HOUSE BILL REPORT

                  HB 2811

                    As Passed Legislature

Title:  An act relating to investments of surplus funds by community and technical college districts and the state board for community and technical colleges.

Brief Description:  Authorizing community and technical college districts and the state board for community and technical colleges to participate with the state in investing surplus funds.

Sponsors:  Representatives L. Thomas, Robertson, Hickel, Pelesky, Mitchell, Kessler, Keiser, Blanton, Wolfe, Boldt and Thompson.

Brief History:

  Committee Activity:

Financial Institutions & Insurance:  1/31/96, 2/1/96 [DP].

  Floor Activity:

     Passed House:  2/6/96, 96-0.

     Passed Legislature.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  Do pass.  Signed by 15 members:  Representatives L. Thomas, Chairman; Beeksma, Vice Chairman; Smith, Vice Chairman; Wolfe, Ranking Minority Member; Scheuerman, Assistant Ranking Minority Member; Benton; Campbell; Dellwo; Dyer; Grant; Huff; Keiser; Kessler; Pelesky and D. Sommers.

Staff:  Charlie Gavigan (786-7340).

Background:  Local governments can have the State Treasurer invest their surplus funds, pooling them to maximize return.  The State Treasurer must keep a separate account for each participant in the investment pool.

Summary of Bill:  Community and technical college districts and the State Board for Community and Technical Colleges are authorized to participate in the investment pool managed by the State Treasurer for local governments.

Appropriation:  None.

Fiscal Note:  Requested on January 23, 1996.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill will allow districts to pool their funds in a larger pool, rather than investing individually.  A larger pool through the Office of the State Treasurer will utilize that office's expertise, and should result in lower expenses and a better yield.

Testimony Against:  None.

Testified:  Vallie Jo Fry, State Board for Community and Technical Colleges (supports); and Jonathan K. Vesting, Seattle Community Colleges (supports).