BILL REQ. #:  S-1419.1 

READ FIRST TIME 02/08/07.   

     AN ACT Relating to the linked deposit program; amending RCW 43.86A.030; adding a new section to chapter 43.86A RCW; creating a new section; and providing a contingent effective date.

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

Sec. 1   RCW 43.86A.030 and 2005 c 302 s 2 are each amended to read as follows:
     (1) Funds held in public depositaries not as demand deposits as provided in RCW 43.86A.020 and 43.86A.030, shall be available for a time certificate of deposit investment program according to the following formula: The state treasurer shall apportion to all participating depositaries an amount equal to five percent of the three year average mean of general state revenues as certified in accordance with Article VIII, section 1(b) of the state Constitution, or fifty percent of the total surplus treasury investment availability, whichever is less. Within thirty days after certification, those funds determined to be available according to this formula for the time certificate of deposit investment program shall be deposited in qualified public depositaries. These deposits shall be allocated among the participating depositaries on a basis to be determined by the state treasurer.
     (2) The state treasurer may use up to ((one)) two hundred million dollars per year of all funds available under this section for the purposes of RCW 43.86A.060. The amounts made available to these public depositaries shall be equal to the amounts of outstanding loans made under RCW 43.86A.060.
     (3) The formula so devised shall be a matter of public record giving consideration to, but not limited to deposits, assets, loans, capital structure, investments or some combination of these factors. However, if in the judgment of the state treasurer the amount of allocation for certificates of deposit as determined by this section will impair the cash flow needs of the state treasury, the state treasurer may adjust the amount of the allocation accordingly.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.86A RCW to read as follows:
     The requirements upon the state treasurer in RCW 43.86A.030 are contingent upon at least one additional full-time equivalent employee, which must be dedicated to the deposit investment program, for the purposes of RCW 43.86A.030 and this section, being funded from the state treasurer's service fund created in RCW 43.08.190.

NEW SECTION.  Sec. 3   If specific funding from the state treasurer's service fund created in RCW 43.08.190 for the purpose of providing an additional full-time equivalent employee, dedicated to the deposit investment program, for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2007, in the omnibus appropriations act, this act is null and void

NEW SECTION.  Sec. 4   (1) This act takes effect the first day of the month immediately following the state treasurer's determination that the contingency in section 2(1) of this act has occurred.
     (2) The state treasurer must provide notice of the effective date of this act to the legislature, the office of the code reviser, and others as deemed appropriate by the state treasurer.