Transportation funding bonds

AN ACT Relating to authorizing bonds for transportation funding; 1
amending RCW 47.10.879; adding new sections to chapter 47.10 RCW; and 2
declaring an emergency. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. In order to provide funds necessary for 5
the location, design, right-of-way, and construction of highway 6
projects or improvements, there shall be issued and sold upon the 7
request of the department of transportation a total of $7,000,000,000 8
of general obligation bonds of the state of Washington.9
NEW SECTION. Sec. 2. Upon the request of the department of 10
transportation, as appropriate, the state finance committee shall 11
supervise and provide for the issuance, sale, and retirement of the 12
bonds in this act in accordance with chapter 39.42 RCW. Bonds 13
authorized by this act shall be sold in the manner, at time or times, 14
in amounts, and at the price as the state finance committee shall 15
determine. No bonds may be offered for sale without prior legislative 16
appropriation of the net proceeds of the sale of the bonds.17
The state finance committee shall consider the issuance of short-18
term obligations in lieu of long-term obligations for the purposes of 19
more favorable interest rates, lower total interest costs, and 20
S-2371.1
SENATE BILL 5800
State of Washington 69th Legislature 2025 Regular Session
By Senators King and Liias
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increased marketability and for the purpose of retiring the bonds 1
during the life of the project for which they were issued.2
NEW SECTION. Sec. 3. The proceeds from the sale of bonds 3
authorized by section 1 of this act shall be deposited in the move 4
ahead WA account in the motor vehicle fund. The proceeds shall be 5
available only for the purposes enumerated in section 1 of this act, 6
for the payment of bond anticipation notes, if any, and for the 7
payment of bond issuance costs, including the costs of underwriting.8
NEW SECTION. Sec. 4. Bonds issued under the authority of this 9
section and sections 1 through 3, 5, and 6 of this act shall 10
distinctly state that they are a general obligation of the state of 11
Washington, shall pledge the full faith and credit of the state to 12
the payment of the principal thereof and the interest thereon, and 13
shall contain an unconditional promise to pay such principal and 14
interest as the same shall become due. The principal and interest on 15
the bonds shall be first payable in the manner provided in this 16
section and sections 1 through 3, 5, and 6 of this act from the 17
proceeds of the state excise taxes on fuel imposed by chapter 82.38 18
RCW and vehicle-related fees imposed under Title 46 RCW that 19
constitute license fees for motor vehicles required to be used for 20
highway purposes. Proceeds of these excise taxes and vehicle-related 21
fees are hereby pledged to the payment of any bonds and the interest 22
thereon issued under the authority of this section and sections 1 23
through 3, 5, and 6 of this act, and the legislature agrees to 24
continue to impose these excise taxes on fuel and vehicle-related 25
fees in amounts from such sources sufficient to pay, when due, the 26
principal and interest on all bonds issued under the authority of 27
this section and sections 1 through 3, 5, and 6 of this act.28
NEW SECTION. Sec. 5. (1) Both principal and interest on the 29
bonds issued for the purposes of this section and sections 1 through 30
4 and 6 of this act shall be payable from the highway bond retirement 31
fund. The state finance committee may provide that a special account 32
be created in the fund to facilitate payment of the principal and 33
interest. The state finance committee shall, on or before June 30th 34
of each year, certify to the state treasurer the amount required for 35
principal and interest on the bonds in accordance with the bond 36
proceedings. The state treasurer shall withdraw revenues from the 37
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move ahead WA account in the motor vehicle fund and deposit in the 1
highway bond retirement fund, or a special account in the fund, such 2
amounts, and at such times, as are required by the bond proceedings.3
(2)(a) Any funds required for bond retirement or interest on the 4
bonds authorized by this section and sections 1 through 4 and 6 of 5
this act shall be taken from that portion of the motor vehicle fund 6
that results from the imposition of excise taxes on fuel and vehicle-7
related fees, and that is distributed to the move ahead WA account in 8
the motor vehicle fund. 9
(b) Funds required shall never constitute a charge against any 10
other allocations of fuel tax and vehicle-related fee revenues to the 11
state, counties, cities, and towns unless the amount arising from 12
excise taxes on fuel and vehicle-related fees distributed to the move 13
ahead WA account described in (a) of this subsection proves 14
insufficient to meet the requirements for bond retirement or interest 15
on any such bonds. 16
(c) Any payments for bond retirement or interest on the bonds 17
taken from other revenues from the fuel taxes and vehicle-related 18
fees that are distributable to the state, counties, cities, and towns 19
shall be repaid from the first revenues from the fuel taxes and 20
vehicle-related fees distributed to the move ahead WA account 21
described in (a) of this subsection not required for bond retirement 22
or interest on the bonds. 23
NEW SECTION. Sec. 6. Bonds issued under the authority of this 24
section and sections 1 through 5 of this act and any other general 25
obligation bonds of the state of Washington that have been or that 26
may be authorized and that pledge fuel excise taxes and vehicle-27
related fees for the payment of principal and interest thereon shall 28
be an equal charge against the revenues from such fuel excise taxes 29
and vehicle-related fees.30
NEW SECTION. Sec. 7. For purposes of sections 1 through 6 of 31
this act, "vehicle-related fees" means vehicle-related fees imposed 32
under Title 46 RCW that constitute license fees for motor vehicles 33
required to be used for highway purposes.34
Sec. 8. RCW 47.10.879 and 2009 c 498 s 8 are each amended to 35
read as follows: 36
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In order to provide funds necessary for the location, design, 1
right-of-way, and construction of the state route number 520 corridor 2
projects, as allowed in section 2, chapter 472, Laws of 2009, there 3
shall be issued and sold upon the request of the department of 4
transportation a total of ((one billion nine hundred fifty million 5
dollars)) $2,450,000,000 of general obligation bonds of the state of 6
Washington first payable from toll revenue and excise taxes on motor 7
vehicle and special fuels in accordance with RCW 47.10.883.8
NEW SECTION. Sec. 9. Sections 1 through 7 of this act are each 9
added to chapter 47.10 RCW.10
NEW SECTION. Sec. 10. This act is necessary for the immediate 11
preservation of the public peace, health, or safety, or support of 12
the state government and its existing public institutions, and takes 13
effect immediately.14
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