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HOUSE BILL 2811
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Passed Legislature - 1996 Regular Session
State of Washington 54th Legislature 1996
Regular Session
By
Read first time 01/22/96. Referred to Committee
on Financial Institutions & Insurance.
Authorizing community and technical
college districts and the state board for community and technical colleges to
participate with the state in investing surplus funds.
AN ACT Relating to
investments of surplus funds by community and technical college districts and
the state board for community and technical colleges; and amending RCW
43.250.010, 43.250.020, and 43.250.040.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 43.250.010 and 1986
c 294 s 1 are each amended to read as follows:
The purpose of this
chapter is to enable political subdivisions, community and technical college
districts, and the state board for community and technical colleges as
established in chapter 28B.50 RCW to participate with the state in
providing maximum opportunities for the investment of surplus public funds
consistent with the safety and protection of such funds. The legislature finds
and declares that the public interest is found in providing maximum prudent
investment of surplus funds, thereby reducing the need for additional
taxation. The legislature also recognizes that not all political subdivisions
are able to maximize the return on their temporary surplus funds. The
legislature therefore provides in this chapter a mechanism whereby political
subdivisions, community and technical colleges, and the state board for
community and technical colleges may, at their option, utilize the
resources of the state treasurer's office to maximize the potential of surplus
funds while ensuring the safety of public funds.
Sec. 2. RCW 43.250.020 and 1990
c 106 s 1 are each amended to read as follows:
Unless the context
clearly requires otherwise, the definitions in this section shall apply
throughout this chapter.
(1) "Public funds
investment account" or "investment pool" means the aggregate of
all funds as defined in subsection (((4))) (5) of this section
that are placed in the custody of the state treasurer for investment and
reinvestment.
(2) "Political
subdivision" means any county, city, town, municipal corporation,
political subdivision, or special purpose taxing district in the state.
(3) "Local
government official" means any officer or employee of a political
subdivision who has been designated by statute or by local charter, ordinance,
or resolution as the officer having the authority to invest the funds of the
political subdivision. However, the county treasurer shall be deemed the only
local government official for all political subdivisions for which the county
treasurer has exclusive statutory authority to invest the funds thereof.
(4) "Financial
officer" means the board-appointed treasurer of a community or technical
college district or the state board for community and technical colleges.
(5)
"Funds" means:
(a) Public funds under
the control of or in the custody of any local government official or local
funds, as defined by the office of financial management publication
"Policies, Regulations and Procedures," under the control of or in
the custody of a financial officer by virtue of the official's authority
that are not immediately required to meet current demands;
(b) State funds deposited
in the investment pool by the state treasurer that are the proceeds of
bonds, notes, or other evidences of indebtedness authorized by the state
finance committee under chapter 39.42 RCW or payments pursuant to financing
contracts under chapter 39.94 RCW, when the investments are made in order to
comply with the Internal Revenue Code of 1986, as amended.
Sec. 3. RCW 43.250.040 and 1986
c 294 s 4 are each amended to read as follows:
If
authorized by statute, local ordinance, or resolution, a local
government official or financial officer may place funds into the public
funds investment account for investment and reinvestment by the state treasurer
in those securities and investments set forth in RCW 43.84.080 and chapter
39.58 RCW. The state treasurer shall invest the funds in such manner as to
effectively maximize the yield to the investment pool. In investing and
reinvesting moneys in the public funds investment account and in acquiring,
retaining, managing, and disposing of investments of the investment pool, there
shall be exercised the judgment and care under the circumstances then
prevailing which persons of prudence, discretion, and intelligence exercise in
the management of their own affairs, not in regard to speculation but in regard
to the permanent disposition of the funds considering the probable income as
well as the probable safety of the capital.
