RTA bond issues maximum term

AN ACT Relating to modifying the maximum terms of regional 1
transit authority bond issues; and amending RCW 81.112.130 and 2
81.112.140. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 81.112.130 and 1992 c 101 s 13 are each amended to 5
read as follows: 6
Notwithstanding RCW 39.36.020(1), an authority may at any time 7
contract indebtedness or borrow money for authority purposes and may 8
issue general obligation bonds in an amount not exceeding, together 9
with any existing indebtedness of the authority not authorized by the 10
voters, one and one-half percent of the value of the taxable property 11
within the boundaries of the authority; and with the assent of three-12
fifths of the voters therein voting at an election called for that 13
purpose, may contract indebtedness or borrow money for authority 14
purposes and may issue general obligation bonds therefor, provided 15
the total indebtedness of the authority shall not exceed five percent 16
of the value of the taxable property therein. Such bonds shall be 17
issued and sold in accordance with chapter 39.46 RCW, except that the 18
maximum term of any general obligation bond issue shall be 75 years. 19
However, if an authority issues any general obligation bonds with a 20
S-3457.1
SENATE BILL 6148
State of Washington 69th Legislature 2026 Regular Session
By Senators Liias and King
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maximum term greater than 40 years, the authority is not eligible for 1
regional mobility grant program funds. 2
The term "value of the taxable property" shall have the meaning 3
set forth in RCW 39.36.015. 4
Sec. 2. RCW 81.112.140 and 1992 c 101 s 14 are each amended to 5
read as follows: 6
(1) An authority may issue revenue bonds to provide funds to 7
carry out its authorized functions without submitting the matter to 8
the voters of the authority. The authority shall create a special 9
fund or funds for the sole purpose of paying the principal of and 10
interest on the bonds of each such issue, into which fund or funds 11
the authority may obligate itself to pay such amounts of the gross 12
revenue of the high capacity transportation system constructed, 13
acquired, improved, added to, or repaired out of the proceeds of sale 14
of such bonds, as the authority shall determine and may obligate the 15
authority to pay such amounts out of otherwise unpledged revenue that 16
may be derived from the ownership, use, or operation of properties or 17
facilities owned, used, or operated incident to the performance of 18
the authorized function for which such bonds are issued or out of 19
otherwise unpledged fees, tolls, charges, tariffs, fares, rentals, 20
special taxes, or other sources of payment lawfully authorized for 21
such purpose, as the authority shall determine. The principal of, and 22
interest on, such bonds shall be payable only out of such special 23
fund or funds, and the owners of such bonds shall have a lien and 24
charge against the gross revenue of such high capacity transportation 25
system or any other revenue, fees, tolls, charges, tariffs, fares, 26
special taxes, or other authorized sources pledged to the payment of 27
such bonds. 28
Such revenue bonds and the interest thereon issued against such 29
fund or funds shall be a valid claim of the owners thereof only as 30
against such fund or funds and the revenue pledged therefor, and 31
shall not constitute a general indebtedness of the authority.32
(2) Notwithstanding subsection (1) of this section, such bonds 33
may be issued and sold in accordance with chapter 39.46 RCW, except 34
that the maximum term of any revenue bond issue shall be 75 years. 35
However, if an authority issues any revenue bonds with a maximum term 36
p. 2 SB 6148
greater than 40 years, the authority is not eligible for regional 1
mobility grant program funds. 2
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p. 3 SB 6148