SENATE BILL REPORT

SHB 1129

BYHouse Committee on Local Government (originally sponsored by Representatives 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

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 30, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, McCaslin, Zimmerman.

Senate Staff:Barbara Howard (786-7410); Eugene Green (786-7405)

                  March 30, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 30, 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:

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.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The section amending investment powers of cities and towns is deleted.

A new provision is added to allow county treasurers to recover the costs of administering the local investment pool for other units of government.

Fiscal Note:      none requested

Senate Committee - Testified: Don Lasher, Clark Count Treasurer; Sharon Shrader, Kitsap County Treasurer; Stan Finkelstein, AWC