AN ACT Relating to state and local government fiscal agents; amending RCW 43.80.100, 43.80.120, 43.80.125, 43.80.150, 39.46.020, and 39.46.030; adding a new section to chapter 43.80 RCW; and repealing RCW 43.80.110, 43.80.130, 43.80.140, and 43.80.160.

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

Sec. 1.  RCW 43.80.100 and 1984 c 7 s 48 are each amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly indicates otherwise.

(1) "Bond" has the meaning given in RCW 39.46.020.

(6) "State fiscal ((agencies)) agents" means those banks or trust companies ((as)) designated as provided in RCW ((43.80.110 and)) 43.80.120.

(3) "Cremation" means the destruction of canceled bonds or coupons by any approved method, including but not limited to, cremation facilities, incineration facilities, shredding facilities, or dissolving in acid facilities)) (7) "Treasurer" has the meaning given in RCW 39.46.020.

Sec. 2.  RCW 43.80.120 and 1969 ex.s. c 80 s 3 are each amended to read as follows:

The state finance committee ((shall)) may designate one or more responsible banks or trust companies as state fiscal ((agencies, each having a paid-up capital and surplus of not less than five million dollars)) agents. The duties of a state fiscal agent to the state and its local governments may be determined by the state finance committee and may include, without limitation, acting as authenticating agent, transfer agent, registrar, and paying agent for bonds and other obligations of the state and local governments. The state finance committee shall designate state fiscal ((agencies)) agents by any method deemed ((appropriate to)) in the best interests of ((this)) the state and its ((subdivisions.

Until successors have been appointed, the banks or trust companies named shall act as the fiscal agencies of the state of Washington in accordance with such terms as shall be agreed upon between the state finance committee and the fiscal agencies so designated. The manner and amount of compensation of the fiscal agents shall be matters specifically left for the state finance committee to determine)) local governments. On behalf of the state, the state finance committee shall enter into a contract with each designated state fiscal agent, which contract shall set forth the scope of services to be provided by the state fiscal agent and the terms and conditions, including compensation, for the provision of those services.

If no ((such)) qualified bank((s)) or trust ((companies are)) company is willing to accept ((appointment)) designation as state fiscal ((agencies)) agent, or if the state finance committee considers unsatisfactory the terms under which such bank((s)) or trust ((companies are)) company is willing so to act, the bonds and ((bond interest coupons)) other obligations normally payable ((at)) by the state fiscal ((agency,)) agent shall thereupon become payable at the state treasury or at the office of the treasurer ((or fiscal officer)) of the ((subdivision concerned)) local government, as the case may be.

Sec. 3.  RCW 43.80.125 and 1995 c 38 s 10 are each amended to read as follows:

(((1))) The state treasurer or the treasurer of a local government may appoint a state fiscal ((agencies designated pursuant to RCW 43.80.110 and 43.80.120 may be appointed by the state treasurer or a local treasurer)) agent to act as registrar, authenticating agent, transfer agent, paying agent, or other agent in connection with the issuance by the state or local government of registered bonds or other obligations pursuant to a system of registration as provided by RCW 39.46.030 ((and may establish and maintain on behalf of the state or local government a central depository system for the transfer or pledge of bonds or other obligations. The term "local government" shall be as defined in RCW 39.46.020.

(2) Whenever in the judgment of the fiscal agencies, certain services as registrar, authenticating agent, transfer agent, paying agent, or other agent in connection with the establishment and maintenance of a central depository system for the transfer or pledge of registered public obligations, or in connection with the issuance by any public entity of registered public obligations pursuant to a system of registration as provided in chapter 39.46 RCW, can be secured from private sources more economically than by carrying out such duties themselves, they may contract out all or any of such services to such private entities as such fiscal agencies deem capable of carrying out such duties in a responsible manner)).

Sec. 4.  RCW 43.80.150 and 1969 ex.s. c 80 s 6 are each amended to read as follows:

Neither the state treasurer nor the treasurer or other fiscal officer of any ((subdivision thereof)) local government shall be held responsible for funds ((remitted to the)) received by a state fiscal ((agencies)) agent. The state fiscal agent bears the risk of loss for any funds transferred to it under the fiscal agent contract.

NEW SECTION.  Sec. 5.  A new section is added to chapter 43.80 RCW to read as follows:

The state finance committee may adopt appropriate rules to carry out the purposes of this chapter, including without limitation rules relating to the responsibilities of state fiscal agents and the responsibilities of the state and local governments with respect to state fiscal agents.

Sec. 6.  RCW 39.46.020 and 2011 c 211 s 1 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Bond" means any agreement, which may or may not be represented by a physical instrument, including notes, warrants, or certificates of indebtedness, that evidences an indebtedness of the state or a local government or a fund thereof, where the state or local government agrees to pay a specified amount of money, with or without interest, at a designated time or times to either registered owners or bearers, including debt issued under chapter 39.50 RCW.

(2) "Host approval" means an approval of an issue of bonds by an applicable elected representative of the state or local government, having jurisdiction, for purposes of section 147(f)(2)(A)(ii) of the internal revenue code, over the area in which a facility is located that is to be financed with bonds issued by an issuer that is not the state or a local government.

(3) "Local government" means any county, city, town, special purpose district, political subdivision, municipal corporation, or quasi-municipal corporation, including any public corporation or instrumentality created by such an entity.

(4) "Obligation" means an agreement that evidences an indebtedness of the state or a local government or a fund thereof, other than a bond, and includes, but is not limited to, conditional sales contracts, lease obligations, and promissory notes.

(5) "State" includes the state, agencies of the state, and public corporations and instrumentalities created by the state or agencies of the state.

(6) "Treasurer" means the state treasurer, county treasurer, city treasurer, or ((treasurer)) other officer responsible for treasury functions of any other ((municipal corporation)) local government.

Sec. 7.  RCW 39.46.030 and 1995 c 38 s 7 are each amended to read as follows:

(1) The state and local governments are authorized to establish a system of registering the ownership of their bonds or other obligations as to principal and interest, or principal only. Registration may include, without limitation: (a) A book entry system of recording the ownership of a bond or other obligation whether or not a physical instrument is issued; or (b) recording the ownership of a bond or other obligation together with the requirement that the transfer of ownership may only be effected by the surrender of the old bond or other obligation and either the reissuance of the old bond or other obligation or the issuance of a new bond or other obligation to the new owner.

(2) The system of registration shall define the method or methods by which transfer of the registered bonds or other obligations shall be effective, and by which payment of principal and any interest shall be made. The system of registration may permit the issuance of bonds or other obligations in any denomination to represent several registered bonds or other obligations of smaller denominations. The system of registration may also provide for any writing relating to a bond or other obligation that is not issued as a physical instrument, for identifying numbers or other designations, for a sufficient supply of certificates for subsequent transfers, for record and payment dates, for varying denominations, for communications to the owners of bonds or other obligations, for accounting, canceled certificate destruction, registration and release of securing interests, and for such other incidental matters pertaining to the registration of bonds or other obligations as the issuer may deem to be necessary or appropriate.

(3)(a) The state treasurer or ((a local)) the treasurer of a local government may appoint (i) one or more of the state fiscal ((agencies appointed from time to time by the state finance committee in accordance with chapter 43.80 RCW)) agents or (ii) other fiscal agents to act with respect to an issue of its bonds or other obligations as authenticating ((trustee)) agent, transfer agent, registrar, and paying or other agent and specify the rights and duties and means of compensation of any such fiscal ((agency)) agent so acting. ((The state treasurer or local treasurers may also enter into agreements with the fiscal agency or agencies in connection with the establishment and maintenance by such fiscal agency or agencies of a central depository system for the transfer or pledge of bonds or other obligations.))

(b) The county treasurer as ex officio treasurer of a special district shall act as fiscal agent for such special district, unless the county treasurer appoints either one or more of the state fiscal ((agencies appointed from time to time by the state finance committee in accordance with chapter 43.80 RCW)) agents or other fiscal ((agents)) agent selected ((in a manner consistent with RCW 43.80.120)) by the county treasurer to act with respect to an issue of ((its)) the special district's bonds or other obligations as authenticating ((trustee)) agent, transfer agent, registrar, and paying or other fiscal agent and specify the rights and duties and means of compensation of any such fiscal ((agency)) agent.

(4) Nothing in this section precludes the issuer, or a trustee appointed by the issuer pursuant to any other provision of law, from itself performing, either alone or jointly with other issuers, fiscal agencies, or trustees, any transfer, registration, authentication, payment, or other function described in this section.

(1) RCW 43.80.110 (Appointment of fiscal agencies—Location—Places for payment of bonds) and 1983 c 167 s 117, 1982 c 216 s 1, & 1969 ex.s. c 80 s 2;

(2) RCW 43.80.130 (Receipts—Payment procedure—Cremation—Certificate of destruction) and 2009 c 549 s 5157 & 1969 ex.s. c 80 s 4;

(3) RCW 43.80.140 (Notice of establishment of fiscal agencies—Publication—Bonds and coupons paid at fiscal agencies) and 1969 ex.s. c 80 s 5; and

(4) RCW 43.80.160 (Return of funds remitted to redeem bonds and coupons which remain unredeemed) and 1969 ex.s. c 80 s 7.

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