Fish habitat restoration

AN ACT Relating to fish habitat restoration; amending RCW 1
82.16.020, 82.18.040, and 82.45.230; reenacting and amending RCW 2
43.155.050; adding a new section to chapter 82.16 RCW; adding a new 3
chapter to Title 77 RCW; creating a new section; and providing a 4
contingent expiration date. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. The legislature finds that habitat loss, 7
both in quantity and quality, has been identified as one of the 8
greatest risks to survival for salmon and steelhead populations. 9
Hydropower dams and unpassable road culverts block large areas of 10
former salmon habitat. Restoration of habitat is essential for the 11
recovery of salmon and steelhead populations across the west coast 12
and an obligation of the state under the federal injunction issued in 13
United States v. Washington.14
The federal court found that the state has a treaty-based duty to 15
refrain from building or operating culverts under state-maintained 16
roads that hinder salmon passage. The cost of reparations is 17
estimated to exceed $5,000,000,000, which cannot be absorbed in 18
current budgets. 19
The legislature acknowledges both a moral and legal obligation to 20
address salmon habitat and therefore intends to invoke an exceptional 21
S-2385.2
SENATE BILL 5804
State of Washington 69th Legislature 2025 Regular Session
By Senators Trudeau, Kauffman, Schoesler, Chapman, Dozier, Liias, and
Pedersen
Read first time 03/29/25. Referred to Committee on Ways & Means.
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remedy to create special tax obligation bonds funded by a tax on 1
light and power utility projects. The tax is dedicated to improving 2
salmon and steelhead recovery and habitat restoration by addressing 3
projects identified in response to the federal injunction. While the 4
new tax is created to evidence the legislature's commitment to 5
dedicate these funds for the duration of bond repayment, the tax is 6
structured to ensure it will result in no additional obligation to 7
the taxpayer. 8
Sec. 2. RCW 82.16.020 and 2017 3rd sp.s. c 10 s 14 are each 9
amended to read as follows: 10
(1) There is levied and collected from every person a tax for the 11
act or privilege of engaging within this state in any one or more of 12
the businesses herein mentioned. The tax is equal to the gross income 13
of the business, multiplied by the rate set out after the business, 14
as follows: 15
(a) Express, sewerage collection, and telegraph businesses: Three 16
and six-tenths percent; 17
(b) Light and power business: ((Three and sixty-two one-18
hundredths)) 1.741 percent; 19
(c) Gas distribution business: Three and six-tenths percent;20
(d) Urban transportation business: Six-tenths of one percent;21
(e) Vessels under sixty-five feet in length, except tugboats, 22
operating upon the waters within the state: Six-tenths of one 23
percent; 24
(f) Motor transportation, railroad, railroad car, and tugboat 25
businesses, and all public service businesses other than ones 26
mentioned above: One and eight-tenths of one percent;27
(g) Water distribution business: Four and seven-tenths percent;28
(h) Log transportation business: One and twenty-eight one- 29
hundredths percent. The reduced rate established in this subsection 30
(1)(h) is not subject to the ten-year expiration provision in RCW 31
82.32.805(1)(a). 32
(2) An additional tax is imposed equal to the rate specified in 33
RCW 82.02.030 multiplied by the tax payable under subsection (1) of 34
this section. 35
(((3) Twenty percent of the moneys collected under subsection (1) 36
of this section on water distribution businesses and sixty percent of 37
the moneys collected under subsection (1) of this section on sewerage 38
collection businesses must be deposited in the education legacy trust 39
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account created in RCW 83.100.230 from July 1, 2013, through June 30, 1
2023, and thereafter in the public works assistance account created 2
in RCW 43.155.050.))3
NEW SECTION. Sec. 3. A new section is added to chapter 82.16 4
RCW to read as follows: 5
(1) There is levied and collected from every person engaging 6
within this state in any light and power business, a tax in the 7
amount of 2.011 percent, multiplied by the gross income of the 8
business. 9
(2) The moneys collected from the tax pursuant to this section 10
must be deposited in the federal injunction salmon habitat 11
restoration account created in section 7 of this act and must be used 12
exclusively for the purposes of mitigating the impact of fish passage 13
barriers and improving salmon and steelhead recovery and habitat 14
restoration as provided in section 11(2) of this act.15
Sec. 4. RCW 82.18.040 and 2017 3rd sp.s. c 10 s 15 are each 16
amended to read as follows: 17
(1) Taxes collected under this chapter must be held in trust 18
until paid to the state. Except as otherwise provided in this 19
subsection (1), taxes received by the state must be deposited in the 20
((public works assistance account created in RCW 43.155.050. For the 21
period beginning July 1, 2011, and ending June 30, 2015, taxes 22
received by the state under this chapter must be deposited in the )) 23
general fund for general purpose expenditures. ((For fiscal years 24
2016, 2017, and 2018, one-half of the taxes received by the state 25
under this chapter must be deposited in the general fund for general 26
purpose expenditures and the remainder deposited in the education 27
legacy trust account created in RCW 83.100.230. For fiscal years 2019 28
through 2023, taxes received by the state under this chapter must be 29
deposited in the education legacy trust account created in RCW 30
83.100.230.)) Any person collecting the tax who appropriates or 31
converts the tax collected is guilty of a gross misdemeanor if the 32
money required to be collected is not available for payment on the 33
date payment is due. If a taxpayer fails to pay the tax imposed by 34
this chapter to the person charged with collection of the tax and the 35
person charged with collection fails to pay the tax to the 36
department, the department may, in its discretion, proceed directly 37
against the taxpayer for collection of the tax. 38
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(2) The tax is due from the taxpayer within twenty-five days from 1
the date the taxpayer is billed by the person collecting the tax.2
(3) The tax is due from the person collecting the tax at the end 3
of the tax period in which the tax is received from the taxpayer. If 4
the taxpayer remits only a portion of the total amount billed for 5
taxes, consideration, and related charges, the amount remitted must 6
be applied first to payment of the solid waste collection tax and 7
this tax has priority over all other claims to the amount remitted.8
Sec. 5. RCW 82.45.230 and 2019 c 424 s 2 are each amended to 9
read as follows: 10
(((1) Beginning January 1, 2020, and ending June 30, 2023, the 11
amounts received for the tax imposed on each sale of real property 12
under RCW 82.45.060 must be deposited as follows:13
(a) 1.7 percent must be deposited into the public works 14
assistance account created in RCW 43.155.050;15
(b) 1.4 percent must be deposited into the city-county assistance 16
account created in RCW 43.08.290;17
(c) 79.4 percent must be deposited into the general fund; and18
(d) The remainder must be deposited into the educational legacy 19
trust account created in RCW 83.100.230.20
(2) Beginning July 1, 2023, and thereafter, the )) The amounts 21
received for the tax imposed on each sale of real property under RCW 22
82.45.060 must be deposited as follows: 23
(((a) 5.2 percent must be deposited into the public works 24
assistance account created in RCW 43.155.050;25
(b))) (1) 1.4 percent must be deposited into the city-county 26
assistance account created in RCW 43.08.290; 27
(((c) 79.4)) (2) 84.6 percent must be deposited into the general 28
fund; and 29
(((d))) (3) The remainder must be deposited into the education 30
legacy trust account created in RCW 83.100.230. 31
Sec. 6. RCW 43.155.050 and 2023 c 475 s 932 and 2023 c 474 s 32
8037 are each reenacted and amended to read as follows:33
(((1))) The public works assistance account is hereby established 34
in the state treasury. Money may be placed in the public works 35
assistance account from the proceeds of bonds when authorized by the 36
legislature or from any other lawful source. Money in the public 37
works assistance account shall be used to make loans and grants and 38
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to give financial guarantees to local governments for public works 1
projects. Moneys in the account may also be appropriated or 2
transferred to the water pollution control revolving fund and the 3
drinking water assistance account to provide for state match 4
requirements under federal law. ((Moneys in the account may be 5
transferred to the move ahead WA account to provide support of public 6
works projects funded in the move ahead WA program. )) Not more than 7
20 percent of the biennial capital budget appropriation to the public 8
works board from this account may be expended or obligated for 9
preconstruction loans and grants, emergency loans and grants, or 10
loans and grants for capital facility planning under this chapter. 11
Not more than 10 percent of the biennial capital budget appropriation 12
to the public works board from this account may be expended or 13
obligated as grants for preconstruction, emergency, capital facility 14
planning, and construction projects. ((During the 2017-2019 and 15
2019-2021 fiscal biennia, the legislature may appropriate moneys from 16
the account for activities related to rural economic development, the 17
growth management act, the aviation revitalization loan program, the 18
community economic revitalization board broadband program, and the 19
voluntary stewardship program. )) During the ((2021-2023 and )) 20
2023-2025 and 2025-2027 fiscal biennia, the legislature may 21
appropriate moneys from the account for activities related to the 22
community aviation revitalization board. ((During the 2019-2021 23
fiscal biennia, the legislature may direct the state treasurer to 24
make transfers of moneys in the public works assistance account to 25
the education legacy trust account. During the 2019-2021 and 26
2021-2023 fiscal biennia, the legislature may direct the state 27
treasurer to make transfers of moneys in the public works assistance 28
account to the statewide broadband account. )) The legislature may 29
appropriate moneys from the public works assistance account for 30
activities related to the voluntary stewardship program, rural 31
economic development, and the growth management act. ((During the 32
2021-2023 biennium, the legislature may appropriate moneys from the 33
account for projects identified in section 1033, chapter 296, Laws of 34
2022.)) During the 2023-2025 fiscal biennium, the legislature may 35
appropriate moneys from the public works assistance account for an 36
evaluation of the costs of relocating public utilities related to 37
fish barrier removal projects. During the 2023-2025 fiscal biennium, 38
the legislature may appropriate moneys from the account for 39
activities related to developing a data dashboard to map investments 40
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made by the public works board, the department of commerce, the 1
department of health, the department of ecology, the department of 2
transportation, the transportation improvement board, and by board 3
partners to the system improvement team created in RCW 43.155.150.4
(((2) For fiscal year 2024 through fiscal year 2038, the state 5
treasurer must transfer from the public works assistance account to 6
the move ahead WA account created in RCW 46.68.510 $57,000,000 each 7
fiscal year in four equal quarterly transfers.))8
NEW SECTION. Sec. 7. (1) The federal injunction salmon habitat 9
restoration account is created in the state treasury. Moneys in the 10
account may be spent only after appropriation.11
(2) Moneys in the account must first be used for the payment of 12
principal and interest on bonds authorized in section 8 of this act.13
(3) The state finance committee shall, on or before June 30th of 14
each year, certify to the state treasurer the amount needed in the 15
ensuing 12 months to meet the bond retirement and interest 16
requirements on the bonds authorized in section 8 of this act.17
(4) On July 1st of each year, the state treasurer shall transfer 18
from the federal injunction salmon habitat restoration account to the 19
federal injunction salmon habitat bond retirement account created in 20
section 12 of this act an amount equal to the amount certified by the 21
state finance committee in this section. 22
NEW SECTION. Sec. 8. (1) The state finance committee may issue 23
special tax obligation bonds of the state of Washington in amounts 24
not to exceed the sum of $5,000,000,000, or as much thereof as may be 25
necessary, payable from receipts from the federal injunction salmon 26
habitat tax established in section 3 of this act and deposited into 27
the federal injunction salmon habitat restoration account created in 28
section 7 of this act to finance projects as described in section 29
11(2) of this act, and all costs incidental thereto. Proceeds from 30
the sale of bonds must be deposited in the federal injunction salmon 31
habitat account created in section 11 of this act.32
(2) Bonds authorized in this section may be sold at such price as 33
the state finance committee determines. Bonds authorized in this 34
section may not be offered for sale without prior legislative 35
appropriation of the net proceeds of the sale of the bonds.36
(3) The state finance committee may determine and include in any 37
resolution authorizing the issuance of any bonds authorized by this 38
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chapter such terms, provisions, covenants, and conditions as it may 1
deem appropriate in order to assist with the marketing and sale of 2
the bonds, confer rights upon the owners of bonds, and safeguard 3
rights of the owners of bonds, including: 4
(a) Provisions that the bonds are payable solely from and secured 5
solely by revenues from the tax created in section 3 of this act and 6
received in the federal injunction salmon habitat restoration account 7
created in section 7 of this act; 8
(b) The conditions that must be satisfied before the issuance of 9
any additional bonds that are to be payable from and secured by the 10
federal injunction salmon habitat restoration account created in 11
section 7 of this act on an equal basis with previously issued and 12
outstanding bonds payable from the federal injunction salmon habitat 13
restoration account created in section 7 of this act;14
(c) Provisions regarding reserves and credit enhancements; and15
(d) Whether bonds may be issued as tax-exempt bonds or must be 16
issued as taxable bonds under the applicable provisions of the 17
federal internal revenue code. 18
NEW SECTION. Sec. 9. (1) The special tax obligation bonds 19
authorized by this chapter may be issued for a period not to exceed 20
15 years. The authorization to issue bonds provided under section 8 21
of this act does not expire until the full authorization has been 22
issued and dispersed, or until the end of the 15-year period, 23
whichever occurs first. The state finance committee may decrease the 24
period of issuance based on updated forecasts and fiscal needs, but 25
any increase in the period of issuance beyond the 15-year period 26
authorized under this section requires the approval of the 27
legislature.28
(2) On a quarterly basis, and in compliance with RCW 43.01.036, 29
the state treasurer may submit a report to the legislature that 30
provides recommendations on the level of issuances over the 15-year 31
period based on updated revenue forecasts, market factors, and fiscal 32
needs. Bond issuance must be structured such that no debt service 33
obligations remain past December 31, 2075. 34
NEW SECTION. Sec. 10. Bonds authorized under this chapter are 35
not a general obligation of the state and the full faith, credit, and 36
taxing powers of the state are not pledged for their payment. Each 37
bond issued under the authority of this chapter must distinctly state 38
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that payment or redemption of the bond and payment of the interest 1
and any premium thereon is payable solely from and secured solely by 2
a pledge of the revenues of the tax created in section 3 of this act 3
and received in the federal injunction salmon habitat restoration 4
account created in section 7 of this act, and is not a general 5
obligation of the state. The legislature pledges to appropriate the 6
tax revenues pledged to the payment of the bonds issued under this 7
chapter. The state finance committee shall include this pledge and 8
agreement of the state to owners of any bonds issued under this 9
chapter. The owner of any bond or the trustee of the owner of any of 10
the bonds may by mandamus or other appropriate proceeding require the 11
transfer and payment of pledged funds as directed in this section.12
NEW SECTION. Sec. 11. (1) The federal injunction salmon habitat 13
account is created in the state treasury. Proceeds from the sale of 14
bonds authorized in section 8 of this act must be deposited in the 15
account. Moneys in the account may be spent only after appropriations 16
and only for projects as described in subsection (2) of this section 17
and for the payment of expenses incurred in the issuance and sale of 18
the bonds. If the state finance committee deems it necessary to issue 19
the bonds authorized in section 8 of this act as taxable bonds in 20
order to comply with federal internal revenue service regulations 21
pertaining to the use of nontaxable bond proceeds, the proceeds of 22
such taxable bonds must be deposited into the account. The state 23
treasurer shall submit written notice to the director of financial 24
management if it is determined that any such transfer to the account 25
is necessary.26
(2) Proceeds from the federal injunction salmon habitat account 27
must be used solely for fish habitat restoration projects identified 28
in response to the federal court injunction issued under United 29
States v. Washington to improve salmon and steelhead habitat 30
restoration and mitigate the impact of fish passage barriers.31
(3) Each biennium, the legislature shall appropriate funds from 32
the account for priority projects to be funded in the next biennium.33
NEW SECTION. Sec. 12. The federal injunction salmon habitat 34
bond retirement account is created in the state treasury. Moneys in 35
the account must be used only for the payment of principal and 36
interest on bonds authorized in section 8 of this act. The state 37
finance committee may provide that special subaccounts be created in 38
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the account to facilitate payment of the principal and interest on 1
the bonds. The state finance committee shall, on or before June 30th 2
of each year, certify to the state treasurer the amount needed in the 3
ensuing 12 months to meet the bond retirement and interest 4
requirements on the bonds authorized in section 8 of this act.5
NEW SECTION. Sec. 13. The state finance committee may issue 6
bonds to refund outstanding bonds issued under this chapter, 7
including the payment of any redemption premiums on the bonds and any 8
interest accrued to or to accrue to the first redemption date after 9
delivery of the refunding bonds. The proceeds of the refunding bonds 10
may, at the discretion of the committee, be applied to the purchases 11
or payment at maturity of the bonds to be refunded, or the redemption 12
of the outstanding bonds on the first redemption date after delivery 13
of the refunding bonds and may, until so used, be placed in escrow to 14
be applied to the purchase, retirement, or redemption. Refunding 15
bonds issued under this section must be issued and secured in the 16
manner provided by the state finance committee.17
NEW SECTION. Sec. 14. If the Washington state supreme court 18
finds the state finance committee may not issue special tax 19
obligations as provided in section 8 of this act:20
(1) Sections 8 through 10, 12, and 13 of this act expire on the 21
date of the Washington state supreme court's decision. The office of 22
the state treasurer shall provide notice to the office of the code 23
reviser of the Washington state supreme court's decision; and24
(2) The legislature may transfer available moneys into the 25
federal injunction salmon habitat account and make appropriations for 26
the purposes provided in section 11(2) of this act.27
NEW SECTION. Sec. 15. Sections 7 through 14 of this act 28
constitute a new chapter in Title 77 RCW.29
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