wa-law.org > bill > 2025-26 > SB 6225 > Substitute Bill
In order to provide funds necessary for the location, design, right-of-way, and construction of highway projects or improvements, there shall be issued and sold upon the request of the department of transportation a total of $1,100,000,000 of general obligation bonds of the state of Washington.
In order to reserve funds for completion of highway projects identified in the LEAP Transportation Document 2022-B as developed March 9, 2022, there shall be issued and sold upon the request of the department of transportation a total of $400,000,000 of general obligation bonds of the state of Washington. Only projects identified in the LEAP document referenced in this section with unanticipated construction-related cost increases are eligible recipients of bond proceeds authorized in this section.
Upon the request of the department of transportation, as appropriate, the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds in this act in accordance with chapter 39.42 RCW. Bonds authorized by this act shall be sold in the manner, at time or times, in amounts, and at the price as the state finance committee shall determine. No bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.
The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purpose of retiring the bonds during the life of the project for which they were issued.
The proceeds from the sale of bonds authorized by sections 1 and 2 of this act shall be deposited in the move ahead WA account in the motor vehicle fund. The proceeds shall be available only for the purposes enumerated in sections 1 and 2 of this act, for the payment of bond anticipation notes, if any, and for the payment of bond issuance costs, including the costs of underwriting.
Bonds issued under the authority of this section and sections 1 through 4, 6, and 7 of this act shall distinctly 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 such principal and interest as the same shall become due. The principal and interest on the bonds shall be first payable in the manner provided in this section and sections 1 through 4, 6, and 7 of this act from the proceeds of the state excise taxes on fuel imposed by chapter 82.38 RCW and vehicle-related fees imposed under Title 46 RCW that constitute license fees for motor vehicles required to be used for highway purposes. Proceeds of these excise taxes and vehicle-related fees are hereby pledged to the payment of any bonds and the interest thereon issued under the authority of this section and sections 1 through 4, 6, and 7 of this act, and the legislature agrees to continue to impose these excise taxes on fuel and vehicle-related fees in amounts from such sources sufficient to pay, when due, the principal and interest on all bonds issued under the authority of this section and sections 1 through 4, 6, and 7 of this act.
Both principal and interest on the bonds issued for the purposes of this section and sections 1 through 5 and 7 of this act shall be payable from the highway bond retirement fund. The state finance committee may provide that a special account be created in the fund to facilitate payment of the principal and interest. The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on the bonds in accordance with the bond proceedings. The state treasurer shall withdraw revenues from the move ahead WA account in the motor vehicle fund and deposit in the highway bond retirement fund, or a special account in the fund, such amounts, and at such times, as are required by the bond proceedings.
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Any funds required for bond retirement or interest on the bonds authorized by this section and sections 1 through 5 and 7 of this act shall be taken from that portion of the motor vehicle fund that results from the imposition of excise taxes on fuel and vehicle-related fees, and that is distributed to the move ahead WA account in the motor vehicle fund.
Funds required shall never constitute a charge against any other allocations of fuel tax and vehicle-related fee revenues to the state, counties, cities, and towns unless the amount arising from excise taxes on fuel and vehicle-related fees distributed to the move ahead WA account described in (a) of this subsection proves insufficient to meet the requirements for bond retirement or interest on any such bonds.
Any payments for bond retirement or interest on the bonds taken from other revenues from the fuel taxes and vehicle-related fees that are distributable to the state, counties, cities, and towns shall be repaid from the first revenues from the fuel taxes and vehicle-related fees distributed to the move ahead WA account described in (a) of this subsection not required for bond retirement or interest on the bonds.
Bonds issued under the authority of this section and sections 1 through 6 of this act and any other general obligation bonds of the state of Washington that have been or that may be authorized and that pledge fuel excise taxes and vehicle-related fees for the payment of principal and interest thereon shall be an equal charge against the revenues from such fuel excise taxes and vehicle-related fees.
For purposes of sections 1 through 7 of this act, "vehicle-related fees" means vehicle-related fees imposed under Title 46 RCW that constitute license fees for motor vehicles required to be used for highway purposes.
In order to provide funds necessary for the location, design, right-of-way, and construction of the state route number 520 corridor projects, as allowed in section 2, chapter 472, Laws of 2009, there shall be issued and sold upon the request of the department of transportation a total of $2,450,000,000 of general obligation bonds of the state of Washington first payable from toll revenue and excise taxes on motor vehicle and special fuels in accordance with RCW 47.10.883.
For the purpose of providing funds for the acquisition of headquarters facilities for district 1 of the department of transportation and costs incidental thereto, together with all improvements and equipment required to make the facilities suitable for the department's use, there shall be issued and sold upon the request of the secretary of the department of transportation a total of $15,000,000 of general obligation bonds of the state of Washington. If any bonds authorized in this chapter have not been issued by June 30, 2026, the authority of the state finance committee to issue such remaining unissued bonds expires June 30, 2026.
In order to provide funds necessary for the location, design, right-of-way, and construction of selected interstate and other highway improvements, there shall be issued and sold upon the request of the secretary of the department of transportation a total of $100,000,000 of general obligation bonds of the state of Washington for the following purposes and specified sums:
Not to exceed $25,000,000 to pay the state's and local governments' share of matching funds for the ten demonstration projects identified in the Intermodal Surface Transportation Efficiency Act of 1991.
Not to exceed $50,000,000 to temporarily pay the regular federal share of construction in advance of federal-aid apportionments as authorized by this section.
Not to exceed $25,000,000 for loans to local governments to provide the required matching funds to take advantage of available federal funds. These loans shall be on such terms and conditions as determined by the secretary of the department of transportation, but in no event may the loans be for a period of more than 10 years. The interest rate on the loans authorized under this subsection shall be equal to the interest rate on the bonds sold for such purposes. If any bonds authorized in this chapter have not been issued by June 30, 2026, the authority of the state finance committee to issue such remaining unissued bonds expires June 30, 2026.
In order to provide funds necessary to implement the public-private transportation initiatives authorized by chapter 47.46 RCW, there shall be issued and sold upon the request of the secretary of the department of transportation a total of $25,625,000 of general obligation bonds of the state of Washington. If any bonds authorized in this chapter have not been issued by June 30, 2026, the authority of the state finance committee to issue such remaining unissued bonds expires June 30, 2026.
Sections 1 through 8 of this act are each added to chapter 47.10 RCW.
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.