Chapter 43.100A RCW

GENERAL OBLIGATION BOND ISSUES

Sections

FINANCING FOR APPROPRIATIONS2017-2019 BIENNIUM
43.100A.300General obligation bonds for capital and operating appropriations acts.
43.100A.301Conditions and limitations.
43.100A.302Retirement of bondsReimbursement of general fund from debt-limit general fund bond retirement account.
43.100A.303Pledge and promiseRemedies.
43.100A.304Payment of principal and interestAdditional means for raising money authorized.
WATERSHED AND FISHERIES RESTORATION AND ENHANCEMENT
43.100A.305General obligation bonds for watershed and fisheries restoration and enhancement.
43.100A.306Bond issuanceIntent.
43.100A.307Conditions and limitations.
43.100A.308Retirement of bondsReimbursement of general fund from debt-limit general fund bond retirement accountPledge and promiseRemedies.
43.100A.309Payment of principal and interestAdditional means for raising money authorized.
43.100A.310Legal investment.


General obligation bonds for capital and operating appropriations acts.

For the purpose of providing funds to finance the projects described and authorized by the legislature in the omnibus capital and operating appropriations acts for the 2017-2019 fiscal biennium, and all costs incidental thereto, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of two billion nine hundred thirty million two hundred thirty thousand dollars, or as much thereof as may be required, to finance these projects and all costs incidental thereto. Bonds authorized in this section may be sold at such price as the state finance committee shall determine. No bonds authorized in this section may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

NOTES:

Effective date2018 c 3: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [January 19, 2018]." [ 2018 c 3 § 307.]



Conditions and limitations.

(1) The proceeds from the sale of bonds authorized in RCW 43.100A.300 shall be deposited in the state building construction account created by RCW 43.83.020. The proceeds shall be transferred as follows:
(a) Two billion seven hundred six million one hundred thirty-one thousand dollars to remain in the state building construction account created by RCW 43.83.020.
(b) Two hundred twenty-four million ninety-nine thousand dollars to the state taxable building construction account. All receipts from taxable bonds issued are to be deposited into the account. If the state finance committee deems it necessary or advantageous to issue more than the amount specified in this subsection (1)(b) as taxable bonds in order to comply with federal internal revenue service rules and regulations pertaining to the use of nontaxable bond proceeds or in order to reduce the total financing costs for bonds issued, the proceeds of such additional taxable bonds shall be transferred to the state taxable building construction account in lieu of any transfer otherwise provided by this section. If the state finance committee determines that a portion of the amount specified in this subsection (1)(b) as taxable bonds may be issued as nontaxable bonds in compliance with federal internal revenue service rules and regulations pertaining to the use of nontaxable bond proceeds, then such bond proceeds shall be transferred to the state building construction account in lieu of the transfer to the state taxable building construction account otherwise provided by this subsection (1)(b). The state treasurer shall submit written notice to the director of financial management if it is determined that any such additional transfer to the state taxable building construction account is necessary or that a transfer from the state taxable building construction account to the state building construction account may be made. Moneys in the account may be spent only after appropriation.
(c) The treasurer shall transfer bond proceeds deposited in the state building construction account into the outdoor recreation account created by RCW 79A.25.060, the habitat conservation account created by RCW 79A.15.020, the farm and forest account created by RCW 79A.15.130, and the early learning facilities development account, at various times and in various amounts necessary to support authorized expenditures from those accounts.
(d) The treasurer shall transfer bond proceeds deposited in the state taxable building construction account into the early learning facilities revolving account, at various times and in various amounts necessary to support authorized expenditures from that account.
(2) These proceeds shall be used exclusively for the purposes specified in this section and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this section, and shall be administered by the office of financial management subject to legislative appropriation.

NOTES:

Effective date2018 c 3: See note following RCW 43.100A.300.



Retirement of bondsReimbursement of general fund from debt-limit general fund bond retirement account.

(1) The debt-limit general fund bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in RCW 43.100A.300.
(2) The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on the bonds authorized in RCW 43.100A.300.
(3) On each date on which any interest or principal and interest payment is due on bonds issued for the purposes of RCW 43.100A.301(1) (a) through (d) the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the debt-limit general fund bond retirement account an amount equal to the amount certified by the state finance committee to be due on the payment date.

NOTES:

Effective date2018 c 3: See note following RCW 43.100A.300.



Pledge and promiseRemedies.

(1) Bonds issued under RCW 43.100A.300 shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.
(2) The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NOTES:

Effective date2018 c 3: See note following RCW 43.100A.300.



Payment of principal and interestAdditional means for raising money authorized.

The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in RCW 43.100A.300, and RCW 43.100A.301 and 43.100A.302 shall not be deemed to provide an exclusive method for the payment.

NOTES:

Effective date2018 c 3: See note following RCW 43.100A.300.



General obligation bonds for watershed and fisheries restoration and enhancement.

For the purpose of providing funds for the watershed and fisheries restoration and enhancement program, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of three hundred million dollars, or as much thereof as may be required, to finance the projects and all costs incidental thereto. Bonds authorized in this section may be sold at such price as the state finance committee shall determine.

NOTES:

Effective date2018 c 3: See note following RCW 43.100A.300.



Bond issuanceIntent.

It is the intent of the legislature that the proceeds of the new bonds authorized in RCW 43.100A.305 will be dispersed [disbursed] in phases of no more than twenty million dollars per year over fifteen years, beginning with the 2017-2019 biennium. This is not intended to limit the state's ability to disperse [disburse] bond proceeds if the full amount authorized in RCW 43.100A.305 has not been dispersed [disbursed] after fifteen years. The authorization to issue bonds contained in RCW 43.100A.305 does not expire until the full authorization has been issued and dispersed [disbursed].

NOTES:

Effective date2018 c 3: See note following RCW 43.100A.300.



Conditions and limitations.

The proceeds from the sale of the bonds authorized in RCW 43.100A.305 must be deposited in the watershed restoration and enhancement bond account. If the state finance committee deems it necessary to issue the bonds authorized in RCW 43.100A.305 as taxable bonds in order to comply with federal internal revenue service rules and regulations pertaining to the use of nontaxable bond proceeds, the proceeds of such taxable bonds must be deposited into the watershed restoration and enhancement taxable bond account. The state treasurer shall submit written notice to the director of financial management if it is determined that any such transfer to the watershed restoration and enhancement taxable bond account is necessary. The proceeds shall be used exclusively for the purposes specified in RCW 43.100A.305 and for the payment of expenses incurred in the issuance and sale of the bonds. These proceeds shall be administered by the office of financial management.

NOTES:

Effective date2018 c 3: See note following RCW 43.100A.300.



Retirement of bondsReimbursement of general fund from debt-limit general fund bond retirement accountPledge and promiseRemedies.

The debt-limit general fund bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in RCW 43.100A.305. The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements. On each date on which any interest or principal and interest payment is due, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the debt-limit general fund bond retirement account an amount equal to the amount certified by the state finance committee to be due on the payment date. Bonds issued under RCW 43.100A.305 shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.
The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NOTES:

Effective date2018 c 3: See note following RCW 43.100A.300.



Payment of principal and interestAdditional means for raising money authorized.

The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in RCW 43.100A.305, and RCW 43.100A.308 shall not be deemed to provide an exclusive method for the payment.

NOTES:

Effective date2018 c 3: See note following RCW 43.100A.300.



Legal investment.

The bonds authorized in RCW 43.100A.305 shall be a legal investment for all state funds or funds under state control and for all funds of any other public body.

NOTES:

Effective date2018 c 3: See note following RCW 43.100A.300.