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HOUSE BILL 1623
_____________________________________________
Passed Legislature ‑
2001 Regular Session
State of Washington 57th
Legislature 2001 Regular Session
By
Read
first time 01/31/2001. Referred to Committee on Higher Education. Authorizing four‑year public institutions of higher
education to participate with the state in investing surplus funds.
_1 AN
ACT Relating to investments of surplus funds by four-year
_2 institutions
of higher education; and amending RCW 43.250.010,
_3 43.250.020,
and 43.250.040.
_4 BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
_5 Sec. 1. RCW 43.250.010
and 1996 c 268 s 1 are each amended to read
_6 as
follows:
_7 The
purpose of this chapter is to enable political
_8 subdivisions,
community and technical college districts, ((and))
_9 the
state board for community and technical colleges as
10 established
in chapter 28B.50 RCW, and public four-year
11 institutions
of higher education to participate with the state in
12 providing
maximum opportunities for the investment of surplus
13 public
funds consistent with the safety and protection of such
14 funds.
The legislature finds and declares that the public interest
15 is
found in providing maximum prudent investment of surplus funds,
16 thereby
reducing the need for additional taxation. The legislature
17 also
recognizes that not all political subdivisions are able to
18 maximize
the return on their temporary surplus funds. The
p.
1 HB 1623.PL
_1 legislature
therefore provides in this chapter a mechanism whereby
_2 political
subdivisions, community and technical colleges, ((and))
_3 the
state board for community and technical colleges, and public
_4 four-year
institutions of higher education may, at their option,
_5 utilize
the resources of the state treasurer's office to maximize
_6 the
potential of surplus funds while ensuring the safety of public
_7 funds.
_8 Sec. 2. RCW 43.250.020
and 1996 c 268 s 2 are each amended to read
_9 as
follows:
10 Unless
the context clearly requires otherwise, the definitions
11 in
this section shall apply throughout this chapter.
12 (1)
"Public funds investment account" or "investment pool"
13 means
the aggregate of all funds as defined in subsection (5) of
14 this
section that are placed in the custody of the state treasurer
15 for
investment and reinvestment.
16 (2)
"Political subdivision" means any county, city, town,
17 municipal
corporation, political subdivision, or special purpose
18 taxing
district in the state.
19 (3)
"Local government official" means any officer or employee
20 of a
political subdivision who has been designated by statute or
21 by
local charter, ordinance, or resolution as the officer having
22 the
authority to invest the funds of the political subdivision.
23 However,
the county treasurer shall be deemed the only local
24 government
official for all political subdivisions for which the
25 county
treasurer has exclusive statutory authority to invest the
26 funds
thereof.
27 (4)
"Financial officer" means the board-appointed treasurer of
28 a
community or technical college district ((or)), the state board
29 for
community and technical colleges, or a public four-year
30 institution
of higher education.
31 (5)
"Funds" means:
32 (a)
Public funds under the control of or in the custody of any
33 local
government official or local funds, as defined by the office
34 of
financial management publication "Policies, Regulations and
35 Procedures,"
under the control of or in the custody of a financial
36 officer
by virtue of the official's authority that are not
37 immediately
required to meet current demands;
HB 1623.PL p.
2
_1 (b)
State funds deposited in the investment pool by the state
_2 treasurer
that are the proceeds of bonds, notes, or other
_3 evidences
of indebtedness authorized by the state finance
_4 committee
under chapter 39.42 RCW or payments pursuant to
_5 financing
contracts under chapter 39.94 RCW, when the investments
_6 are
made in order to comply with the Internal Revenue Code of
_7 1986,
as amended.
_8 Sec. 3. RCW 43.250.040
and 1996 c 268 s 3 are each amended to read
_9 as
follows:
10 If
authorized by statute, local ordinance, or resolution, a
11 local
government official or financial officer or his or her
12 designee
may place funds into the public funds investment account
13 for
investment and reinvestment by the state treasurer in those
14 securities
and investments set forth in RCW 43.84.080 and chapter
15 39.58
RCW. The state treasurer shall invest the funds in such
16 manner
as to effectively maximize the yield to the investment
17 pool.
In investing and reinvesting moneys in the public funds
18 investment
account and in acquiring, retaining, managing, and
19 disposing
of investments of the investment pool, there shall be
20 exercised
the judgment and care under the circumstances then
21 prevailing
which persons of prudence, discretion, and intelligence
22 exercise
in the management of their own affairs, not in regard to
23 speculation
but in regard to the permanent disposition of the
24 funds
considering the probable income as well as the probable
25 safety
of the capital.
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