State gen. obligation bonds

AN ACT Relating to state general obligation bonds and related 1
accounts; adding new sections to chapter 43.100A RCW; and declaring 2
an emergency. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
PART I5
2023-2025 AND 2025-2027 BIENNIAL BOND AUTHORIZATION6
NEW SECTION. Sec. 101. For the purpose of providing funds to 7
finance the projects described and authorized by the legislature in 8
the omnibus capital and operating appropriations acts for the 9
2023-2025 and 2025-2027 fiscal biennia and future biennia, and all 10
costs incidental thereto, the state finance committee is authorized 11
to issue general obligation bonds of the state of Washington in the 12
sum of $4,981,981,000, or as much thereof as may be required, to 13
finance these projects and all costs incidental thereto. Bonds 14
authorized in this section may be sold at such price as the state 15
finance committee shall determine. No bonds authorized in this 16
section may be offered for sale without prior legislative 17
appropriation of the net proceeds of the sale of the bonds.18
Z-0219.1
SENATE BILL 5194
State of Washington 69th Legislature 2025 Regular Session
By Senators Trudeau, Schoesler, Chapman, Dozier, and Nobles; by
request of Office of Financial Management
Prefiled 01/09/25. Read first time 01/13/25. Referred to Committee
on Ways & Means.
p. 1 SB 5194
NEW SECTION. Sec. 102. (1) The proceeds from the sale of bonds 1
authorized in section 101 of this act shall be deposited in the state 2
building construction account created by RCW 43.83.020. The proceeds 3
shall be transferred as follows:4
(a) $4,526,981,000 to remain in the state building construction 5
account created by RCW 43.83.020; 6
(b) $455,000,000 to the state taxable building construction 7
account. All receipts from taxable bonds issued are to be deposited 8
into the account. If the state treasurer, on behalf of the state 9
finance committee, deems it necessary or advantageous to issue more 10
than the amount specified in this subsection (1)(b) as taxable bonds 11
in order to comply with federal internal revenue service rules and 12
regulations pertaining to the use of nontaxable bond proceeds or in 13
order to reduce the total financing costs for bonds issued, the 14
proceeds of such additional taxable bonds shall be transferred to the 15
state taxable building construction account or any other taxable bond 16
accounts in lieu of any transfer otherwise provided by this section. 17
If the state treasurer, on behalf of the state finance committee, 18
determines that a portion of the amount specified in this subsection 19
(1)(b) as taxable bonds may be issued as nontaxable bonds in 20
compliance with federal internal revenue service rules and 21
regulations pertaining to the use of nontaxable bond proceeds, then 22
such bond proceeds shall be transferred to the state building 23
construction account or any other nontaxable bond accounts in lieu of 24
the transfer to the state taxable building construction account 25
otherwise provided by this subsection (1)(b). The state treasurer, on 26
behalf of the state finance committee, shall submit written notice to 27
the director of the office of financial management if it is 28
determined that any such additional transfer to the state taxable 29
building construction account or any other taxable bond accounts is 30
necessary or that a transfer from the state taxable building 31
construction account to the state building construction account or 32
any other nontaxable bond accounts may be made. Moneys in the account 33
may be spent only after appropriation. 34
(2)(a) The state treasurer shall transfer bond proceeds deposited 35
in the state building construction account into the outdoor 36
recreation account created by RCW 79A.25.060, the habitat 37
conservation account created by RCW 79A.15.020, the farm and forest 38
account created by RCW 79A.15.130, and the Ruth LeCocq Kagi early 39
learning facilities development account created by RCW 43.31.569, at 40
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various times and in various amounts necessary to support authorized 1
expenditures from those accounts. 2
(b) The state treasurer shall transfer bond proceeds deposited in 3
the state taxable building construction account into the Ruth LeCocq 4
Kagi early learning facilities revolving account created by RCW 5
43.31.569 at various times and in various amounts necessary to 6
support authorized expenditures from that account. 7
(3) These proceeds shall be used exclusively for the purposes 8
specified in section 101 of this act and for the payment of expenses 9
incurred in the issuance and sale of the bonds issued for the 10
purposes of section 101 of this act, and shall be administered by the 11
office of financial management subject to legislative appropriation.12
NEW SECTION. Sec. 103. (1) The debt-limit general fund bond 13
retirement account shall be used for the payment of the principal of 14
and interest on the bonds authorized in section 101 of this act.15
(2) The state finance committee shall, on or before June 30th of 16
each year, certify to the state treasurer the amount needed in the 17
ensuing 12 months to meet the bond retirement and interest 18
requirements on the bonds authorized in section 101 of this act.19
(3) On each date on which any interest or principal and interest 20
payment is due on bonds issued for the purposes of section 102 (1) 21
and (2) of this act the state treasurer shall withdraw from any 22
general state revenues received in the state treasury and deposit in 23
the debt-limit general fund bond retirement account an amount equal 24
to the amount certified by the state finance committee to be due on 25
the payment date. 26
NEW SECTION. Sec. 104. (1) Bonds issued under section 101 of 27
this act shall state that they are a general obligation of the state 28
of Washington, shall pledge the full faith and credit of the state to 29
the payment of the principal thereof and the interest thereon, and 30
shall contain an unconditional promise to pay the principal and 31
interest as the same shall become due.32
(2) The owner and holder of each of the bonds or the trustee for 33
the owner and holder of any of the bonds may by mandamus or other 34
appropriate proceeding require the transfer and payment of funds as 35
directed in this section. 36
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NEW SECTION. Sec. 105. The legislature may provide additional 1
means for raising moneys for the payment of the principal of and 2
interest on the bonds authorized in section 101 of this act, and 3
sections 102 and 103 of this act shall not be deemed to provide an 4
exclusive method for the payment.5
PART II6
MISCELLANEOUS7
NEW SECTION. Sec. 201. Sections 101 through 105 of this act are 8
each added to chapter 43.100A RCW.9
NEW SECTION. Sec. 202. If any provision of this act or its 10
application to any person or circumstance is held invalid, the 11
remainder of the act or the application of the provision to other 12
persons or circumstances is not affected.13
NEW SECTION. Sec. 203. This act is necessary for the immediate 14
preservation of the public peace, health, or safety, or support of 15
the state government and its existing public institutions, and takes 16
effect immediately.17
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