BILL REQ. #:  S-1229.1 

Read first time 02/03/09.   Referred to Committee on Early Learning & K-12 Education.

     AN ACT Relating to authorizing certain school districts and educational service districts to designate a district treasurer; amending RCW 28A.320.300, 28A.320.310, 28A.320.320, 28A.510.270, 28A.310.370, 28A.310.410, 28A.160.130, 28A.220.040, 28A.320.080, 28A.323.100, 28A.325.030, 28A.330.080, 28A.350.010, 28A.350.050, 28A.410.060, 28A.530.030, 28A.530.050, and 28A.535.060; adding a new section to chapter 28A.320 RCW; and adding a new section to chapter 28A.310 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 28A.320 RCW to read as follows:
     (1) The board of directors of a school district under this section may designate by resolution an employee of the district or some other person having experience in financial or fiscal matters to act as the district treasurer, including an employee of another school district or an educational service district through an interlocal agreement under chapter 39.34 RCW. A district treasurer designated under this section shall act with the same powers as provided by law for a county treasurer acting as ex officio treasurer of a school district. A district treasurer shall be bonded in an amount and under the terms and conditions that the board of directors finds will protect the district against loss, but for not less than twenty-five thousand dollars.
     (2) A school district that designates its own treasurer under this section may by resolution adopt a policy for the payment of claims or other obligations of the school district, which are payable out of solvent funds, electing to pay such obligations by warrant or by check. However, when the applicable fund is not solvent at the time payment is ordered, a warrant shall be issued. When checks are to be used, the school district shall designate the qualified public depositary where checks are to be drawn and the officers authorized or required to sign checks. Wherever a reference is made to warrants in this title, the term includes checks where authorized by this section.
     (3) When deposits and disbursements are made in accordance with this section and RCW 28A.510.270, a district treasurer shall not be liable for a loss resulting from the failure or default of any public depositary without fault or neglect on his or her part or the part of his or her assistants or clerks. When funds are invested in accordance with this section and RCW 28A.320.310 and 28A.320.320 in investments that are legal investments for public funds, a district treasurer shall not be liable for a loss in the value of any such investment made by the district treasurer.
     (4) The board of directors of a school district that designates its own treasurer under this section may by resolution adopt a policy providing for protection and indemnification of: (a) The employee designated as the district treasurer; or (b) the employee of an educational service district or other public agency designated as a district treasurer or as an external investment advisor or manager.
     (5) This section applies only to boards of directors of school districts with an annual average full-time equivalent student enrollment of ten thousand or more and located in a county with a population of four hundred thousand or more.

Sec. 2   RCW 28A.320.300 and 1999 c 18 s 1 are each amended to read as follows:
     Any common school district board of directors is empowered to direct and authorize, and to delegate authority to an employee, officer, or agent of the common school district or the educational service district to direct and authorize, the district treasurer or the county treasurer to invest funds described in RCW 28A.320.310 and 28A.320.320 and funds from state and federal sources as are then or thereafter received by the educational service district, and such funds from county sources as are then or thereafter received by the county treasurer, for distribution to the common school districts. Funds from state, county and federal sources which are so invested may be invested only for the period the funds are not required for the immediate necessities of the common school district as determined by the school district board of directors or its delegatee, and shall be invested ((in)) on behalf of the common school district pursuant to the terms of RCW 28A.320.310, 28A.320.320, 36.29.020, 36.29.022, or 36.29.024 as the nature of the funds shall dictate. A grant of authority by a common school district pursuant to this section shall be by resolution of the board of directors and shall specify the duration and extent of the authority so granted. Any authority delegated to an educational service district pursuant to this section may be redelegated pursuant to RCW 28A.310.220.

Sec. 3   RCW 28A.320.310 and 1999 c 18 s 2 are each amended to read as follows:
     The board of directors of any school district of the state of Washington which now has, or hereafter shall have, funds in the capital projects fund of the district ((in the office of the county treasurer)) which in the judgment of said board are not required for the immediate necessities of the district, may invest and reinvest all, or any part, of such funds pursuant to RCW 35.39.030, 36.29.020, 36.29.022, 36.29.024, 39.59.020, 39.59.030, ((and)) 43.84.080, and 43.250.040: PROVIDED, That nothing herein authorized, or the type and character of the securities thus specified, shall have in itself the effect of delaying any program of building for which said funds shall have been authorized. Said funds and said securities and the profit and interest thereon, and the proceeds thereof, shall be held by the county treasurer or the district treasurer to the credit and benefit of the capital projects fund of the district ((in the county treasurer's office)).

Sec. 4   RCW 28A.320.320 and 1999 c 18 s 3 are each amended to read as follows:
     The county treasurer, or the trustee, guardian, or any other custodian of any school fund, when authorized to do so by the board of directors of any school district, or the district treasurer shall invest or reinvest any school funds of such district in investment securities pursuant to RCW 36.29.020 and 36.29.022. The county treasurer or the district treasurer shall have the power to select the particular investment in which said funds may be invested. A school district may by interlocal agreement carry out the powers granted under chapter . . ., Laws of 2009 (this act). The district treasurer may delegate by contract or interlocal agreement to a private sector or other external advisor or manager the discretionary authority to purchase or otherwise acquire, sell, or otherwise dispose of or manage investments on behalf of the district, in a manner consistent with applicable statutes and subject to an investment policy approved by the board of directors of the district. All earnings and income from such investments shall inure to the benefit of any school fund designated by the board of directors of the school district which such board may lawfully designate: PROVIDED, That any interest or earnings being credited to a fund different from that which earned the interest or earnings shall only be expended for instructional supplies, equipment or capital outlay purposes. This section shall apply to all funds which may be lawfully so invested or reinvested which in the judgment of the school board are not required for the immediate necessities of the district.
     Unless the board of directors has designated a district treasurer, five percent of the interest or earnings, with an annual minimum of ten dollars or annual maximum of fifty dollars, on any transactions authorized by each resolution of the board of school directors shall be paid as an investment service fee to the office of county treasurer when the interest or earnings becomes available to the school district or an amount as determined pursuant to RCW 36.29.022 and 36.29.024.

Sec. 5   RCW 28A.510.270 and 1991 c 245 s 2 are each amended to read as follows:
     (1) Except as provided in section 1 of this act, the county treasurer of each county of this state shall be ex officio treasurer of the several school districts of their respective counties((, and,)). Except as otherwise provided by law, it shall be the duty of each county treasurer:
     (((1))) (a) To receive and hold all moneys belonging to such school districts, and to pay them only for legally authorized obligations of the district.
     (((2))) (b) To prepare and submit to each school district superintendent in the county a written report of the state of the finances of such district on the first day of each month, which report shall be submitted not later than the seventh business day of the month, which report shall contain the balance on hand the first of the preceding month, the funds paid in, warrants paid with interest thereon, if any, the number of warrants issued and not paid, and the balance on hand.
     (((3))) (c) The treasurer of each county shall submit a statement of all canceled warrants of districts to the respective school district superintendents. The canceled warrants of each district shall be preserved separately and shall at all times be open to inspection by the school district superintendent or by any authorized accountant of such district.
     (2) A district treasurer designated under section 1 of this act shall perform the duties of a county treasurer under this section on behalf of the school district.

NEW SECTION.  Sec. 6   A new section is added to chapter 28A.310 RCW to read as follows:
     (1) The board of directors of an educational service district may designate by resolution an employee of the educational service district or some other person having experience in financial or fiscal matters to act as the educational service district treasurer. At the request of a school district authorized pursuant to section 1(5) of this act, the board of directors of an educational service district may designate an employee of the educational service district, or some other person having experience in financial matters, to serve as the district treasurer on behalf of one or more school districts with the authority to carry out all or an identified portion of the duties of district treasurer as authorized under section 1 of this act. An educational service district treasurer, or district treasurer designated under this section, shall act with the same powers as provided by law for a county treasurer acting as ex officio treasurer of an educational service district or a school district. An educational service district treasurer or district treasurer shall be bonded in an amount and under the terms and conditions that the board finds will protect the educational service district or school district against loss, but for not less than twenty-five thousand dollars.
     (2) An educational service district that designates its own treasurer or designates a district treasurer under this section may by resolution adopt a policy for the payment of claims or other obligations of the educational service district, which are payable out of solvent funds, electing to pay such obligations by warrant or by check. However, when the applicable fund is not solvent at the time payment is ordered, a warrant shall be issued. When checks are to be used, the educational service district shall designate the qualified public depository where checks are to be drawn and the officers authorized or required to sign checks. Wherever a reference is made to warrants in this title, the term includes checks where authorized by this section.
     (3) When deposits and disbursements are made in accordance with this section and RCW 28A.510.270, an educational service district treasurer or district treasurer shall not be liable for a loss resulting from the failure or default of any public depository without fault or neglect on his or her part or the part of his or her assistants or clerks. When funds are invested in accordance with this section and RCW 28A.320.310 and 28A.320.320 in investments that are legal investments for public funds, an educational service district treasurer or district treasurer shall not be liable for a loss in the value of any such investment made by an educational service district treasurer or district treasurer.
     (4) The board of directors of an educational service district that designates its own treasurer, or designates a district treasurer under this section, may by resolution adopt a policy providing for protection and indemnification of: (a) The employee of the educational service district designated as the educational service district treasurer or the district treasurer; or (b) the employee of another public agency designated as the educational service district treasurer or the district treasurer.
     (5) The county treasurer when authorized to do so by the board of directors of an educational service district, the educational service district treasurer, or district treasurer shall invest or reinvest any funds of the educational service district or the school district as applicable, in investment securities pursuant to RCW 36.29.020 and 36.29.022. The county treasurer, the educational service district treasurer, or district treasurer shall have the power to select the particular investment in which the funds may be invested. An educational service district may, by interlocal agreement, carry out the powers granted under chapter . . ., Laws of 2009 (this act). The educational service district treasurer or district treasurer may delegate by contract or interlocal agreement to a private sector or other external advisor or manager the discretionary authority to purchase or otherwise acquire, sell, or otherwise dispose of or manage investments on behalf of the educational service district or the school district, in a manner consistent with applicable statutes and subject to an investment policy approved by the board of directors of the educational service district or the school district, as applicable. The educational service district treasurer or district treasurer may, at the direction of a school district, act as the school district's external investment advisor or manager and undertake the duties set forth in RCW 28A.320.320.

Sec. 7   RCW 28A.310.370 and 1983 c 56 s 4 are each amended to read as follows:
     The superintendent of public instruction shall examine and revise the biennial budget request of each educational service district and shall fix the amount to be requested in state funds for the educational service district system from the legislature. Once funds have been appropriated by the legislature, the superintendent of public instruction shall fix the annual budget of each educational service district and shall allocate quarterly the state's portion from funds appropriated for that purpose to the educational service district treasurer, or the county treasurer of the headquarters county of the educational service district for deposit to the credit of the educational service district general expense fund.
     In each educational service district, there shall be an educational service district general expense fund into which there shall be deposited such moneys as are allocated by the superintendent of public instruction under provisions of this chapter and other funds of the educational service district, and such moneys shall be expended according to the method used by first or second-class school districts, whichever is deemed most feasible by the educational service district board. No vouchers for warrants other than moneys being distributed to the school districts shall be approved for expenditures not budgeted by the educational service district board.

Sec. 8   RCW 28A.310.410 and 1990 c 33 s 289 are each amended to read as follows:
     Except as provided in section 6 of this act, the county treasurer of the county in which the headquarters office of the educational service district is located shall serve as the ex officio treasurer of the district. Except when operating under the terms of an interlocal agreement, the county treasurer or educational service district treasurer shall keep all funds and moneys of the district separate and apart from all other funds and moneys in the treasurer's custody and shall disburse such moneys only upon proper order of the educational service district board or superintendent.

Sec. 9   RCW 28A.160.130 and 1991 c 114 s 2 are each amended to read as follows:
     (1) There is created a fund on deposit with each county treasurer for each school district of the county or the district treasurer, which shall be known as the transportation vehicle fund. Money to be deposited into the transportation vehicle fund shall include, but is not limited to, the following:
     (a) The balance of accounts held in the general fund of each school district for the purchase of approved transportation equipment and for major transportation equipment repairs under RCW 28A.150.280. The amount transferred shall be the balance of the account as of September 1, 1982;
     (b) Reimbursement payments provided for in RCW 28A.160.200 except those provided under RCW 28A.160.200(((4)))(3) that are necessary for contracted payments to private carriers;
     (c) Earnings from transportation vehicle fund investments as authorized in RCW 28A.320.300; and
     (d) The district's share of the proceeds from the sale of transportation vehicles, as determined by the superintendent of public instruction.
     (2) Funds in the transportation vehicle fund may be used for the following purposes:
     (a) Purchase of pupil transportation vehicles pursuant to RCW 28A.160.200 and 28A.150.280;
     (b) Payment of conditional sales contracts as authorized in RCW 28A.335.200 or payment of obligations authorized in RCW 28A.530.080, entered into or issued for the purpose of pupil transportation vehicles;
     (c) Major repairs to pupil transportation vehicles.
     The superintendent of public instruction shall adopt rules which shall establish the standards, conditions, and procedures governing the establishment and use of the transportation vehicle fund. The rules shall not permit the transfer of funds from the transportation vehicle fund to any other fund of the district.

Sec. 10   RCW 28A.220.040 and 2000 c 115 s 10 are each amended to read as follows:
     (1) Each school district shall be reimbursed from funds appropriated for traffic safety education.
     (a) The state superintendent shall determine the per-pupil reimbursement amount for the traffic safety education course to be funded by the state. Each school district offering an approved standard traffic safety education course shall be reimbursed or granted an amount up to the level established by the superintendent of public instruction as may be appropriated.
     (b) The state superintendent may provide per-pupil reimbursements to school districts only where all the traffic educators have satisfied the continuing education requirement of RCW 28A.220.030(4).
     (2) The board of directors of any school district or combination of school districts may establish a traffic safety education fee, which fee when imposed shall be required to be paid by any duly enrolled student in any such school district prior to or while enrolled in a traffic safety education course. Traffic safety education fees collected by a school district shall be deposited with the county treasurer or district treasurer to the credit of such school district, to be used to pay costs of the traffic safety education course.

Sec. 11   RCW 28A.320.080 and 1995 c 77 s 21 are each amended to read as follows:
     Every board of directors, unless otherwise specifically provided by law, shall:
     (1) Provide for the expenditure of a reasonable amount for suitable commencement exercises;
     (2) In addition to providing free instruction in lip reading for children disabled by defective hearing, make arrangements for free instruction in lip reading to adults disabled by defective hearing whenever in its judgment such instruction appears to be in the best interests of the school district and adults concerned;
     (3) Join with boards of directors of other school districts or an educational service district pursuant to RCW 28A.310.180(3), or both such school districts and educational service district in buying supplies, equipment and services by establishing and maintaining a joint purchasing agency, or otherwise, when deemed for the best interests of the district, any joint agency formed hereunder being herewith authorized and empowered to issue interest bearing warrants in payment of any obligation owed: PROVIDED, HOWEVER, That those agencies issuing interest bearing warrants shall assign accounts receivable in an amount equal to the amount of the outstanding interest bearing warrants to the county treasurer or district treasurer issuing such interest bearing warrants: PROVIDED FURTHER, That the joint purchasing agency shall consider the request of any one or more private schools requesting the agency to jointly buy supplies, equipment, and services including but not limited to school bus maintenance services, and, after considering such request, may cooperate with and jointly make purchases with private schools of supplies, equipment, and services, including but not limited to school bus maintenance services, so long as such private schools pay in advance their proportionate share of the costs or provide a surety bond to cover their proportionate share of the costs involved in such purchases;
     (4) Consider the request of any one or more private schools requesting the board to jointly buy supplies, equipment and services including but not limited to school bus maintenance services, and, after considering such request, may provide such joint purchasing services: PROVIDED, That such private schools pay in advance their proportionate share of the costs or provide a surety bond to cover their proportionate share of the costs involved in such purchases; and
     (5) Prepare budgets as provided for in chapter 28A.505 RCW.

Sec. 12   RCW 28A.323.100 and 1994 c 301 s 3 are each amended to read as follows:
     Upon receipt of the aforesaid certificate, it shall be the duty of the county legislative authority of each county to levy on all taxable property of that part of the joint school district which lies within the county a tax sufficient to raise the amount necessary to meet the county's proportionate share of the estimated expenditures of the joint district, as shown by the certificate of the educational service district superintendent of the district to which the joint school district belongs. Such taxes shall be levied and collected in the same manner as other taxes are levied and collected, and the proceeds thereof shall be forwarded monthly by the treasurer of each county, other than the county to which the joint district belongs, to the treasurer of the county to which such district belongs and shall be placed to the credit of said district. The treasurer of the county to which a joint school district belongs is hereby declared to be the treasurer of such district, except as provided in section 1 of this act.

Sec. 13   RCW 28A.325.030 and 2000 c 157 s 2 are each amended to read as follows:
     (1)(a) There is hereby created a fund on deposit with each district treasurer or county treasurer for each school district of the county having an associated student body as defined in RCW 28A.325.020. Such fund shall be known as the associated student body program fund. Rules adopted by the superintendent of public instruction under RCW 28A.325.020 shall require separate accounting for each associated student body's transactions in the school district's associated student body program fund.
     (b) All moneys generated through the programs and activities of any associated student body shall be deposited in the associated student body program fund. Such funds may be invested for the sole benefit of the associated student body program fund in items enumerated in RCW 28A.320.320 and the county treasurer may assess a fee as provided therein. Disbursements from such fund shall be under the control and supervision, and with the approval, of the board of directors of the school district, and shall be by warrant as provided in chapter 28A.350 RCW: PROVIDED, That in no case shall such warrants be issued in an amount greater than the funds on deposit with the ((county)) treasurer in the associated student body program fund. To facilitate the payment of obligations, an imprest bank account or accounts may be created and replenished from the associated student body program fund.
     (c) The associated student body program fund shall be budgeted by the associated student body, subject to approval by the board of directors of the school district. All disbursements from the associated student body program fund or any imprest bank account established thereunder shall have the prior approval of the appropriate governing body representing the associated student body. Notwithstanding the provisions of RCW 43.09.210, it shall not be mandatory that expenditures from the district's general fund in support of associated student body programs and activities be reimbursed by payments from the associated student body program fund.
     (2) Subject to applicable school board policies, student groups may conduct fund-raising activities, including but not limited to soliciting donations, in their private capacities for the purpose of generating nonassociated student body fund moneys. The school board policy shall include provisions to ensure appropriate accountability for these funds. Nonassociated student body program fund moneys generated and received by students for private purposes to use for scholarship, student exchange, and/or charitable purposes shall be held in trust in one or more separate accounts within an associated student body program fund and be disbursed for such purposes as the student group conducting the fund-raising activity shall determine: PROVIDED, That the school district shall either withhold an amount from such moneys as will pay the district for its direct costs in providing the service or otherwise be compensated for its cost for such service. Nonassociated student body program fund moneys shall not be deemed public moneys under section 7, Article VIII of the state Constitution. Notice shall be given identifying the intended use of the proceeds. The notice shall also state that the proceeds are nonassociated student body funds to be held in trust by the school district exclusively for the intended purpose. "Charitable purpose" under this section does not include any activity related to assisting a campaign for election of a person to an office or for the promotion or opposition to a ballot proposition.

Sec. 14   RCW 28A.330.080 and 1990 c 33 s 346 are each amended to read as follows:
     Moneys of such school districts shall be paid out only upon orders for warrants signed by the president, or a majority of the board of directors and countersigned by the secretary: PROVIDED, That when, in the judgment of the board of directors, the orders for warrants issued by the district monthly shall have reached such numbers that the signing of each warrant by the president personally imposes too great a task on the president, the board of directors, after auditing all payrolls and bills as provided by RCW 28A.330.090, may authorize the issuing of one general certificate to the county treasurer or district treasurer, to be signed by the president, authorizing said treasurer to pay all the warrants specified by date, number, name and amount, and the funds on which said warrants shall be drawn; thereupon the secretary of said board shall be authorized to draw and sign said orders for warrants.

Sec. 15   RCW 28A.350.010 and 1990 c 33 s 373 are each amended to read as follows:
     Except as provided in section 1 of this act, the county auditor shall register in the auditor's own office, and present to the treasurer for registration in the office of the county treasurer, all warrants of first-class districts, and all warrants of second-class districts electing to draw and issue their own warrants under RCW 28A.330.230 received from school district superintendents or district secretaries before delivery of the same to claimants.

Sec. 16   RCW 28A.350.050 and 1973 c 72 s 1 are each amended to read as follows:
     No warrant shall be drawn and issued or registered by the county auditor or district treasurer for the payment of any teacher who is not qualified within the meaning of the law of this state.

Sec. 17   RCW 28A.410.060 and 2008 c 107 s 1 are each amended to read as follows:
     The fee for any certificate, or any renewal thereof, issued by the authority of the state of Washington, and authorizing the holder to teach or perform other professional duties in the public schools of the state shall be not less than one dollar or such reasonable fee therefor as the Washington professional educator standards board by rule shall deem necessary therefor. The fee must accompany the application and cannot be refunded unless the application is withdrawn before it is finally considered. The educational service district superintendent, or other official authorized to receive such fee, shall within thirty days transmit the same to the district treasurer or treasurer of the county in which the office of the educational service district superintendent is located, to be by him or her placed to the credit of said school district or educational service district: PROVIDED, That if any school district collecting fees for the certification of professional staff does not hold a professional training institute separate from the educational service district then all such moneys shall be placed to the credit of the educational service district.
     Such fees shall be used solely for the purpose of precertification professional preparation, program evaluation, professional in-service training programs, and provision of certification services by educational service districts, in accordance with rules of the Washington professional educator standards board herein authorized.

Sec. 18   RCW 28A.530.030 and 1984 c 186 s 12 are each amended to read as follows:
     When the bonds have been sold, the county treasurer or district treasurer shall place the money derived from such sale to the credit of the capital projects fund of the district, and such fund is hereby created.

Sec. 19   RCW 28A.530.050 and 1990 c 33 s 479 are each amended to read as follows:
     Every holder of any of the bonds so issued as a bearer bond as provided in this chapter, within ten days after the owner becomes the owner or holder thereof, shall notify the district treasurer or county treasurer of the county in which such bonds are issued of his or her ownership, together with his or her full name and post office address, and the ((county)) treasurer ((of said county)) shall deposit in the post office, properly stamped and addressed to each owner of any such bonds subject to redemption or payment, a notice in like form, stating the time and place of the redemption of such bonds and the number of the bonds to be redeemed, and in case any owners of bonds shall fail to notify the treasurer of their ownership as aforesaid, then a notice mailed to the last holder of such bonds shall be deemed sufficient, and any and all such notices so mailed as aforesaid shall be deemed to be personal notice to the holders of such bonds, and at the expiration of the time therein named shall have the force to suspend the interest upon any such bonds.

Sec. 20   RCW 28A.535.060 and 1990 c 33 s 483 are each amended to read as follows:
     If bonds issued under this chapter are not sold as herein provided, the owners of unpaid warrants drawn on the county treasurer or district treasurer by such district for an indebtedness existing at the time of the adoption of the resolution mentioned in RCW 28A.535.020, may exchange said warrants at the face value thereof and accrued interest thereon for bonds issued under this chapter, at not less than par value and accrued interest of such bonds at the time of the exchange; such exchange to be made under such regulations as may be provided by the board of directors of such district.