must base interest rates on the average daily market interest 7
rate for tax-exempt municipal bonds as published in the bond buyer's 8
index for the period from ((sixty)) 60 to ((thirty)) 30 days before 9
the start of the application cycle. 10
(a) For projects with a repayment period between five and 11
((twenty)) 20 years, the rate must be ((fifty)) 50 percent of the 12
market rate. 13
(b) For projects with a repayment period under five years, the 14
rate must be ((twenty-five)) 25 percent of the market rate.15
(c) For any year in which the average daily market interest rate 16
for tax-exempt municipal bonds for the period from ((sixty)) 60 to 17
((thirty)) 30 days before the start of an application cycle is nine 18
percent or greater, the board may cap interest rates at four percent 19
for projects with a repayment period between five and ((twenty)) 20 20
years and at two percent for projects with a repayment period under 21
five years. 22
(d) The board may also provide reduced interest rates, extended 23
repayment periods, or grants for projects that meet financial 24
hardship criteria as measured by the affordability index or similar 25
standard measure of financial hardship. The board may provide reduced 26
interest rates, extended repayment periods, or grants for projects 27
that are supported by a rate base of less than ((fifty thousand )) 28
50,000 equivalent residential units. 29
(3) All local public works projects aided in whole or in part 30
under the provisions of this chapter shall be put out for competitive 31
bids, except for emergency public works under RCW 43.155.065 for 32
which the recipient jurisdiction shall comply with this requirement 33
to the extent feasible and practicable. The competitive bids called 34
for shall be administered in the same manner as all other public 35
works projects put out for competitive bidding by the local 36
governmental entity aided under this chapter. 37
Sec. 5. RCW 43.155.070 and 2021 c 65 s 49 are each amended to 38
read as follows: 39
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(1) To qualify for financial assistance under this chapter the 1
board must determine that a local government meets all of the 2
following conditions: 3
(a) The city or county must be imposing a tax under chapter 82.46 4
RCW at a rate of at least ((one-quarter of one)) 0.25 percent;5
(b) The local government must have developed a capital facility 6
plan; and 7
(c) The local government must be using all local revenue sources 8
which are reasonably available for funding public works, taking into 9
consideration local employment and economic factors.10
(2) Except where necessary to address a public health need or 11
substantial environmental degradation, a county, city, or town 12
planning under RCW 36.70A.040 may not receive financial assistance 13
under this chapter unless it has adopted a comprehensive plan, 14
including a capital facilities plan element, and development 15
regulations as required by RCW 36.70A.040. This subsection does not 16
require any county, city, or town planning under RCW 36.70A.040 to 17
adopt a comprehensive plan or development regulations before 18
requesting or receiving financial assistance under this chapter if 19
such request is made before the expiration of the time periods 20
specified in RCW 36.70A.040. A county, city, or town planning under 21
RCW 36.70A.040 that has not adopted a comprehensive plan and 22
development regulations within the time periods specified in RCW 23
36.70A.040 may apply for and receive financial assistance under this 24
chapter if the comprehensive plan and development regulations are 25
adopted as required by RCW 36.70A.040 before executing a contractual 26
agreement for financial assistance with the board.27
(3) In considering awarding financial assistance for public 28
facilities to special districts requesting funding for a proposed 29
facility located in a county, city, or town planning under RCW 30
36.70A.040, the board must consider whether the county, city, or town 31
planning under RCW 36.70A.040 in whose planning jurisdiction the 32
proposed facility is located has adopted a comprehensive plan and 33
development regulations as required by RCW 36.70A.040.34
(4)(a) The board must develop a process to prioritize 35
applications and funding of loans and grants for public works 36
projects submitted by local governments. The board must consider, at 37
a minimum and in any order, the following factors in prioritizing 38
projects: 39
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(i) Whether the project is critical in nature and would affect 1
the health and safety of many people; 2
(ii) The extent to which the project leverages other funds;3
(iii) The extent to which the project is ready to proceed to 4
construction; 5
(iv) Whether the project is located in an area of high 6
unemployment, compared to the average state unemployment;7
(v) Whether the project promotes the sustainable use of resources 8
and environmental quality, as applicable; 9
(vi) Whether the project consolidates or regionalizes systems;10
(vii) Whether the project encourages economic development through 11
mixed-use and mixed income development consistent with chapter 36.70A 12
RCW; 13
(viii) Whether the system is being well -managed in the present 14
and for long-term sustainability; 15
(ix) Achieving equitable distribution of funds by geography and 16
population; 17
(x) The extent to which the project meets the following state 18
policy objectives: 19
(A) Efficient use of state resources; 20
(B) Preservation and enhancement of health and safety;21
(C) Abatement of pollution and protection of the environment;22
(D) Creation of new, family-wage jobs, and avoidance of shifting 23
existing jobs from one Washington state community to another;24
(E) Fostering economic development consistent with chapter 36.70A 25
RCW; 26
(F) Efficiency in delivery of goods and services and 27
transportation; and 28
(G) Reduction of the overall cost of public infrastructure;29
(xi) Whether the applicant sought or is seeking funding for the 30
project from other sources; and 31
(xii) Other criteria that the board considers necessary to 32
achieve the purposes of this chapter. 33
(b) Before September 1, 2018, and each year thereafter, the board 34
must develop and submit a report regarding the construction loans and 35
grants to the office of financial management and appropriate fiscal 36
committees of the senate and house of representatives. The report 37
must include: 38
(i) The total number of applications and amount of funding 39
requested for public works projects; 40
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(ii) A list and description of projects approved in the preceding 1
fiscal year with project scores against the board's prioritization 2
criteria; 3
(iii) The total amount of loan and grants disbursements made from 4
the public works assistance account in the preceding fiscal year;5
(iv) The total amount of loan repayments in the preceding fiscal 6
year for outstanding loans from the public works assistance account;7
(v) The total amount of loan repayments due for outstanding loans 8
for each fiscal year over the following ((ten)) 10-year period; and9
(vi) The total amount of funds obligated and timing of when the 10
funds were obligated in the preceding fiscal year.11
(c) The maximum amount of funding that the board may provide for 12
any jurisdiction is ((ten million dollars)) $10,000,000 per biennium.13
(5) Existing debt or financial obligations of local governments 14
may not be refinanced under this chapter. Each local government 15
applicant must provide documentation of attempts to secure additional 16
local or other sources of funding for each public works project for 17
which financial assistance is sought under this chapter.18
(6) Before September 1st of each year, the board must develop and 19
submit to the appropriate fiscal committees of the senate and house 20
of representatives a description of the loans and grants made under 21
RCW 43.155.065 and 43.155.068. 22
(7) ((The board may not sign contracts or otherwise financially 23
obligate funds from the public works assistance account before the 24
legislature has appropriated funds to the board for the purpose of 25
funding public works projects under this chapter.26
(8))) To qualify for loans, grants, or pledges for solid waste or 27
recycling facilities under this chapter, a city or county must 28
demonstrate that the solid waste or recycling facility is consistent 29
with and necessary to implement the comprehensive solid waste 30
management plan adopted by the city or county under chapter 70A.205 31
RCW. 32
(((9))) (8) After January 1, 2010, any project designed to 33
address the effects of stormwater or wastewater on Puget Sound may be 34
funded under this section only if the project is not in conflict with 35
the action agenda developed by the Puget Sound partnership under RCW 36
90.71.310. 37
(((10))) (9) For projects involving repair, replacement, or 38
improvement of a wastewater treatment plant or other public works 39
facility for which an investment grade efficiency audit is reasonably 40
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obtainable, the public works board must require as a contract 1
condition that the project sponsor undertake an investment grade 2
efficiency audit. The project sponsor may finance the costs of the 3
audit as part of its public works assistance account program loan or 4
grant. 5
(((11))) (10) The board must implement policies and procedures 6
designed to maximize local government consideration of other funds to 7
finance local infrastructure. 8
NEW SECTION. Sec. 6. A new section is added to chapter 43.155 9
RCW to read as follows: 10
The board does not have the power of eminent domain and the board 11
does not have the power to levy any taxes of any kind.12
NEW SECTION. Sec. 7. A new section is added to chapter 43.155 13
RCW to read as follows: 14
Notwithstanding any other provision of this chapter, the board 15
shall not: 16
(1) Give any state money or property or loan any state money or 17
credit to or in aid of any individual, association, company, or 18
corporation, or become directly or indirectly the owner of any stock 19
in or bonds of any association, company, or corporation;20
(2) Issue bills of credit or accept deposits of money for time or 21
demand deposit, administer trusts, engage in any form or manner in, 22
or in the conduct of, any private or commercial banking business, or 23
act as a savings bank or savings and loan association other than as 24
provided in this chapter; 25
(3) Be or constitute a bank or trust company within the 26
jurisdiction or under the control of the director of financial 27
institutions, the comptroller of the currency of the United States or 28
the treasury department thereof; 29
(4) Be or constitute a bank or broker or dealer in securities 30
within the meaning of, or subject to the provisions of, any 31
securities, securities exchange, or securities dealers' law of the 32
United States or Washington state; 33
(5) Engage in the financing of housing as provided for in chapter 34
43.180 RCW; 35
(6) Engage in the financing of health care facilities as provided 36
for in chapter 70.37 RCW; or 37
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(7) Engage in financing higher education facilities as provided 1
for in chapter 28B.07 RCW. 2
NEW SECTION. Sec. 8. A new section is added to chapter 43.155 3
RCW to read as follows: 4
(1) The board shall adopt a general plan of public works 5
infrastructure objectives to be implemented by the board during the 6
period of the plan. The board may exercise the powers authorized 7
under this chapter prior to the adoption of the initial plan.8
(2) The plan shall include an estimate of the amount of bonds the 9
board will issue during the term of the plan and how bond proceeds 10
will be expended. 11
(3) The plan shall be adopted by resolution of the board 12
following at least one public hearing thereon, notice of which shall 13
be made by mailing to the clerk of the governing body of each county 14
and by publication in the Washington State Register no more than 40 15
and no less than 20 days prior to the hearing. A draft of the plan 16
shall be made available not less than 30 days prior to any such 17
public hearing. At least every two years, the board shall report to 18
the legislature regarding implementation of the plan.19
(4) The board may periodically update the plan.20
(5) The board shall adopt rules designed to result in the use of 21
bond proceeds in a manner consistent with the plan. The board may 22
periodically update its rules. 23
(6) This section is designed to deal only with the use of bond 24
proceeds and nothing in this section shall be construed as a 25
limitation on the board's authority to issue bonds.26
NEW SECTION. Sec. 9. A new section is added to chapter 43.155 27
RCW to read as follows: 28
(1) The board shall adopt written policies to provide for the 29
selection of bond counsel. The policies shall provide for the 30
creation and maintenance of a roster of attorneys whom the board 31
believes possess the requisite special expertise and professional 32
standing to provide bond counsel opinions which would be accepted by 33
the underwriters, bondholders, and other members of the financial 34
community, and which would be in furtherance of the public interest 35
in obtaining the lowest possible interest rates on the bonds issued 36
by the board. Any attorney may apply to have the attorney's name 37
placed on the roster, but may not be placed on the roster unless the 38
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attorney demonstrates to the board's satisfaction that the attorney 1
would issue the kind of opinions required by this section.2
(2) Prior to selecting an attorney or attorneys to provide bond 3
counsel services, the board shall provide all attorneys on the roster 4
with a notice of its intentions to select bond counsel and shall 5
invite each of them to submit to the board the attorney's schedule 6
for providing bond counsel services. The board shall have wide 7
discretion in selecting the attorney or attorneys it considers to be 8
most appropriate to provide the services, but in the exercise of this 9
discretion the board shall consider all submitted fee schedules and 10
the public interest in achieving both savings in bond counsel fees 11
and issuance of bonds on terms most favorable to the board. At least 12
once every two calendar years, the board shall select anew an 13
attorney or attorneys to serve as bond counsel. However, the board 14
may retain an attorney for longer than two years when necessary to 15
complete work on a particular bond issue. An attorney previously 16
retained may be selected again but only after the board has provided 17
other attorneys on the roster with an opportunity to be selected and 18
has made the fee schedule review required under this subsection. In 19
addition to or as an alternative to retaining counsel for a period of 20
time, the board may appoint an attorney to serve as counsel in 21
respect to only a particular bond issue. 22
NEW SECTION. Sec. 10. A new section is added to chapter 43.155 23
RCW to read as follows: 24
(1) The board shall adopt written policies to provide for the 25
selection of underwriters. The policies shall provide for the 26
creation of a roster of underwriters whom the board believes possess 27
the requisite special expertise and professional standing to provide 28
bond marketing services which would be accepted by bondholders and 29
other members of the financial community, and which would be in 30
furtherance of the public interest in marketing the board's bonds at 31
the lowest possible costs. Any underwriter may apply to have its name 32
placed on the roster, but may not be placed on the roster unless it 33
demonstrates to the board's satisfaction that it meets the 34
requirements of this section. 35
(2) Whenever the board decides that it needs the services of an 36
underwriter, it shall provide all underwriters on the roster with a 37
notice of its intentions and shall invite each of them to submit to 38
the board an itemization of its fees and other charges for providing 39
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underwriting services on the issue. The itemization shall be by 1
categories designed by the board. The board shall have wide 2
discretion in selecting the underwriter it considers to be most 3
appropriate to provide the services, but in the exercise of this 4
discretion the board shall consider the underwriter's fees and other 5
charges and the public interest in achieving both savings in the 6
total costs of underwriting services and issuance of bonds on terms 7
most favorable to the board. 8
NEW SECTION. Sec. 11. A new section is added to chapter 43.155 9
RCW to read as follows: 10
The board shall submit the initial policies adopted under 11
sections 9 and 10 of this act to the chief clerk of the house of 12
representatives and the secretary of the senate for transmittal to 13
and review by the appropriate standing committees and the joint 14
administrative rules review committee. By January 1, 2026, the board 15
shall adopt policies in the form of rules and regulations under 16
chapter 34.05 RCW. Such rules and regulations may only be changed or 17
revised in accordance with chapter 34.05 RCW. 18
NEW SECTION. Sec. 12. A new section is added to chapter 43.155 19
RCW to read as follows: 20
(1) The board's bonds shall bear such date or dates, mature at 21
such time or times, be in such denominations, be in such form, be 22
registered or registrable in such manner, be made transferable, 23
exchangeable, and interchangeable, be payable in such medium of 24
payment, at such place or places, be subject to such terms of 25
redemption, bear such fixed or variable rate or rates of interest, be 26
payable at such time or times, and be sold in such manner and at such 27
price or prices, as the board determines. The bonds shall be executed 28
by the chair, by either its duly elected secretary or its treasurer, 29
and by the trustee or paying agent if the board determines to use a 30
trustee or paying agent for the bonds. Execution of the bonds may be 31
by manual or facsimile signature. 32
(2) The bonds of the board shall be subject to such terms, 33
conditions, covenants, and protective provisions as are found 34
necessary or desirable by the board including, but not limited to, 35
pledges of the board's assets, setting aside of reserves, limitations 36
on additional forms of indebtedness, and the mortgaging of all or any 37
part of the board's real or personal property, then owned or 38
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thereafter acquired, and other provisions the board finds are 1
necessary or desirable for the security of bondholders.2
(3) Any security interest created in the unexpended bond proceeds 3
and in the special funds created by the board shall be immediately 4
valid and binding against such moneys and any securities in which 5
such moneys may be invested without board or trustee possession 6
thereof, and the security interest shall be prior to any party having 7
any competing claim in such moneys or securities, without filing or 8
recording pursuant to chapter 62A.9A RCW and regardless of whether 9
the party has notice of the security interest. 10
(4) When issuing bonds, the board may provide for the future 11
issuance of additional bonds or parity debt on a parity with 12
outstanding bonds, and the terms and conditions of their issuance. 13
The board may refund or advance refund any bond of the board in 14
accordance with chapter 39.53 RCW or issue bonds with a subordinate 15
lien against the fund or funds securing outstanding bonds.16
(5) The chair of the state finance committee or the chair's 17
designee shall be notified in advance of the issuance of bonds by the 18
board in order to promote the orderly offering of obligations in the 19
financial markets. 20
(6) The members of the board and any person executing the bonds 21
are not liable personally on the indebtedness or subject to any 22
personal liability or accountability by reason of the issuance 23
thereof. 24
(7) The board may, out of any fund available therefor, purchase 25
its bonds in the open market. 26
NEW SECTION. Sec. 13. A new section is added to chapter 43.155 27
RCW to read as follows: 28
(1) Bonds issued under this chapter shall be issued in the name 29
of the board. The bonds shall not be obligations of the state of 30
Washington and shall be obligations only of the board payable from 31
the special fund or funds created by the board for their payment. 32
Such funds shall not be or constitute public moneys or funds of the 33
state of Washington but at all times shall be kept segregated and set 34
apart from other funds. 35
(2) Bonds issued under this chapter shall contain a recital on 36
their face to the effect that payment of the principal of, interest 37
on, and prepayment premium, if any, on the bonds, shall be a valid 38
claim only as against the special fund or funds relating thereto, 39
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that neither the faith and credit nor the taxing power of the state 1
or any municipal corporation, subdivision, or agency of the state, 2
other than the board as set forth in this chapter, is pledged to the 3
payment of the principal of, interest on, and prepayment premium, if 4
any, on the bonds. 5
(3) Contracts entered into by the board shall be entered into in 6
the name of the board and not in the name of the state of Washington. 7
The obligations of the board under the contracts shall be obligations 8
only of the board and are not in any way obligations of the state of 9
Washington. 10
NEW SECTION. Sec. 14. A new section is added to chapter 43.155 11
RCW to read as follows: 12
Bonds issued under this chapter are hereby made securities in 13
which all public officers and public bodies of the state and its 14
political subdivisions, all insurance companies, trust companies in 15
their commercial departments, savings banks, cooperative banks, 16
banking associations, investment companies, executors, trustees, and 17
other fiduciaries, and all other persons whatsoever who are now or 18
may hereafter be authorized to invest in obligations of the state may 19
properly and legally invest funds, including capital in their control 20
or belonging to them. Such bonds are hereby made securities which may 21
properly and legally be deposited with and received by any state or 22
municipal officer or any agency or political subdivisions of the 23
state for any purpose for which the deposit of bonds and other 24
obligations of the state are now or may hereafter be authorized by 25
law. 26
NEW SECTION. Sec. 15. A new section is added to chapter 43.155 27
RCW to read as follows: 28
The total amount of outstanding indebtedness of the board may not 29
exceed $4,000,000,000 at any time. The calculation of outstanding 30
indebtedness shall include the initial principal amount of an issue 31
and shall not include interest that is either currently payable or 32
that accrues as a part of the face amount of an issue payable at 33
maturity or earlier redemption. Outstanding indebtedness shall not 34
include notes or bonds as to which the obligation of the board has 35
been satisfied and discharged by refunding or for which payment has 36
been provided by reserves or otherwise. 37
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NEW SECTION. Sec. 16. A new section is added to chapter 43.155 1
RCW to read as follows: 2
Proceeds from the sale of all bonds issued under this chapter 3
received by the board shall be deposited forthwith by the board in 4
any trust company, savings bank, savings and loan association, or 5
bank having the powers of a trust company within or without the 6
state, in a special fund or funds established for the particular 7
purposes for which the bonds were issued and sold, which money shall 8
not be funds of the state of Washington. Such fund or funds shall at 9
all times be segregated and set apart from all other funds and held 10
in trust for the purposes for which such bonds were issued as 11
determined by the board. Money other than bond sale proceeds received 12
by the board for these same purposes, such as private contributions 13
or grants from the federal government, may be deposited in such fund 14
or funds. Proceeds received from the sale of the bonds may also be 15
used to defray the expenses of the board in connection with and 16
incidental to the issuance and sale of bonds, as well as expenses for 17
studies, surveys, estimates, plans, inspections, and examinations of 18
or incidental to the purposes for which the bonds were issued, and 19
other costs advanced therefor by third parties or by the board. In 20
lieu of the board receiving and handling these moneys in the manner 21
outlined in this section, the board may appoint trustees, 22
depositaries, paying agents, and other financial institutions within 23
or without the state to perform the functions outlined and to 24
receive, hold, disburse, invest, and reinvest such funds on its 25
behalf and for the protection of the bondholders. 26
NEW SECTION. Sec. 17. A new section is added to chapter 43.155 27
RCW to read as follows: 28
Any owner of bonds of the board issued under this chapter, and 29
the trustee under any trust agreement or indenture, may, either at 30
law or in equity, by suit, action, mandamus, or other proceeding, 31
protect and enforce any of their respective rights, and may become 32
the purchaser at any foreclosure sale if the person is the highest 33
bidder, except to the extent the rights given are restricted by the 34
board in any bond resolution or trust agreement or indenture 35
authorizing the issuance of the bonds. 36
NEW SECTION. Sec. 18. A new section is added to chapter 43.155 37
RCW to read as follows: 38
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For purposes of the code: 1
(1) The legislature reserves the right at any time to alter or 2
change the structure, organization, programs, or activities of the 3
board and to terminate the board, so long as the action does not 4
impair any outstanding contracts entered into by the board;5
(2) Any net earnings of the board beyond that necessary to retire 6
its bonds and to carry out the purposes of this chapter may not inure 7
to the benefit of any person other than the state; 8
(3) Upon dissolution of the board, title to all of its remaining 9
property must vest in the state; and 10
(4) The board constitutes the only public works infrastructure 11
finance agency of the state of Washington. 12
NEW SECTION. Sec. 19. If any part of this act is found to be in 13
conflict with federal requirements that are a prescribed condition to 14
the allocation of federal funds to the state, the conflicting part of 15
this act is inoperative solely to the extent of the conflict and with 16
respect to the agencies directly affected, and this finding does not 17
affect the operation of the remainder of this act in its application 18
to the agencies concerned. Rules adopted under this act must meet 19
federal requirements that are a necessary condition to the receipt of 20
federal funds by the state.21
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