Interstate bridge toll bonds

AN ACT Relating to the interstate bridge replacement toll bond 1
authority; amending RCW 47.10.905, 47.10.906, and 47.10.907; and 2
adding new sections to chapter 47.10 RCW. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. (1) In order to provide funds necessary 5
for the design, right-of-way, and construction of the Interstate 5 6
bridge replacement project as allowed in RCW 47.56.902 and 47.56.904, 7
there shall be issued and sold upon the request of the department up 8
to $1,600,000,000 of general obligation bonds of the state of 9
Washington first payable from toll revenue and excise taxes on fuel 10
and vehicle-related fees in accordance with section 4 of this act.11
(2) For purposes of this act, "vehicle-related fees" means 12
vehicle-related fees imposed under Title 46 RCW that constitute 13
license fees for motor vehicles to be used for highway purposes.14
NEW SECTION. Sec. 2. Upon the request of the department, the 15
state finance committee shall supervise and provide for the issuance, 16
sale, and retirement of bonds authorized by this act in accordance 17
with chapter 39.42 RCW. Bonds authorized by this act shall be sold in 18
the manner, at time or times, in amounts, and at the price as the 19
state finance committee shall determine. No bonds may be offered for 20
Z-0056.2
SENATE BILL 5734
State of Washington 69th Legislature 2025 Regular Session
By Senators Liias, Harris, Cleveland, Cortes, and King; by request of
Department of Transportation
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sale without prior legislative appropriation of the net proceeds of 1
the sale of the bonds. 2
NEW SECTION. Sec. 3. (1) The proceeds from the sale of bonds 3
authorized in section 1 (1) of this act must be deposited in the 4
Interstate 5 bridge replacement project account created in RCW 5
47.56.904.6
(2) The bond proceeds must be available only for the purposes 7
enumerated in section 1 of this act, for payment of bond anticipation 8
notes or other interim financing, if any, capitalizing interest on 9
the bonds, funding a debt service reserve fund, if any, and for the 10
payment of bond issuance costs, including the costs of underwriting.11
NEW SECTION. Sec. 4. Bonds issued under the authority of this 12
section and sections 1, 6, and 7 of this act must distinctly state 13
that they are a general obligation of the state of Washington, must 14
pledge the full faith and credit of the state to the payment of the 15
principal thereof and the interest thereon, and must contain an 16
unconditional promise to pay such principal and interest as the same 17
becomes due. The principal of and interest on the bonds must be first 18
payable in the manner provided in this section and sections 1, 6, and 19
7 of this act from toll revenue and then from proceeds of excise 20
taxes on fuel and vehicle-related fees to the extent toll revenue is 21
not available for that purpose. Toll revenue and the state excise 22
taxes on fuel imposed by chapter 82.38 RCW and vehicle-related fees 23
are hereby pledged to the payment of any bonds and the interest 24
thereon issued under the authority of this section and sections 1, 6, 25
and 7 of this act, and the legislature agrees to continue to impose 26
these toll charges on the Interstate 5 bridge replacement project, 27
and on any other eligible toll facility designated by the legislature 28
and on which the imposition of tolls is authorized by the legislature 29
in respect of the bonds, and excise taxes on fuel and vehicle-related 30
fees in amounts sufficient to pay, when due, the principal and 31
interest on all bonds issued under the authority of this section and 32
sections 1, 6, and 7 of this act.33
NEW SECTION. Sec. 5. (1) If and to the extent that the state 34
finance committee determines, in consultation with the department and 35
the tolling authority, that it will be beneficial for the state to 36
issue any bonds authorized in sections 1, 4, 6, and 7 of this act as 37
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toll revenue bonds rather than as general obligation bonds, the state 1
finance committee is authorized to issue and sell, upon the request 2
of the department, such bonds as toll revenue bonds and not as 3
general obligation bonds. Notwithstanding section 4 of this act, each 4
such bond must contain a recital that payment or redemption of the 5
bond and payment of the interest and any premium thereon is payable 6
solely from and secured solely by a direct pledge, charge, and lien 7
upon toll revenue and is not a general obligation of the state to 8
which the full faith and credit of the state is pledged.9
(2) Toll revenue is hereby pledged to the payment of any bonds 10
and the interest thereon issued under the authority of this section, 11
and the legislature agrees to continue to impose these toll charges 12
on the Interstate 5 bridge replacement project, and on any other 13
eligible toll facility designated by the legislature and on which the 14
imposition of tolls is authorized by the legislature in respect of 15
the bonds, in amounts sufficient to pay, when due, the principal and 16
interest on all bonds issued under the authority of this section.17
NEW SECTION. Sec. 6. (1) For bonds issued under the authority 18
of this section and sections 1, 4, and 7 of this act, the state 19
treasurer shall first withdraw toll revenue from the appropriate toll 20
account for the facility for which the bonds are issued and sold, 21
and, to the extent toll revenue is not available, excise taxes on 22
fuel and vehicle-related fees and deposit in the toll facility bond 23
retirement account, or a special subaccount in the account, such 24
amounts, and at such times, as are required by the bond proceedings.25
(2) Any excise taxes on fuel and vehicle-related fees required 26
for bond retirement or interest on the bonds authorized by this 27
section and sections 1, 4, and 7 of this act must be taken from that 28
portion of the motor vehicle fund that results from the imposition of 29
excise taxes on fuel and vehicle-related fees and which is, or may 30
be, appropriated to the department for state highway purposes. Funds 31
required must never constitute a charge against any other allocations 32
of fuel tax and vehicle-related fee revenues to the state, counties, 33
cities, and towns unless the amount arising from excise taxes on fuel 34
and vehicle-related fees distributed to the state in the motor 35
vehicle fund proves insufficient to meet the requirements for bond 36
retirement or interest on any such bonds. 37
(3) Any payments for bond retirement or interest on the bonds 38
taken from other revenues from the fuel taxes and vehicle-related 39
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fees that are distributable to the state, counties, cities, and towns 1
must be repaid from available toll revenue in the manner provided in 2
the bond proceedings or, if toll revenue is not available for that 3
purpose, from the first revenues from the excise taxes on fuel and 4
vehicle-related fees distributed to the motor vehicle fund not 5
required for bond retirement or interest on the bonds. Any excise 6
taxes on fuel and vehicle-related fees required for bond retirement 7
or interest on the bonds authorized by this section and sections 1, 8
4, and 7 of this act must be reimbursed to the motor vehicle fund 9
from toll revenue in the manner and with the priority specified in 10
the bond proceedings. 11
NEW SECTION. Sec. 7. Bonds issued under the authority of 12
sections 1, 4, and 6 of this act and this section and any other 13
general obligation bonds of the state of Washington that have been or 14
that may be authorized and that pledge excise taxes on fuel and 15
vehicle-related fees for the payment of principal and interest 16
thereon must be an equal charge against the revenues from such excise 17
taxes on fuel and vehicle-related fees.18
Sec. 8. RCW 47.10.905 and 2019 c 421 s 8 are each amended to 19
read as follows: 20
The toll facility bond retirement account is created in the state 21
treasury for the purpose of payment of the principal of and interest 22
and premium on bonds. Both principal of and interest on the bonds 23
issued for the purposes of chapter 498, Laws of 2009, chapter 377, 24
Laws of 2011, ((and)) chapter 421, Laws of 2019 , and chapter . . ., 25
Laws of 2025 (this act) shall be payable from the toll facility bond 26
retirement account. The state finance committee may provide that 27
special subaccounts be created in the account to facilitate payment 28
of the principal of and interest on the bonds. The state finance 29
committee shall, on or before June 30th of each year, certify to the 30
state treasurer the amount required for principal and interest on the 31
bonds in accordance with the bond proceedings. 32
Sec. 9. RCW 47.10.906 and 2019 c 421 s 9 are each amended to 33
read as follows: 34
The state finance committee may determine and include in any 35
resolution authorizing the issuance of any bonds under chapter 498, 36
Laws of 2009, chapter 377, Laws of 2011, ((and)) chapter 421, Laws of 37
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2019, and chapter . . ., Laws of 2025 (this act), such terms, 1
provisions, covenants, and conditions as it may deem appropriate in 2
order to assist with the marketing and sale of the bonds, confer 3
rights upon the owners of bonds, and safeguard rights of the owners 4
of bonds including, among other things: 5
(1) Provisions regarding the maintenance and operation of 6
eligible toll facilities; 7
(2) The pledges, uses, and priorities of application of toll 8
revenue; 9
(3) Provisions that bonds shall be payable from and secured 10
solely by toll revenue as provided by RCW 47.10.886 and section 5 of 11
this act, or shall be payable from and secured by both toll revenue 12
and by a pledge of excise taxes on motor vehicle and special fuels 13
and the full faith and credit of the state as provided in RCW 14
47.10.879 and 47.10.883 through 47.10.885; 15
(4) Provisions that bonds shall be payable from and secured by 16
both toll revenue and by a pledge of excise taxes on fuel and 17
vehicle-related fees and the full faith and credit of the state as 18
provided in RCW 47.10.896 and 47.10.899 through 47.10.901 and 19
sections 1, 4, 6, and 7 of this act; 20
(5) In consultation with the department of transportation and the 21
tolling authority, financial covenants requiring that the eligible 22
toll facilities must produce specified coverage ratios of toll 23
revenue to debt service on bonds; 24
(6) The purposes and conditions that must be satisfied prior to 25
the issuance of any additional bonds that are to be payable from and 26
secured by any toll revenue on an equal basis with previously issued 27
and outstanding bonds payable from and secured by toll revenue;28
(7) Provisions that bonds for which any toll revenue are pledged, 29
or for which a pledge of any toll revenue may be reserved, may be 30
structured on a senior, parity, subordinate, or special lien basis in 31
relation to any other bonds for which toll revenue is pledged, with 32
respect to toll revenue only; and 33
(8) Provisions regarding reserves, credit enhancement, liquidity 34
facilities, and payment agreements with respect to bonds.35
Notwithstanding the foregoing, covenants and conditions detailing 36
the character of management, maintenance, and operation of eligible 37
toll facilities, insurance for eligible toll facilities, financial 38
management of toll revenue, and disposition of eligible toll 39
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facilities must first be approved by the department of 1
transportation. 2
The owner of any bond may by mandamus or other appropriate 3
proceeding require and compel performance of any duties imposed upon 4
the tolling authority and the department of transportation and their 5
respective officials, including any duties imposed upon or undertaken 6
by them or by their respective officers, agents, and employees, in 7
connection with the construction, maintenance, and operation of 8
eligible toll facilities and in connection with the collection, 9
deposit, investment, application, and disbursement of the proceeds of 10
the bonds and toll revenue. 11
Sec. 10. RCW 47.10.907 and 2019 c 421 s 10 are each amended to 12
read as follows: 13
(1) For the purposes of chapter 498, Laws of 2009, chapter 377, 14
Laws of 2011, ((and)) chapter 421, Laws of 2019, and chapter . . ., 15
Laws of 2025 (this act), "toll revenue" means all toll receipts, all 16
interest income derived from the investment of toll receipts, and any 17
gifts, grants, or other funds received for the benefit of 18
transportation facilities in the state, including eligible toll 19
facilities. However, for the purpose of any pledge of toll revenue to 20
the payment of particular bonds issued under chapter 498, Laws of 21
2009, chapter 377, Laws of 2011, ((and)) chapter 421, Laws of 2019, 22
and chapter . . ., Laws of 2025 (this act), "toll revenue" means and 23
includes only such toll revenue or portion thereof that is pledged to 24
the payment of those bonds in the resolution authorizing the issuance 25
of such bonds. Toll revenue constitutes "fees and revenues derived 26
from the ownership or operation of any undertaking, facility, or 27
project" as that phrase is used in Article VIII, section 1 (c)(1) of 28
the state Constitution. 29
(2) For the purposes of chapter 498, Laws of 2009, chapter 377, 30
Laws of 2011, ((and)) chapter 421, Laws of 2019, and chapter . . ., 31
Laws of 2025 (this act), "tolling authority" has the same meaning as 32
in RCW 47.56.810. 33
NEW SECTION. Sec. 11. Sections 1 through 7 of this act are each 34
added to chapter 47.10 RCW.35
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