HOUSE BILL REPORT

HB 1129

BYRepresentatives Cooper, Haugen, Spanel, Sutherland, Nealey, Hine, Madsen, Peery, Ferguson, Nutley, Rayburn, P. King and Holm

Changing provisions relating to the investment of public funds.

House Committe on Local Government

Majority Report:  Do pass substitute.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Ferguson, Hine, Madsen, Nealey, Nelson, Nutley, Rayburn, L. Smith and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT MARCH 6, 1987

BACKGROUND:

Counties are authorized to invest public moneys in a variety of investments, including federal bonds or notes, savings or time accounts of public depositories, and bankers acceptances purchased on the secondary market.

Cities and towns are authorized to invest public money in federal bonds and notes, state bonds or warrants, general obligation or utility revenue bonds of its own or another city or town in the state, its own local improvement district bonds, and any other investment authorized for any other taxing district in the state.

The state is authorized to invest or deposit its funds in public depositories, federal bonds and notes, state and local bonds and warrants, bankers acceptances purchased on the secondary market, negotiable certificates of deposit with commercial or mutual savings banks doing businesses in the state, and commercial paper.

SUMMARY:

SUBSTITUTE BILL:  The specific investments for public moneys held by counties, cities or towns are deleted and they are referenced to those investments in which the state may invest.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The citations to the appropriate state laws were made.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Stan Finkelstein, Association of Washington Cities; and Doug Lasher, Treasurer, Clark County.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The bill would provide a wider scope of investment alternatives consistent with prudent concern for the safety of investments.

House Committee - Testimony Against:      None Presented.