_____________________________________________
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.
AN
ACT Relating to investments of surplus funds by four-year institutions of
higher education; 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 1996 c 268 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, and public
four-year institutions of higher education 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, and public four-year institutions of higher
education 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 1996 c 268 s 2 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 (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, or a public four-year institution of
higher education.
(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 1996 c 268 s 3 are each amended to read as follows:
If
authorized by statute, local ordinance, or resolution, a local government
official or financial officer or his or her designee 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.
