CERTIFICATION OF ENROLLMENT

SUBSTITUTE HOUSE BILL 2225

Chapter 203, Laws of 2005

59th Legislature
2005 Regular Session



HIGHER EDUCATION ENDOWMENT FUNDS--OUT OF STATE DEPOSIT



EFFECTIVE DATE: 7/24/05

Passed by the House March 15, 2005
  Yeas 96   Nays 0

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


Passed by the Senate April 13, 2005
  Yeas 46   Nays 0


BRAD OWEN
________________________________________    
President of the Senate
 
CERTIFICATE

I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2225 as passed by the House of Representatives and the Senate on the dates hereon set forth.


RICHARD NAFZIGER
________________________________________    
Chief Clerk
Approved April 26, 2005.








CHRISTINE GREGOIRE
________________________________________    
Governor of the State of Washington
 
FILED
April 26, 2005 - 2:38 p.m.







Secretary of State
State of Washington


_____________________________________________ 

SUBSTITUTE HOUSE BILL 2225
_____________________________________________

Passed Legislature - 2005 Regular Session
State of Washington59th Legislature2005 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representative Kirby; by request of State Treasurer)

READ FIRST TIME 03/04/05.   



     AN ACT Relating to allowing certain higher education endowment grant funds to be deposited outside the state; and amending RCW 39.58.080 and 39.58.085.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 39.58.080 and 1996 c 256 s 8 are each amended to read as follows:
     (1) Except for funds deposited pursuant to a fiscal agency contract with the state fiscal agent or its correspondent bank, funds deposited pursuant to a custodial bank contract with the state's custodial bank, and funds deposited pursuant to a local government multistate joint self-insurance program as provided in RCW 48.62.081, no public funds shall be deposited in demand or investment deposits except in a public depositary located in this state or as otherwise expressly permitted by statute: PROVIDED, That the commission, or the chair upon delegation by the commission, upon good cause shown, may authorize, for such time and upon such terms and conditions as the commission or chair deem appropriate, a treasurer to maintain a demand deposit account with a banking institution located outside the state of Washington solely for the purpose of transmitting money received to public depositaries in the state of Washington for deposit.
     (2) Notwithstanding subsection (1) of this section, the commission, or the chair upon delegation by the commission, upon good cause shown, may authorize, for that time and upon the terms and conditions as the commission or chair deems appropriate, a treasurer to maintain a demand deposit account with a banking institution located outside the state of Washington for deposit of certain higher education endowment funds, for a specified instructional program or research project being performed outside the state of Washington.

Sec. 2   RCW 39.58.085 and 1996 c 256 s 9 are each amended to read as follows:
     (1)(a) The commission, or the chair upon delegation by the commission, may authorize state and local governmental entities to establish demand accounts in out-of-state and alien banks in an aggregate amount not to exceed one million dollars. No single governmental entity shall be authorized to hold more than fifty thousand dollars in one demand account.
     (b) The governmental entities establishing such demand accounts shall be solely responsible for their proper and prudent management and shall bear total responsibility for any losses incurred by such accounts. Accounts established under the provisions of this section shall not be considered insured by the commission.
     (c) The state auditor shall annually monitor compliance with this section and the financial status of such demand accounts.
     (2) Subsection (1)(a) of this section does not apply to RCW 39.58.080(2).


         Passed by the House March 15, 2005.
         Passed by the Senate April 13, 2005.
         Approved by the Governor April 26, 2005.
         Filed in Office of Secretary of State April 26, 2005.