SENATE BILL REPORT

SHB 651

BYHouse Committee on Local Government (originally sponsored byRepresentatives Zellinsky, Chandler, Haugen, Cooper, Hine, Bumgarner, Nealey, L. Smith and P. King) 

Revising the authorized investment of public funds.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 24, 1987

Senate Staff:Barbara Howard (786-7410); Walt Corneille (786-7452)

AS OF MARCH 19, 1987

BACKGROUND:

County treasurers and the State Treasurer are authorized to deposit or invest public funds in their possession in a variety of investments including: (1) deposits with qualified public depositories, which are designated financial institutions; (2) various federal, or federal corporation, notes, certificates or bonds; and (3) bankers' acceptances purchased on the secondary market. The State Treasurer additionally may invest such funds in: (1) state, county, municipal, or school district bonds, or in warrants of any taxing district in the state; (2) negotiable certificates of deposit of any national or state commercial bank, mutual savings bank, or savings and loan association; and (3) commercial paper.

Last year legislation was enacted allowing county treasurers and the State Treasurer to pool moneys of local governments and to invest these moneys.

SUMMARY:

The investment powers of county treasurers and the State Treasurer are expanded to include guaranteed interest contracts, deferred adjustment contracts, or annuities, which are guaranteed under the Washington Insurance Guaranty Association Act or the Washington Life and Disability Insurance Guaranty Association Act.

The county treasurer is authorized to deduct amounts from investment earnings on pooled moneys to pay for the initial administrative costs of creating the pool.

Fiscal Note:    none requested