5048-S.E AMH ORMS TOUL 152

ESSB 5048 - H AMD TO H AMD (H-2540.1/17) 350

By Representative Ormsby

ADOPTED 03/31/2017

    On page 255, after line 29, insert the following:

"State Treasurer's Service Account: For transfer to the state general fund, $6,000,000 for fiscal year 2018 and $6,000,000 for fiscal year 2019……………………………………………………………………….$12,000,000

Financial Services Regulation Account: For transfer to the state general fund, $2,500,000 for fiscal year 2018 and $2,500,000 for fiscal year 2019……………………………………………………………………….$5,000,000"

On page 281, after line 17, insert the following:

    "Sec. 958. RCW 43.08.190 and 2015 3rd sp.s. c 4 s 953 are each amended to read as follows:

    There is hereby created a fund within the state treasury to be known as the "state treasurer's service fund." Such fund shall be used solely for the payment of costs and expenses incurred in the operation and administration of the state treasurer's office.

    Moneys shall be allocated monthly and placed in the state treasurer's service fund equivalent to a maximum of one percent of the trust and treasury average daily cash balances from the earnings generated under the authority of RCW 43.79A.040 and 43.84.080 other than earnings generated from investment of balances in funds and accounts specified in RCW 43.79A.040(4)(c). The allocation shall precede the distribution of the remaining earnings as prescribed under RCW 43.79A.040 and 43.84.092. The state treasurer shall establish a uniform allocation rate for all funds and accounts; except that the state treasurer may negotiate a different allocation rate with any state agency that has independent authority over funds not statutorily required to be held in the state treasury or in the custody of the state treasurer. In no event shall the rate be less than the actual costs incurred by the state treasurer's office. If no rate is separately negotiated, the default rate for any funds held shall be the rate set for funds held pursuant to statute.

    During the 2013-2015 and 2015-2017 fiscal biennia, the legislature may transfer from the state treasurer's service fund to the state general fund such amounts as reflect the excess fund balance of the fund. During the 2017-2019 fiscal biennium, the legislature may direct the state treasurer to make transfers of money in the state treasurer's service fund to the state general fund. It is the intent of the legislature that this policy will be continued in subsequent biennia."

    Renumber the remaining sections consecutively and correct any internal references accordingly.

    Correct the title.

    On page 284, after line 21, insert the following:

"Sec. 962.  RCW 43.320.110 and 2015 3rd sp.s. c 4 s 960 are each amended to read as follows:

    There is created a local fund known as the "financial services regulation fund" which shall consist of all moneys received by the divisions of the department of financial institutions, except for the division of securities which shall deposit thirteen percent of all moneys received, except as provided in RCW 43.320.115, and which shall be used for the purchase of supplies and necessary equipment; the payment of salaries, wages, and utilities; the establishment of reserves; and other incidental costs required for the proper regulation of individuals and entities subject to regulation by the department. The state treasurer shall be the custodian of the fund. Disbursements from the fund shall be on authorization of the director of financial institutions or the director's designee. In order to maintain an effective expenditure and revenue control, the fund shall be subject in all respects to chapter 43.88 RCW, but no appropriation is required to permit expenditures and payment of obligations from the fund.

    During the 2015-2017 fiscal biennium, the legislature may transfer from the financial services regulation fund to the state general fund such amounts as reflect the excess fund balance of the fund. During the 2015-2017 fiscal biennium, moneys from the financial services regulation fund may be appropriated for the family prosperity account program at the department of commerce and for the operations of the department of revenue. During the 2017-2019 fiscal biennium, the legislature may direct the treasurer to make transfers of moneys from the financial services regulation fund to the state general fund. It is the intent of the legislature that this policy will be continued in subsequent biennia."

    Renumber the remaining sections consecutively and correct any internal references accordingly.

    Correct the title.

    On page 296, line 16, after "legislature" strike "that this policy be continued in future biennia" and insert "to continue, in future biennia, the policy of transferring to the state general fund such amounts as reflect the excess fund balance of the account"

EFFECT:  Requires the Treasurer to transfer $12 million from the State Treasurer's Service Account to the State General Fund during the 2017-19 biennium. Requires the Treasurer to transfer $5 million from the Financial Services Regulation Account to the State General Fund during the 2017-19 biennium. Includes or modifies language related to legislative intent for the policy of transfers from the two accounts and the Criminal Justice Treatment Account in subsequent biennia.

FISCAL IMPACT: Increases general fund-state resources in the FY 2017-19 biennium by $17,000,000. (Also further increases resources assumed in the outlook for FY 2019-21).

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