SB 6225

CERTIFICATION OF ENROLLMENT
  SUBSTITUTE SENATE BILL 6225
  Chapter 256, Laws of 2026
  69th Legislature
  2026 Regular Session
  TRANSPORTATION BONDS
  EFFECTIVE DATE: March 31, 2026
Passed by the Senate March 12, 2026  CERTIFICATE
  Yeas 49 Nays 0
  I, Sarah Bannister, Secretary of
  the   Senate   of   the   State  of
  DENNY HECK  Washington, do hereby certify that
President of the Senate  the attached is SUBSTITUTE SENATE
  BILL 6225 as passed by the Senate
  and the House of Representatives on
  the dates hereon set forth.
Passed by the House March 11, 2026
  Yeas 59 Nays 38
  SARAH BANNISTER
  LAURIE JINKINS  Secretary
Speaker of the House of
Representatives
Approved March 31, 2026 1:40 PM  FILED
  April 1, 2026
  Secretary of State
  BOB FERGUSON  State of Washington
Governor of the State of Washington
  SUBSTITUTE SENATE BILL 6225
  AS AMENDED BY THE HOUSE
  Passed Legislature - 2026 Regular Session
State of Washington  69th Legislature        2026 Regular Session
By Senate Transportation (originally sponsored by Senators Liias and
King; by request of Office of Financial Management)
READ FIRST TIME 02/26/26.
1     AN ACT Relating to authorizing bonds for transportation funding;
2 amending RCW 47.10.879, 47.02.120, 47.10.819, and 47.10.834; adding
3 new sections to chapter 47.10 RCW; and declaring an emergency.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
5      NEW SECTION.   Sec. 1.   In order to provide funds necessary for
6  the location, design, right-of-way, and construction of highway
7  projects or improvements, there shall be issued and sold upon the
8  request of the department of transportation a total of $800,000,000
9  of general obligation bonds of the state of Washington.
10     NEW SECTION.   Sec. 2.    Upon the request of the department of
11 transportation, as appropriate, the state finance committee shall
12 supervise and provide for the issuance, sale, and retirement of the
13 bonds in this act in accordance with chapter 39.42 RCW. Bonds
14 authorized by this act shall be sold in the manner, at time or times,
15 in amounts, and at the price as the state finance committee shall
16 determine. No bonds may be offered for sale without prior legislative
17 appropriation of the net proceeds of the sale of the bonds.
18     The state finance committee shall consider the issuance of short-
19 term obligations in lieu of long-term obligations for the purposes of
20 more favorable interest rates, lower total interest costs, and
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1 increased marketability and for the purpose of retiring the bonds
2 during the life of the project for which they were issued.
3      NEW SECTION.    Sec. 3.    The proceeds from the sale of bonds
4  authorized by section 1 of this act shall be deposited in the move
5  ahead WA account in the motor vehicle fund. The proceeds shall be
6  available only for the purposes enumerated in section 1 of this act,
7  for the payment of bond anticipation notes, if any, and for the
8  payment of bond issuance costs, including the costs of underwriting.
9     NEW SECTION. Sec. 4. Bonds issued under the authority of this
10 section and sections 1 through 3, 5, and 6 of this act shall
11 distinctly state that they are a general obligation of the state of
12 Washington, shall pledge the full faith and credit of the state to
13 the payment of the principal thereof and the interest thereon, and
14 shall contain an unconditional promise to pay such principal and
15 interest as the same shall become due. The principal and interest on
16 the bonds shall be first payable in the manner provided in this
17 section and sections 1 through 3, 5, and 6 of this act from the
18 proceeds of the state excise taxes on fuel imposed by chapter 82.38
19 RCW and vehicle-related fees imposed under Title 46 RCW that
20 constitute license fees for motor vehicles required to be used for
21 highway purposes. Proceeds of these excise taxes and vehicle-related
22 fees are hereby pledged to the payment of any bonds and the interest
23 thereon issued under the authority of this section and sections 1
24 through 3, 5, and 6 of this act, and the legislature agrees to
25 continue to impose these excise taxes on fuel and vehicle-related
26 fees in amounts from such sources sufficient to pay, when due, the
27 principal and interest on all bonds issued under the authority of
28 this section and sections 1 through 3, 5, and 6 of this act.
29     NEW SECTION.   Sec. 5.   (1) Both principal and interest on the
30 bonds issued for the purposes of this section and sections 1 through
31 4 and 6 of this act shall be payable from the highway bond retirement
32 fund. The state finance committee may provide that a special account
33 be created in the fund to facilitate payment of the principal and
34 interest. The state finance committee shall, on or before June 30th
35 of each year, certify to the state treasurer the amount required for
36 principal and interest on the bonds in accordance with the bond
37 proceedings. The state treasurer shall withdraw revenues from the
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1 move ahead WA account in the motor vehicle fund and deposit in the
2 highway bond retirement fund, or a special account in the fund, such
3 amounts, and at such times, as are required by the bond proceedings.
4     (2)(a) Any funds required for bond retirement or interest on the
5 bonds authorized by this section and sections 1 through 4 and 6 of
6 this act shall be taken from that portion of the motor vehicle fund
7 that results from the imposition of excise taxes on fuel and vehicle-
8 related fees, and that is distributed to the move ahead WA account in
9 the motor vehicle fund.
10     (b) Funds required shall never constitute a charge against any
11 other allocations of fuel tax and vehicle-related fee revenues to the
12 state, counties, cities, and towns unless the amount arising from
13 excise taxes on fuel and vehicle-related fees distributed to the move
14 ahead WA account described in (a) of this subsection proves
15 insufficient to meet the requirements for bond retirement or interest
16 on any such bonds.
17     (c) Any payments for bond retirement or interest on the bonds
18 taken from other revenues from the fuel taxes and vehicle-related
19 fees that are distributable to the state, counties, cities, and towns
20 shall be repaid from the first revenues from the fuel taxes and
21 vehicle-related fees distributed to the move ahead WA account
22 described in (a) of this subsection not required for bond retirement
23 or interest on the bonds.
24     NEW SECTION. Sec. 6. Bonds issued under the authority of this
25 section and sections 1 through 5 of this act and any other general
26 obligation bonds of the state of Washington that have been or that
27 may be authorized and that pledge fuel excise taxes and vehicle-
28 related fees for the payment of principal and interest thereon shall
29 be an equal charge against the revenues from such fuel excise taxes
30 and vehicle-related fees.
31     NEW SECTION.   Sec. 7.   For purposes of sections 1 through 6 of
32 this act, "vehicle-related fees" means vehicle-related fees imposed
33 under Title 46 RCW that constitute license fees for motor vehicles
34 required to be used for highway purposes.
35     Sec. 8.   RCW 47.10.879 and 2009 c 498 s 8 are each amended to
36 read as follows:
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1      In order to provide funds necessary for the location, design,
2  right-of-way, and construction of the state route number 520 corridor
3  projects, as allowed in section 2, chapter 472, Laws of 2009, there
4  shall be issued and sold upon the request of the department of
5  transportation a total of ((one billion nine hundred fifty million
6  dollars)) $2,450,000,000 of general obligation bonds of the state of
7  Washington first payable from toll revenue and excise taxes on motor
8  vehicle and special fuels in accordance with RCW 47.10.883.
9     Sec. 9.   RCW 47.02.120 and 2006 c 334 s 39 are each amended to
10 read as follows:
11     For the purpose of providing funds for the acquisition of
12 headquarters facilities for district 1 of the department of
13 transportation and costs incidental thereto, together with all
14 improvements and equipment required to make the facilities suitable
15 for the department's use, there shall be issued and sold upon the
16 request of the secretary of the department of transportation a total
17 of ((fifteen million dollars)) $15,000,000 of general obligation
18 bonds of the state of Washington. If any bonds authorized in this
19 chapter have not been issued by June 30, 2026, the authority of the
20 state finance committee to issue such remaining unissued bonds
21 expires June 30, 2026.
22     Sec. 10. RCW 47.10.819 and 2006 c 334 s 37 are each amended to
23 read as follows:
24     In order to provide funds necessary for the location, design,
25 right-of-way, and construction of selected interstate and other
26 highway improvements, there shall be issued and sold upon the request
27 of the secretary of the department of transportation a total of ((one
28 hundred million dollars)) $100,000,000 of general obligation bonds of
29 the state of Washington for the following purposes and specified
30 sums:
31     (1) Not to exceed ((twenty-five million dollars)) $25,000,000 to
32 pay the state's and local governments' share of matching funds for
33 the ten demonstration projects identified in the Intermodal Surface
34 Transportation Efficiency Act of 1991.
35     (2) Not to exceed ((fifty million dollars)) $50,000,000 to
36 temporarily pay the regular federal share of construction in advance
37 of federal-aid apportionments as authorized by this section.
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1     (3) Not to exceed ((twenty-five million dollars)) $25,000,000 for
2 loans to local governments to provide the required matching funds to
3 take advantage of available federal funds. These loans shall be on
4 such terms and conditions as determined by the secretary of the
5 department of transportation, but in no event may the loans be for a
6 period of more than ((ten)) 10 years. The interest rate on the loans
7 authorized under this subsection shall be equal to the interest rate
8 on the bonds sold for such purposes. If any bonds authorized in this
9 chapter have not been issued by June 30, 2026, the authority of the
10 state finance committee to issue such remaining unissued bonds
11 expires June 30, 2026.
12     Sec. 11. RCW 47.10.834 and 2006 c 334 s 35 are each amended to
13 read as follows:
14     In order to provide funds necessary to implement the public-
15 private transportation initiatives authorized by chapter 47.46 RCW,
16 there shall be issued and sold upon the request of the secretary of
17 the department of transportation a total of ((twenty-five million six
18 hundred twenty-five thousand dollars)) $25,625,000 of general
19 obligation bonds of the state of Washington. If any bonds authorized
20 in this chapter have not been issued by June 30, 2026, the authority
21 of the state finance committee to issue such remaining unissued bonds
22 expires June 30, 2026.
23     NEW SECTION. Sec. 12. Sections 1 through 7 of this act are each
24 added to chapter 47.10 RCW.
25     NEW SECTION. Sec. 13. This act is necessary for the immediate
26 preservation of the public peace, health, or safety, or support of
27 the state government and its existing public institutions, and takes
28 effect immediately.
  Passed by the Senate March 12, 2026.
  Passed by the House March 11, 2026.
  Approved by the Governor March 31, 2026.
  Filed in Office of Secretary of State April 1, 2026.
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