5003

AN ACT Relating to the deposit of interest earnings from agricultural funds and accounts; amending RCW 15.36.551, 16.38.060, 17.21.280, 17.24.131, and 69.07.120; reenacting and amending RCW 43.84.092; adding a new section to chapter 43.84 RCW; adding a new section to chapter 43.23 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. A new section is added to chapter 43.84 RCW to read as follows:

It is the purpose of this section to establish a consistent policy for determining where interest earnings from various funds and accounts in the state treasury are deposited.

(1) Interest earnings from various funds and accounts in the state treasury shall be deposited into the state general fund except those funds and accounts that meet one or more of the following criteria shall be credited with their prorated share of interest earnings:

(a) A contractual agreement requires that all revenues in the fund or account, including interest earnings, be spent for a specific purpose;

(b) The income in the fund or account is derived from trust lands originally granted at statehood for a specified purpose;

(d) The revenues of the fund or account are derived from state employee contributions to retirement and workers' compensation programs;

(e) The fund or account is related to specified transportation purposes; or

(f) The fund or account is established for a program or programs that are entirely supported by fees.

(2) The office of financial management, in conjunction with the state treasurer's office, shall review the designation of all funds and accounts in the state treasury for consistency with this section. By December 1, 1996, the office of financial management shall deliver a report to the legislature as to whether the various funds and accounts should be redesignated in RCW 43.84.092 to comply with the criteria in subsection (1) of this section.

Sec. 2. RCW 43.84.092 and 1994 c 2 s 6 (Initiative Measure No. 601), 1993 sp.s. c 25 s 511, 1993 sp.s. c 8 s 1, 1993 c 500 s 6, 1993 c 492 s 473, 1993 c 445 s 4, 1993 c 329 s 2, and 1993 c 4 s 9 are each reenacted and amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The agricultural local fund, the capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the grain and hay fund, the health services account, the public health services account, the health system capacity account, the personal health services account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the rural rehabilitation account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system plan II account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The ((~~marine operating fund, the~~)) motor vehicle fund and the transportation fund.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 3. RCW 15.36.551 and 1994 c 34 s 1 are each amended to read as follows:

There is levied on all milk processed in this state an assessment not to exceed fifty-four one-hundredths of one cent per hundredweight. The director shall determine, by rule, an assessment, that with contribution from the general fund, will support an inspection program to maintain compliance with the provisions of the pasteurized milk ordinance of the national conference on interstate milk shipment. All assessments shall be levied on the operator of the first milk plant receiving the milk for processing. This shall include milk plants that produce their own milk for processing and milk plants that receive milk from other sources. All moneys collected under this section shall be paid to the director by the twentieth day of the succeeding month for the previous month's assessments. The director shall deposit the funds into the dairy inspection account hereby created within the agricultural ((~~local fund~~)) health and safety account established in ((~~RCW 43.23.230~~)) section 8 of this act. The funds shall be used only to provide inspection services to the dairy industry. If the operator of a milk plant fails to remit any assessments, that sum shall be a lien on any property owned by him or her, and shall be reported by the director and collected in the manner and with the same priority over other creditors as prescribed for the collection of delinquent taxes under chapters 84.60 and 84.64 RCW.

This section shall expire June 30, 1995.

Sec. 4. RCW 16.38.060 and 1986 c 203 s 6 are each amended to read as follows:

The director may, following a public hearing, establish a schedule of fees for services performed in carrying out such diagnostic service program. All fees collected under this provision shall be ((~~retained by the director of agriculture~~)) deposited in the agricultural health and safety account to be spent only for carrying out the purposes of this chapter.

Sec. 5. RCW 17.21.280 and 1994 c 283 s 29 are each amended to read as follows:

All moneys collected under the provisions of this chapter shall be paid to the director and deposited in the agricultural ((~~local fund, RCW 43.23.230,~~)) health and safety account created in section 8 of this act for use exclusively in the enforcement of this chapter. All fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW.

Sec. 6. RCW 17.24.131 and 1991 c 257 s 17 are each amended to read as follows:

To facilitate the movement or sale of forest, agricultural, floricultural, horticultural and related products, or bees and related products, the director may provide, if requested by farmers, growers, or other interested persons, special inspections, pest identifications, plant identifications, plant diagnostic services, other special certifications and activities not otherwise authorized by statute and to prescribe a fee for that service. The fee shall, as closely as practical, cover the cost of the service rendered, including the salaries and expenses of the personnel involved. Moneys collected shall be deposited in the plant pest account, which is hereby created within the agricultural ((~~local fund~~)) health and safety account. No appropriation is required for disbursement from the plant pest account to provide the services authorized by this section.

Sec. 7. RCW 69.07.120 and 1992 c 160 s 5 are each amended to read as follows:

All moneys received by the department under the provisions of this chapter shall be paid into the food processing inspection account hereby created within the agricultural ((~~local fund~~)) health and safety account established in ((~~RCW 43.23.230~~)) section 8 of this act and shall be used solely to carry out the provisions of this chapter and chapter 69.04 RCW.

NEW SECTION. Sec. 8. A new section is added to chapter 43.23 RCW to read as follows:

The agricultural health and safety account is hereby established in the custody of the state treasurer. The account shall consist of such money as is directed by law for deposit in the account, and such other money not subject to appropriation that the department authorizes to be deposited in the account. Any money deposited in the account, the use of which has been restricted by law, may only be expended in accordance with those restrictions. The department may make disbursements from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.

NEW SECTION. Sec. 9. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect June 1, 1995.