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SUBSTITUTE SENATE BILL NO. 4665
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AS AMENDED BY THE HOUSE
C 160 L 86
State of Washington 49th Legislature 1986 Regular Session
By Senate Committee on Financial Institutions (originally sponsored by Senators Moore, Sellar and Bottiger)
Read first time 2/5/86.
AN ACT Relating to out-of-state deposit of public funds; amending RCW 39.58.080; and adding a new section to chapter 39.58 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. Section 8, chapter 193, Laws of 1969 ex. sess. as last amended by section 14, chapter 177, Laws of 1984 and RCW 39.58.080 are each amended to read as follows:
Except for funds deposited pursuant to a fiscal agency contract with the state fiscal agent or its correspondent bank, no public funds shall be deposited in demand or investment deposits except in a qualified public depositary located in this state or as otherwise expressly permitted by statute: PROVIDED, That the commission, upon good cause shown, may authorize a treasurer to maintain a demand deposit account with a banking institution located outside the state of Washington solely for the purpose of transmitting money received to financial institutions in the state of Washington for deposit for such time and upon such terms and conditions as the commission deems appropriate.
NEW SECTION. Sec. 2. A new section is added to chapter 39.58 RCW to read as follows:
With the written approval of the commission, state and local governmental entities may establish demand accounts in out-of-state and alien banks in an aggregate amount not to exceed one million dollars. No single governmental entity shall be authorized to hold more than fifty thousand dollars in one demand account.
The governmental entities establishing such demand accounts shall be solely responsible for their proper and prudent management and shall bear total responsibility for any losses incurred by such accounts. Accounts established under the provisions of this section shall not be considered insured by the commission.
The state auditor shall annually monitor compliance with this section and the financial status of such demand accounts and report the findings to the appropriate committee of the legislature.